Ecopetrol reports the incorporation of two new subsidiaries that will be part of the Ecopetrol Group

Rhea-AI Summary

Ecopetrol S.A. has successfully incorporated Ecopetrol Singapore Pte Ltd., fully owned by Ecopetrol, which will in turn own Ecopetrol Trading Asia Pte Ltd. Both companies are established to enhance Ecopetrol's presence in the fast-growing Asian market for crude and refined products. The new subsidiary aims to start operations in early 2022, following regulatory requirements. This move aligns with Ecopetrol's strategy to boost competitiveness amid the energy transition. As a key player in Colombia's hydrocarbon sector, Ecopetrol is focused on expanding its international footprint.

Positive

• Incorporation of Ecopetrol Singapore Pte Ltd. and Ecopetrol Trading Asia Pte Ltd. strengthens Ecopetrol's market presence in Asia.
• New subsidiaries aim to enhance competitiveness in the growing global energy market.
• Expected operational launch in early 2022, indicating proactive market strategy.

Negative

• None.

BOGOTA, Colombia, July 1, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that it has concluded the incorporation of Ecopetrol Singapore Pte Ltd., a company in which it will directly own 100% of its share capital. In turn, the aforementioned company will own 100% of the share capital of Ecopetrol Trading Asia Pte Ltd., whose main purpose will be the international commercialization of crude and refined products of the Ecopetrol Group and of third parties in Asia. Both companies will be domiciled in Singapore.

The two companies will be part of the Ecopetrol Group and will have paid-in share capital in accordance with the regulatory requirements of their jurisdiction of incorporation. Ecopetrol Trading Asia Pte Ltd. will be incorporated days after the establishment of Ecopetrol Singapore Pte Ltd. and it is expected to start operations in the first quarter of 2022, after completing the pre-operational stage.

With the incorporation of these new subsidiaries, Ecopetrol aims to strengthen its presence in the Asian market, which is a fast-growing market globally, seeking to increase competitiveness to the Ecopetrol Group's heavy crude and products in the new energy transition environment.  

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 is the purpose of the new subsidiaries Ecopetrol Singapore and Ecopetrol Trading Asia?

The purpose is to enhance Ecopetrol's presence in the Asian market for crude and refined products.

When is Ecopetrol Trading Asia expected to start operations?

Ecopetrol Trading Asia is expected to start operations in the first quarter of 2022.

What percentage of the share capital does Ecopetrol own in Ecopetrol Singapore?

Ecopetrol owns 100% of the share capital of Ecopetrol Singapore Pte Ltd.

How does the establishment of new subsidiaries benefit Ecopetrol?

It aims to increase competitiveness and strengthen international commercialization efforts.

What is Ecopetrol's position in the Colombian hydrocarbon sector?

Ecopetrol accounts for over 60% of hydrocarbon production in Colombia.