Ecopetrol opposes to the preliminary injunctive relief requested in a public action ("Acción Popular") filed against the sale of ISA

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) filed an opposition on July 28, 2021, against a preliminary injunctive relief sought in a public action concerning the potential sale of the Nation's ownership in ISA. The action, filed by Fundación Dilo Colombia, aims to halt the sale, asserting that it violates collective rights. Ecopetrol argues that the claim lacks legal basis and adheres to Colombian legislation, which allows the sale and maximizes benefits for the Nation and the company. Ecopetrol will defend the legality of the ISA transaction throughout the judicial process.

Positive

• Ecopetrol asserts that the potential sale of the Nation's ownership in ISA adheres to Colombian law.
• The transaction is expected to maximize benefits for both Ecopetrol and the Nation.

Negative

• The public action could introduce legal uncertainties surrounding the ISA transaction.

BOGOTA, Colombia, July 29, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: Ecopetrol; NYSE: EC) hereby reports that on July 28, 2021, it filed a statement in opposition to the preliminary injunctive relief requested within a public action (acción popular) to which it was named as defendant by means of a judicial order notified on July 21, 2021.

The acción popular is being processed by the First Section of the Administrative Court of Cundinamarca and was filed by Fundación Defensa de la Información Legal y Oportunidad – Dilo Colombia. The claimant is requesting the Court to issue a preliminary injunctive relief measure to cause the Ministry of Finance and Public Credit and Ecopetrol "... to refrain from continuing the process to sell the Nation's share ownership in ISA to Ecopetrol ..."

Ecopetrol opposes to the injunctive relief on the grounds that the claim has no legal basis. In its statement, Ecopetrol exposes the technical, financial, and legal arguments that show that Fundación Dilo Colombia did not comply with the legal requirements for said preliminary injunctive relief measure to be granted.  In addition, Ecopetrol explained that the potential sale of the Nation's ownership in ISA is allowed by Colombian legislation, maximizes benefits to the Nation and to Ecopetrol, and does not threaten or violate any of the collective rights invoked by the claimant.

Ecopetrol will continue to defend the legality of the potential ISA transaction in all stages of the judicial process described herein.

Ecopetrol is the largest company in Colombia and one of the main integrated oil and gas conglomerates in Latin America, with more than 13,000 employees. It accounts for more than 60% of the hydrocarbon production in Colombia, and it owns the largest refineries and most of the country's oil-pipelines and multi-purpose pipelines network. It also participates in the commercialization of energy and in the distribution of gas. 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. 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. 

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 

 

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SOURCE Ecopetrol S.A.

FAQ

What action did Ecopetrol take regarding the ISA sale on July 28, 2021?

Ecopetrol filed an opposition against a preliminary injunctive relief request related to the sale of the Nation's ownership in ISA.

Who filed the public action against Ecopetrol regarding the ISA sale?

The public action was filed by Fundación Dilo Colombia.

What legal claims did Ecopetrol present against the public action?

Ecopetrol argued that the claim lacks legal foundation and complies with Colombian laws allowing the ISA sale.

What impact does the public action have on Ecopetrol's plans?

The public action introduces legal uncertainties regarding the execution of the ISA transaction.

How does the potential ISA sale benefit Ecopetrol?

Ecopetrol states that the potential sale would maximize benefits for both the company and the Nation.