Ecopetrol Informs About A Sanction Imposed By CORMACARENA

Rhea-AI Summary

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has been fined by CORMACARENA for contaminating Caño Cacayal due to wastewater discharge from Campo Castilla. The fine amounts to twenty monthly minimum wages. Although the company acknowledges the decision, it plans to challenge the penalty as it was issued beyond the regulatory timeframe. Ecopetrol is Colombia's largest company, responsible for over 60% of the country's hydrocarbon production, and also holds significant interests across the Americas, including operations in the U.S. and Brazil.

Positive

• Ecopetrol is Colombia's largest company and a major player in the energy sector.
• The company holds over 60% of Colombia's hydrocarbon production, indicating strong market influence.
• Ecopetrol's international operations in the U.S. and Brazil diversify its revenue streams.

Negative

• The recent sanction may lead to reputational damage.
• The imposed fine may impact financial performance and investor confidence.

BOGOTÁ, Colombia, Dec. 17, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC), informs that the Sustainable Development Corporation of the Macarena Special Management Area CORMACARENA, through Resolution No. PS-GJ.1.2.6.21.2094 of 2021, imposed a fine of twenty monthly minimum wages to the Company due to the contamination of Caño Cacayal, caused by the discharge of wastewater from Station I of Campo Castilla. In the opinion of the authority, the discharge parameters allowed by environmental regulations might have been breached.

Although the sanction is a final decision within the administrative sanctioning process, it was issued outside the term that CORMACARENA had to exercise its sanctioning faculty, therefore Ecopetrol, although respects and accepts CORMACARENA's decisions and reiterates its commitment to comply with current legal environmental regulations, will file legal actions within the corresponding legal opportunity.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 17,000 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 more information, please contact:

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

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

View original content:https://www.prnewswire.com/news-releases/ecopetrol-informs-about-a-sanction-imposed-by-cormacarena-301447731.html

SOURCE Ecopetrol S.A.

FAQ

What is the recent sanction against Ecopetrol (EC)?

Ecopetrol was fined by CORMACARENA for contaminating Caño Cacayal, due to discharge from Campo Castilla.

How much was the fine imposed on Ecopetrol (EC)?

The fine imposed on Ecopetrol amounts to twenty monthly minimum wages.

Why does Ecopetrol (EC) plan to challenge the fine?

Ecopetrol plans to challenge the fine as it was issued outside the regulatory timeframe.

What is Ecopetrol's role in Colombia's economy?

Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production.

Where does Ecopetrol (EC) operate internationally?

Ecopetrol has drilling and exploration operations in the U.S., Brazil, and Mexico.