Ecopetrol Group will invest close to $20,000 million by 2024

Ecopetrol Group announced that it plans to invest up to 20,000 million dollars by 2024 and close to 108,000 million in a horizon of 18 years at a rate of between 5,200 and 6,000 million dollars per year.

This was reported by Felipe Bayón Pardo, president of the Colombian oil company, after announcing the company’s strategy to in 2044, as well as the operational and financial goals for the next two years.

The manager clarified that Ecopetrol has a fairly comfortable cash flow and recalled that the company has had access to credit and other financing mechanisms that allows these projections to be made with the certainty that they will be met.

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In this sense, he pointed out that in the The organization’s short-term plans include issuances of green and sustainable bonds.

Of the organic investments in the next two years (close to 20,000 million dollars), 69 percent will be used for exploration of the Piedemonte Llanero, the Middle Magdalena Valley, the Colombian Caribbean offshore iano and internationally in the United States and Brazil.

In production, he said, the investment is focused on improved recovery technologies, new activity in the Piedemonte Llanero.

The purpose of the directives of the The oil company is focused not only on improving production and increasing competitiveness, but also on a responsible energy transition.

The Plan estimates production levels between 700,000 and 705,000 barrels of oil per day this year, 730,000 in 2024 and 850,000 in 2030, which will allow it to strengthen the group’s annual Ebitda between 13,000 and 14,000 million dollars.

Bayón Pardo mentioned that the strengthening of the Grupo, through its long-term strategy, will allow it to secure resources for the Nation in the order of between 13 and 20 billion pesos per year, added royalties, dividends and taxes.

The manager noted that Plan 22-24 captures the benefits of incorporating ISA into the Ecopetrol Group, with a contribution close to 20 percent of the Ebitda in the years of the plan.

In line with the susTECnibility objectives, said strategy (without ISA) includes investments for more than 1,400 million in projects for circular water management, decarbonisation, energy efficiency, use of energy and alternative sources, improvement in fuel quality, and studies and pilots of green and blue hydrogen for applications in refineries and mobility, since the Group’s goal for 2050 is to achieve zero CO2 emissions.

The plan revealed by the Ecopetrol Group was based on a crude oil price of 63 dollars per barrel by 2022 , of 60 dollars for the years 2023 and 2024 and assuming a price of a barrel of crude in the long term of between 45 and 55 dollars.