Ecopetrol’s 2024 investment plan down more than 9%

Dec. 1, 2023
The board of directors of Ecopetrol Group approved the company’s investment plan for 2024, with expenditures set at 23-27 trillion pesos ($5.685-6.674 billion), a more than 9% reduction from 2023.

The board of directors of Ecopetrol Group, controlled by the Colombian government, approved the company’s investment plan for 2024, with expenditures set at 23-27 trillion pesos ($5.685-6.674 billion), a more than 9% reduction from 2023. The company’s 2023 investment plan was set at 25.3-29.8 trillion pesos.

The new budget projects that 19.3 trillion pesos ($4.771 billion) will be allocated to maintaining crude production of 725,000-730,000 b/d and average refinery runs of 420,000-430,000 b/d, as stated by group president Ricardo Roa in a video released Nov. 30. The 2024 plan establishes "360 development wells, 15 exploratory wells, and integrity investments to maintain the availability of refinery infrastructure and pipeline systems," explained executive vice president of operations, Alberto Consuegra.

"Competitive returns will be ensured at Brent levels of $75/bbl, with a return on average capital employed (ROACE) of around 9%, an approximate EBITDA margin of 38%, and transfers to the nation exceeding 38 trillion pesos," added the statement. The investment plan between 2024 and 2026 will total around 80 trillion pesos, equivalent to about $20 billion.

Consistent with guidelines defined by Colombian President Gustavo Petro and the framework of the country’s 2040 Strategy, more than 42% of the plan is expected to be invested in energy transition projects, focusing on low carbon dioxide emissions, natural gas supply, decarbonization, electric transmission, and roads.