For Ecopetrol S.A., 2005 was a year of met goals. The higher level of investment, strengthening of operations, improvement in its environmental and industrial security indicators, and continuous improvement in its human capital allowed the company to expand its business and further establish its position as a solid commercial enterprise and generator of millions in financial resources for the nation.

The figures demonstrate this. Ecopetrol’s operating investment in 2005 rose to US$900.1 million, a 38% increase over 2004.

The increased investment budget allowed for an increase in exploration activities with the direct drilling of nine exploratory wells. This marked a milestone in Ecopetrol’s recent history and represents a significant increase, considering that the company drilled just one well in 2004 and three in 2003. Ecopetrol also reached its seismic objectives, and signed 13 new contracts.

The company was active in defining strategic projects to promote new exploration and recover additional reserves, including the secondary recovery of La Cira Infantas, Tibú, and the development of heavy crude potential in Los Llanos.

Increased investment is reflected in crude oil production data: Ecopetrol showed an increase in extraction in its fields, from 123 thousand barrels (Kbd) per day in 2004 to 138 Kbd in 2005 (131.3 Kbd of direct production and 7.1 of incremental production contracts operated by the company).

Ecopetrol’s profits, together with the work done to mitigate the drop in associated fields, stabilized total production in Colombia. In 2005 national production was 526,162 barrels per calendar day (bdc), compared to the 528,430 bdc recorded in 2004, which is a reduction of barely 0.4%.