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Supply and Marketing

2009 ended with a positive balance in sales and a client satisfaction index of 97%.

Domestic sales, without including transport, amounted to $14.5 trillion with a 6% volume in growth compared to the previous year. Diesel sales rose 3% compared to 2009, meeting the new specifications for diesel supplies as regards sulfur content with an average of 176 ppm in Bogotá and 2143 ppm in the rest of the country. The export volume grew 39% compared to the previous year, amounting to $12.24 trillion.

In the national context, direct sales for major individual consumers like Drummond continued, and direct sales to Prodeco began, which enabled the direct sale of 8000 barrels of diesel per day.

Two new petrochemical products were developed thanks to the joint participation between the ICP and the Barrancabermeja Refinery: Ecoil and Ecosol.  The first is a lubricant base used in the agricultural industry as a reactant to fumigate industrialized banana crops, while Ecosol is a product used for copper flotation in mines.

The construction of the new aromatic filling station began in Barrancabermeja to increase measurement reliability and enable service for a larger number of tank trucks per day. 

2009 was characterized by an upturn in Castilla Blend crude exports (66.9 million barrels), which represented US $3.642 billion in revenue, equivalent to 64% of the company’s export revenues. The markets of China and India acquired nearly 25% of the exported crude. 50% of the fuel oil exports were sold to Singapore and Rotterdam markets.

Significant transactions were carried out, such as the sale of Castilla crude to Reliance, the most important private refiner in India. Deliveries of Crude, Fuel Oil and white products were also carried out, as well as the sale of RON 95 Gasoline to Refidomsa (in the Dominican Republic) which generated revenues of over US $500 thousand.

The price of asphalt, fuel oil and crude was hedged for US $22 million, and the first asphalt export was sent to Africa with average loads of 10,000 tons. The Coveñas port was optimized to be able to load four freighters with one million barrels each for the Far East.

As regards petrochemistry, xylene and toluene were sold to international markets.

As for natural gas, 2009 went beyond the growth expectations by reaching 1036 (Gbtud), 14% higher than the demand in 2008.  This figure includes gas exports to Venezuela since January 2008.  This behavior in demand is due to the high thermal consumption required by power generation because of El Niño.

Cleaner Fluels

Ecopetrol continued to fulfill its commitment to improve fuel quality by delivering diesel with lower sulfur content. In 2009, the sulfur content of diesel in Bogotá was under 500 parts per million (ppm), which is known as Low Sulfur Diesel (LSD). In the rest of the country, as of January 2009, it was reduced again, going from 3000 ppm to less than 2500 ppm.

The quality provided was possible thanks to the ultra low sulfur diesel imports mixed with domestic diesel to reach the sulfur contents in the products delivered. In 2009, 11 million barrels were imported for a total cost of $1.65 trillion.

As of January 1st, 2010, Ecopetrol delivered diesel with 50 ppm of sulfur for use in Bogota and mass transport systems, and of 500 ppm for the rest of the country.  These fuels are better quality, have lower sulfur content, meet international standards, and are part of the company commitment to improve the quality of air that Colombian people breathe.

As part of the strategy to improve fuel quality, progress was made in the execution of projects that will produce 120,000 tons of alternative fuels per year: Ecodiesel and Bioenergy. Ecodiesel will begin commercial operations in the first half of 2010.

At Bioenergy, the property was identified and acquired for the first phase of agricultural development and the development of the basic seedbed (100 hectares) was completed, which will allow the planting of the commercial nursery in 2010.  At the same time, the company moved forward in the selection process of the EPC (engineering, procurement & construction) to build the plant and define the most appropriate technology.