Ecopetrol informs a petition on the Collective Bargaining Agreement

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) announced the filing of a petition from coexisting unions regarding its Collective Bargaining Agreement, which expires on December 31, 2022. The current agreement, signed in 2018 for a term of four and a half years, allows parties to express intent to modify it through a petition. If unions present demands, Ecopetrol will enter negotiations for a new agreement. As Colombia's largest company, Ecopetrol plays a significant role in the energy sector, overseeing over 60% of the country's hydrocarbon production.

Positive

• Ecopetrol's position as Colombia's largest energy company with a significant market share.
• Potential for new Collective Bargaining Agreement negotiations, possibly enhancing labor relations.

Negative

• Expiration of the current Collective Bargaining Agreement may lead to operational disruptions if negotiations stall.

BOGOTA, Colombia, Dec. 30, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, "Ecopetrol" or the "Company") informs that Company's coexisting unions filed a petition on the current Collective Bargaining Agreement. Ecopetrol also filed today a partial petition before the Ministry of Labor.

The Company's current Collective Bargaining Agreement, covering Ecopetrol's direct workers, was initially signed in 2018 for a term of four and a half years and is set to expire on December 31, 2022.

Pursuant to applicable Colombian law, parties to the Collective Bargaining Agreement have the right to express their intent to modify it, by filing a petition to commence negotiations. In the event that the unions present a list of demands, Ecopetrol and the union's leadership will begin the negotiation process for a new Collective Bargaining Agreement.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 18,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects. These are all projections and, as such, they are based solely on the expectations of the managers regarding the future of the company and their continued access to capital to finance the company's business plan. The realization of said estimates in the future depends on the behavior of market conditions, regulations, competition, and the performance of the Colombian economy and the industry, among other factors, and are consequently subject to change without prior notice.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.

For more information, please contact:

Head of Capital Markets (a)
Jenny Milena Escobar
Email: investors@ecopetrol.com.co

Head of Corporate Communications (a)
Irina Madalem Gentil
Email: irina.gentil@ecopetrol.com.co 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-informs-a-petition-on-the-collective-bargaining-agreement-301711292.html

SOURCE Ecopetrol S.A.

FAQ

What recent action did Ecopetrol take regarding its Collective Bargaining Agreement?

Ecopetrol announced that coexisting unions filed a petition to modify the Collective Bargaining Agreement, which is set to expire on December 31, 2022.

When was Ecopetrol's current Collective Bargaining Agreement signed?

The current Collective Bargaining Agreement was signed in 2018 for a term of four and a half years.

What is the significance of the Collective Bargaining Agreement for Ecopetrol?

The Collective Bargaining Agreement impacts labor relations and operational stability for Ecopetrol, affecting its workforce negotiations.

How does Ecopetrol contribute to Colombia's economy?

Ecopetrol is responsible for over 60% of Colombia's hydrocarbon production, making it a key player in the national energy sector.

What are the risks associated with the Collective Bargaining Agreement negotiations for Ecopetrol?

If negotiations stall, the expiration of the agreement could lead to operational disruptions for Ecopetrol.