Frontera Energy Corporation (TSX: FEC) announced a net loss from continuing operations of $663 million USD for the fourth quarter of 2025. This figure includes a non-cash impairment of $603 million USD related to the divestment of the company’s Colombian exploration and production (E&P) portfolio and a $17 million USD impairment regarding its Guyana interest. The company has scheduled a special meeting of shareholders for April 30, 2026, to vote on the divestiture of these assets to Parex Resources Inc. (TSX: PXT).

The definitive agreement for the divestiture establishes a firm value of approximately $750 million USD. The transaction includes up to $525 million USD in equity consideration. Following the completion of the sale, Frontera Energy Corporation intends to distribute approximately $470 million USD to shareholders, which equates to approximately CAD $9.18 per share. This distribution includes a $25 million USD contingent payment.

The divestment marks a strategic shift for the Calgary-based company as it transitions into an infrastructure-focused business model. The new structure is anchored by interests in the Oleoducto de los Llanos Orientales S.A. (ODL) pipeline and the Sociedad Portuaria Regional Puerto Bahía S.A. maritime terminal. For the full year of 2025, the infrastructure segment reported an adjusted EBITDA of $116.6 million USD and a distributable cash flow of $76.7 million USD.

“Frontera now enters its next phase as a more focused, cash-generative infrastructure company, well positioned to deliver durable returns.” — Gabriel de Alba, Chairman of the Board of Directors, Frontera Energy Corporation

A central component of this new strategy is the development of a potential liquefied natural gas (LNG) regasification project in partnership with Ecopetrol S.A. (NYSE: EC, BVC: ECOPETROL). Puerto Bahía has secured a take-or-pay agreement with Ecopetrol S.A., subject to certain conditions, for the project. The initiative is planned in two phases, starting with an initial capacity of approximately 126 million cubic feet per day (MMcfd), with projections to reach at least 300 MMcfd by 2029.

In terms of operational metrics for 2025, Frontera reported an average production of 39,011 barrels of oil equivalent per day (boed). The company recorded an operating EBITDA of $308 million USD for the year. Production costs averaged $9.23/boe, while energy costs were $5.49/boe and transportation costs reached $12.00/boe.

The year-end independent reserves assessment, conducted by DeGolyer and MacNaughton Corp, placed the company’s gross reserves at 94.4 million Boe for the 1P category and 133.8 million Boe for the 2P category. All of the company’s booked reserves as of December 31, 2025, are located within Colombia.

On the environmental and social front, the company reported that 70,162 tons of CO2 equivalent were absorbed through environmental compensation areas in 2025. Additionally, 35% of operational water was reused during the same period. The company also noted a total of $95.1 million USD in purchases from local goods and services suppliers.

Upon the anticipated closing of the arrangement in the second quarter of 2026, Frontera Energy will retain its midstream assets in Colombia and certain non-Colombian interests, including those in Guyana. The company expects to allocate $25 million USD from the sale proceeds to further fund its infrastructure business and strategic growth projects.

The affirmation of TGI’s ratings reflects a connection to its parent company, Grupo Energia Bogotá S.A. E.S.P. (GEB) (OTCMKTS: GEB; BVC: GEB), based on what Fitch describes as medium-to-high operational and strategic incentives for GEB to support TGI. The negative outlook is consistent with Fitch’s outlook on the sovereign rating for Colombia (BB+/negative), as TGI’s cash flow is generated almost entirely within the country.

The ratings also consider the company’s position in the Colombian natural gas transportation sector, regulatory risk exposure, and capital structure. Fitch noted that the ratings also account for re-contracting risk due to a lower supply of long-term gas supply contracts.

Key Rating Drivers

Parent-Subsidiary Linkage: Fitch’s analysis of the relationship between GEB and TGI indicates a high strategic linkage, a medium operational linkage, and a low legal relationship. This is assessed using a “top-down minus one” approach, where a subsidiary’s standalone credit profile (SCP) is considered one notch below that of a stronger parent. In this case, TGI’s SCP is deemed susceptible to Colombia’s operating environment due to its domestic cash flow generation. The ratings are equalized because TGI’s SCP is one notch lower than GEB’s.

GEB’s incentives to support TGI include its nearly 100% ownership and TGI’s substantial financial contribution, which accounted for approximately 45% of GEB’s operating EBITDA at year-end 2024. Fitch expects GEB to continue its strategic focus on investing in Colombia’s midstream businesses, such as TGI.

Change in Contract Dynamics: The availability of long-term gas supply contracts has diminished, affecting commercial contracting dynamics. Regulatory changes have introduced more flexibility in gas commercialization, enabling short-term transportation contracts that align with the terms of supply agreements. This has led to lower contracted capacity for TGI, but Fitch anticipates the company will be able to renew contracts with its customers. These customers are considered part of the structural demand derived from the cities of Bogotá and Medellín, as well as the Barrancabermeja Refinery operated by Ecopetrol S.A. (NYSE: EC; BVC: ECO).

As of June 2025, TGI’s contracted capacity had an average life of 2.6 years. Fitch projects that transported volume will remain at approximately 460 million cubic feet per day (Mcfpd) between 2026 and 2027, consistent with current volumes. The average life of contracts is expected to continue decreasing as legacy agreements are renewed with shorter maturities.

Business Profile: TGI is a natural gas transporter in Colombia, with a 55% market share of transported volume. Its scale and geographic footprint provide predictability to its cash flow generation. The company’s customer base is moderately concentrated, with four distribution and marketing customers representing about 81% of revenues as of June 2025. Residential and industrial sectors accounted for 93% of revenues, providing a stable consumption pattern.

Financial Discipline and Capital Expenditures: Fitch anticipates TGI will maintain its financial discipline. EBITDA leverage is projected to peak at 2.3x at year-end 2025, influenced by lower regulatory revenues from reduced contracted volumes. Leverage is expected to decline to around 2.0x in 2026 following the implementation of a new tariff scheme. The analysis assumes TGI will fund both maintenance and expansionary capital expenditures without increasing debt levels and will maintain a dividend payout ratio of 90% of the previous year’s net income. The company has also employed hedging strategies to reduce exposure to the US dollar.

TGI is considering several projects to ensure a reliable gas supply to the interior of the country, including pipeline bidirectionality, infrastructure expansion, and a new pipeline connection in La Guajira to a Floating Storage and Regasification Unit (FSRU). While the La Guajira project may pressure free cash flow in 2026 and 2027, it is expected to strengthen the gas supply network.

Peer Analysis: TGI’s credit profile is categorized as investment-grade, with predictable EBITDA generation consistent with natural gas transportation companies such as Transportadora de Gas del Peru, S.A. (TGP) (BVL: TGP). TGI is also positioned against other regional peers in the natural gas distribution and liquefied natural gas sectors, including Gas Natural de Lima y Callao S.A. (BVL: CNL), Promigas S.A. E.S.P. (BVC: PROMIGAS), and GNL Quintero S.A.

TGI is rated one notch above Promigas due to its more conservative capital structure, with leverage below 3.0x compared to Promigas’s range of 3.5x to 4.0x. TGI’s rating is one notch below TGP, as TGP’s revenue is derived from long-term ship-or-pay contracts with a remaining average life of approximately six years, while TGI’s average contract length is 2.8 years.

The ratings also reflect the strategic and operational incentives for GEB to support TGI. In 2007, GEB provided a $370 million USD shareholder loan to TGI, which was repaid in 2023. Fitch believes that GEB could provide further support if necessary.

Liquidity and Debt Structure

As of June 2025, TGI’s cash on hand was approximately $594 billion COP, an increase from $476 billion COP in December 2024. During the first quarter of 2025, the company reduced the interest rate on its “Club Deal” facility and prepaid $50 billion COP. The Club Deal loan, which refinanced an intercompany loan from GEB in 2023, is the company’s only significant debt maturity until December 2027.

Natural gas well. (Photo credit: Ken Doerr)

Fitch affirmed Ecopetrol S.A.‘s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BB+’ and revised the outlook to negative from stable, reflecting the change in the rating outlook of the Republic of Colombia’s IDR (BB+/Negative).

The strong linkage to the sovereign reflects Colombia’s credit profile. The ratings also reflect the Colombian government’s significant incentive to support Ecopetrol in the event of financial distress. This support stems from Ecopetrol’s strategic importance as a key liquid fuel supplier in Colombia and owner of 100% of the country’s refining capacity.

Fitch affirmed Interconexion Electrica S.A. E.S.P.’s (ISA) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BBB’ and revised the outlook to negative from stable, in line with Ecopetrol. ISA’s credit profile matches its ‘BBB’ rating and is not limited by the credit profile of its controlling owner, Ecopetrol. According to Fitch’s “Parent and Subsidiary Linkage Rating Criteria,” because Ecopetrol owns more than 51% of ISA, linkage should be considered in the assessment. The presence of regulatory ring-fencing mechanisms, material minority shareholders, and a track record of strong governance practices prevents Ecopetrol’s capacity to extract value from its stronger subsidiary.

Fitch views ISA’s funding and cash management policies as highly autonomous from Ecopetrol, expects ISA to maintain its independence, positively reflected in the ratings. Consequently, ISA’s ratings result from a ‘consolidate plus two’ approach to an IDR of ‘BBB’. Any changes in ISA’s corporate governance, business, or financial strategy may exert downward pressure on the company, particularly in the event of a structural increase in its dividend payout ratio.

Fitch affirmed Oleoducto Central S.A. (OCENSA)‘s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BB+’ and revised the outlook to negative from stable, in line with Ecopetrol. OCENSA’s ratings reflect its linkage with Ecopetrol’s credit profile, the largest crude oil producer in Colombia and OCENSA’s main off-taker. OCENSA’s operations are integral to Ecopetrol’s core business due to operational synergies. Ecopetrol relies heavily on OCENSA’s infrastructure to transport crude oil from production fields to refineries and export terminals. Fitch considers OCENSA strategically important for Ecopetrol because it transported 82% of Ecopetrol’s crude oil production in 2Q24.

Fitch affirmed A.I. Candelaria (Spain), S.A.’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BB’ and revised the outlook to negative from stable, in line with OCENSA. A.I. Candelaria’s outstanding notes will remain structurally subordinated to OCENSA’s outstanding $400 million USD notes. As the holding company, A.I. Candelaria depends on dividends from OCENSA to service its obligations. Therefore, a substantial leverage increase at OCENSA could increase the structural subordination of A.I. Candelaria’s creditors.

This risk is mitigated by OCENSA’s record of stable dividend distributions and A.I. Candelaria’s right to veto changes to OCENSA’s dividend policy and capex plans above $100 million USD. Fitch believes the projected dividend stream will be more than sufficient to cover interest expense and principal payments on A.I. Candelaria’s outstanding notes.

Fitch affirmed Grupo Energia Bogotá S.A. E.S.P. (GEB)‘s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BBB’ and revised the outlook to negative from stable, reflecting the change to the rating outlook of the IDR of Bogotá (BB+/Negative). Fitch assesses GEB’s Standalone Credit Profile (SCP) at ‘bbb’. GEB operates independently and autonomously, positively affecting its ratings.

Fitch believes regulatory ring-fencing mechanisms, material minority shareholders, and strong governance practices reduce the parent’s capacity to extract value from its stronger subsidiary. Under Fitch’s “Parent-Subsidiary Rating Criteria,” these factors lead Fitch to rate GEB two notches above Bogotá’s consolidated profile.

Fitch affirmed Transportadora de Gas Internacional S.A. ESP (TGI)‘s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BBB’ and revised the outlook to negative from stable, in line with GEB. Fitch caps TGI’s SCP at Colombia’s ‘BBB-‘ country ceiling, as 100% of the company’s 2024 EBITDA was generated in Colombia.

TGI’s ratings receive a one-notch uplift considering GEB’s medium-to-high operational and strategic incentives to support TGI, equalizing their ratings, per Fitch’s Parent-Subsidiary Linkage Criteria. These incentives reflect GEB’s nearly 100% ownership of TGI and the substantial financial contribution to GEB of approximately 45% of GEB’s operating EBITDA. Fitch also expects investment in Colombia and midstream businesses, such as TGI’s, to remain a strategic focus for GEB’s future growth.

Fitch affirmed Empresas Publicas de Medellín E.S.P. (EPM)‘s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BB+’ and revised the outlook to negative from stable, reflecting the change to the rating outlook of Medellín’s IDR (BB+/Negative). The linkage reflects the financial relevance of the company to Medellín, the lack of effective documentation that limits dividend distribution, and the city’s influence on the company’s administration and operations. EPM’s distributions contribute an average of 20% or more of government revenues and a material 20%-30% of the city’s investment budget.

Fitch affirmed Enel Colombia S.A. E.S.P.’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at ‘BBB’ and revised the outlook to negative from stable, reflecting the change to the rating outlook of the Republic of Colombia’s IDR. The company is headquartered in Colombia (BB+/Negative), and its operation in this country represented approximately 90% of its consolidated EBITDA accumulated for the LTM ended September 2024.

Fitch caps Enel Colombia’s SCP at Colombia’s ‘bbb-‘, given the substantial cash flow generation from the country. Cash flows from the operations in Panama (BB+/Stable), Guatemala (BB/Positive), and Costa Rica (BB/Positive), exceed the company’s hard currency debt service coverage for the next 12 months by more than 1.5x.

Hidroituango hydroelectric dam. (Photo credit: EPM)

The companies are owned by Statkraft’s subsidiaries: Enerfín Sociedad de Energía S.L.U and Enerfin Enervento Exterior S.L. The portfolio’s projects are located in the departments of La Guajira, Sucre, Córdoba, Caldas, and Magdalena.

If completed, this acquisition would represent significant progress toward Ecopetrol S.A.’s decarbonization and energy transition goals, particularly the target of incorporating 900 MW of renewable self-generation capacity by 2025, in line with its 2040 Strategy. Additionally, the transaction would support the generation of low-emission energy under competitive conditions for the Ecopetrol Group’s self-consumption, reducing exposure to spot market purchases and contributing to the diversification of the company’s energy matrix.

Photo credit: Ecopetrol/Flickr.

Although hydroelectric power leads Colombia’s electricity generation, the country relies on gas-fired electricity for baseload supply, especially during droughts and high-demand periods. Colombia has historically been largely self-sufficient in natural gas, but imports rose to almost 20% of consumption in 2024 because of lower-than-usual hydroelectricity generation, domestic gas production issues, and geographical imbalances.

Industry associations project that the structural deficit in natural gas will widen, with domestic gas production capacity only meeting 88% of projected consumption in 2025 and 70% in 2026. Colombia’s main gas transporters, Transportadora de Gas Internacional S.A. ESP (TGI; BBB/Negative) and Promigas S.A. E.S.P. (BBB-/stable), are investing heavily in natural gas transportation infrastructure to support increasing gas imports and new onshore gas projects and to improve connectivity within the country.

Courtesy: Fitch Ratings.

Retail gas prices have risen sharply in some regions. In February 2025, Vanti (AAA(col)/stable) announced a 36% price hike in Bogotá, while Empresas Públicas de Medellín (EPM; BB+/negative) hiked prices by 21% in Medellín. Other gas distributors, such as Gases del Caribe (Gascaribe; AAA(col)/stable), Surtidora de Gas del Caribe (Surtigas; AAA(col)/Stable) and Gases de Occidente (GDO; AAA(col)/stable), which supply gas to Cartagena, Barranquilla and Cali, respectively, have maintained domestic supply and moderated price adjustments by leveraging access to smaller fields in northern and southwestern Colombia.

Colombia’s proven gas reserves are declining, with projections indicating only six years of supply remaining by 2025 at the current production rate of 965 giga British thermal units (GBtu) per day. Upstream gas production is dominated by two major producers, Ecopetrol S.A. (BB+/Negative) with around 58% market share, and Canacol Energy Ltd. (NR) with 17%. However, their production rates have fallen in recent years. Total production at the key Cusiana, Cupiagua, and La Guajira fields has dropped to 425 GBTU per day from 550 GBTU per day over the past year.

The decline in domestic gas production, which partly reflects geological constraints, has been accelerated by government policies that deter investments in the oil and gas industry. In 2023, Colombia became the first Latin American country to sign the Fossil Fuel Non-Proliferation Treaty at COP28, and the government announced it would stop issuing new oil drilling and exploration contracts.

Gas distributors in Colombia benefit from a regulated tariffs regime that allows supply costs to be transferred to end users. However, rising energy costs could increase working capital needs and heighten political pressures for energy companies along the value chain.

Even with regulatory measures in place to protect margins, Colombia’s electricity distribution companies’ finances are being strained by rising energy prices experienced in the past year and political intervention. The sector has faced financial challenges due to restrictions on tariff increases imposed by the local regulator since the pandemic and the government’s fiscal challenges, which have resulted in delayed subsidy payments. EPM will likely have to financially support its subsidiary Afinia (AAA(col)/stable), which has been particularly affected by payment delays.

Photo credit: Ken Doerr.

The new standalone rating is two notches above junk and aligns with the big three rating agency’s sovereign rating for Colombia.

“The increase in the stand-alone credit profile is a recognition of the company’s stable operating performance, the soundness of its business plan, its solid financial profile achieved through its debt management strategy, and the reasonableness of the dividend policy it has implemented,” said Ecopetrol in a statement about the change.

Among the specific factors noted by Fitch Ratings are Ecopetrol’s stable credit profile and debt situaion. The company had a debt-to-earnings (EBITDA) ratio of 1.3x and a debt-to-reserves ratio of $8 USD per barrel at the close of the third quarter. Both of these figures have improved during the past two years, noted Ecopetrol.

READ MORE: Ecopetrol Reports Big Jump with Profits of $866 Million in the Third Quarter

Ecopetrol has also further shored up its balance sheet by procuring a $665 million USD contingent line of credit with Scotiabank and Mizuho that would give it more balance-sheet protection against oil prices that fall even further or other challenging economic conditions that cut into revenue.

For the quarter, the Bogotá-based company reported earnings (EBITDA) of 5.7 trillion pesos and hit an average production of 724,000 barrels of oil equivalent per day, the highest output in two-and-a-half years, according to company figures.

“These solid financial results,” said company CEO Felipe Bayón Pardo in a statement, “were achieved due to the good operating performance of all segments…In summary, we were able to capture the profit coming from the higher international oil prices.”

While prices have since retreated significantly, the price of the benchmark Brent crude hit $86 USD per barrel in September, the highest level since 2014.

Through three quarters, Ecopetrol’s year-to-date net profits hit almost 8.91 trillion pesos (2.78 billion USD) and EBITDA reached nearly 23.76 trillion pesos (some $7.4 billion USD), the best results for the Bogotá-based company over the same period in the past four years.

Bayón in part also credited higher crude demand from Asia for the recent jump, with sales to the region accounting for a full 45% of the overall sum in the quarter, up from just 25% in the third quarter of 2017.

The uptick in production also helped, said Bayón. The increase “was possible due to the positive results from our drilling campaign and the greater demand for natural gas in the thermal power and industrial sectors,” he said. “At the end of the quarter, we had drilled 421 development wells and had 41 rigs in operation.”

The company is continue to prioritize its production and discovery agenda, investing $789 million USD during the quarter while drilling five more exploratory wells. This brought the number of exploratory wells drilled in 2018 to nine, although it will need to increase this investment figure in the fourth quarter to hit its stated annual investment goal.

“These results are in line with the goal of drilling 12 wells in 2018,” said Bayón, “and materialize our strategy of building a solid base of assets for the company’s future sustainability.”

Ecopetrol’s investment also included the joint exploration bid the company won, along with BP Energy and CNOOC Petroleum, in the lucrative Pau-Brasil block within the Santos Basin off the coast of Brazil.

At the same time, Ecopetrol largely sidestepped major fallout from a labor dispute with its USO Petroleum Workers Union by signing a new contract through 2022. Though there was a brief strike by the workers, the collective bargaining process proceeded quickly enough to secure a deal before large-scale disruption occurred.

“The New Collective Bargaining Agreement is aligned with the business strategy that seeks to maintain efficiency, capital discipline, and collective labor in the new phase of Ecopetrol’s growth,” said Bayón. “We believe it will contribute positively to the workers wellbeing and the country’s development.”

The chief executive also praised results at Ecopetrol’s two refineries in Cartagena on the Caribbean coast and Barrancabermeja in the department of Santander. Together, they “achieved a new historic maximum of 380,000 barrels of stable throughput per day,” said Bayón.

The company was able to record these figures while at the same time further reducing the sulfur content within the diesel fuel it distributes within Colombia. In response to ongoing complaints about air quality, particularly in Medellín, Ecopetrol launched a campaign to cut sulfur, and in the third quarter it made significant progress, bringing the particulate levels near U.S. standards.

“Ecopetrol remains committed to generating value, and caring for environment, safe operations, ethics and transparency,” said Bayón. “Maintaining positive results and growing profitably will remain our focus as we continue to operate as a sustainable company that generates value for its shareholders.”

The Bogotá-based company said that it may draw upon the funds to strengthen its “liquidity position in the face of eventual growth opportunities” or mitigate an “unexpected” fall in crude prices. It may also use the credit to “reduce refinancing specific needs in the coming years.”

Some $430 million USD of the two-year “committed line of credit” facility comes from Canada-based Scotiabank, with Mizuho Bank of Tokyo accounting for the remaining $235 million USD.

“Under this type of facility, known as a committed line of credit, Scotiabank and Mizuho Bank agree to disburse funds as and when Ecopetrol requires them, under terms and conditions previously agreed between the parties,” said Ecopetrol in a statement. “This facility would increase the company’s indebtedness only when the disbursements are made.”

According to Ecopetrol, the contingent line of of credit has a two-year availability period for disbursements, subject to two conditions: “principal amortizable upon maturity after a five-year term as from the signing date of the agreement” and an “interest rate of six-month LIBOR + 125 basis points and an annual fee of 30 basis points on principal not disbursed during the availability period.”

These results were tempered slightly by pipeline attacks and local protests that led to lower output as well as a major oil spill that forced the closure of a well in Santander and significant resources devoted to managing both the environmental cleanup and reputational fallout.

This led to the Bogotá-based company averaging just 701,000 barrels per day of production in the quarter, a number below its goal for the year.

Despite the setback, in a statement accompanying the quarterly results, Ecopetrol S.A. CEO Felipe Bayón Pardo said that the company is maintaining its year-long target to average between 715,000 and 725,000 barrels per day.

By March, the company was able to partly make up for early losses and get its monthly average up to 712,000 barrels per day.

Ecopetrol averaged a 715,000 barrels of oil per day of production in 2017.

The company said on its earnings conference call that the problems of the first quarter have delayed investment plans and motivated it to fast-track work on two projects —  one at its Apiay field and a water-injection plan at its Chichimene field — that were not slated to begin until 2019.

After visiting the site of the spill, Ecopetrol head Felipe Bayón said that the flow of oil had been halted. (Photo credit: Ecopetrol)

In terms of making improvements to the balance sheet, the overall 2.6 trillion pesos of income is nearly three times higher than the 886 billion pesos reported in the first quarter of 2017 — and this figure dwarfs the meager 363 billion pesos in income from the first quarter of 2016.

These positive results come from an EBITDA of 7.1 trillion pesos, which is up considerably from the 5.8 trillion and 4.1 trillion reported in the first quarters of 2017 and 2016, respectively.

“We are maintaining a solid cash position at 16.6 trillion pesos and a gross debt to EBITDA ratio of 1.7x, reflecting greater efficiency and cost reductions through the transformation plan, capital discipline, stabilization of the Cartagena refinery, and better crude prices and margins versus the Brent price,” stated Bayón.

In its exploration push to add reserves, Ecopetrol also drilled two wells during the first quarter, the Búfalo-1 well in the Middle Magdalena Basin and the Jaspe-6D well in the Llanos Orientales. It will continue drilling wells throughout 2018 as part of its planned investment of some $3.5 billion USD to $4.0 billion USD this year.

The oil giant also “experienced stable operations in our refineries system,” said Bayón, by averaging throughput of 360,000 barrels per day. The Cartagena refinery accounted for 144,000 barrels per day — up from a 136,000-barrel daily average in 2017 — while the Barrancabermeja refinery processed 215,000 barrels per day in the quarter.

During March, the Cartagena refinery hit a record-high monthly average with throughput of 160,000 barrels of oil per day.

The company also revealed that it spilled an estimated 15,550 barrels of crude from a well in the municipality of La Fortuna into two waterways — La Lizama and Caño Muerto — in Santander.

“Ecopetrol activated its contingency plan for containing the spill and permanently resolve this situation in accordance with its risk management and HSE protocols,” said Bayón. “As of March 30, flows from the Lisama-158 well had been controlled and a specialized snubbing unit equipment had been installed to record logs and identify the optimal means of permanently and safely shutting down the well.”

READ MORE: Ecopetrol to Invest up to $4 Billion USD in Exploration and Production

The chief executive added that the company would continue to work to mitigate the significant damage that the pollution has had on the local community and environment.

“Our priority and commitment has always been a safe operation to the people and the environment,” he said. “In view of this unfortunate incident, we are committed to this region of the country and will continue to work closely with the communities and authorities to restore the environmental and social conditions as soon as possible, and determine the causes of the incident.”

The Colombian government, which owns the vast majority of Ecopetrol shares, will receive a dividend of around $1.17 billion USD (3.2 trillion pesos).

Shareholders received 89 pesos per share, or roughly $32 USD for every 1,000 shares, a figure that was approved at the Bogotá-based company’s March 23 general assembly.

The Colombian government, which owns the vast majority of Ecopetrol shares, will receive a dividend of around $1.17 billion USD (3.2 trillion pesos). The sum is being distributed in two separate payments, one that was completed yesterday on April 19 and the second that will be paid on September 17, the company said in a statement.

The combined total of 3.6 trillion pesos represents a distribution of 55% of Ecopetrol’s profits in 2017.

With more than $2.3 billion USD in profits last year, the company, which has been embattled in an environmental crisis following a well rupture that spilled a substantial amount of oil in Colombia last month, posted its best results in four years.

That windfall is helping Ecopetrol to up its investment in exploration this year, drilling more wells as it looks to expand reserves that have fallen considerably in recent years.

“2017 was a year of intense exploratory activity, as we worked hard to build the foundations for the company’s future growth,” said Felipe Bayon Pardo, chief executive officer of Ecopetrol S.A., earlier this year.

READ MORE: With $2.3 Billion USD in 2017 Profits, Ecopetrol Posts Best Results in Four Years

“We ended the year with a total of 21 wells drilled,” added the CEO. “Through this deployment of activity we succeeded in incorporating more than 250 million barrels of oil equivalent in contingent resources, leveraging the future increase in the business group’s reserves.”

Along with hitting a production goal of up to 725,000 barrels of oil per day in 2018, Ecopetrol began the year with plans to drill at least 620 development wells and 12 exploratory wells. Some 20 pilot projects were also planned in an attempt to further improve oil recovery from existing wells, according to Bayon.

Photo: Ecopetrol headquarters in Bogotá, Colombia (Credit: Dvalencia)