Ethemba to buy 45% interest in Avgol

UK-based Ethemba will buy 45% interest in Avgol held by Israel Petrochemical Enterprises (IPE) for a consideration of $106.8m, following the approval from IPE’s board of directors. IPE plans to use the sales proceeds to clear its $500m debt. It will also get a payment of $16m depending upon next year's financial results, reported Platts. The Israeli company will retain 21% interest in Avgol and the remaining will be traded on Tel Aviv Stock Exchange. IPE has plans to invest about $71m in new production lines in China and the US, and expand business into India. Ethemba is a private equity firm based in London, while Avgol Nonwoven Industries is a manufacturer and supplier of ultra lightweight and top quality nonwoven fabrics.

Ecopetrol discovers new oil field

Ecopetrol announced the discovery of crude oil at the Aullador-I exploratory well located in Colombia’s Santander Province. Initial tests at the well, drilled to a depth of 11,393ft, produced 300 barrels of crude of 24 degrees API per day on the natural flow. The company said the Aullador-I exploratory well indicated low water cut and sediment of just 0.1% and a gas-oil ratio of 200. Ecopetrol plans to carry out extensive testing in the following months to define the potential of the discovery. The well is part of the Playon exploration and production agreement signed between the National Hydrocarbons Agency and Ecopetrol in April 2008. Colombia-based Ecopetrol owns two refineries in Colombia and a majority of oil and multiuse pipelines in the nation. It is also involved in exploration and production activities in Brazil, Peru and the US (Gulf of Mexico).