BOGOTA,
Colombia, Nov. 29, 2024 /PRNewswire/ -- Ecopetrol
S.A. (BVC: ECOPETROL; NYSE: EC) (the "Company") announces that the
Board of Directors approved the annual investment budget of the
Ecopetrol Group for 2025 for an amount between 24 and 28 trillion pesos1, in line
with the strategy, this annual budget increases investment levels
compared to 2024, under capital discipline criteria and is expected
to have the following implications:
- Approximatey 20.3 trillion pesos
are expected to be allocated in 2025, corresponding to 76% of the
annual budget, for profitable production between 740,000 and
745,000 barrels of oil equivalent per day, an average refinery load
between 415,000 and 420,000 barrels per day, and transportation
between 1,130,000 and 1,170,000 barrels per day.
- At an estimated Brent price of US$73/barrel for 2025, the financial plan
estimates competitive returns with an approximate EBITDA margin of
39%, transfers to the Nation of approximately 35 trillion pesos, and a commitment to generate
greater efficiencies to improve its indicators, such as lifting
cost, total refining cost, and cost per barrel transported,
allowing ROACE to remain at competitive levels.
- Approximately 6.5 trillion pesos
(24% of the annual budget) is expected to be directed to projects
in the Energy Transition and Energy Transmission and Roads
businesses and other corporate investments.
- Approximately 2.3 trillion pesos
in 2025 are expected to be allocated to SosTECnibilidad® projects
and activities, mainly in the areas of climate change, sustainable
territory, innovation, science and technology, biodiversity, and
ecosystem services.
- This budget is expected to leverage the additional reduction of
about 300,000 tons of CO2 equivalent emissions by 2025,
contributing to the achievement of the GE emissions reduction
target by 2030.
The following are some excerpts from the annual investment
budget approved by the Board of Directors, disaggregated by
business line:
Hydrocarbons Line
For 2025, investments in the exploration and production segment
are expected to be approximately 17.2
trillion pesos (approximately 52% of the annual budget
for crude oil-related investments and around 12% for
gas-related investments) and are expected to allow organic
production levels in 2025 between 740,000 and 745,000 barrels of
oil equivalent per day (78% crude, 17% gas, and 5% white products),
seeking to implement recovery technologies to optimize the use of
available resources and maintain production levels. Crude oil
production in Colombia is expected
to continue growing and compensating for the natural decline of gas
fields.
In 2025, the Company has planned to drill between 455 and 465
development wells, of which 79% would be executed in Colombia and the remaining 21% in the United States. In terms of exploration,
the Company has planned to drill 10 wells mainly in the Llanos area
and Offshore Caribbean of Colombia. Gas investments are estimated
between 3.1 and 3.3 trillion pesos in
2025, mainly in the Piedemonte Llanero and Offshore, to develop
Caribbean Colombia gas, contributing to a production of
approximately 123,000 barrels of oil equivalent per day (which
represents about ~700 million cubic feet of natural gas), of which
85% would represent gas supply for the country.
Investments in the transportation segment are expected to reach
approximately 1.5 trillion pesos,
corresponding to 5% of the total budget for 2025, mainly in
integrity and reliability projects concerning the infrastructure
developed by Cenit Transporte y Logística de Hidrocarburos S.A.S.,
Oleoducto Central S.A., Oleoducto de Colombia S.A., and Oleoducto
de los Llanos S.A. Transported volumes are expected to reach
between 1,130,000 and 1,170,000 barrels per day, in line with the
country's production expectations and refined product demand.
Investments in the refining segment are expected to reach
approximately 1.6 trillion pesos,
corresponding to 6% of the total investment amount estimated for
2025, and are expected to be focused on ensuring the reliability,
availability, and sustainability of the operation of the
Barrancabermeja and Cartagena
refineries, ensuring the development of programs that would reduce
product imports, ensuring better quality fuels, and maturing
renewable fuel (SAF) projects. The joint load of the refineries is
expected to be between 415,000 and 420,000 barrels per day.
Transmission and Roads Line
Interconexión Eléctrica S.A E.S.P. (ISA), a subsidiary of
Ecopetrol S.A., is expected to invest between 5.7 and 6.5 trillion pesos in 2025 (equivalent to
approximately 21% of the annual budget of the Ecopetrol Group), of
which approximately 90% is expected to be allocated to the electric
transmission business. The budgeted investment is expected to
increase the electric power grid to achieve approximately 50,400 km
in operation by 2025, maintaining the Company as a leader in energy
transmission in the region.
Energies for the Transition Line
To advance the energy transition in parallel with the
decarbonization of operations in the hydrocarbons business, the
annual investment budget has also foreseen to allocate resources to
unconventional renewable energy and energy efficiency projects,
among others.
An additional energy optimization of 2.6 Peta Joules (PJ) is
expected to be achieved in 2025, reaching an accumulated energy
saving of around 21 PJ by 2025, accelerating the achievement of the
25 PJ optimization target by 2030. Additionally, the goal of 900 MW
by 2025 is projected in line with the 2040 strategy "Energy that
Transforms."
In line with our goal of generating value with SosTECnibilidad®,
the investment budget has expected to allocate 2.3 trillion pesos in transition energies during
2025. Of this amount, 29% is expected to be focused on climate
change, 18% on sustainable territories, 12% on innovation, science
and technology, 12% on biodiversity and ecosystem services, and the
remaining 29% on other material issues.
The financial plan for 2025 seeks to ensure competitive returns
in a scenario of Brent prices averaging US$73/barrel, generating an EBITDA margin at
levels close to 39%. The plan incorporates efficiency targets for
2025, exceeding 4 trillion pesos,
aiming to capture savings in operational management and investment
projects, to achieve improvements in their lifting cost, total
refining cost, and cost per barrel transported indicators.
Finally, the financial and investment plan for 2025 assumes the
collection of the account receivable from the Fuel Price
Stabilization Fund (FEPC) corresponding to 2024. Considering the
above, the financing of the Plan for Ecopetrol S.A is expected to
be carried out with operational resources and projects transfers to
the Nation (including dividends, payments to the ANH, and taxes) of
approximately 35 trillion pesos.
Ecopetrol is the largest company in Colombia and one of the main integrated energy
companies in the American continent, with more than 19,000
employees. In Colombia, it is
responsible for more than 60% of the hydrocarbon production of most
transportation, logistics, and hydrocarbon refining systems, and it
holds leading positions in the petrochemicals and gas distribution
segments. With the acquisition of 51.4% of ISA's shares, the
company participates in energy transmission, the management of
real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the
international level, Ecopetrol has a stake in strategic basins in
the American continent, with Drilling and Exploration operations in
the United States (Permian basin
and the Gulf of Mexico),
Brazil, and, through ISA and its
subsidiaries, Ecopetrol holds leading positions in the power
transmission business in Brazil,
Chile, Peru, and Bolivia, road concessions in
Chile, and the telecommunications
sector.
For more information, please contact:
Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co
Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
1 Exchange rate USD/COP
4,100
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SOURCE Ecopetrol S.A.
