Ecopetrol will invest between US $ 3,500 and US $ 4,000 million in 2021

The Investment Plan approved by the Board of Directors is aimed at restoring the growth path, increasing competitiveness, cementing the energy transition of the Business Group and deepening the sustainability agenda through the positive social and environmental impact in the territories where the Company operates. .

• About 80% of the investment will continue to be allocated to projects in Colombia and the remaining 20% ​​to investments in the United States and Brazil, mainly. • The plan enables a reliable, clean and safe operation, with a production between 700 and 710 thousand barrels per day of hydrocarbons in 2021, a greater joint refining load between 340 and 365 thousand barrels per day and transported volumes greater than one million barrels newspapers.

• 77% of investments will be concentrated in exploration and production projects, focused on assets with the highest strategic fit and profitability, thus accelerating value capture.

• The plan increases resource allocation for energy transition and sustainability. 14% of the investments will be focused on the growth of the gas chain and other energy sources, including investments for more than US $ 200 million in energy efficiency projects and the incorporation of renewable energies. Investments of more than US $ 150 million associated with decarbonization projects and more than US $ 90 million will be earmarked for efficient water management of operations.

• The plan includes resources for the development of the Pilot Projects for Integral Research in Colombia and to continue operations in the Permian basin.

• About US $ 80 million will be allocated to investments in technology and innovation, with a focus on digital transformation, improved recovery and energy transition.

• The plan includes social investment resources for the development and well-being of the communities where we operate, close to $ 405 billion in 2021.

• The generation of cash and the materialization of efficiencies will allow a positive free cash flow and reach a gross debt / ebitda ratio of less than 2.5 times in 2021. Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) informs that its Board of Directors approved the organic investment plan for the Ecopetrol Group (GE) with an estimated amount between US $ 3,500 and US $ 4,000 million for 2021.

The plan is aimed at restoring the growth path, while continuing to prioritize cash-generating opportunities with better equilibrium prices, with a focus on executing strategic asset development plans, and preserving the value of assets through investments that provide reliability, integrity and continuity to the Group’s value chain. The plan was built with an average Brent price expectation of US $ 45 per barrel by 2021.

80% of the investments will be focused on projects in Colombia and the remainder will be invested mainly in the development of projects in the United States and Brazil. In line with GE’s strategic priorities and the strength of its integrated value chain, the plan maintains as a strategic objective the growth of the exploration and production segment, to which 77% of total investments will be allocated, with a focus on accelerating the progression of resources and reserves estimated at 3.7 trillion barrels, through exploration, drilling and enhanced recovery. Production in 2021 will reach levels between 700 and 710 thousand barrels of oil equivalent per day (81% oil and 19% gas). The investments contemplated in the plan enable production levels close to 750 thousand barrels in 2023.

In terms of exploration, the drilling of 9 exploratory wells is planned, 8 of which would be located in Colombia in the basins of Llanos Orientales, Valle Medio del Magdalena, Valle Inferior del Magdalena and Sinú-San Jacinto, as well as continuing activities aimed at delimiting discovered resources of more than 450 million barrels equivalent. Regarding unconventional deposits (YNC), investments of more than US $ 600 million are foreseen for the increase of development activities in the Permian basin in Texas, United States. Investments continue to mature the initiatives associated with Pilot Projects for the Comprehensive Research of Non-conventional Reservoirs (PPII) in the Middle Magdalena Valley basin.

Investment in the refining segment will continue to focus on ensuring the reliability and sustainability of the operation of the Barrancabermeja and Cartagena refineries, as well as developing fuel quality and wastewater management programs, ensuring increasingly cleaner effluents. . The expected joint load of the refineries for 2021 will be between 340 and 365 thousand barrels per day, in line with the expected recovery of demand and refining margins. The investment priority is maintained in the interconnection project of the original crude unit of the Cartagena refinery with the new refinery, to which investments of US $ 48 million will be assigned in 2021. The transportation segment will account for 7% of the investment,

These investments will also make it possible to optimize future operating costs by upgrading equipment and improving its performance. The volumes transported are estimated to be over one million barrels per day, in line with the country’s crude production expectations and the national demand for refined products. Following the Group’s energy transition strategy, more than US $ 150 million will be invested in the decarbonization agenda, highlighting energy efficiency projects, reducing leaks and vents, and the construction of the Rubiales Solar Park. Likewise, the emission reduction goal is extended to 3 million tons of CO2 by 2023, in addition to the 6.6 million tons reduced between 2010 and 2019.

The plan ratifies resources announced for socio-environmental investment close to $ 1.7 billion pesos for the 2020-2024 period, aimed at closing social gaps and promoting the development and well-being of the communities where we operate, with strategic projects in infrastructure, services public, education, sports and health, inclusive rural development and entrepreneurship and business development. Additionally, support will continue with resources to meet needs derived from COVID-19 in areas and communities where we operate. In terms of digital transformation, about US $ 50 million will be allocated to capture benefits associated with artificial intelligence technologies, blockchain, and bots, among others. The ICP will make investments of about US $ 30 million mainly in energy transition projects,

The organic investment plan will be financed mainly with internal cash generation and cash surpluses existing at the beginning of the year. It is expected to reach a gross debt / ebitda ratio of less than 2.5 times by 2021, reversing the trend of the leverage indicator seen in 2020. This plan responds to our higher purpose of being the energy that transforms Colombia and is aligned with the Ecopetrol Group cultural principles: first life, ethics, passion for excellence, making the impossible possible, leadership and inclusion, as well as teamwork.

Likewise, it responds to the challenges of the environment with a sustainability focus and ensures a strategy that adds value to the Business Group and the country. “2020 put the Company to the test and it showed its capacity for resilience and adaptation to an adverse and volatile environment. The investment plan for 2021 seeks to reestablish the growth path of the Company, enhance its competitiveness, deepen the sustainability agenda and establish the route towards the energy transition, in line with our strategic pillars of cash protection, cost efficiency , capital discipline and profitable and sustainable growth. With this investment plan we use our energy to continue building a country for everyone for everyone ”, assured Ecopetrol President Felipe Bayón Pardo