Ecopetrol Takes Over Operations of the Cupiagua Fields Beginning July 2010
November 12, 2009 at 19:00 PM EST
BOGOTA, Colombia, Nov. 12 /PRNewswire-FirstCall/ -- On November 12, 2009 Ecopetrol S.A. (NYSE: EC) ("Ecopetrol" or the "Company") announced in the municipality of Aguazul, department of Casanare, Colombia, that as of July 1, 2010 it will take over operation of the Cupiagua and Cupiagua Sur fields, following the expiration of the Santiago de las Atalayas Association Contract, whose partners are Ecopetrol (50%), BP Exploration Company-Colombia Ltd. and BP Santiago Oil Company (31%), and Tepma (19%).
In September 2009, the Cupiagua field produced an average of 17,087 barrels of oil per day (bpd) and the Cupiagua Sur field produced 12,208 bpd. Today, Ecopetrol's share is 50% of production after royalties; as of July, 2010, Ecopetrol's share will increase to 100% after royalties.
The Cusiana field operates under a structure shared by the Santiago de las Atalayas, Tauramena and Rio Chitamena Association Contracts under which the field would continue to be operated by BP Exploration, subject to the relevant contractual adjustments.
The Santiago de las Atalayas Association Contract was entered into in 1982 and will expire on June 30, 2010. This is the first association contract that expires in the Llanos Foothills. The other association contracts expire between the years 2016 and 2020, and include, among others, Cusiana, Cupiagua in Recetor, Volcanera, Pauto and Florena fields.
Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
Contact us for any additional information: Investor Relations Alejandro Giraldo Phone: +571-234-5190 Email: firstname.lastname@example.org Media Relations (Colombia) Mauricio Tellez Phone: + 571-2345377 Fax: +571-2344480 Email: email@example.com Website: www.ecopetrol.com.co
SOURCE Ecopetrol S.A.