Friday, February 18, 2011

Ecopetrol plans exploration led production growth

Ecopetrol is planning to spend about $80 billion from 2011 to 2020, with 80% of it devoted to the upstream segment. The Company expects to produce 670,000 barrels daily by 2015, with a goal of a million barrels a day by 2020.

With $1.293 billion capex allocated to 2011, 95% of the investment plan is slated to unfold in Colombia, while the remaining 5% will go to the Company’s operations in Peru, Brazil and the United States.

The Company will finance most of this through internal cash generation, but will also issue up to $23 billion in debt and sell an additional $6.5 billion in equity to the public.

  • Ecopetrol plans to drill 37 exploratory wells in 2011; 28 in Colombia, 4 in  the US GOM, 4 in Brazil and 1 in Peru  
  • It also plans to explore the development of non-conventional resources such as shale gas in Colombia

Leverage, Growth and Sustainabilty 


  • Ecopetrol is continuing to invest in Colombia and, along with Talisman Energy and  recently purchased properties in Colombia owned by BP
  • Ecopetrol holds 28 E&P contracts which span across an area of about 17.6 million hectares

…. and the Unconventionals 

 Love thy neighbours!
  • Ecopetrol has exploration plans in its neighbouring countries like Peru and Brazil which also hold an attractive oil and gas framework

  • In Peru, the Company is working with Petrobras to develop Lot 117 in the onshore area of the country

Looking offshore....

Ecopetrol may not be well known among most investors but this won't be the case for long if it successfully executes its strategic plan for the next decade which will transform its identity from a national oil company to a leading player in the energy industry!

1 comment:

  1. Ecopetrol has pledged huge amounts of capex for its 2015 and 2020 targets and they estimate about 40% of their production in 2020 will come from newly discovered assets. Among its currently producing fields, Rubiales, Castilla, Chuchupa and Chichimene will help sustain production in the near future. These high production targets are doubted to some extent as company was unable to meet its production target for Rubiales field in 2010 by 20% percent. So a lot depends on the success of its exploration program and the ability to achieve the targets for producing assets on time.



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