Ecopetrol reports adverse consequences to its operation as a result of the public order situation in Colombia

This Ecopetrol release was published using machine translation.

Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) reports on some adverse impacts on the operation of the production, transportation, refining and commercialization segments, due to the public order situation that the country is going through, where social protests have resulting in blockades of its main roads and the occurrence of isolated events against the Company's infrastructure.

In the Exploration and Production segment, the Group's production so far in May has been 651 kboed. The most significant impacts are recorded in gas and white products (LPG and NGL), mainly in the Cusiana and Floreña fields, and to a lesser extent in crude oil production in the departments of Putumayo, Meta, Arauca and Boyacá. This result in production is also explained by the continuity of water management restrictions in the Castilla field.

In the Transportation segment, high levels of inventories have accumulated in the wholesale plants and the network of pipelines, which has led Cenit to suspend, intermittently, pumping in some of its systems. This has resulted in a transported volume of refined products during May of 224 kbd. For its part, the volume of crude oil transported in the month was 716 kbd.

In the Refining segment, the Barrancabermeja Refinery reported a load of 207 kbd for the month of May, given the lower availability of domestic crude and low withdrawals of fuel, petrochemical and industrial products. The Cartagena Refinery operation has not been impacted.

Regarding marketing activities, a reduction has been observed in the national demand for diesel (-33%), gasoline (-15%) and jet (-1%) compared to the levels expected for the month of May. Likewise, the demand for Ecopetrol's gas has been reduced by approximately 16% in the thermal and industrial sectors, and in LPG by approximately 41% during the month. The departments most affected in terms of fuel supply have been Valle del Cauca, Nariño, Cauca, Huila, and Caquetá.

In view of the above, the Ecopetrol Group is implementing adjustments to its operations and logistics to mitigate the adverse impacts on the delivery of fuels to the different regions of Colombia.

As of the date of this communication, Ecopetrol estimates that these adverse events should not present material impacts that compromise the fulfillment of the goals of our business plan for 2021. However, Ecopetrol cannot anticipate the duration of the protests, and if they are, they could continue to have a negative impact on operations.