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During 2020, Latin American oil and gas companies' profitability is expected to decline to one third of 2019 levels, while cash flow is expected to remain under pressure through 2021 as recovery will likely be protracted, according to a new Fitch Ratings report.

Sovereign and corporate issuers in Latin America will be adversely affected by slower Chinese demand and commodity price weakness caused by coronavirus due to high commodity export dependence and direct trade exposure to China, says Fitch Ratings.

"We are very pleased with the arrival in Mexico, a new milestone in the history of Ecopetrol," said company president Felipe Bayón Pardo.

The new Ecopetrol subsidiary will be responsible for the subscription and execution of the petroleum contracts that the company has in Mexico.

Ecopetrol is partnering with Pemex on one block and the Mexican subsidiary of Malaysian oil company Petronas on the other concession.

Some $11 million of these bribes were made in Colombia, where officials have responded by threatening to void tainted project awards.