Ecopetrol Reports On The Sale Of Its Stake In Offshore International Group

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) has signed a Share Purchase Agreement with De Jong Capital LLC, selling its 50% stake in Offshore International Group (OIG). This divestment comes as part of Ecopetrol's strategy to offload non-strategic assets, aiming for cash protection and sustainable growth. The sale was carried out successfully amidst competitive bidding for OIG, which includes Savia (Peru) among its subsidiaries. Accounting reclassifications have been made in accordance with IFRS 5, reflecting the transaction's completion.

Positive

• Successful divestment of 50% stake in Offshore International Group.
• Aligns with Ecopetrol's strategy for cash protection and capital discipline.
• Achieved through a competitive bidding process, indicating strong market interest.

Negative

• None.

BOGOTÁ, Colombia, Jan. 19, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports as follows: Ecopetrol S.A. ("Ecopetrol")  signed a Share Purchase Agreement with De Jong Capital LLC, through one of its subsidiaries as buyer, pursuant to which Ecopetrol sold its 50% ownership interest in in Offshore International Group ("OIG").

This divestment is the result of a successfully competed process between a number of bidders jointly carried out by Ecopetrol and its partner, in respect of the sale of 100% of the capital stock of OIG, the parent company of Savia (Peru) and other companies based in the United States and Peru.

The relevant accounting reclassifications have been made in accordance with IFRS 5.

This transaction is part of Ecopetrol's non-strategic assets divestment plan and is aligned with Ecopetrol's priorities of cash protection, capital discipline and profitable and sustainable growth.

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 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 further information, please contact:

Juan Pablo Crane de Narváez 
Head of Capital Markets
Phone: (+571) 234 5190
E-mail: investors@ecopetrol.com.co

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

View original content:http://www.prnewswire.com/news-releases/ecopetrol-reports-on-the-sale-of-its-stake-in-offshore-international-group-301211358.html

SOURCE Ecopetrol S.A.

FAQ

What stake did Ecopetrol sell in Offshore International Group?

Ecopetrol sold its 50% ownership interest in Offshore International Group.

Who purchased Ecopetrol's stake in Offshore International Group?

De Jong Capital LLC, through one of its subsidiaries, purchased the stake.

What is the purpose of Ecopetrol's divestment of non-strategic assets?

The divestment aims for cash protection, capital discipline, and sustainable growth.

What accounting standards did Ecopetrol follow for the sale?

Ecopetrol made relevant accounting reclassifications in accordance with IFRS 5.

When was the Share Purchase Agreement signed by Ecopetrol?

The Share Purchase Agreement was signed on January 19, 2021.