Ecopetrol and Refinería de Cartagena Finalize Historic Payment Agreement with Colombian Government

Agreement for Outstanding FEPC Payments

On April 2, 2026, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced a significant agreement with the Colombian government related to the outstanding payments of the Fuel Price Stabilization Fund (FEPC) for the first quarter of 2025. Through the official resolutions dated March 31, 2026, the Hydrocarbons Directorate of the Ministry of Mines and Energy confirmed the payment of a total of COP 1.6 trillion. This amount, crucial for Ecopetrol and Refinería de Cartagena S.A.S., will be divided, with Ecopetrol receiving COP 1.2 trillion and Refinería de Cartagena obtaining COP 0.4 trillion.

Payment Terms

In alignment with the agreement, the Colombian Ministry of Finance and Public Credit has committed to a structured payment plan to address these outstanding balances. The first installment of COP 2,891,901,795 is scheduled for payment on April 1, 2026, via cash transfer. A second and larger payment amounting to COP 1,555,514,748,090.21 is slated for December 15, 2026, which will be fulfilled through Treasury Securities (TES) issued by the Republic of Colombia.

This agreement not only ensures that the financial obligations owed to Ecopetrol and Refinería de Cartagena are met but also highlights the Colombian government’s recognition of its responsibilities and its commitment to fulfilling them. The time elapsed between the agreement's execution and the scheduled payment has also been acknowledged in the mutual understanding.

Collaborative Efforts for Economic Stability

Ecopetrol continues to work closely with relevant government ministries to implement these payment mechanisms while also tackling the overarching balances associated with the FEPC. This commitment is part of Ecopetrol's broader strategy to maintain economic stability within Colombia's energy sector.

Ecopetrol stands as the largest corporation in Colombia, playing a pivotal role in the energy landscape of the Americas. Employing over 19,000 individuals, the company significantly contributes to Colombia’s hydrocarbon production, covering over 60% of this sector. Its operations range across essential domains including transportation logistics, refining systems, petrochemicals, and gas distribution.

Expansion of Operations

Furthermore, with the acquisition of 51.4% of ISA shares, Ecopetrol has diversified its portfolio to include energy transmission and real-time system management, as well as the Barranquilla - Cartagena highway concession. Internationally, Ecopetrol operates in various key basins across the Americas, with drilling and exploration activities in the United States (notably the Permian Basin and Gulf of Mexico), Brazil, and Mexico. Its collaboration with ISA and its subsidiaries has also positioned Ecopetrol as a leader in power transmission across Brazil, Chile, Peru, and Bolivia, as well as in road concessions in Chile and the telecommunications sector.

Looking Ahead

As Ecopetrol navigates this payment agreement and its implications, the energy landscape is bound to continue evolving. The full terms of this payment arrangement are emblematic of the fiscal responsibility that both corporate and governmental entities are exercising to ensure a balanced economic future.

The agreement serves as a reminder of the commitment between Ecopetrol and the Colombian government to work in tandem to not only uphold the infrastructure of the hydrocarbon industry but also ensure a sustainable energy future for the nation. Considering the volatility in global oil markets, such agreements are instrumental in maintaining confidence among stakeholders and providing stability in operations.

Conclusion

This unprecedented payment agreement solidifies the relationship between Ecopetrol, Refinería de Cartagena, and the Colombian government, heralding a new era of cooperation and financial accountability within the country's crucial energy sector. The next few years will be pivotal as implementation progresses and further financial clarity is achieved.

For further updates and detailed information regarding Ecopetrol's ongoing initiatives, please refer to their official communications or investor relations.