BOGOTA,
Colombia, May 26, 2015 /PRNewswire/
-- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX:
ECP) announces that its Board of Directors approved a new corporate
strategy aimed at guaranteeing the company's long-term
sustainability, in which value generation based on efficient
barrels and shareholder return become a
priority.
Within a complex international price environment, the new
strategy defines that Ecopetrol will be focused on oil and gas
exploration and production, while seeking operational excellence in
transportation, refining and petrochemical areas. The strategy also
pursues the achievement of structural efficiencies, to allow the
Group to increase its competitive levels in order to reach the best
international standards.
In exploration, the Ecopetrol Group will build a portfolio
that is robust and diversified, focused on high potential basins in
Colombia and abroad, which is
designed to increase significantly the Group's contingent resources
and reserves. In addition, the exploratory team based in
Houston and Bogota will be strengthened by the addition of
world-class human talent with proven track
record.
In production, Ecopetrol will be focused on efficient
barrels production, in major profitable fields, while carrying out
a comprehensive program to increase the recovery factor. It will
seek to increase average annual production between 1% and 2%,
reaching a total of approximately 870 thousand barrels of oil
equivalent per day by 2020, with an EBITDA target of more than
US$30 per barrel in a price scenario
for Brent crude of between US$70 and
US$80 per barrel.
As for the company's reserves, the objective is to
increase proved reserves by 1,700 million barrels of oil equivalent
by 2020.
In the transportation segment, the company will dedicate
its efforts to increase efficiency in order to achieve
international operating standards. The plan includes Cenit´s
consolidation, the affiliate that will ensure the transportation of
national crude, with a special focus on heavy crudes, as well as
transportation of refined products for the Colombian
market.
In refining and petrochemical, the strategy contemplates
the start-up of the new Cartagena
refinery during the last quarter of 2015, execution of an ambitious
efficiency plan that will improve the competitiveness of existing
assets and the promotion of the necessary regulatory conditions to
ensure the business's profitability within a framework of financial
self-sustainability.
Ecopetrol will focus on profitable investments, at an
average estimated level of US$6,000
million per year through 2020, oriented toward high value
projects that contribute to the execution of the new
strategy.
The company will prioritize the protection of available
cash for its operations, maintaining its access to local and
international capital markets in competitive conditions. The
preservation of business and finance metrics that credit rating
agencies consider will be a priority to maintain our current credit
rating.
The company will continue its program to divest
non-strategic assets, as announced with regard its stake in EEB and
ISA, among others, as well as non-strategic exploration and
production assets.
The strategy is based on producing efficient, clean and
profitable barrels, which generate returns for our shareholders,
interested groups and Colombians. The perspective toward 2020 will
be to attempt to double the 2014 return on capital
employed.
To support its strategy, in the beginning of 2015,
Ecopetrol initiated a transformation plan that provides structural
efficiencies to obtain annual savings close to US$1,000 million in the period 2015-2020. This
plan contemplates fundamental changes within the company, including
its business, project management and technology segments as well as
relationship with local communities and active portfolio
management.
The plan also provides a cultural transformation that
encourages and promotes the attainment of results and is based on
the principles of integrity, collaboration and
creativity.
Ecopetrol will prioritize innovation and knowledge
generation. In the new strategy, technology and information systems
will be focused on leveraging key business projects, especially in
exploration and production.
The Ecopetrol Group is committed to production with zero
accidents and environmental incidents, with a solid regional
presence, prompt decision-making, with satisfied and committed
employees, and a harmonious, mutually beneficial relationship with
local communities.
Ecopetrol's new strategy and the transformation plan that
supports it, have as their goal the company's reinvention in order
to successfully compete in a challenging international
environment.
Ecopetrol will host a conference call and webcast on
May 26th, 2015 in order to present
the new strategy.
Conference Calls Details
English
2:00 p.m. Bogota
3:00 p.m. New York / Toronto
US Dial In #: 844 452
6829
International Dial In #: 760 666
3613
Local Colombia Dial In #: 01800 913
0176
Passcode: 50234052
|
Spanish
3:30 p.m. Bogota
4:30 p.m. New York / Toronto
US Dial In #: 844 452 6829
International Dial In #: 760 666
3613
Local Colombia Dial In #: 01800 913
0176
Passcode: 50229634
|
The presentation will be available on Ecopetrol's website
on May 26, 2015 before markets
open.
The webcast will be available on Ecopetrol's website
(www.ecopetrol.com.co) and at the following links:
http://edge.media-server.com/m/p/n58mjjj8
(English)
http://edge.media-server.com/m/p/mfbyaerg
(Spanish)
Please test the proper operation of the webcast in your
browser ahead of time. We recommend using the latest versions of
Internet Explorer, Google Chrome or Mozilla
Firefox.
Ecopetrol is the largest company in Colombia and is an integrated oil and gas
company; it is among the top 40 oil companies in the world and
among the top four oil companies in Latin
America. Besides Colombia –
where it generates over 60% of the national production – it has
exploration and production activities in Brazil, Peru,
the US (Gulf of Mexico) and
Angola. Ecopetrol owns the largest
refinery in Colombia, most of the
pipeline and multi-product pipeline network in the country, and is
significantly increasing its participation in bio-fuels.
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 and Section 21E of the U.S. Securities
Exchange Act of 1934. 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
and gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, Ecopetrol'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.
Contacts:
Head of Corporate Finance and Investor Relations
(a)
MarĂa Catalina Escobar
Hoyos
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
Fax: +571-234-4480
E-mail: mauricio.tellez@ecopetrol.com.co
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SOURCE Ecopetrol S.A.