Ecopetrol Earmarks $6.93B Investment Plan for 2010
Ecopetrol has reported that its investment plan for 2010 will total US $6.93 billion, an increase of 11% compared to the US $6.224 billion approved for 2009.
Ninety three percent of the investment will be concentrated in Colombia and the remaining 7% earmarked for exploration and production projects in the U.S. Gulf Coast, Brazil, and Peru.
Investments in exploration and production represent 65% of the total capital investment plan for 2010, of which 51% will be allocated to production.
"The 2010 investment plan represents another milestone in achieving the goals we have set for 2015. Significant progress has been made in exploration and production, delivering on the promise of value we made two years ago. Investments made in other segments of our business will begin to show additional results starting in 2010. We have managed to gain efficiency in the consolidation of our portfolio and the allocation of resources to more productive investments in order to reach our production goal of one million barrels," said Ecopetrol's CEO Javier Gutierrez Pemberthy.
Exploration and New Business
With a US $951 million investment in 2010, Ecopetrol plans to drill 20 exploratory wells, 13 of them directly in Colombia and 7 overseas in conjunction with partner companies. Four wells will be drilled in the Gulf of Mexico, two in Brazil and one in Peru. The drilling target is consistent with the Company's strategy of focusing on prospects that offer greater potential and value. Fifty four percent of the investment will take place in Colombia and 46% abroad.
The Company will continue its activities in the blocks awarded by the National Hydrocarbon Agency during the various rounds that took place in 2008, and will prepare its participation for the 2010 Colombia Round.
New business will focus primarily on the development of exploration projects in the U.S. Gulf Coast, as well as in Peru and Brazil, in partnership with other companies.
Ecopetrol will invest US $3.558 billion in continuing to increase its direct production of crude oil and gas to an average of 556,000 barrels of oil equivalent per day (boed) in 2010 (not including amounts produced by affiliates). This production goal reflects an increase of 12% compared with 2009, in line with our average annual growth target in order to reach one million barrels of oil equivalent in 2015.
The highest percentage of investment will be allocated to the Llanos Orientales projects, specifically for development of heavy crude in the Castilla, Chichimene and Rubiales fields. A representative percentage will be invested in the development of mature fields such as La Cira-Infantas, Yarigui-Cantagallo and Casabe. US $400 million will be allocated to gas projects, of which 70% will be assigned to the Cusiana and Cupiagua plants.
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