BOGOTA (Reuters) - Colombia's state-owned oil company Ecopetrol ECO.CN said on Wednesday it signed an agreement with Canada's Parex Resources to boost reserves and production at a field in the country's central Santander province, a project that could require up to $700 million.
The deal could allow output at the Aguas Blancas field to increase to 10,000 barrels a day by 2020, Ecopetrol said.
The agreement forms part of Ecopetrol's strategy to boost production and investment while the global price of oil has fallen in the past 12 months.
The first three-year phase would require investments of about $61 million from Parex PXT.TO, the statement said.
"If successful, total investment could reach $700 million and split 60 percent by Parex and 40 percent by Ecopetrol," the statement said.
Reporting by Helen Murphy; Editing by Diane Craft