Friday, oil and gas company Ecopetrol S.A.(EC) said that it raised its full year 2010 investment plan from last year, with the total investment plan for the year at US$6.93 billion, up 11% from US$6.224 billion approved for 2009.
The Bogota, Colombia-based company said that 93% of the investment will be concentrated in Colombia and the remaining 7% earmarked for exploration and production projects in the U.S. Gulf Coast, Brazil, and Peru. Of the total, 65% capital investment will be used in exploration and production, of which 51% will be allocated to production.
Ecopetrol said that it will obtain funds totaled US$3.5 billion, equivalent to 19% of the company's total budget for 2010 through bond issuances in both the international and local capital markets, commercial bank loans, multilateral and export development credit facilities, and potential sale of its interests in some of its non-strategic assets.
The company said that with an investment of US$951 million investment for exploration it plans to drill 20 exploratory wells, 13 in Colombia and 7 overseas with leading a 54% investment in in Colombia and 46% abroad. Overseas four wells will be drilled in the Gulf of Mexico, two in Brazil and one in Peru.
Ecopetrol will invest US$3.558 billion in continuing to increase its direct production of crude oil and gas to an average of 556,000 boed in 2010, reflecting an increase of 12% compared with 2009, in line with average annual growth target in order to reach one million barrels of oil equivalent in 2015.
Gas projects will see investment US$400 million, of which 70% will be assigned to the Cusiana and Cupiagua plants while the highest percentage of investment would be allocated to the Llanos Orientales projects, specifically for development of heavy crude in the Castilla, Chichimene and Rubiales fields.
Refining and petrochemical investments are estimated to be US$1.294 billion, up 59% compared to 2009, for continued upgradation of refineries, industrial services project and fuel quality improvement plan. In addition, US$470 million will be invested to support the financing of the Cartagena Refinery Master Plan.
In order to strengthen its logistical capacity, Ecopetrol will invest US$735 million in transport to meet local demand and boost capacity at the Pozos-Galan system from 18 MBD to 60 MBD, as well as to improve the Andean Pipeline.
Energy diversification projects will have investment of US$25 million while US$105 million will be assigned to information technology and research studies to be conducted by the Colombian Petroleum Institute. The remaining US$258 million will be used for the company's new business segment and financing and supply business.
Ecopetrol Grupo Empresarial will invest US$8.476 billion in 2010, of which 82% is intended for the parent company Ecopetrol S.A. and the remaining 18% for affiliates and subsidiaries of Ecopetrol S.A.
An investment of US$3.945 billion or 47%, would be used to develop existing fields, expected to produce 600 MBOED in 2010, a 17% improvement from 2009. The overall target is of producing 1 million barrels of oil equivalent in 2015.
Ecopetrol Grupo Empresarial will allocate US$1.068 billion, or 16%, of its investment resources to exploration.
The remaining US$3.100 billion, or 36% of the estimated investments of Ecopetrol Grupo Empresarial, will be allocated to downstream activities and the consolidation of current operations.
The financing needs of its subsidiaries is estimated at US$2.3 billion.
EC closed Friday's regular trading session at $25.39, up $0.29 or 1.16% on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.