Ecopetrol Group's Investment Plan to be US$9,549 million for 2013

Ecopetrol Group's Investment Plan to be US$9,549 million for 2013 
- 69% of investments are planned to be made directly in Ecopetrol S.A. and 31% 
in affiliates and subsidiaries. 
- 95% of total investments are planned to take place in Colombia. 
- 62% of total investments is allocated for exploration and production. 
- Ecopetrol S.A.'s estimated average production, including interests in 
affiliates and subsidiaries, is 798 thousand barrels of oil equivalent per day 
in 2013. 
BOGOTA, Colombia, Dec. 16, 2012 /CNW/ - Ecopetrol S.A. (BVC: ECOPETROL; NYSE: 
EC; TSX: ECP) announced today that its Board of Directors has approved the 
investment plan for the year 2013. The total of investments approved is 
US$9,549 million, of which US$6,590 million are planned to be invested 
directly in Ecopetrol S.A. and US$2,959 million in affiliates and subsidiaries. 
(Logo: ) 
Ecopetrol S.A.'s CEO, Javier Gutierrez, said: "investments for 2013 are 
consistent with the company's medium and long-term strategy and in line with 
the production target of one million clean barrels by 2015 and 1.3 million by 
2020. The higher percentage of resources is planned to go into exploration and 
production activities, as well as upgrading refineries and increasing crude 
transport capacity. The 2013 investment plan includes experiences from 
previous years." 
I. Ecopetrol S.A.'s Investment Plan  (US$6,590 million) 
The following chart is a summary of Ecopetrol S.A.'s investment plan by area 
of business: 
Ecopetrol S.A.'s Investment Plan in 2013
US$ million 
Business Segment            Total 
Exploration                 974 
Production                  3,790 
Refining and Petrochemicals 397 
Transport                   1,250 
Other                       179 
TOTAL                       6,590 
The following are the main projects that Ecopetrol S.A. plans to develop in 
each business segment in 2013: 
Exploration  (US$ 974 million) 
In 2013, Ecopetrol S.A. plans to drill 19 exploratory wells, 3 appraisal wells 
and 11 stratigraphic wells, all in Colombia. Most of the wells are planned to 
be drilled in the Llanos Orientales region. Wells are also planned to be 
drilled throughout the Magdalena valley and in the Caribbean region. 
Besides drilling activity, exploration in 2013 is planned to remain focused on 
the acquisition of seismic data, geological, regional and geophysical studies. 
Also, the initiative to develop unconventional resources (shale oil/gas) on 
Ecopetrol's blocks in the Middle Magdalena is planned to continue. 
Production (US$ 3,790 million) 
The objective of the 2013 investment plan is to increase the production of 
crude and gas, which is expected to reach a yearly average of 750 thousand 
barrels equivalent per day (mboed). 
The highest percentage of investment is planned to be allocated for the 
projects in the Llanos Orientales region, Arauca, and Middle Magdalena. 
Development of the Castilla, Chichimene, Rubiales, Quifa, Caracara, Cravo 
Norte, Provincia, Casabe, Tibu, La Cira - Infantas, Apiay, Nare, Yarigui, 
Piedemonte and Cusiana fields, among others, is planned to continue. 
Refining and Petrochemicals (US$ 397 million) 
Investment in this business segment is planned to be allocated to the 
industrial services plan, the operations improvement plan and the 
modernization project development of the Barrancabermeja refinery. 
Transport (US$ 1,250 million) 
Investments in transport are aimed at increasing crude evacuation capacity by 
170 thousand barrels per day (mbpd) by 2013 and by 250 thousand barrels per 
day (mbpd) by 2015. These projects primarily enable the increase in heavy 
crude production. 
Other investments (US$ 179 million) 
In addition to the investment in the different business segments, resources 
are also planned to be deployed mainly for research and development at the 
Colombian Oil Institute (ICP) as well as IT services. Furthermore, initiatives 
are planned to be undertaken to upgrade the technological infrastructure in 
Shared Services Center, in HSE and sustainability and process-based management 
(design and implementation). 
The approved 2013 budget does not include potential acquisitions. If 
considered, they would be analyzed and approved on an individual basis by the 
Board of Directors. 
Funding sources 
The financing needs of the investment plan depend on oil prices, Ecopetrol 
S.A.'s cash generation, market conditions, the implementation of the capex in 
the various business segments, and potential acquisitions. 
Ecopetrol S.A.'s debt capacity, investment grade rating and capital markets 
access in Colombia and abroad could permit its funding from different sources. 
A credit facility disbursement in 2013 of up to US$880 million from the U.S. 
Eximbank (U.S. export promotion bank),is expected to be finalized in the near 
term. This credit facility was approved to Ecopetrol S.A. since 2009 
II. Ecopetrol's investment in affiliates and subsidiaries (US$2,959 million) 
The following exhibit shows Ecopetrol S.A.'s investment in affiliates and 
subsidiaries by business segment: 
Ecopetrol S.A.'s 2013 investment plan*
US$ million 
Area of business                      Total 
Exploration                           731 
Production                            399 
Refining, Petrochemicals and Biofuels 1,280 
Transport                             549 
TOTAL                                 2,959 
*Investment proportionate to Ecopetrol S.A.'s stake in each company and does 
not include partner contributions. 
The following is a summary of the main projects that Ecopetrol S.A. plans to 
develop in 2013 in each business segment through its affiliates and 
Exploration (US$ 731 million) 
In 2013, eight international exploratory wells are planned to be drilled, six 
of them along the  Gulf of Mexico (U.S.) and two in Brazil. An appraisal well 
is also planned to be drilled in the Gulf of Mexico (U.S.). The drilling goal 
is consistent with the strategy of focusing on prospects representing the 
highest potential and value for the company. 
Ecopetrol S.A.'s subsidiary Hocol plans to drill seven exploratory and four 
appraisal wells in Colombia. 
Production (US$ 399 million) 
Affiliates and subsidiaries are expected to contribute 48 thousand barrels of 
equivalent oil per day (mboed), 80% of which is expected to originate in the 
Colombian operation and 20% in the international operation. 
Refining, Petrochemicals and Biofuels (US$ 1,280 million) 
Investments in this business segment are planned to be allocated mainly to the 
Cartagena refinery modernization project (US$ 1,236 million). Investments in 
biofuels by means of contributions to Bioenergy are planned to continue. 
Transport (US$ 549 million) 
This segment includes contributions to the Bicentenario Pipeline (OBC) and the 
Colombia Pipeline (ODC). 
Sources for affiliate and subsidiary investments 
The financing for investing in affiliates and subsidiaries is expected to come 
from Ecopetrol S.A. contributions (US$1,623 million), affiliates' own 
resources and the funding acquired by these, of which currently the most 
important is that of Reficar (currently in the disbursement phase from the 
Eximbank credit facility) and Bicentenario Pipeline (partial disbursement of a 
syndicated credit scheduled for 2013). 
The following is a summary of the investments approved for Ecopetrol S.A.'s 
affiliates and subsidiaries: 
Ecopetrol Affiliate and Subsidiary Investment in 2013*
US$ million 
Upstream                                       Petrochemicals,
(Exploration and      Midstream                Commercialization and
Production)           (Transport)              Biofuels) 
      2013                     2013                   2013
Company   Investment  Company      Investment  Company    Investment 
Ecopetrol             Bicentenario
America   382         Pipeline     260         Reficar    1,236 
Savia     139         ODL          68          Bioenergy  30 
Hocol     323         Ocensa       220         Propilco   14 
Brasil    127         ODC          1.2 
Peru      6 
Equion    153 
Total                 Total                    Total
Upstream              Midstream                Downstream
(A)       1,130       (B)          549         (C)        1,280 
Total A + B + C                                2,959 
* Does not include partners contributions 
Ecopetrol is Colombia's largest integrated oil & gas company, where it 
accounts for 60% of total production. It is one of the top 40 oil companies in 
the world and the fourth largest oil company in Latin America. The Company is 
also involved in exploration and production activities in Brazil, Peru and the 
United States Gulf Coast, and owns the main refineries in Colombia, most of 
the network of oil and multiple purpose pipelines in the country, 
petrochemical plants, and is entering into the biofuels business. 
This release contains forward-looking statements relating to the prospects of 
the business, estimates for operating and financial results, and those related 
to growth prospects of Ecopetrol. These are merely projections and, as such, 
are based exclusively on the expectations of management concerning the future 
of the business and its continued access to capital to fund the Company's 
business plan. Such forward-looking statements depend, substantially, on 
changes in market conditions, government regulations, competitive pressures, 
the performance of the Colombian economy and the industry, among other 
factors; therefore, they are subject to change without prior notice. 
Ecopetrol's actual future financial condition, financial, operating, reserve 
replacement and other ratios, results of operations, business strategy, 
geographic concentration, business concentration, production and marketed 
volumes, reserves, capital expenditures, investments, expansion and other 
projects, exploration activities, ownership interests, divestments and cost 
savings, as well as actual future economic and other conditions, such as 
future crude oil and other prices, refining margins and exchange rates, could 
differ materially from those expressed or implied in any such forward-looking 
statements. Important factors that could cause such differences include, but 
are not limited to, oil, gas and other price fluctuations, supply and demand 
levels, currency fluctuations, exploration, drilling and production results, 
changes in reserves estimates, success in partnering with third parties, loss 
of market share, industry competition, environmental risks, physical risks, 
the risks of doing business in developing countries, legislative, tax, legal 
and regulatory developments, economic and financial market conditions in 
various countries and regions, political risks, wars and acts of terrorism, 
natural disasters, project delays or advancements and lack of approvals, as 
well as those factors described in the filings made by Ecopetrol with the U.S. 
Securities and Exchange Commission, in particular, those described in "Item 3. 
Key Information—Risk Factors" and "Item 5. Operating and Financial Review 
and Prospects" in Ecopetrol's Annual Report on Form 20-F for the fiscal year 
ended December 31, 2011 filed with the U.S. Securities and Exchange 
Commission. In light of the foregoing, the forward-looking statements included 
in this document may not occur. 
Ecopetrol does not undertake to publicly update or revise these 
forward-looking statements even if experience or future changes make it clear 
that the projected performance, conditions or events expressed or implied 
therein will not be realized. 
Contact us for any additional information: 
Investor Relations  Alejandro Giraldo Phone: +571-234-5190  Email: 
Media Relations (Colombia)  Mauricio Tellez Phone: + 571-2345377  Fax: 
+571-2344480  Email: 
SOURCE: Ecopetrol S.A. 
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-0- Dec/17/2012 00:19 GMT
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