Ecopetrol S.A. EC, Colombia’s majority state-owned oil company, has provided an update regarding itsinvestment budget for 2025. The company’s board of directors has announced that the budget will range between 24 trillion pesos and 28 trillion pesos. Of the total approved budget, more than 50% has been allotted for the exploration and production of crude oil and gas.

Approximately 76%, totaling 20.3 trillion pesos, is expected to be dedicated to maintaining production in the range of740,000-745,000 barrels of oil equivalent per day (boe/d). Additionally, the company is targeting an average refinery load in the band of 415,000- 420,000 barrels per day (bpd) and daily transportation volumes between 1,130,000 bpd and 1,170,000 bpd.

The company has earmarked more than 50% of the 2025 investment budget for the exploration and production of hydrocarbons. For 2025, the exploration and production segment is expected to receive approximately 17.2 trillion pesos.

EC is expected to allot nearly 52% of this budget for production of crude oil, and 12% for gas-related investments. These investments are aimed at sustaining organic production in the 740,000-745,000 boe/d range, of which 78% is expected to be crude oil, 17% gas and the remaining white products.

Additionally, a part of this budget will be dedicated to deploying advanced recovery technologies, which should help the company utilize its resources efficiently and maintain its production levels. Colombia plans to expand the production of crude oil to offset the natural decline of the country's gas fields.

Ecopetrol’s drilling strategy in 2025 involves drilling 455-465 development wells. The majority of these wells (approximately 79%) will be drilled in Colombia, while the remaining will be drilled in the United States. Additionally, it plans to drill 10 exploratory wells in 2025. These wells are anticipated to be drilled mainly in the Llanos Basin and offshore Caribbean of Colombia.

The approved budget for 2025 also includes gas investments that are estimated to be in the range of 3.1-3.3 trillion pesos. This amount will be primarily utilized in the Piedemonte Llanero and offshore Caribbean regions for the production of Caribbean Colombia gas. This should help the country increase its gas production and offset the shortage of natural gas reserves. Furthermore, the gas produced is expected to add around 123,000 barrels of oil equivalent per day to the total production, of which 85% will contribute toward gas supply for the Caribbean nation.

EC expects approximately 6% of the total investment budget, totaling 1.6 trillion pesos, to be allocated to the refining segment. The investments will cater to its Barrancabermeja and Cartagena refineries. The amount shall be utilized to uphold the reliability and sustainability of operations in the refineries. The investments will also be utilized to develop programs aimed at reducing product imports and producing better fuels. Additionally, EC plans to advance renewable fuel projects such as Sustainable Aviation Fuel (“SAF”).