Ecopetrol to tap US$1bn credit line

Colombian state-run oil company Ecopetrol has secured a US$1bn credit facility to help bankroll its gas expansion and decarbonization plans.

The finance ministry approved the operation with a syndicate comprising Deutsche Bank, Banco Inbursa, Latin American Bank of Foreign Trade and ICBC Standard Bank, Ecopetrol said in a regulatory filing. 

The credit line has a seven-year maturity and a variable interest rate, the details of which were not disclosed.

An initial disbursement of US$800mn is expected to be made “in the next few days,” the Bogotá-based firm said. "This agreement demonstrates the support and confidence of the international financial sector in the strategy of the Ecopetrol Group," the filing read.

Ecopetrol’s 2023 business plan envisages capital expenditure of up to 29.8tn pesos (US$6.2bn) compared to 21.9tn pesos in 2022. 

CEO Ricardo Roa, who replaced Felipe Bayón in April, has said the company will prioritize clean energy and natural gas under his stewardship. 

Decarbonization efforts include the development of two industrial-scale green hydrogen projects that will produce up to 9,000t/y and boast electrolysis capacity of 60MW.

Ecopetrol will step-up its gas expansion plans in the fourth quarter by drilling the offshore Orca Norte-1 appraisal well alongside partner Petrobras, Brazil's federal oil company.