Ecopetrol and Shell unite to work in a new gas field in the Colombian Caribbean

Ecopetrol and Shell EP Offshore Ventures Limited (“Shell”), have signed an agreement in which Shell will acquire a 50% stake in the Fuerte Sur, Purple Angel and COL-5 blocks located in a new gas field in the deep waters of the Colombian Caribbean where the Kronos (2015), Purple Angel and Gorgon (2017) wells where there were previous discoveries of gas.

The agreement stipulates that Shell will assume operatorship of the blocks. Both parties have the intention to drill an appraisal well in the area towards the end of 2021, depending on the respective governmental approvals, which would include a production test. If these activities are positive, these discoveries could be developed and potentially be a substantial increase in gas supply in the medium term.

“This agreement signed with a first-tier company like Shell, recognized for its experience in deep water operations, development and commercialization of high impact gas projects, permits us to test the production capacity of these reservoirs and possible future development. We are greatly satisfied with this alliance that permits us to increase our reserves and gas production in an environmentally friendly manner, which is key for the energy transition, and strengthens our strategic relationship with Shell, with whom we have been working with in Brazil’s pre-salt and Gulf of Mexico,” said Felipe Bayon, president of Ecopetrol.

“This position is a significant step in Shell’s aspirations in Colombia and in South America. This agreement brings together Ecopetrol’s regional know-how and Shell’s deep-water experience and ability to provide integrated gas solutions,” said Shell Colombia President, Ana Maria Duque. “We have collaborated with Ecopetrol on multiple occasions since its creation and we are very happy to continue to demonstrate our more than 84-year commitment working with Colombia and its energy resources.”

Since 2019, Ecopetrol had sought a world-class operator to develop these blocks, after the former operator ceded its participation.

The agreement signed by Ecopetrol and Shell is subject to the approvals of the National Hydrocarbons Agency and other conditions typical of transactions of this nature.

Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.

This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director’s expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.

For more information please contact:

Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Fax: +571-234-4480
Email: mauricio.tellez@ecopetrol.com.co

Shell:
Media Relations
Americas: +1 832 337 435
International: +44 207 934 5550

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