Colombian oil company Ecopetrol has announced plans to boost its capital expenditures to $4.5bn to $5.5bn next year in order to maintain sustainable growth.
The latest investment is 25% to 53% higher than the 2019 forecast for organic investment.
Ecopetrol expects its 2019-2021 Business Plan to provide the company with the required potential to increase investments.
The 2020 investment plan is designed to achieve an average full-year production capacity of 750,000 to 760,000 barrels of oil equivalent a day (boepd) next year.
Ecopetrol CEO Felipe Bayón Pardo said: “This plan includes a significant increase in our investment to continue along the path of profitable and sustainable growth.
“It also blazes the trail for the Ecopetrol Group to make an orderly energy transition, in line with our commitment to contribute to the country’s energy security and to produce more clean energy that contributes to the wellbeing of all Colombians.”
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By GlobalDataAmong its total 2020 capital spending, 80% and 11% will likely be directed towards upstream and downstream operations, respectively.
Part of the funding is expected to be used for maintaining throughput volumes in Barrancabermeja and Cartagena facilities, which collectively process an average capacity of 380,000bpd.
Approximately $85m will be invested in the Cartagena refinery to raise throughput volumes.
Ecopetrol also intends to drill 18 exploratory wells in high potential basins, with most of them expected to be in Colombia.
Moreover, the company intends to invest $150m in energy transition and carbon reduction next year.
Ecopetrol said in a statement: “The plan includes funding for the medium-term socio-environmental investment programme, with an expected investment of COP1.7tn ($0.00049tn) for the upcoming three years, with a view to helping close socioeconomic gaps and boost community sustainable development and wellbeing.”
The company plans to dedicate $126m for digital innovation and technology.
