Transport

In 2007 Ecopetrol´s transport area initiated the first steps for internationalizing its services to increase transportable volumes; changes were implemented on the integrity of the infrastructure, as well as to broaden the pipeline network to include heavy crude.

The year was characterized by a reduction of fuel theft, a rise in client satisfaction, and an increase in values.

An improved operational performance yielded an increase in transported volumes. Our fulfillment of delivered crude and refined oil was 105.5%. Client evaluations registered a 97.3% indicator in perfect deliveries.

Optimized operations

Assurance for remote operations from the Master Control Center of Operations in Bogotá was applied to all continuous operation systems of the national pipeline network and a specific technology platform for customizing the Ecopetrol pipeline network was designed.

With the new operational schemes in place and the new version of optimizing energy, a 32% savings in electricity use was reached.

During the entire year, 1,200 kilometers of pipeline were inspected, critical defects were repaired, and the risk factor was evaluated for 6.456 kilometers to ensure the integrity of the lines.

In the same manner, a primary maintenance and plant reliability program was established, a strategy that will guarantee the preservation of and confidence in the infrastructure, will avoid disturbances or affectations and impacts on the communities and the environment,and will lessen the risk associated with oil transport.

The goal of generating value was surpassed by 16.4% while reaching $190.7 billion more than in 2006, backed by an increased income, the optimization of operational costs, and the actions taken to reduce the number of thefts and attacks.

Fuel theft and terrorist attacks

In 2007, fuel theft was at an average of 561 barrels per day. meant a reduction of 40.4% versus figures in 2006 (942 Bpd), as compared with 2005 (1,601 Bpd), and 92% as compared
2002, when the theft level was at 7,270 Bpd.

Relative to crude oil theft, which reached a total average level of Bpd, 320 of those corresponded to pipeline shortages in the south of the country, especially related to the Transandino pipeline.

As far as thefts, in 2007 a low of 56% was recorded at the close of the year with 11 assaults, 14 less than in 2006. The volume of crude spills caused by these crimes (37,751 barrels) diminished by 57% with respect to the previous year. At the pipelines in the south of the
country, the number of attacks was reduced by 54%.

New business

In 2007, Ecopetrol and Petro Rubiales signed a memorandum of understanding to construct a 230 kilometer pipeline estimated at US$300 million for the transport of crude extracted from the Rubiales and Piriri fields in the province of Meta.

To develop this project, a new company will be formed, the first investments will be made, and the construction work will begin with an estimated completion date for the second half of 2009.

Investments

During this year, 77 projects were implemented at a cost of US$127 million, mainly directed at controlling theft, improving reliability, safety, and operational optimization.