First Steps Taken Towards the Construction of the 'Oleoducto Bicentenario de
Colombia'


    


    
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<p><span class="xn-location">BOGOTA</span>, <span class="xn-location">Colombia</span>, <span class="xn-chron">Aug. 18</span> /CNW/ -- Ecopetrol S.A. (NYSE:   EC; BVC: ECOPETROL; BVL: EC; TSX: ECP) ("Ecopetrol" or the "Company") announced today the incorporation of a new special purpose company to construct and operate a private pipeline which will run from the Casanare Department to the port of Covenas.  The new pipeline will facilitate oil exports from the Llanos region, considered one of the most prospective in <span class="xn-location">Colombia</span>.</p>
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<p>The new company will be named "Oleoducto Bicentenario de <span class="xn-location">Colombia</span> S.A.S."  Initially, Ecopetrol Pipelines International Limited will be its sole shareholder.  However, following incorporation it will be capitalized by other oil producers interested in participating in the project. The authorized capital of the company will be COL <span class="xn-money">$3,120,000,000,000</span> and the subscribed capital at incorporation will be COL$10,000,000.</p>
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<p>Investment costs for phase 1 of the project (Araguaney to Banadia) and new infrastructure upgrades at the port of Covenas are estimated to be U.S.<span class="xn-money">$1,031 million</span>. The total cost of the project, including phase 2 (Banadia to Ayacucho) and phase 3 (Ayacucho to Covenas), is estimated to be to U.S.<span class="xn-money">$4,200 million</span>.</p>
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<p>The incorporation of this new company is an important step towards achieving one of the most significant milestones in facilitating the transportation of exports resulting from the increasing production in the Llanos basin of <span class="xn-location">Colombia</span>.</p>
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<p>Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides <span class="xn-location">Colombia</span>, where it accounts for 60% of total production, the Company is involved in exploration and production activities in <span class="xn-location">Brazil</span>, <span class="xn-location">Peru</span> and the <span class="xn-location">United States</span> (Gulf of <span class="xn-location">Mexico</span>). Ecopetrol has the principal refinery in <span class="xn-location">Colombia</span>, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.</p>
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<p>This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.</p>
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<p>Contact us for any additional information:</p>
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    Investor Relations
    Alejandro Giraldo
    Phone: +571-234-5190
    Email: investors@ecopetrol.com.co
    
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    Media Relations (Colombia)
    Mauricio Tellez
    Phone: + 571-2345377
    Fax: +571-2344480
    Email: mtellez@ecopetrol.com.co


    Website: www.ecopetrol.com.co



    

For further information: For further information: Investor Relations, Alejandro Giraldo, +011-571-234-5190, investors@ecopetrol.com.co, or Media Relations (Colombia), Mauricio Tellez, +011-571-234-5377, Fax, +011-571-234-4480, mtellez@ecopetrol.com.co, both of Ecopetrol Web Site: http://www.ecopetrol.com.co


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