The president of Ecopetrol confirmed that the contracts for fracking in Colombia are being canceled: “We hit the brakes”

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In addition, he assured that from the plan they have been working on they have put all possible effort into making the energy transition happen as quickly as possible

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The president of Ecopetrol confirmed that the fracking contracts in Colombia: “We hit the brakes”

Felipe Bayon, president of Ecopetrol. REUTERS/Mike Segar/File Photo

This November 9, Ecopetrolannounced the earnings for the third quarter of 2022. The figure was a positive surprise, because according to the company, it had earnings of 9.5 billion pesos in that period, which meant a growth of 150% compared to same three months of 2021, when profits reached 3.8 billion pesos.

After the news, the president of the state company, Felipe Bayón , held an interview with Caracol Radio,where he recalled what the profits are, what the company's plan is, the fall in the price of shares, among other topics.

He began by recalling that with the profits mentioned above, during the first nine months of 2022, they reached a total of 26.6 billion pesos and revenues were 120 billion. This goes hand in hand with the investment plan and strategy that the company has, since Ecopetrol's main objective is that all strengthening serves to accelerate the energy transition.

Regarding the Fracking process in Colombia, he assured that his decisions will be consistent with the policies that the Government imposes, that does not mean that in other parts of the world the process will stop, for example, in the United States the process is still very good: “in terms of fracking in Colombia, we hit the brakes, we asked the ANH (National Hydrocarbons Agency) for a 90-day suspension of the contractual terms and we are undoing the agreements we had with Exxon Mobil and in that sense, if the government decides not to apply fracking in Colombia, Ecopetrol will not do fracking in Colombia.”

Following that same idea, he noted that in the face of President Gustavo Petro's speech on the importance of the energy transition, the company is willing to advance as much as possible: “one says, here is also an invitation to see what else we can do to accelerate the energy transition. At Ecopetrol we have been working on this issue, from the point of view of low emissions, hydrogen, carbon capture, renewables, natural climate solutions, lowering emissions and decarbonizing operations.”

Let us remember that through a statement the company assured against the profits that are the result of advances in the operational, geographic and commercial diversification strategy, the commitment to “sustainability” and the energy sovereignty of the country, as well as the strength, stability and reliability of the various segments of the operation and the strict discipline of costs and capital that allowed the capture of accumulated efficiencies for more than 1.8 billion pesos, reaching in just nine months the goal proposed for all of 2022.

The operational and commercial performance, added to a favorable international price of crude oil, allowed to achieve better realization prices of the basket of crude oil, an increase in the volume of local sales of products (+8.9% in the third quarter of 2022 compared to the third quarter of 2021) and the growth in exports (+17.1% in the third quarter of 2022 compared to the third quarter of 2021).

Furthermore, given the behavior of price differentials of gasoline and diesel in the local market versus the international reference price, the account receivable from the Fuel Price Stabilization Fund (Fepc), corresponding to the second quarter of 2022 and the third quarter of 2022 amounts to 20.4 billion pesos at the end of September 2022.

“We have continued the process with the national government to implement measures aimed at reducing this balance, which includes the incorporation of resources in the General Budget of the Nation and the start of price adjustments at the local level”, noted Ecopetrol.

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