Ecopetrol S.A. has reported that in light of the current low crude oil price environment, and with the aim of protecting the company's cash flow and financial sustainability, its Board of Directors approved an adjustment to the 2016 Investment Plan, from US$4.8 billion, as approved on December 2015, to a range between US$3.0 and US$3.4 billion.
2016 is a year of transition for the Ecopetrol Group, during which investments will be made to finish transportation projects and complete the start up the new Cartagena refinery. Starting in 2017, the company will dedicate a larger portion of its investments to the exploration and production segments.
In exploration and production, resources will be allocated to the development of principal fields and the assessment of exploratory findings. 93% of funds will be invested in Colombia and the rest overseas.
The resources required for the investment plan will be obtained from internal cash generation, divestment of non-strategic assets and financing. Financing needs for 2016 remain within the range of US$1.5 billion and US$1.9 billion for the Ecopetrol Group.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/28042016/ecopetrol-adjusts-2016-investment-plan-3150/