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Congress Highlights:

• 200+ decision making executives participate in the Colombia Oil & Gas which is an strategic platform for the leaders of the hydrocarbons industry. Bringing together delegations from national and international companies, as well as government officials, regulatory bodies, academia, project owners, technology and services providers, and international and local investors
• 15+ oil and gas production and exploration investment projects under planning, construction, expansion and modernization with a development term of 2022-2026 in Colombia
• 40+ industry leaders and experts will present and discuss the main topics impacting the industry development in Colombia and Latin America
• Strategic opening session: Recovery of the Hydrocarbon Sector as an Engine of Post-Pandemic Growth – Cooperation of the government, NOC, IOC and international investors to develop Colombia’s oil and gas resources
• Key and Innovative Solutions for Efficiency and Cost Reduction: Get to know the main solutions to the biggest challenges that the oil and gas industry presents in terms of innovation
• Round tables:
• Overview of Gas reserves in Colombia and the Energy transition
• Round table: Infrastructure – Pipelines, Refineries and LNG Plants

Updates and Presentation of the Most Promising Oil & Gas Projects in Colombia: Planning, modernization, and construction of projects in the portfolio of the hydrocarbon sector.

Guarantees for attracting investment in the country’s oil and gas industry: Strategies to attract investment for the development of exploration and production projects with legal and financial guarantees.

Decarbonization of the Oil & Gas Industry: From Theory to Practice – Applicable strategies to make petroleum and industrial processes more sustainable towards the goal of being carbon neutral

• Efficient Production in the Digital Age: Optimization of costs and efficiency through artificial intelligence, data management and other resources
• Dedicated exhibition of cutting-edge equipment and technologies for hydrocarbons industry delivered by local and global leaders
• Ask your burning questions, ask for advice, and share your experience during and after the sessions!
• Unprecedented networking opportunities! 1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Tap here to request more info for free

Organizing Committee:
Catalina Velasco, LatAm Marketing Manager
Email: cvelasco@vostockcapital.com

The 4th International Congress and Exhibition Colombia Oil and Gas will take place at DoubleTree By Hilton Bogota Salitre AR at Carrera. 60 #22-99 in Bogotá

Date: 23-24 June 2022

Organizer: Vostock Capital

Web site: https://bit.ly/3xhxHBS

Request more information

Congress Highlights:

• 200+ decision making executives participate in the Colombia Oil & Gas which is an strategic platform for the leaders of the hydrocarbons industry. Bringing together delegations from national and international companies, as well as government officials, regulatory bodies, academia, project owners, technology and services providers, and international and local investors
• 15+ oil and gas production and exploration investment projects under planning, construction, expansion, and modernization with a development term of 2022-2026 in Colombia
• 40+ industry leaders and experts will present and discuss the main topics impacting the industry development in Colombia and Latin America
• Strategic opening session: Recovery of the Hydrocarbon Sector as an Engine of Post-Pandemic Growth – Cooperation of the government, NOC, IOC and international investors to develop Colombia’s oil and gas resources
• Key and Innovative Solutions for Efficiency and Cost Reduction: Get to know the main solutions to the biggest challenges that the oil and gas industry presents in terms of innovation
• Roundtables:
  • Overview of Gas reserves in Colombia and the Energy transition
  • Round table: Infrastructure – Pipelines, Refineries and LNG Plants
  • Updates and Presentation of the Most Promising Oil & Gas Projects in Colombia: Planning, modernization, and construction of projects in the portfolio of the hydrocarbon sector
  • Guarantees for attracting investment in the country’s oil and gas industry: Strategies to attract investment for the development of exploration and production projects with legal and financial guarantees.
• Decarbonization of the Oil & Gas Industry: From Theory to Practice – Applicable strategies to make petroleum and industrial processes more sustainable towards the goal of being carbon neutral
  • Efficient Production in the Digital Age: Optimization of costs and efficiency through artificial intelligence, data management and other resources
  • Dedicated exhibition of cutting-edge equipment and technologies for hydrocarbons industry delivered by local and global leaders
  • Ask your burning questions, ask for advice, and share your experience during and after the sessions!
  • Unprecedented networking opportunities! 1-2-1 online and face-to-face business meetings, networking round tables, cocktail reception, interactive discussions. Take this opportunity to exchange business cards with ALL conference participants!

Tap here to request more information

For more information, contact:
Catalina Velasco, LatAm Marketing Manager
Email: cvelasco@vostockcapital.com

Sponsored Content

These new awards bring the total to 69 petroleum drilling concessions issued under the Duque Administration.

“In August 2018 we received a sector with almost five years without awarding or signing new hydrocarbon contracts and so far during President Duque’s government, we have awarded 69 areas that will continue to position the sector as one of the main engines of economic reactivation and of the country’s development,” said Minister of Mines and Energy, Diego Mesa.

The winning energy companies are Ecopetrol, Parex Resources, Lewis Energy, Frontera Energy, CNE Oil & Gas (Canacol), Hocol, and Maurel & Prom Amérique Latine.

The awarded concessions are located in the Colombian departments of Santander, Norte de Santander, Bolívar, Meta, Casanare, Córdoba, Sucre, Vichada, Cundinamarca, Arauca, Atlántico, Antioquia, Magdalena, Cesar, Boyacá, Huila, Cauca and Tolima.

“In the Colombia 2021 Round (of concession solicitations), 53 areas were offered between those proposed by the ANH and those nominated by the companies, for a total of 30 awarded areas and a success rate of 56%. This demonstrates a great commitment from the industry and a sector committed to the economic and sustainable reactivation of the country. Our mission as administrators of hydrocarbon resources commits us to continue working and generating favorable conditions to attract the investment that Colombia so badly needs for national energy security in the coming years,” said the president of the National Hydrocarbons Agency, Armando Zamora Reyes.

The figures included in this report were extracted from the Company’s unaudited financial statements. The financial information is expressed in billions of Colombian pesos (COP), or US dollars (USD), or thousands of barrels of oil equivalent per day (mboed) or tons, as noted. For presentation purposes, certain figures in this report were rounded to the nearest decimal place.

In words of Felipe Bayón Pardo, CEO of Ecopetrol:

“The results for the third quarter of 2021 confirm Ecopetrol’s technical, operational, and financial capacity to seize the favorable price environment. They also evidence the benefits of the structural adjustments that we have implemented in response to recent challenges. With the culmination of the purchase of a controlling 51.4% stake in Interconexión Eléctrica (“ISA”), the quarterly figures include the consolidated results of this subsidiary for one month, which represents a transformational milestone that allows us to present the results of the new Ecopetrol Group for the first time.

During this quarter, we continued delivering record results, with a consolidated revenue of COP 23.3 trillion, a net income of COP 3.8 trillion and an EBITDA of COP 10.4 trillion (EBITDA margin of 44%). In the first nine months of the year, our consolidated revenue amounted to COP 60.0 trillion, a net income of COP 10.6 trillion (6.3 times the net income generated throughout 2020), and an EBITDA of COP 28.0 trillion (EBITDA margin of 47%).

On the commercial front, we highlight the improvement in the realization price of our crude oil basket, which went from 38.4 USD/Bl in the third quarter of 2020 to 68.0 USD/Bl in the third quarter of 2021, demonstrating the good results of the strategy for diversification of destinations and close relation with our customers, in addition to the operational flexibility of the company by consolidating the delivery at place (DAP) mechanism. Additionally, we highlight the signing of diesel and motor gasoline supply contracts with wholesale distributors, a milestone that represents a referent for the industry and marks the beginning of a new commercial stage that consolidates the liquid fuels distribution chain in the country.

Exploration

The Liria YW12 well stands out, which proved the presence of hydrocarbons in a new structure near a production field, being a milestone that continues to drive our exploration activity in the Piedemonte Llanero. Ecopetrol and its partners completed 10 wells during the first nine months of the year, exceeding the target of 9 wells for 2021. The accumulated production of the exploratory assets accounted for more than 1.2 million boe at the end of the third quarter of 2021 (4,517 boed on average), with 67% of the production corresponding to oil and 33% to gas. Additionally, in August the Flamencos-1 and Boranda discoveries, located in the Middle Magdalena Valley, were declared commercial, which are part of the “Near Field Exploration” strategy in areas close to existing infrastructure that seeks the incorporation of production and reserves in a short period of time. In the international field, and in line with the growth and geographic diversification strategy of the Ecopetrol Group, our subsidiary, Ecopetrol Óleo e Gás do Brasil, acquired a 30% stake in the block S-M-1709, located in the Santos basin in Brazil during the “Rodada 17” bidding session organized by the National Petroleum Agency (ANP for its Portuguese acronym). The acquisition of this block, which will be operated by Shell, is focused on the basins with the highest potential in the continent.

Production

The Ecopetrol Group continues its recovery path, after experiencing a significant impact during the first half of the year associated with operating restrictions in the Castilla field and the public order situation in Colombia. During the third quarter, production reached 683.6 mboed, accounting for a growth of 3.5% when compared to the second quarter. Some of the relevant milestones of the quarter are: i) full production stabilization in the Castilla field, ii) normalization of production, previously affected by roadblocks due to public order disturbances in the second quarter of the year, and iii) the contribution from the new Flamencos-1 and Boranda commercial discoveries. Given the average production level for the quarter and the projections for the fourth quarter of the year, we estimate the 2021 yearly production to be around 680 mboed.

Natural gas and LPG

Production experienced an increase of 3.5% in the third quarter of 2021 compared to the same period of the previous year, as a result of higher sales volumes from Ecopetrol, Hocol, and Permian, primarily associated with a recovery in demand. During the third quarter, the contribution of gas and LPG to the Group’s total production was 20.6%, with a combined EBITDA margin of 60.0%.

Permian

Operations continue to advance according to plan, employing 4 drill rigs and 2 completion crews. We drilled 22 wells in this quarter, for a total of 69 so far this year. In addition, 16 new wells started production, for a total of 91 wells in production (22 in 2020 and 69 in 2021). It is worth highlighting that the level of production of the operation already exceeds 50.0 mboed, generating 24.4 mboed before royalties for Ecopetrol in the third quarter (equivalent to net 18.9 mboed after royalties).

Unconventionals

In terms of the Comprehensive Research Pilot Projects in Unconventional Reservoirs (PPII) Kalé and Platero, we continue advancing with the work schedules according to plan. On October 29, we submitted PPII-Kalé’s Environmental Impact Assessment (EIA) to the National Authority for Environmental Licensing (ANLA for its Spanish acronym), and on July 8, we conducted the first territorial dialogue and environmental monitoring as requirements for filing PPII-Platero’s EIA. To date, 450 dialogue and educational meetings have taken place within the influence area.

Midstream

In the midstream segment, during the quarter we transported 1,012.2 mbd, which represented a recovery of 52.3 mbd compared to the immediately previous quarter. The volume transported during the first nine months of the year was 993.3 mbd, a decrease of 2.0% compared to the same period of 2020, as a result of a lower production of crude oil in the country, mainly in the Llanos area.

In terms of renewable energy self-generation in the segment, in September we started operating six new solar plants at the stations of Baranoa, Miraflores, Mansilla, Tocancipá, Yumbo, and Pereira, in order to reduce approximately 513 tons of CO2 per year, also in line with our decarbonization targets by 2050. Similarly, we finished the construction of the San Fernando Solar Park last October 22, 2021, which will provide 61 MWp of available capacity and it is considered the largest renewable energy self-generation facility in the country.

Regarding transportation disputes, the agreement announced by Frontera, CENIT and Bicentenario on November 17, 2020, was approved by the Administrative Tribunal of Cundinamarca by means of an order that was notified on November 5 of 2021. It is important to mention that the agreement has a favorable opinion from the Attorney General’s Office (Procuraduría General de la Nación), received on March 24, 2021, also, it puts an end to all disputes between the parties regarding to the transportation contracts for the Bicentenario Pipeline and the Caño Limón – Coveñas Pipeline, as well as other contracts for storage and port services. With this agreement, all existing arbitration proceedings arising from these disputes are concluded.

Downstream

The downstream segment continued with the positive trend observed throughout 2021, with a consolidated throughput of 358.0 mbd and an integrated gross margin of 9.5 USD/Bl as of September 2021. This segment closed the third quarter with a throughput of 353.8 mbd and an integrated gross margin of 9.0 USD/Bl, respectively. These results are largely attributable to: i) the improvement of the refined products basket, in line with the generalized increase in demand due to the reactivation of the productive sector, ii) selling of inventories due to a favorable price environment and the positive operating performance at the Barrancabermeja refinery, iii) the adoption of commercial strategies at Esenttia to mitigate the weakening of the Polypropylene Margin, iv) the stability of Invercolsa as a result of higher natural gas sales and installations, and v) the segment’s cash cost stability. The aforementioned, despite the operational events originated at the Cartagena refinery during the quarter, which have already been solved.

ISA Acquisition

In the new electric power transmission and toll roads segment (which arose out of our acquisition of ISA) only consolidates one month of results into the quarter, we highlight the following: i) in the electric power business, the entry into operation of three projects (in Chile, Brazil, and Colombia), as well as the granting of the Environmental license for the UPME07-2017 Sabanalarga-Bolívar 500 kV project in Colombia, and ii) in the road concessions business, the construction of eight projects continued in Colombia and Chile, which will add 246 km to the existing road network.

It is important to note that a Transition Management Office (TMO) was established, which has made possible the transition process from ISA to the consolidation and reporting of the Ecopetrol Group. The main efforts in the last 12 weeks since the acquisition have been focused on ensuring compliance with the legal and regulatory requirements associated with accounting consolidation, reporting, and financial planning processes, as well as matters related to compliance and corporate governance. The next steps will be aimed at prioritizing opportunities and synergies to accelerate the capture of joint value.

Environmenta, Social, Governance

In TESG, we continued to make progress in each pillar of the strategy throughout the year.

In the environmental front, particularly in renewable energy projects, Ecopetrol was included as a relevant participant in the Colombian Hydrogen roadmap launched by the Ministry of Mines and Energy on September 30. Moreover, we highlight the contract entered with South Pole on August 6, 2021, who will be our structuring partner for the Nature-Based Solutions projects, and the Cooperation Agreement signed with The Nature Conservancy, which seeks to leverage the implementation of the Ecopetrol Group’s decarbonization plan. As of September 2021, we had fulfilled 79% of the goal established for 2021 within the framework of the “Sembrar Nos Une” national initiative with 3,149,716 trees planted.

In the social dimension, during the first nine months of the year, the Company allocated social investment resources for a total of COP 269 billion in strategic and mandatory investments. Similarly, by means of the “Obras por Impuestos” (Works in lieu of Taxes) mechanism, we completed 25 projects by the end of the third quarter, with a total value of COP 201 billion, mainly focused on the improvement of roads and endowments to student residences. Additionally, Ecopetrol’s Diversity and Inclusion Program was granted the Equipares-Icontec Silver Seal, highlighting the communications efforts carried out within the framework of this program due to its coherence, assertiveness, connection, and impact as a fundamental pillar for the strategy.

In corporate governance, the TMO team appointed within the Company has been presenting on a regular basis the developments around the successful incorporation of ISA into the Ecopetrol Group to the Board of Directors, in line with our commitment to advance in a transition that ensures the continuity of the strategy and the robustness of Ecopetrol and ISA’s governance principles. Identifying and aligning the best practices of both companies will ensure the implementation of a corporate governance structure that stands out for its experience and transparency. Last October 22 of 2021, ISA’s extraordinary General Shareholders’ Meeting took place, in which new Directors were appointed and Ecopetrol exercised its right to nominate candidates in virtue of the controlling position it currently holds on ISA.

In digital transformation, we have captured benefits in the digital agenda for a total of USD 36.5 million by the end of the third quarter of 2021, with advancements in the digital agenda, digital factories, intelligence, and innovation projects.”

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 17,000 employees. In Colombia, it accounts for more than 60% of hydrocarbon production, and most of the hydrocarbon transportation, logistics, and refining systems, and has leading positions in petrochemicals and gas distribution. With the acquisition of 51.4% of ISA’s shares, it participates in energy transmission, management of real-time systems (XM) and the Concesión Costera Barranquilla – Cartagena. At the international level, Ecopetrol focuses on strategic basins on the American continent, with E&P operations in the United States (the Permian basin and the Gulf of Mexico), Brazil and Mexico, and through ISA and its subsidiaries it has leading positions in the transmission business in Brazil, Chile, Peru and Bolivia, in road concessions in Chile, and in telecommunications.

By the end of 2020, the Ecopetrol Group’s net proven reserves totalled 1,770 million barrels of oil equivalent (MBOE), which represents a 6.5% decrease versus 2019 (1,893 MBOE). The reserves replacement ratio was 48%, with an average reserve life of 7.5 years. Gas reserves represented 29% of this volume, with an average reserve life of 10.1 years, while liquids reserves represented the remaining 71%, with an average reserve life of 6.8 years.

The reduction in proven reserves was mainly due to the 32% decrease in hydrocarbon prices used for the valuation. According to the SEC methodology, the Brent price used for the 2020 valuation of reserves was US$43 per Brent barrel, versus US$63 used for 2019. Ecopetrol estimates that the price effect led to a decrease in reserves of 215 MBOE, which was partially offset by the addition of 114 MBOE attributable to new drilling projects in different fields, such as Rubiales and Caño Sur. Additionally, positive revisions of 30 MBOE were obtained due to the good performance in production and optimization of technical-economic variables in fields such as Rubiales, Castilla and other fields in North America.

In terms of enhanced recovery, there was a positive variation of 113 MBOE, primarily due to the incorporation of reserves from new projects mainly associated with water injection in fields such as Chichimene and Castilla.

Additionally, in extensions and discoveries, progress continues to be made in the progression of probable and possible reserves to proven reserves in the Rubiales field, primarily due to the continuity of drilling operations, among others. As for discoveries, the ESOX field in the Gulf of Mexico and the Andina field in Colombia achieved commercial viability.

Sales include Hocol’s interest transfer in La Punta and Santo Domingo fields for a value of 1 MBOE.  Purchases include 29.9 MBOE corresponding to the acquisition of 43% of the Guajira asset by Hocol.

The largest contributions to the reserves balance came from the Castilla, Chichimene, and Rubiales fields, which are operated directly by Ecopetrol.

Ecopetrol S.A. owns 85% of the proven reserves, while the other group companies own 15%.

“This is an important step in the realization of our strategy to strengthen the company and in our intention to be one of the leading gas companies in northern Colombia. For Hocol, this transaction represents the growth of its offshore operating capacities and the sources of income from a gas production asset. We remain committed to continue generating value for the country and for the environments in which we operate, as well as contributing to the supply of gas for the north of Colombia, ”said Rafael Guzmán, President and CEO of Hocol.

“We received this news with joy and we are aware that we are in the midst of a health emergency that impacts all Colombians. We have been acting with the greatest responsibility, rigorously applying the necessary protocols to safeguard the health of our workers, contractors, and communities in the area of ​​influence, and we ratify our commitment to the development of La Guajira.”

Chevron said in a statement that it will continue evaluating new opportunities for growth in Colombia. The company, through its Texaco unit continues to hold a significant downstream presence in Colombia with over 500 Texaco service stations and a broad line of Chevron, Ursa, Havoline, Delo & Texaco lubricants, fuels and additives in the auto, trucking, aviation, and industrial sectors.

Image courtesy of Hocol

“We are committed to continue generating value for the country and in the sectors we operate, such as by contributing to the supply of gas for the north coast of Colombia,” said Hocol president & CEO Rafael Guzmán. Neither company provided pricing information specific to the deal.

Chevron said in a statement that it will continue evaluating new opportunities for growth in Colombia. The company, through its Texaco unit continues to hold a significant downstream presence in Colombia with over 500 Texaco service stations and a broad line of Chevron, Ursa, Havoline, Delo & Texaco lubricants, fuels and additives in the auto, trucking, aviation, and industrial sectors.

Photo credit: Chevron

The firms included both domestic and foreign firms, including the likes of leading Colombian airline Avianca, Bogotá energy provider Grupo Energía Bogotá, Spanish banking giant BBVA, and the local arms of multinational liquor distributor Diageo, oil titan ExxonMobil, and South African mining company Anglogold Ashanti.

The companies made the list following an evaluation, the third made by executive branch’s Secretariat of Transparency of the Presidency, of 33 large companies operating in Colombia that applied for the review.

Each was scrutinized in 10 different categories, including their internal controls, accounting records, compliance programs, corruption prevention procedures, and programs governing organizational behavior and norms when it comes to political contributions, gift giving, expense tracking, and conflicts of interest.

“The private sector is jointly responsible in the fight against corruption,” said Gabriel Cifuentes, Colombian secretary of transparency. “The initiative starts from this principle. No company with operations in Colombia should remain outside of what should be understood as a country goal: to end corruption, one of the worst forms of violence.”

The full list of companies added to the list is as follows:

1. ABB Ltda.
2. Abbott Laboratories Colombia S.A.
3. Anglogold Ashanti Colombia S.A.
4. Avianca S.A.
5. BBVA
6. Bayer S.A.
7. Comfandi
8. Corona Industrial S.A.S.
9. Diageo Colombia S.A.
10. Ecodiesel Colombia S.A.
11. ExxonMobil Exploration Colombia Limited
12. Grupo Energía Bogotá S.A. E.S.P.
13. Grupo Nutresa S.A.
14. Henkel Colombiana S.A.S.
15. Hocol S.A.
16. Lafrancol S.A.S
17. Mansarovar Energy Colombia Limited
18. Une EPM Telecomunicaciones S.A.

(Photo credit: Brian Katt)

Though the total still falls short of the proven reserves reported at the close of 2015 (1.849 billion barrels), the increase represents progress in the Colombian state-controlled oil company’s push to replace its falling reserves as it invests in more exploration and development.

According to the Bogotá-based company, the new total gives Ecopetrol a reserve life of 7.1 years, up from 6.8 years at the close of 2016.

The company will look to expand this figure even further in 2018 with an investment plan that calls for up to $4 billion USD in investment in further exploration and production. Ecopetrol expects to drill 620 development wells and 12 exploration wells this year.

Last year, the increased reserve total was the result of an addition of 295 million barrels (minus the annual production of 234 million barrels). Of that sum, 94 million barrels were added due to the higher price of oil recorded in 2017, which allows for “the extension of the fields’ economic limit and the incorporation of new projects,” according to Ecopetrol.

This figure was based upon the price of $54.93 USD per barrel of Brent crude — up from $44.49 USD in 2016 — set by the U.S. Securities and Exchange Commission (SEC).

Another 73 million barrels comes from the company’s “enhanced recovery” efforts rooted in tech innovations that allow technicians to increase output from key wells. This 2017 figure is well above the 11 million barrels added from enhanced recovery in 2016 and 16 million barrels in 2015.

The primary enhanced recovery gains come from fields including Chichimene, Castilla, Casabe and Tibú, stated the company. Ecopetrol characterizes this program as “one of the pillars of the company’s growth in reserves and production.”

Some 44 million barrels added to the proven reserves came from extensions to current fields and discoveries of new production sites. This is an increase compared to the 27 million barrels added from this category in 2016 and the 24 million barrels added in 2015.

The reserves are overwhelming owned by Ecopetrol S.A., which holds 95% of the total. The remaining 5% of the proven reserves come from interests of Ecopetrol America, Hocol, Equión, and Savia Perú.

Two firms, Ryder Scott Company and Degolyer and MacNaughton, audited the reserve estimates, which were conducted based upon SEC standards and methodologies.

Ecopetrol holds a 50% interest in the well, which is operated and 50% controlled by Parex Resources, a Canadian exploration and natural resources company based in Calgary. The company said that the Boranda find comes with the “competitive and operational advantage” of being nearby two crude receiving stations, Payoa and Provincia, and the large Barrancabermeja refinery located on the banks of the Magdalena River in Santander.

According to Ecopetrol, this is the fourth discovery that it has an interest in made in the past four months. “This new discovery forms part of Ecopetrol’s strategy,” said the company in a statement. “One of its focuses is on exploration in regions near production fields. Boranda is in the production range of the Aullador and Cristalina fields to the southwest, and Pavas-Cachira to the northeast.”

The other finds have been offshore, with Ecopetrol participating in deepwater discoveries in the Colombian Caribbean at the Purple Angel well and the Gulf of Mexico at the Warrior well. An Ecopetrol subsidiary, Hocol, also recently participated in a find in the Colombian Caribbean at the Bullerengue Sur-1 well.

After adopting a conservative strategy last year in terms of capital expenditures, the company has said it plans to more than double its exploration investment this year compared to 2016. With a 2017 exploration budget of $652 million USD, Ecopetrol is planning to drill 17 wells this year along with its partners. Six of these are expected to be drilled offshore (six in Colombian waters and one in the U.S. Gulf of Mexico) with 11 being located on land throughout Colombia.

“The exploration campaign will be stepped up significantly in regions of high prospectivity,” said Ecopetrol CEO Juan Carlos Echeverry earlier this month in a statement. “Investment in exploration will rise from $280 million USD to $650 million USD, thus increasing offshore wells from 2 to 6 and onshore wells from 5 to 11 from 2016 to 2017. Enhanced recovery will continue to leverage additional reserves in mature fields. We stress that a strong cash position allows us to assess opportunities for inorganic growth in the Ecopetrol Business Group’s reserves.”