Ecopetrol informs of the sanction imposed by ANLA

Rhea-AI Summary

Ecopetrol S.A. (BVC: EC; NYSE: EC) announced a fine of COP $3,667,409,150 imposed by the National Environmental Licensing Authority (ANLA) on September 10, 2021. The fine resulted from the CPO09 Exploratory Drilling Area project in Acacías, Meta Department, where a bridge was built without proper environmental licensing. Ecopetrol respects ANLA's decision but will appeal for revocation, asserting compliance with legal regulations. The company, a leader in Colombia's energy sector, is involved in extensive hydrocarbon production and has international operations across various American basins.

Positive

• Ecopetrol is a major player in Colombia's energy sector, accounting for over 60% of hydrocarbon production.
• The company has significant international presence with operations in the U.S. (Permian Basin, Gulf of Mexico), Brazil, and Mexico.

Negative

• The imposed fine could impact the company's financial standing and investor sentiment.
• The sanction raises concerns regarding regulatory compliance and operational oversight.

BOGOTÁ, Colombia, Sept. 14, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that it was notified through Resolution 01613 dated September 10, 2021, that the National Environmental Licensing Authority (ANLA), had fined Ecopetrol S.A. in the sum of COP $3,667,409,150.

This sanction originated from works carried out in the CPO09 Exploratory Drilling Area project located in the municipality of Acacías, Meta Department, because ANLA considered that a bridge was not contemplated in the environmental license and that locations were built at a shorter distance to the preservation areas of the Caño Lejía and Caño NN water resources.

Ecopetrol S.A, abides by and respects the decisions of ANLA.  However, the company's actions have always been framed in compliance with current legal regulations, so it will make use of the appropriate legal resources in order to obtain the revocation of this decision.

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 accounts for more than 60% of hydrocarbon production, and most of the hydrocarbon transportation, logistics, and refining systems, and has leading positions in petrochemicals and gas distribution. With the acquisition of 51.4% of ISA's shares, it participates in energy transmission, management of real-time systems (XM) and the Concesión Costera Barranquilla - Cartagena. At the international level, Ecopetrol focuses on strategic basins on the American continent, with E&P operations in the United States (the Permian basin and the Gulf of Mexico), Brazil and Mexico, and through ISA and its subsidiaries it has leading positions in the transmission business in Brazil, Chile, Peru and Bolivia, in road concessions in Chile, and in telecommunications. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance its sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, the performance of the Colombian economy and industry, and other factors; therefore, they are 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 and Section 21E of the U.S. Securities Exchange Act of 1934. 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 Ecopetrol's prospects for growth and its ongoing access to capital to fund Ecopetrol'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, Ecopetrol'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 
Phone : +571-234-5190 
Email : investors@ecopetrol.com.co 

Media Engagement (Colombia) 
Jorge Mauricio Tellez 
Phone : + 571-234-4329 
Email : mauricio.tellez@ecopetrol.com.co 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-informs-of-the-sanction-imposed-by-anla-301377087.html

SOURCE Ecopetrol S.A.

FAQ

What is the fine amount Ecopetrol received from ANLA?

Ecopetrol was fined COP $3,667,409,150 by ANLA.

When was the fine imposed on Ecopetrol?

The fine was imposed on September 10, 2021.

What was the reason for the fine against Ecopetrol?

The fine stemmed from environmental compliance issues related to the CPO09 Exploratory Drilling Area project.

How does the fine affect Ecopetrol's business operations?

The fine could impact Ecopetrol's financial performance and raise concerns over regulatory compliance.