BOGOTA, Colombia , Sept. 3,
2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL)
(NYSE: EC) ("Ecopetrol" or the "Company") announces that the
directors Juan José Echavarría and Luis
Alberto Zuleta presented their resignations as independent
members of the Company's Board of Directors, in the terms of the
communication that the media previously released to the public.
This resignation was presented and made known to the Board of
Directors on August 30, 2024. This
resignation will become effective on the date that the minutes of
the previous meetings of the Board of Directors and Support
Committees in which they participated are approved.
The Company informs that the content of the following
resignation letter corresponds exclusively to the opinions of the
directors Juan José Echavarría and Luis
Alberto Zuleta. Below is a convenience translation of
their resignation letter:
"[Convenience Translation]
Bogota,
August 30th, 2024
Sirs.
Ecopetrol S.A.
Attn. Board of Directors
Attn. Ricardo Roa, CEO of Ecopetrol
Attn.
German Gonzalez, General Secretary,
Ecopetrol
Attn. Nation – Ministry of Finance
Attn. Andres Velazco – President
of Asofondos
Resignation from Ecopetrol's Board of
Directors
After extensive deliberations, in February 2024, the Business and Audit Committees
from Ecopetrol unanimously recommended to the Board of Directors
that the company pursue the activities related to the acquisition
of an amount between 20% and 30% of the assets of the Crownrock
Project, owned by Occidental Petroleum Company (Oxy) in the Permian
Basin in the United
States.
The approval of this project considered the favorable impact
it would have on the company's net income, production, and
reserves, and highlighted its minimal environmental impacts. It was
noted that the level of indebtedness was considerable but
manageable. In May 2024, the Board of
Directors approved, by majority vote (seven in favor and two
against), the acquisition of 30% of this project, and on
July 17th, it was announced to the
market that negotiations with Oxy were underway.
In the afternoon of July
31st, 2024, we were informed that during an
informal meeting in Piedecuesta, Bucaramanga, President
Gustavo Petro expressed to
Ricardo Roa and various members of
the Board his disagreement with the project for three main reasons:
it involved investment in fracking, it would increase Ecopetrol's
leverage, and it meant directing resources from Colombia abroad. The Board then decided, by
majority, not to proceed with the deal (our vote remained in favor,
of course). Furthermore, it was considered impossible to execute
the project without the Government's support. July 31st was the last day to
communicate our decision to Oxy without incurring in any
penalties.
We believe that the project was essential to protect the
future of Ecopetrol and its more than 250,000 shareholders, for the
reasons outlined in this document, and its rejection motivates our
resignation from the Board of Directors of Ecopetrol S.A.
Without the resources that the project would provide in the
future, Ecopetrol's finances will deteriorate, and the transfers to
the National Government will be reduced. Ecopetrol currently
contributes approximately 4 points of the GDP to the Nation through
taxes, investment, royalties, and dividends—an amount equivalent to
the Government's total spending on education, 1.5 times retirement
expenses, and 2.1 times the healthcare expenditure. It contributes
between 10% and 15% of the Nation's total revenues each year. The
lack of contribution from Ecopetrol and the Oslo project will come out of the pockets of
the Colombian citizens. Ecopetrol produces 80% of the natural gas
used by more than 10 million consumers.
This resignation will become effective once we have the
opportunity to approve the minutes of the previous Board of
Directors meetings, which we hope will be provided to us for
approval within the next month from the date of this
notice.
We kindly request that, in compliance with applicable law,
and given that these decisions have an evident material impact,
this communication be released as relevant information."
The Board of Directors will continue to be comprised of its
other members, in accordance with current and applicable
regulations.
Bogota D.C., August 30,
2024
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Ecopetrol is the
largest company in Colombia and one of the main integrated energy
companies in the American continent, with more than 19,000
employees. In Colombia, it is responsible for more than 60% of the
hydrocarbon production of most transportation, logistics, and
hydrocarbon refining systems, and it holds leading positions in the
petrochemicals and gas distribution segments. With the acquisition
of 51.4% of ISA's shares, the company participates in energy
transmission, the management of real-time systems (XM), and the
Barranquilla - Cartagena coastal highway concession. At the
international level, Ecopetrol has a stake in strategic basins in
the American continent, with Drilling and Exploration operations in
the United States (Permian basin and the Gulf of Mexico), Brazil,
and, through ISA and its subsidiaries, Ecopetrol holds leading
positions in the power transmission business in Brazil, Chile,
Peru, and Bolivia, road concessions in Chile, and the
telecommunications sector.
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For more information, please contact:
Head of Capital Markets (a)
Lina María Contreras Mora
Email: investors@ecopetrol.com.co
Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.