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Colombia state oil firm Ecopetrol (NYSE: EC) approved US$10.6bn of investment for next year, with 61% (US$6.46bn) to be directly invested by Ecopetrol and 39% (US$4.13bn) through its affiliates and subsidiaries, the company said in a press release.
The majority (US$4.65bn) of Ecopetrol's direct investment next year is marked for crude and natural gas production development. The firm's East Llanos project is slated to receive 64% of direct production development investment, with 17% going to the Middle Magdalena project and 11% to the Orinoquía project.
Ecopetrol also expects to invest US$928mn in exploration next year. In Colombia the firm plans to drill 20 exploration wells, six delineation wells and eight stratigraphic wells. The East Llanos project is marked for 13 exploration wells, with another two planned in offshore Colombia, two in southern Huila province and three in northern departments Cesar, Antioquia and Norte de Santander.
The firm also plans to spend US$240mn on developing nonconventional resources. Activity will include nine stratigraphic wells, three exploration wells and three pilot production tests - mainly on blocks in the Catatumbo and Middle Magdalena projects, Ecopetrol said.
Next year's direct investment plan includes US$339mn for refining and petrochemical spending, with 26% slated for modernizing the Barrancabermeja-PMRB refinery.
AFFILIATE AND SUBSIDIARY INVESTMENT
Through its affiliates and subsidiaries Ecopetrol plans to invest US$1.76bn in refining and petrochemical projects, including US$1.63bn to modernize the Cartagena refinery, Ecopetrol said.
Next year's subunit spending includes US$1.34bn in transport investment. Ecopetrol expects crude oil pipeline capacity to increase by an additional 40,000b/d in 2014 and total crude and natural gas pipeline capacity to grow by another 70,000boe/d.
Affiliate and subsidiary 2014 exploration investment is set at US$632mn and includes five exploration wells on the US-side of the Gulf of Mexico and six in Colombia, Ecopetrol said.
The firm also plans to spend US$392mn on developing affiliate and subsidiary oil and gas production in 2014.
Ecopetrol forecasts total group oil and gas production at 819,000boe/d next year.