#Sustainability #Ecopetrol #Colombia #Energy Transition #Bogota D.C.

Ecopetrol Group's Bold Investment Plan for 2026

Ecopetrol S.A., Colombia's largest company, has unveiled its extensive investment strategy for the year 2026, projecting an allocation of between COP 22 trillion and COP 27 trillion. This plan is pivotal not only for the company's growth but also for sustaining Colombia’s energy sector amidst global market fluctuations. The board of directors has approved the Investment Plan, which reflects a commitment to essential capital discipline across all business lines.

Investment Breakdown

Under the proposed budget, around 70%, equivalent to about COP 17.2 trillion, will be directed towards hydrocarbon production. The primary goal is to produce between 730,000 and 740,000 barrels of oil equivalent per day and maintain the refinery throughput at 410,000 to 420,000 barrels per day. This substantial investment aims to ensure that Ecopetrol can not only sustain its output levels but also enhance productivity amid challenges posed by declining natural gas fields and volatile market prices.

On the other hand, approximately COP 7.1 trillion or 30% of the total budget will support initiatives focused on energy transition, infrastructure development such as roads, and other corporate ventures. This aspect highlights Ecopetrol’s transition towards renewable energy sources and commitment to sustainability.

Market Conditions and Strategic Goals

Navigating through a challenging environment, the Ecopetrol Group anticipates an estimated Brent price of US$60 per barrel and an average annual exchange rate of COP 4,050. In response to these market variables, the Group has devised a multifaceted strategy to uphold profitability and liquidity through streamlined operational costs, targeting an EBITDA margin of 40%—consistent with the levels achieved in 2025. In this regard, anticipated transfers to the government are projected to reach around COP 28 trillion, significantly contributing to national revenue.

The Profitability and Efficiency Program will further enhance financial performance, projecting contributions of approximately COP 5.7 trillion towards improved EBITDA. This initiative will positively influence investments, working capital, and support in reducing total refining and transportation costs, ensuring that lifting costs remain below US$12 per barrel.

Moreover, commitments to the sustainability strategy, branded as SosTECnibility, will bring about an additional allocation of near COP 1.7 trillion. This funding is intended to address various sustainability issues, including climate change, sustainable territories, and waste management initiatives.

Sector-Specific Highlights

Hydrocarbons Sector

In specific terms, the Ecopetrol Group's investment in exploration and production is expected to amount to approximately COP 14 trillion. This portion of the budget emphasizes crude oil resurgence— allocating 89% to oil and the remaining 11% to gas production. Ecopetrol plans to drill around 380 to 430 development wells, predominantly in Colombia and a smaller fraction in the United States, along with an initiative for 8 to 10 exploratory wells aimed at expanding offshore activities.

Energy Transition Initiatives

In a progressive move towards energy transition, the subsidiary's investments are projected to include around COP 0.9 trillion in renewable energy and energy efficiency projects. Ecopetrol envisions adding approximately 750 MW in clean energy capacity through ongoing and upcoming projects.

In conclusion, the 2026 Annual Investment Plan signals Ecopetrol's resolve to balance sustainable energy production while fostering economic growth within Colombia's broader energy framework. By integrating advanced technologies and reducing operational costs, Ecopetrol is set to enhance its competitive edge and assure long-term feasibility, even in tumultuous market circumstances.

Ecopetrol’s integral role in Colombia’s economy and energy framework positions it as a significant entity not just within the nation but across the American continent, establishing solid operational presence with its extensive workforce of over 19,000 employees. With strategic investments in both hydrocarbons and sustainable energy, Ecopetrol illustrates its commitment to a prosperous and balanced energy future for Colombia and beyond.