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In a filing with securities regulator Superfinanciera, the NOC – which holds a nearly 7% stake equivalent to 631,098,000 shares – said the share price in a first round will be 1,740 pesos for a total of 1.098tn pesos (US$510mn).
The first round will be for workers and pensioners, followed by a second round for the open market. A timetable for the process was not disclosed but the decree sets December 31, 2016 as the initial deadline for the sale.
Ecopetrol said it will use the proceeds for general corporate purposes, including the financing of its investment plan.
Ecopetrol also announced it has signed a cooperation agreement with Stanford University to advance thermal recovery R&D with the aim of ensuring crude and natural gas production goals by 2020.
The company expects enhanced recovery methods, such as steam and air injection, to increase the recovery factor 15-25% at its heavy and extra heavy oil fields.