Ecopetrol S.A. has approved an investment plan for 2011 of US$6.738 billion. Also, the Board assigned the Company a contingent budget of US$1.807 billion for projects still in the development stage, which, once necessary requirements are met, will be presented to the Board for approval during the course of the year. Taking into account this contingent budget, Ecopetrol's investments in 2011 could reach US$8.545 billion. Additionally, of the possible US$8.545 billion investment plan for 2011, US$1.512 billion is destined to intercompany contributions and loans to the Company's subsidiaries and affiliates, and does not include funds for possible acquisitions.

95% of investments will be made in Colombia and the remaining 5% is destined to exploration and production projects along the U.S. Gulf coast, Brazil and Peru, where Ecopetrol maintains operations.

As in prior years, the majority of investments in 2011 will be destined to exploration and production (60%).

"The 2011 investment plan is key for Ecopetrol in its strategy of meeting the goals we have set for ourselves for the years 2015 and 2020. In 2011, important initiatives and projects will be undertaken that will make it possible for us to fulfill our value promise to our shareholders. This year will be crucial for many strategic investments. So far we have taken important steps to realize that value promise announced three years ago by means of growing production and crude and gas reserves, as well as driving infrastructure projects in refining, natural gas, and hydrocarbon and biofuel transport that will help us improve delivery to customers and all Colombians. 2011 will be a year for demonstrating that we are on the right path toward making our vision as a business group a reality," said Ecopetrol's president, Javier Gutierrez Pemberthy.

Exploration With an investment of US$1.293 billion in 2011, Ecopetrol S.A. plans to proceed with the drilling of 40 exploratory wells, of which 28 will be located in Colombia, primarily in Llanos Orientales. The 12 wells drilled abroad will be along the U.S. Gulf coast, Brazil and Peru. The drilling goal typifies the strategy of focusing on prospects with major potential and value for the Company.

The Company will continue the activities in all of its blocks in Colombia, including the 10 blocks recently granted by the National Hydrocarbon Agency. The Company also plans to explore the development of non-conventional resources (such as shale gas).

Production Ecopetrol will use US$3.848 million for continued crude and gas production, with an average target of 697 thousand barrels a day of oil equivalent (kbpde) in 2011. This production goal for Ecopetrol S.A. (unconsolidated) represents a 24% increase over that of 2010. Group's average production will reach 750 thousand barrels of petroleum equivalent per day.

Most of the investment will be earmarked for projects in the Llanos Orientales, especially heavy crude development at fields such as the Castilla, Chichimene and Rubiales fields. A representative percentage will also be destined for the development of the Valle Medio del Magdalena fields, including La Cira-Infantes and Casabe fields.

Tags: Ecopetrol S.A.