Ecopetrol unveils US$5-6bn spending plan for 2025

Colombian state-run oil company Ecopetrol has outlined plans to invest 24-28tn pesos (US$5-6bn) in 2025 as it sharpens its focus on clean energy. 

In a filing sent to Colombia's securities regulator, the Bogotá-based firm allocated 20.3tn pesos to its traditional oil and gas business as it targets production of 740-745,000boe/d, refinery throughput of 415-420,000b/d and the transportation of between 1.13Mb/d and 1.17Mb/d of crude. 

Some 6.5tn pesos have been set aside for initiatives associated with the energy transition, power transmission, roads and other corporate activities. 

The company also plans savings of 4tn pesos through efforts to cut operating costs and other efficiency measures. 

"The financial plan for 2025 seeks to ensure competitive returns in a scenario of average Brent prices of US$73/b, generating an Ebitda margin at levels close to 39%," Ecopetrol said. 

The overall investment forecast compares with a projected outlay of 23-27tn pesos in 2024, representing a year-on-year reduction of around US$1bn due to the local peso's depreciation. 

Upstream

Capital expenditure on exploration and production is seen reaching 17.2tn pesos next year, with a growing emphasis on natural gas. The company aims to drill 455-465 development wells, 79% of which are earmarked for Colombia and 21% for the United States. 

In the exploration segment, Ecopetrol is targeting 10 wells, mainly in the onshore Llanos basin and offshore areas in the Caribbean Sea. 

The company envisages investments of 3.1 to 3.3tn pesos in gas projects, principally in the Piedemonte area of the Llanos basin and in offshore acreage. 

Midstream

The budget includes 1.5tn pesos for midstream activities, with a focus on improvements and reinforcements to infrastructure operated by subsidiaries Cenit, Ocensa, ODC and ODL. 

It explained that a midpoint target for transport volumes of 1.15Mb/d corresponded to "production expectations and the demand for refined products." 

In its last investment forecast, Ecopetrol said it planned to transport more than 1Mb/d through its national pipeline network in 2025. 

Downstream

Ecopetrol envisages spending of around 1.6tn pesos in its downstream division next year. 

The outlay seeks to ensure the reliability of its operations at the Barrancabermeja and Cartagena refineries while improving fuel quality and reducing the country's dependence on imports, the company said. 

In addition, a portion of the funds has been set aside for the development of sustainable fuels. 

Transmission, transition

Ecopetrol expects investments by its majority-owned subsidiary Interconexión Eléctrica (ISA) to account for around 21% of the total budget. It said 90% of ISA's capex would be dedicated to the power transmission segment as the Medellín-based unit seeks to expand its network to 50,400km in operation across the region. 

Meanwhile, Ecopetrol said it remained on target to have 900MW of installed capacity from clean sources operating by next year, in line with its 2040 business plan.