Columbus currently owns 50% of the joint venture, located in the South West Peninsula of Trinidad, through its subsidiary Leni Trinidad Limited (LTL) while Touchstone owns the rest via its subsidiary, Primera Oil and Gas Limited.
Under a proposed deal, LTL would become the sole owner of the Icacos field by purchasing Primera’s holding for US$500,000.
In a statement on Monday, Columbus said while the deal is subject to a definitive sale and purchase agreement and regulatory approvals, it is “confident it can work with Touchstone to complete the relevant paperwork and take over operatorship in the second quarter of 2018”.
"Today's news is another step in our strategy to build a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad,” said Columbus chairman, Leo Koot.
He added: “The SWP includes multiple prospects of 20-400 million barrels in place, which we intend on exploring, in addition to reactivating and maximising production from the Bonasse oilfield and the Icacos oilfield.”
READ: Columbus Energy successfully restructures BOLT transaction in South West Peninsula of Trinidad on materially improved terms
The group does not expect to make any upfront payments for the Icacos purchase. It will pay the consideration over time until January 2021 through Primera receiving the net revenue it would have received had it retained its interest.
In the event of increased production, Primera will also receive 25% of any net revenue above the current baseline.
Columbus will fund operational activities on Icacos using existing cash resources.