Ecopetrol Clarifies Information Released in the Media Regarding the Construction of an Oil Pipeline
March 23, 2010 at 09:00 AM EDT
BOGOTA, March 23 /PRNewswire-FirstCall/ -- In relation to the information that appeared in certain media outlets on March 18, regarding the search for a strategic partner to build a pipeline, with an estimated investment of US$3,500 million, Ecopetrol makes the following clarifications:
1. Ecopetrol's Business Plan, which aims to reach a production of one million barrels of oil equivalent per day in 2015, also includes investments to modernize and expand the capacity of refineries and transportation systems in accordance with the expected production increases.
2. In recent years Ecopetrol has increased the capacity of its transportation systems and is evaluating additional options. Currently the company is carrying out negotiations with other oil production companies with a view towards establishing future capacity requirements.
3. Once transportation needs are defined, the size of an eventual oil pipeline project, the required investment and business model for its development will be established.
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.