The Administrative Court of Santander Revoked the Fine Imposed by the Ministry of Labor on Ecopetrol

Rhea-AI Summary

Ecopetrol S.A. (BVC: EC; NYSE: EC) announced that the Administrative Court of Santander has voided a fine of COP16,068,000 imposed by the Ministry of Labor following a fatal accident involving a contractor. The court ruled that Ecopetrol did not qualify as an employer or supervisor, making the fine inadmissible. This decision reinstates Ecopetrol's rights and nullifies the financial penalty. As the largest company in Colombia, Ecopetrol plays a significant role in the hydrocarbon production sector and operates extensively across Latin America.

Positive

• Fine of COP16,068,000 voided, improving financial position.
• Court ruled Ecopetrol was not liable as employer or supervisor.

Negative

• None.

BOGOTÁ, Colombia, Aug. 2, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that it was notified of the decision issued by the Administrative Court of Santander that voided the December 22, 2011 and August 8, 2016 resolutions, respectively, through which the Ministry of Labor - Territorial Directorate of Santander, imposed a fine of sixteen million sixty-eight thousand pesos (COP16,068,000), on the occasion of the fatal accident of Mr. Oscar de Jesús Rodríguez, a Geoespectro SAS worker, an Ecopetrol contractor company. The Company had previously informed of such fine through a prior publication.

In the judicial decision, the aforementioned Court declared that "(…) the rules on which the administrative act for the imposition of the sanction were supported were not applicable to ECOPETROL SA in view of the fact that this entity did not have the status of employer, nor as a supervisor; for which reason it is inadmissible to impute the breach (…)" and ordered the Ministry of Labor to return the value of the fine recognized by Ecopetrol as a reinstatement of its rights.

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 (A) 
Lina María Contreras Mora
Phone: +571-234-5190 
Email: investors@ecopetrol.com.co 

Media Engagement (Colombia) 
Alexandra Santamaria Molano
Phone: + 571-234-4329 
Email: alexandra.santamaria@ecopetrol.com.co

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SOURCE Ecopetrol S.A.