In December 2022, the Board of Directors of Ecopetrol approved between 25.3 billion and 29.8 billion Colombian pesos for the 2023 investment plan (the “Investment Plan”), at US$80/Bbl Brent.
The company expects to allocate approximately 66% of these investments to projects in Colombia and the remainder to the positioning and development of the Ecopetrol Group’s operations in the United States, Brazil, Peru and Chile.
Ecopetrol considers that the Investment Plan approved by the Board of Directors is aligned with the Ecopetrol Group’s commitment to accelerate the energy transition path and Colombia’s energy security in line with the 2040 “Energy that Transforms” strategy.
Thus, approximately 23% of the allocations foreseen in the Investment Plan seek to cement diversification towards new low-emission businesses, including investments in hydrogen production, renewable energies, carbon capture and electricity transmission.
The Investment Plan also includes investments of between 3.6 trillion and 4.1 trillion Colombian pesos for exploration and production projects in the Piedemonte Llanero, the Continental Caribbean and the Offshore Caribbean, which support our commitment to achieve gas self-sufficiency.
The Investment Plan expects the Ecopetrol Group’s hydrocarbon production to range between 720,000 and 725,000 barrels equivalent per day in 2023, a refining yield between 420,000 and 430,000 barrels per day, with transported volumes exceeding one million barrels per day, seeking to support the continuity of fuel import substitution and the stability of the country’s trade balance.
Regarding its power transmission business, the Investment Plan allocates approximately 5.4 trillion Colombian pesos, mainly to support more than 6,000 kilometers of new transmission lines for non-conventional renewable energies.
In addition, the Investment Plan continues with the Ecopetrol Group’s focus on energy transition and sustainability strategy, strengthening socio-environmental investment programs, deepening the digital transformation and accelerating the development and implementation of technologies to optimize operations throughout the chain.
Accordingly, the plan includes expected investments of close to 2.3 trillion Colombian pesos in decarbonization projects, integrated water management and fuel quality improvement, among others.
The plan also considers 472 billion Colombian pesos in social investment resources for regional development and the well-being of communities, focused on road infrastructure, education and access to public services such as water and gas, and more than 405 billion Colombian pesos in science, technology and innovation projects, which we consider essential to leverage the development of the business and catalyze progress in technologies for the energy transition.