Ecopetrol S.A issues statement on Paradise Papers article
November 14, 2017 at 10:27 AM EST
BOGOTÁ, Colombia, Nov. 14, 2017 /PRNewswire/ -- In 2006, after completing the relevant analysis and with the necessary corporate authorizations, Ecopetrol S.A. organized the company Black Gold RE, domiciled in Bermuda, the corporate purpose of which was to support and foster the risk financing strategy of Ecopetrol and its subsidiaries and affiliates, in order to determine the optimal balance between retaining and transferring risks at any point in time.
As a result, Black Gold RE has engaged in efficient yet extensive risk financing by accessing the international reinsurance market directly, which in turn allows it to mitigate the capacity and coverage restrictions that exist in the local insurance markets, negotiate better insurance premium rates, monitor insurance brokerage costs, increase its retention capacity to efficiently address rate changes in the insurance market, and consolidate and concentrate the financial and administrative operations of the GE Corporate Insurance Program (a single deal), etc.
It is important to stress that Bermuda is not included on the list of countries considered tax havens, pursuant to Colombian Ministry of Finance and Public Credit Decrees 1966 and 2095 of October 7 and 21, 2014
For accounting purposes, Ecopetrol fully consolidates the earnings generated by this subsidiary in its financial statements, which are audited by E&Y, the Group companies' current external auditor, and in the other periodic reports, including the quarterly report, published as relevant information in Colombia, through the official page of the Financial Superintendence of Colombia, and the 20F that must be presented to the Securities Exchange Commission of the United States of America.
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 & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company'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.
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Media Relations (Colombia)
SOURCE Ecopetrol S.A.