Ecopetrol S.A. reports on the decision of the Santa Marta Tribunal.

Rhea-AI Summary

Ecopetrol (NYSE: EC) announces a favorable ruling from the Santa Marta Tribunal regarding an appeal against a claim filed by the Indigenous Council of Taganga. The Tribunal partially overturned a previous ruling that had suspended exploration and production at the Tayrona exploratory drilling area's Uchuva 2 well. The Ministry of Interior must now assess the necessity of a prior consultation with the indigenous community within one month. This decision allows Ecopetrol and Petrobras International Braspetro B.V. to resume drilling operations important for Colombia's energy security.

Positive

• Favorable court ruling allows resumption of drilling operations at Uchuva 2 well
• Operations can continue without immediate requirement for prior consultation
• Maintains operational continuity in strategic energy security project

Negative

• Pending one-month review period for indigenous consultation requirement creates operational uncertainty
• Potential for future legal challenges from indigenous communities

Insights

Legal & Energy Policy Expert

The Santa Marta Tribunal's favorable ruling represents a significant operational victory for Ecopetrol and Petrobras. The decision to allow continued drilling operations at the Uchuva 2 well removes a major regulatory obstacle while balancing indigenous rights concerns through a mandated consultation assessment. Key implications include:

• Immediate resumption of exploration activities, supporting Colombia's energy security objectives
• Reduced regulatory uncertainty for future offshore exploration projects
• Established precedent for handling indigenous consultation requirements in energy projects

The one-month timeline for the Ministry of Interior's assessment provides a clear framework for resolution, minimizing potential delays. This balanced approach between operational needs and community rights strengthens Ecopetrol's position in managing similar challenges across its extensive Colombian operations.

BOGOTA, Colombia, Oct. 31, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the Santa Marta Tribunal (the "Tribunal") issued a favorable decision regarding an appeal against the claim (acción de tutela) filed by the Indigenous Council of Taganga.

The Tribunal's decision partially overturned the ruling of the Fourth Labor Court of the Santa Marta Circuit which had ordered the suspension of exploration and production works in the "Tayrona exploratory drilling area at the Uchuva 2 well."

Additionally, the Tribunal ordered the Ministry of the Interior – Directorate of the National Authority for Prior Consultation (DANCP) to assess the necessity of a prior consultation process with the indigenous community (which had been previously ordered by Fourth Labor Court of the Santa Marta Circuit), within one month from the date of notification of the Tribunal's decision.

This new ruling allows Ecopetrol and Petrobras International Braspetro B.V. – Colombia Branch to continue drilling operations and carry out their operational activities in the Tayrona exploratory drilling area, which are vital for the country's energy security.

Ecopetrol reiterates its commitment to the country and will continue to work safely, respecting life, people, and the environment, recognizing the importance of dialogue with communities and respecting the decisions of the country's authorities.

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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, 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.

For more information, please contact:

Head of Capital Markets (a)
Lina María Contreras Mora
Email: investors@ecopetrol.com.co

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

 

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SOURCE Ecopetrol S.A.

FAQ

What was the Santa Marta Tribunal's decision regarding Ecopetrol (EC) operations?

The Santa Marta Tribunal partially overturned a previous suspension of exploration and production works at the Tayrona exploratory drilling area's Uchuva 2 well, allowing Ecopetrol to resume operations.

How does the Tribunal's decision affect Ecopetrol's (EC) drilling operations?

The decision allows Ecopetrol and Petrobras International Braspetro B.V. to continue their drilling operations and operational activities in the Tayrona exploratory area.

What requirements did the Santa Marta Tribunal set for Ecopetrol (EC)?

The Tribunal ordered the Ministry of Interior to assess within one month whether a prior consultation process with the indigenous community is necessary.