Ecopetrol Reports on the Environmental Agency ANLA's Decision on Lisama 158

Rhea-AI Summary

Ecopetrol S.A. has been fined COP$ 3.86 billion by Colombia's National Environmental Licensing Authority (ANLA) due to oil seepage from the Lisama 158 Well in March 2018. This decision, issued on February 9, 2021, partially reduces a previous sanction of COP$ 5.16 billion. As part of its Environmental Recovery Plan, Ecopetrol has implemented cleaning and wildlife recovery initiatives, and has invested COP$ 23.77 billion in 33 projects. The company is currently monitoring environmental quality and is considering whether to appeal ANLA's decision.

Positive

• Reduced fine from previous COP$ 5.16 billion to COP$ 3.86 billion, indicating a more favorable outcome.
• Implementation of an Environmental Recovery Plan with significant investment of COP$ 23.77 billion in environmental projects.

Negative

• Imposition of a substantial fine which could affect investor sentiment.
• Ongoing monitoring indicates a need for remediation and compliance, reflecting potential operational risks.

BOGOTA, Colombia, Feb. 9, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) hereby reports that it has been notified of the decision issued by Colombia's National Environmental Licensing Authority (ANLA) earlier today, as per Resolution 290 of February 9, 2021, whereby a fine has been imposed on Ecopetrol S.A. in the amount of COP$ 3,863,918,267 for the oil seepage in the vicinity of the Lisama 158 Well, which occurred in March 2018. ANLA's decision partially revoked the sanction previously imposed, which was in the amount of COP $ 5,155,000,000 as reported by Ecopetrol on January 29, 2020 through this same medium.

Pursuant to the Environmental Recovery Plan as approved by ANLA, Ecopetrol carried out tasks, such as fine cleaning in the affected bodies of water, wildlife reincorporation in the Lizama and Caño La Muerte streams, beginning the recovery of the riparian forest by planting native species of the region and structuring 33 social and environmental investment projects in the aggregate amount of COP$ 23,769 million, among the main activities.

Currently, Ecopetrol continues monitoring activities to verify the quality of surface water, groundwater, sediments and air, with results that fall within the reference values allowed by the environmental authority.

Ecopetrol respects and abides by the decisions of the surveillance and control agencies. Nevertheless, Ecopetrol will evaluate whether it will appeal the decision issued by the ANLA.

Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network and is significantly increasing its share of bio-fuels. 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
Juan Pablo Crane
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:http://www.prnewswire.com/news-releases/ecopetrol-reports-on-the-environmental-agency-anlas-decision-on-lisama-158-301225513.html

SOURCE Ecopetrol S.A.

FAQ

What fine did Ecopetrol receive from ANLA?

Ecopetrol received a fine of COP$ 3.86 billion from ANLA.

Why was Ecopetrol fined?

Ecopetrol was fined due to oil seepage from the Lisama 158 Well that occurred in March 2018.

Is Ecopetrol appealing the ANLA decision?

Ecopetrol is currently evaluating whether to appeal the decision issued by ANLA.

What actions has Ecopetrol taken following the oil seepage incident?

Ecopetrol has carried out cleaning tasks and invested in environmental recovery projects totaling COP$ 23.77 billion.

How does the fine affect Ecopetrol's business operations?

The fine represents a financial burden and could impact investor sentiment and operational focus.