M&P Gets A Good Price For Hocol, More Deals Ahead

Independent French explorer Maurel et Prom (M&P) has agreed to sell its Columbian oil production assets to Colombia's state-owned Ecopetrol, in a move that that sent the formers shares up by 8% on March 10. M&P will sell its Hocol Colombia subsidiary in a share purchase agreement (SPA) that will see Ecopetrol pay US$748mn for the company, and which will give M&P the necessary capital to put a number of delayed projects back on line. The sale of Hocol is in line with M&P's recently stated near-term strategy to divest developed assets in order to finance expansion of its core exploration and development activities, and Chairman Jean-Francois Henin said that 'the asset sale will allow us to…eventually become more active in the market.'

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