Ecopetrol is evaluating the strategy to ensure the continuity of gas projects in the Southern Caribbean

Rhea-AI Summary

Ecopetrol (NYSE: EC) has initiated a joint plan to maintain continuity of gas projects in the Southern Caribbean following Shell's withdrawal from offshore assets in the region. The affected areas include Col 5, Purple Angel, and Fuerte Sur blocks, containing gas discoveries Kronos-1, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1.

The company aims to complete the Gorgon development project's maturation and socio-environmental viability by first half of 2029, with production expected to start between 2031 and 2032. Ecopetrol is exploring connection options with the National Transportation System to commercialize Gorgon's gas for national demand.

Despite Shell's exit from these Caribbean projects, both companies remain partners with Total Energies in Brazil's Gato Do Mato field development, with significant resource allocation planned for 2025.

Positive

• Projects in Southern Caribbean deemed technically and economically viable
• Strategic plan to ensure medium-term gas supply for national demand
• Continued partnership with Shell and Total Energies in Brazil's Gato Do Mato field

Negative

• Shell's withdrawal from offshore Caribbean assets creates uncertainty
• Extended timeline for production start (2031-2032) indicates long wait for revenue generation
• Additional investments may be required to maintain project continuity

BOGOTA, Colombia, April 24, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that a joint plan has been initiated to determine the best alternative to ensure the continuity of the projects in the Southern Caribbean following Shell's decision to withdraw from its offshore assets in said region.

In the Col 5, Purple Angel, and Fuerte Sur blocks, there are gas discoveries Kronos-1, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1, which were operated by Shell. Shell's decision is related to its global portfolio strategy and management. These technically and economically viable projects are a priority for Ecopetrol and the country. Therefore, actions are being evaluated to maintain their continuity over time and develop resources to ensure the medium-term gas supply.

The maturation of the Gorgon development project and the management of socio-environmental viability are intended to be completed in the first half of 2029 and production is intended to start between 2031 and 2032. In this regard, Ecopetrol is evaluating connection options with the National Transportation System to commercialize gas from Gorgon and meet national demand.

Ecopetrol and Shell remain partners and, together with Total Energies, are advancing the development of the Gato Do Mato field in Brazil, to which significant resources are intended to be allocated in 2025.

Ecopetrol maintains its commitment to the development and maturation of gas resources in the Caribbean Sea, understanding this fuel as one of the pillars of the energy transition.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements. 

For more information, please contact:

Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co 

Head of Corporate Communications (Colombia) 
Marcela Ulloa 
Email: marcela.ulloa@ecopetrol.com.co 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-is-evaluating-the-strategy-to-ensure-the-continuity-of-gas-projects-in-the-southern-caribbean-302437913.html

SOURCE Ecopetrol S.A.

FAQ

What is the timeline for Ecopetrol's (EC) Gorgon gas project production in the Southern Caribbean?

Production from the Gorgon gas project is expected to start between 2031 and 2032, with project maturation and socio-environmental viability planned for completion in the first half of 2029.

Which gas discoveries are affected by Shell's withdrawal from Ecopetrol's (EC) Caribbean assets?

The affected gas discoveries include Kronos-1, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1, located in the Col 5, Purple Angel, and Fuerte Sur blocks.

How will Shell's exit impact Ecopetrol's (EC) gas development plans in the Southern Caribbean?

Ecopetrol is evaluating alternatives to ensure project continuity and develop resources for medium-term gas supply, including exploring connection options with the National Transportation System.

Are Ecopetrol (EC) and Shell still collaborating on any other projects?

Yes, Ecopetrol and Shell remain partners, along with Total Energies, in the development of the Gato Do Mato field in Brazil, with significant resources planned for allocation in 2025.