Ecopetrol informs sanction imposed by the ANH

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) announced it has been sanctioned with a fine of US $4,550 by the Agencia Nacional de Hridorcarburos (ANH) due to an untimely submission of the Report of Work Subsequent to Official Completion - Form 10CR related to Well RB 1237H. The infraction pertains to regulations set forth in article 40 of Resolution 181495 of 2009. While the company intends to comply with the ANH's ruling, it is preparing legal actions to contest the decision, asserting its commitment to regulatory compliance.

Positive

• Ecopetrol is the leading company in Colombia's hydrocarbon production, accounting for over 60% of the sector.
• The company has expanded its operations internationally, with key interests in the U.S., Brazil, and Mexico.

Negative

• Ecopetrol faced a regulatory sanction, which could impact its reputation and operational efficiency.
• The fine may signal compliance issues that could lead to further scrutiny from regulators.

BOGOTÁ, Colombia, April 29, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) it received notification in the Resolution No. 315 of April 26, 2022 that it was being sanctioned for an amount equivalent to four thousand five hundred and fifty dollars (US $ 4,550) by the Agencia Nacional de Hridorcarburos (ANH by its Spanish acronym).

The sanction is in connection with the presentation of the Report of Work Subsequent to Official Completion - Form 10CR related to Well RB 1237H. The ANH considered that the presentation of the Form was untimely, in accordance with the provision contained in article 40 of Resolution 181495 of 2009.

Ecopetrol S.A., abides by and respects the decisions of the ANH; however, the company's actions have always been framed in compliance with current regulations, so it will use the appropriate legal actions to oppose to the decision before the competent courts.

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:

Acting Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co

Head of Corporate Communications
Mauricio Téllez
Email: mauricio.tellez@ecopetrol.com.co

View original content:https://www.prnewswire.com/news-releases/ecopetrol-informs-sanction-imposed-by-the-anh-301536688.html

SOURCE Ecopetrol S.A.

FAQ

What was the sanction imposed on Ecopetrol?

Ecopetrol was sanctioned with a fine of US $4,550 by the ANH.

Why was Ecopetrol fined by the ANH?

The fine was due to the untimely presentation of the Report of Work subsequent to Official Completion related to Well RB 1237H.

What actions will Ecopetrol take regarding the sanction?

Ecopetrol intends to contest the ANH's decision through appropriate legal actions.

When was the sanction notification issued to Ecopetrol?

The notification was issued on April 26, 2022.

What does the sanction mean for Ecopetrol's future operations?

The sanction may affect the company's reputation and could lead to increased regulatory scrutiny.