Ecopetrol incorporates a marketing & trading company in Singapore to consolidate its position in the Asian market
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Ecopetrol incorporates a marketing & trading company in Singapore to consolidate its position in the Asian market
Jul 1, 2021
- Its goal is to expand its marketing & trading operations of crude oil and products in that continent.
- Currently, nearly 50% of Ecopetrol’s crude sales reach Asia.
- The company will begin operations in the first half of 2022.
Ecopetrol has incorporated a new marketing & trading company that will be part of its Corporate Group to consolidate its position in the Asian market by attracting new clients, reaching new destinations and strengthening business relationships in that continent.
The company, named Ecopetrol Singapore Pte Ltd, has a subscribed capital that follows the provisions of Singaporean regulations; Ecopetrolwill own 100% of the shares.
In addition, this holding company will own 100% of the capital of a second affiliate, Ecopetrol Trading Asia Pte Ltd, which will be incorporated in the next few days. Its main purpose will be the international trading of the Corporate Group's crude oil and refined products in that region. It will also be based in Singapore, the epicenter of Asian trading, the fastest growing market in the world. Ecopetrol will indirectly own 100% of its capital.
Ecopetrol Trading Asia Pte Ltd will focus on identifying bigger market opportunities to offer more flexibility and optionality to its customers. In addition, it will allow Ecopetrol to maximize its margins through operational and financial efficiencies. At the same time, it will provide greater competitiveness to the heavy crude oil produced by the Ecopetrol, in an environment of energy transition.
“This is an important milestone for Ecopetrol and the country since it opens more borders for the negotiation and trading of our crude oil and refined products. With this trading company, we will achieve a closer relationship with our current and potential clients in Asia, and at the same time will have a better and more effective understanding of this market to take full advantage of the opportunities there,” said Pedro Manrique, Commercial and Marketing Vice President of Ecopetrol.
Both companies will start operations in 2022. In this way, the company is consolidating its internationalization and commercial diversification strategy, which has been increasing in the Asian market in recent years. Currently, around 50% of the Company's crude sales go to Asia, a figure five times higher than 12 years ago.
Bogotá, July 1, 2021
