BOGOTÁ, Colombia, Dec. 1, 2023
/PRNewswire/ -- On November 30, 2023,
Ecopetrol's Board of Directors approved maintaining investment
levels between 23 and 27 trillion
pesos in 2024, aligning with the commitment to energy
security and the country's energy transition under the 2040
"Transforming Energy" Strategy.
- Approximately 19 trillion pesos
will be allocated to profitable production, with daily averages
ranging from 725,000 to 730,000 equivalent barrels. This includes
refinery loads between 420,000 and 430,000 barrels per day and
daily transportation of over one million barrels.
- Over 40% of the plan (approximately 12
trillion pesos) is directed toward energy transition
projects, including low-emission solutions, natural gas
supply, TESG, decarbonization, electrical transmission, and
infrastructure.
- Close to 3,7 trillion pesos will
be allocated to projects and activities related to TESG, primarily
in the areas of territorial development, climate change, science,
technology, and innovation.
- The 2024 – 2026 Plan incorporates commercial and operational
efficiency goals, expenditure control, and austerity measures
totaling around 7 billion pesos.
- The 2024 Financial Plan aims to generate competitive returns at
Brent levels of US$ 75/Bl, with an
approximate ROACE of in the 9% range, an EBITDA margin of
approximately 38%, and transfers to the Nation exceeding
38 trillion pesos.
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that its Board
of Directors has approved the annual investment budget for the
Ecopetrol Group for 2024, ranging from 23 to 27 trillion pesos, in line with the 2040
"Transforming Energy" Strategy.
Investments in the oil exploration and production (equivalent to
~50% of the annual plan) and gas exploration and production
(equivalent to ~12% of the annual plan) will be allocated to reach
organic production levels of 725,000 to 730,000 barrels of oil
equivalent per day by 2024 (76% crude, 19% gas, and 5% white
products) implementing improved recovery technologies to maximize
existing resources and protect the production curve against natural
field decline. In 2024, it is estimated that approximately 360
development wells will be drilled, with 74% of these in
Colombia and 26% in the Permian
Basin. Exploration efforts include an estimated 15 wells, primarily
in Northern Colombia and the
Caribbean offshore.
Transportation investments, constituting 5% of the total 2024
plan, primarily focus on integrity and reliability projects
developed by Cenit, Ocensa, ODC, and ODL. The volumes transported
are expected to exceed one million daily barrels, in line with the
country's production expectations and refined product demand.
Refining investments, comprising 7% of the total estimated for
2024, continue to focus on ensuring the reliability, availability,
and sustainability of operations at the Barrancabermeja and
Cartagena refineries. The expected
joint load of the refineries is between 420,000 and 430,000 barrels
per day.
To advance a fair energy transition alongside the
decarbonization of operations in the fossil fuel business,
approximately 40% of the investment plan resources will be
allocated to unconventional renewable energy projects, natural gas,
and transmission and infrastructure, among others. Gas investments
in 2024 are estimated to be between 3.1 and 3.5 trillion pesos, with a focus on the
Piedemonte Llanero and the Caribbean offshore to produce around 135
thousand barrels of oil equivalent per day (representing ~772
million cubic feet of natural gas), of which ~90% is produced in
Colombia.
Additionally, Interconexión Eléctrica S.A. (ISA) is set to
invest around 5.9 trillion pesos
(equivalent to 23% of the annual plan), with 4.9 trillion pesos earmarked for the electric
transmission business. The plan includes an expected expansion of
the network by approximately 2,500 kilometers by 2026, maintaining
the company's leadership in energy transmission in the region.
In line with the goal of generating value with TESG, it is
estimated that around 3.7 trillion
pesos will be executed in this area in 2024. Approximately
36% of this amount focuses on climate change, alternative energy
use, and air quality; 24% on comprehensive water management; and
15% on territorial development, with a social investment of around
550 billion pesos in 2024 dedicated
to public and community infrastructure, access to public services,
education, sports, health, inclusive rural development, and
entrepreneurship.
This plan aims to leverage the reduction of approximately one
million tons of CO2 equivalent emissions between 2024 and 2026,
achieve energy optimization of 3.3 Peta Joules by 2026, and make
progress in green hydrogen projects in refineries.
The financial plan for 2024 aims to secure competitive returns
in a scenario of average Brent prices of US$
75/Bl, generating an ROACE of in the 9% range, an EBITDA
margin close to 38%. This proposal evidences the resilience of the
Ecopetrol Group, through its ability to overcome inflationary
pressures, impacts of the "El Niño" phenomenon and lower crude oil
prices and refining margins. The Plan incorporates efficiency goals
in operational management and investment projects.
Finally, the financial and investment plan for 2024 includes the
collection of accounts receivable from the Fuel Price Stabilization
Fund (FEPC) accumulated in 2023. Transfers to the Nation, including
dividends, payments to ANH, and taxes, are expected to exceed
38 trillion pesos.
Ecopetrol is the largest company in Colombia and one of the main integrated energy
companies in the American continent, with more than 18,000
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 Mexico, 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. This
press release contains business prospect statements, operating and
financial result estimates, and statements related to Ecopetrol's
growth prospects. These are all projections and, as such, they are
based solely on the expectations of the managers regarding the
future of the company and their continued access to capital to
finance the company's business plan. The realization of said
estimates in the future depends on the behavior of market
conditions, regulations, competition, and the performance of the
Colombian economy and the industry, among other factors, and are
consequently subject to change without prior notice.
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, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. 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 more information, please contact:
Head of Capital Markets (a)
Carolina Tovar
Email: investors@ecopetrol.com.co
Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.