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Presentation
Ecopetrol improved its key operative and financial indicators
in 2006. In addition, the company set the stage to
achieve faster growth over the next five years, through
a new strategic plan and Congressional approval to undertake
the process of capitalization.
Ecopetrol advanced in all five areas of its strategic
plan: exploration in Colombia, internationalization
of the company by means of business opportunities
abroad, development of mature fields, heavy oil, and
natural gas.
The company engaged in two major challenges for
the next five years: corporate consolidation and company-
wide growth. The goal for 2011 is to achieve
Ecopetrol-owned production levels in excess of 500
thousand barrels of oil equivalent per day (Kboe) and
to replace at least 100% of reserves.
This strategic framework and an ambitious project
portfolio were the basis to attain approval of a record
budget for 2007 of US$2,065 million, higher
than the nearly US$1,255 million of 2006 and more
than triple the amount invested per year during the
2002-2004 period.
The year 2006 was characterized by an increase in
Ecopetrol’s proven reserves, which amounted to 1,752
million barrels of oil equivalent (Bboe) by the end of the
year, an increase of over 9% as compared to the 1,610
Bboe of 2005.
Ecopetrol’s equivalent reserves replacement was 199%,
as it produced 142 Mboe during the year, while adding
283 Mboe over the same period. Equivalent reserves include
crude oil and gas.
Ecopetrol’s remaining proven oil reserves rose from
1,099 million barrels (Mbls) in 2005 to 1,177 Mbls in
2006. Natural gas proven reserves also increased, from
2,872 cubic gigafeet (GCF) to 3,224 GCF.
Incorporation of new reserves was mainly accomplished
through an effort to boost the recovery factor
in mature fields and through development of heavy
crudes, two strategies commonly used to replace hydrocarbons
worldwide.
The increase in reserves went along with increased production, particularly in fields operated by Ecopetrol.
Crude and gas combined, company-owned production
amounted to 84 thousand barrels of oil equivalent per day (Kboe) in 2006, that is, 8.7 Kboe more than 2006
levels. Crude production accounted for 316 Kboe and
natural gas for 68 Kboe.
The largest increases in crude production took place in
fields operated by Ecopetrol, which reported a rise of
nearly 14%, from 138 thousand barrels per day (Kbd)
to 157 Kbd. These higher volumes led to a halt in the
decline of domestic crude production reported since
1999, closing at 529 Kbd, which is higher than the years
2004 and 2005.
In the exploratory field, although significant reserves
have not yet been incorporated through this channel,
the year 2006 stood out because of reactivation of the
activities to search for hydrocarbons, and the highest
figures were achieved over the last decade in drilling
and seismic data acquisition. Of the 56 exploratory
wells drilled in Colombia that year, Ecopetrol participated
in 34 of them, 4 directly and 30 more through
associated companies.
In addition, in the year 2006, Ecopetrol materialized
high-impact business deals, such as the selection of
partners for the expansion of the Cartagena Refinery
and the development of the Tibu field, while advances
were made in offshore exploration, particularly in the
Tayrona Contract, where the first well will be drilled
in 2007.
As regards gas development, the commencement of
the construction of the gas pipeline to Venezuela was a
significant event, along with increased capacity of the
Cusiana Gas Plant, and advances in the compressed
natural gas plan.
Among the operative results, it is worth mentioning the
increased load in the refineries along with the reduction
in fuel theft and the adaptations to increase production
and exports of heavy crude.
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