Ecopetrol seeks US$510mn from initial EEB sale

Wednesday, November 19, 2014

Colombia's Ecopetrol announced Wednesday that a government decree has greenlighted the sale of its stake in local power holding EEB.

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).

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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.

Citing leaked reports, Bancolombia said last month that EEB may be interested in buying back the shares.

Ecopetrol said it will use the proceeds for general corporate purposes, including the financing of its investment plan.

At BNamericas' recent 8th Andean Energy Summit in Bogotá, company E&P VP Héctor Manosalva said Ecopetrol planned to invest US$68.5bn through 2020.

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.