BOGOTA, Colombia, April 27, 2016 /PRNewswire/ --
- The adjustments to Ecopetrol's 2016 Investment Plan are part
of the measures taken by Ecopetrol to navigate the low crude oil
price environment, ensure capital discipline and focus on cash
generation and the financial sustainability of the Ecopetrol
Group.
- In 2016, the capital expenditures will be between
US$3.0 and US$3.4 billion.
- With this level of investment, the Ecopetrol Group expects
to produce approximately 715 thousand barrels of petroleum
equivalent per day during 2016.
- The Ecopetrol Group will focus its investments on the most
profitable exploration and production opportunities and on
completing the transportation and refinery projects currently under
way.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the
"Company") reports that in light of the current low crude oil price
environment, and with the aim of protecting the Company's cash flow
and financial sustainability, its Board of Directors approved an
adjustment to the 2016 Investment Plan, from US$4.8 billion, as approved on December 2015, to a range between US$3.0 and US$3.4 billion.
2016 is a year of transition for the Ecopetrol Group, during
which investments will be made to finish transportation projects
and complete the start up the new Cartagena Refinery. Starting in
2017, the Company will dedicate a larger portion of its investments
to the exploration and production segments.
In exploration and production, resources will be allocated to
the development of principal fields and the assessment of
exploratory findings. 93% of funds will be invested in Colombia and the rest overseas.
Investments by segment are as follows:
2016 Investment Plan
of Ecopetrol S.A., Affiliates and Subsidiaries
Figures (in US$
millions)
|
Total
|
3,000
|
Business
areas
|
2,966
|
Exploration
|
282
|
Production
|
1,116
|
Transportation
|
433
|
Refining and
Petrochemicals
|
1,135
|
Other
|
34
|
The resources required for the investment plan will be obtained
from internal cash generation, divestment of non-strategic assets
and financing. Financing needs for 2016 remain within the range of
US$1.5 billion and US$1.9 billion for the Ecopetrol Group.
Ecopetrol is the largest company in Colombia and is an integrated oil & gas
company; it is among the top 50 oil companies in the world and
among the four top ones in Latin
America. Besides Colombia -
where it generates over 60% of the national production - it has
exploration and production activities in Brazil, Peru
& the US (Gulf of Mexico).
Ecopetrol owns the largest refinery in Colombia and most of the pipeline and
multi-product pipeline network in the country, and is significantly
increasing its participation in bio-fuels.
This release contains statements that may be considered
forward looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933 and Section 21E of the U.S. Securities
Exchange Act of 1934. All forward-looking statements, whether made
in this release or in future filings or press releases or orally,
address matters that involve risks and uncertainties, including in
respect of the Company's prospects for growth and its ongoing
access to capital to fund the Company's business plan, among
others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
& gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, the
Company's competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
For further information, please
contact:
Head of Corporate Finance and Investor
Relations
MarĂa Catalina Escobar
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
e-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.