Ecopetrol S.A.'s Board of Directors Authorizes Creation of New Subsidiary on Free Trade Zone to Conduct Offshore Operations
August 19, 2015 at 20:31 PM EDT
BOGOTA, Colombia, Aug. 19, 2015 /PRNewswire/ -- The Board of Directors of Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP), in its meeting held on August 14, 2015, authorized the creation of a Colombian company indirectly wholly owned by Ecopetrol S.A.
The creation of the new subsidiary seeks to develop offshore activities in Colombia, which the company currently carries out as operator and non-operator, and take advantage of the benefits of Decree 2682/14, "pursuant to which the conditions and requirements are established for declaring the existence of Permanent Offshore Free Trade Zones".
Once the new company is created, the ANH's approval will be sought in order to assign Ecopetrol S.A.'s contractual rights under the exploration and production contracts of the offshore blocks in which it is operator and non-operator.
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, and the US (Gulf of Mexico). 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.
For further information, please contact:
Media Relations (Colombia)
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ecopetrol-sas-board-of-directors-authorizes-creation-of-new-subsidiary-on-free-trade-zone-to-conduct-offshore-operations-300131076.html
SOURCE Ecopetrol S.A.