Ecopetrol reports the sanction imposed by the ANLA in connection with the construction phase of the Andino project

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) has been sanctioned by the National Authority on Environmental Licensing (ANLA) due to non-compliance with environmental management plans during the construction of the Poliducto Andino project. The fine imposed amounts to COP$ 1,308,670,854, although this decision may be appealed as it is not final. Ecopetrol is a leading integrated oil company in Colombia and Latin America, involved in exploration and production across several countries, and operates the country's largest refinery and pipeline network.

Positive

• Ecopetrol is Colombia's largest firm and ranks among the top 50 integrated oil companies globally.
• The company is actively involved in exploration and production in multiple countries, enhancing its market presence.

Negative

• Ecopetrol was fined COP$ 1,308,670,854 for environmental management violations.
• The sanction could impact the company's financial performance if upheld.

BOGOTÁ, April 30, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" or the "Company"), informs that the National Authority on Environmental Licensing (ANLA), through Resolution No. 754 of 2021, declared the Company responsible for carrying out works, during the construction phase of the hydrocarbon transportation system of the Poliducto Andino project, that would not have been covered by the environmental management plan.

Therefore, the ANLA decided to impose on Ecopetrol a fine of COP$ 1,308,670,854. The sanction does not constitute a final decision within the framework of the administrative sanctioning process. The Company can appeal this decision, and will make the appropriate filing within the required legal timeframe.

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
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

 

View original content:http://www.prnewswire.com/news-releases/ecopetrol-reports-the-sanction-imposed-by-the-anla-in-connection-with-the-construction-phase-of-the-andino-project-301281197.html

SOURCE Ecopetrol S.A.

FAQ

What fine was imposed on Ecopetrol by ANLA?

Ecopetrol was fined COP$ 1,308,670,854 by the National Authority on Environmental Licensing (ANLA).

Is Ecopetrol able to appeal the fine imposed by ANLA?

Yes, Ecopetrol can appeal the decision, as it does not constitute a final ruling.

What is the nature of the violations for which Ecopetrol was sanctioned?

The violations are related to non-compliance with the environmental management plan during the Poliducto Andino project's construction.

How significant is Ecopetrol in the oil industry?

Ecopetrol is the largest integrated oil company in Colombia and among the top 50 globally.