Ecopetrol S.A. has announced that its Board of Directors approved the 2023 general organic investment plan for the Ecopetrol Group for an estimated amount between COP 25.3 trillion (£5 million) and COP 29.8 trillion (£6 million). Individual investment projects will be evaluated in due course by the Board of Directors according to their materiality. The investment plan seeks to advance the four pillars of the 2040 strategy and the roadmap for the country’s energy transition.
Renewable self-generation, hydrogen, energy efficiency, carbon capture, and ISA (transmission and roads) resources represent about 23% of the investment plan for 2023. About COP 4.1 trillion in the next 3 years (around COP 315 billion in 2023), will allow the incorporation of 900 MW of renewable energy, produce more than 50,000 tons of low-carbon hydrogen, reduce about 400,000 tons of CO2e emissions, and advance in carbon capture and storage (CCUS) studies.
Gas investments range between COP 3.6 and COP 4.1 trillion in 2023 with a production of between 174 and 177 thousand barrels of oil equivalent per day (which represents about 800 million cubic feet of natural gas, in addition to white products). These resources are aimed at maintaining the current supply, seeking to increase it with gas exploration projects, of which 12 wells are planned in 2023, mainly in Piedemonte, Caribbean Offshore, and Northern Colombia, consolidating social gas and energy communities as the transition fuel.
Around 66% of the total investments projected for 2023 are expected to be allocated to projects in Colombia to continue generating added value to the domestic chain and increase the benefits for stakeholders in the country.
Additionally, COP 472 billion of social investment is planned to strengthen the commitment to local development in the regions, to leverage in 2023, among others, the intervention of 240 kilometers of tertiary networks, education for 90,000 students, access to drinking water for 16,000 inhabitants and 13,000 new users of domestic gas, among others.
To continue furthering the Cutting-Edge Knowledge pillar, the plan includes investments of COP 405 billion to pursue the Science, Technology, and Innovation agenda. These investments are expected to strengthen the competitiveness of the operations and contribute to the TESG® strategy through solutions focused on the reduction of emissions and technologies that make feasible the targets of reducing water intake and zero water discharge.
The plan seeks to ensure competitive returns for the Nation and the minority shareholders, which is why solid financial results are expected to be achieved, which overcome the inflationary pressure and incorporate efficiency targets that seek to capture savings in the management of investment projects.
“The Ecopetrol Group’s operating and commercial figures in 2022 evidence an outstanding performance that supports the historic financial results. With the 2023 investment plan, we will continue to grow with the energy transition, while generating value for society and our shareholders, and ratifying the Group’s commitment to TESG® and the country’s energy security,” said Ecopetrol’s president, Felipe Bayón Pardo.
