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Colombia's Ecopetrol outlines USD 10.6bn investment plan for 2014

16th December 2013

Upstream and downstream investments will offer business opportunities for international contractors

26 per cent of the investment is to be spent on modernizing the Barrancabermeja refinery
26 per cent of the investment will be spent on modernizing the Barrancabermeja refinery

Colombia's state-run oil company Ecopetrol said on Friday it will invest USD 10.595bn in 2014, about two thirds of which will be spent on exploration and production.

 

Some USD 6.463bn will be invested directly in company projects and USD 4.132bn in subsidiaries.

 

The 11 per cent rise in investment on 2013 will be used to boost crude oil reserves and will be spent partly on drilling 20 exploratory wells – mostly onshore – on geological studies and on revamping one of two main refineries.

 

Some USD 928m will be spent on exploration, USD 4.646bn on production, USD 339m on downstream activities and USD 309m for other activities including research and information technology, according to a summary of the plan.

 

Downstream investments will include funds for the modernisation of the Barrancabermeja refinery.

 

The 2014 investment plan forecasts average production of 770,000 barrels per day of oil equivalent in Colombia, and 819,000 barrels a day when subsidiaries the company holds a stake in are included, Reuters reports.

 

The news follows the announcement on 9 December that Ecopetrol and Canada's Talisman Energy had discovered ane esimated 1.3 billion barrels of oil in southeastern Colombia, around 10 per cent of which was expected to be recoverable.

 

Ecopetrol produces most of the country's one million barrels per day output. 

 

The plan does not include any cash for acquisitions the company may make.