Ecopetrol informs about a sanction imposed by ANLA in connection with the construction phase of Poliducto Andino

Rhea-AI Summary

Ecopetrol S.A. (EC) has been sanctioned by the Agencia Nacional de Licencias Ambientales (ANLA) for environmental violations related to the Poliducto Andino project. The penalty, confirmed in Resolution 881 on May 3, 2022, amounts to COP$1,308,660,854. Although Ecopetrol respects ANLA's decision, the company maintains that it acted within regulatory bounds and is considering legal options against the sanction. As Colombia's largest company, it significantly contributes to the local hydrocarbon industry and holds strategic positions in energy markets across the Americas.

Positive

• Ecopetrol maintains a leading role in Colombia's hydrocarbon production, responsible for over 60%.
• The company has diversified interests across the Americas, including strategic operations in the U.S., Brazil, and Mexico.

Negative

• Ecopetrol faces a significant financial penalty totaling COP$1,308,660,854.
• The sanction may impact the company's reputation and operational freedom, especially during environmental compliance.

BOGOTÁ, Colombia, May 4, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announces that the Agencia Nacional de Licencias Ambientales (ANLA) notified on May 3^rd, 2022 through Resolution 881 that Ecopetrol had been declared responsible of undertaking during the construction phase of the hydrocarbon transportation Poliducto Andino project, works that were not covered by the environmental license.

Consequently, ANLA confirmed the penalty initially imposed to Ecopetrol with Resolution 754 of 2021 in an amount of one billion three hundred and eight million six hundred and sixty thousand eight hundred and fifty-four Colombian pesos (COP$1,308,660,854). Such confirmation constitutes a final and definite decision within the environmental sanctioning process. Ecopetrol S.A. abides by and respects the decisions of ANLA; however, the company's actions have always been framed in compliance with current regulations, and it will evaluate the possibilities of opposing legal actions against this sanction.

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, 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 further details, please contact: 

Head of Capital Markets 
Tatiana Uribe Benninghoff
Correo electrónico: investors@ecopetrol.com.co

Media Engagement (Colombia) 
Jorge Mauricio Téllez 
Email : mauricio.tellez@ecopetrol.com.co 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-informs-about-a-sanction-imposed-by-anla-in-connection-with-the-construction-phase-of-poliducto-andino-301540254.html

SOURCE Ecopetrol S.A.

FAQ

What is the recent penalty imposed on Ecopetrol (EC)?

Ecopetrol has been fined COP$1,308,660,854 by ANLA for environmental violations related to the Poliducto Andino project.

When was the sanction against Ecopetrol (EC) confirmed?

The sanction was confirmed on May 3, 2022, through ANLA's Resolution 881.

What actions is Ecopetrol (EC) considering regarding the ANLA sanction?

Ecopetrol is evaluating legal options to oppose the sanction imposed by ANLA.

How does the sanction affect Ecopetrol's (EC) business operations?

The sanction may impact Ecopetrol's operational freedom and reputation, especially concerning environmental compliance.