Title
of each class
|
Name
of each exchange on which registered:
|
American
Depository Shares (as evidenced by American Depository Receipts), each
representing the right to receive 20 Common Shares
|
New
York Stock Exchange
Lima
Stock Exchange
|
Ecopetrol
Common Shares par value Ps$250 per share*
|
New
York Stock Exchange
|
7.625%
Notes due 2019
|
New
York Stock Exchange
|
¨ U.S.
GAAP
|
¨ International
Financial Reporting
Standards
as issued by the
International
Accounting Standards
Board
|
x
Other
|
Page
|
||
Forward-Looking
Statements
|
1
|
|
Enforcement
of Civil Liabilities
|
2
|
|
Presentation
of Financial Information
|
2
|
|
Presentation
of Information Concerning Reserves
|
4
|
|
ITEM
1.
|
Identity
of Directors, Senior Management and Advisors
|
4
|
ITEM
2.
|
Offer
Statistics and Expected Timetable
|
4
|
ITEM
3.
|
Key
Information
|
5
|
3.A.
|
Selected
Financial Data
|
5
|
3.B.
|
Capitalization
and Indebtedness
|
7
|
3.C.
|
Reasons
for the Offer and Use of Proceeds
|
7
|
3.D.
|
Risk
Factors
|
7
|
ITEM
4.
|
Information
on the Company
|
20
|
4.A.
|
History
and Development of the Company
|
20
|
4.B.
|
Business
Overview
|
21
|
4.C.
|
Organizational
Structure
|
64
|
4.D.
|
Property,
Plant and Equipment
|
65
|
ITEM 4A. | Unresolved Staff Comments | 65 |
ITEM
5.
|
Operating
and Financial Review and Prospects
|
65
|
5.A.
|
Operating
Results
|
71
|
5.B.
|
Liquidity
and Capital Resources
|
83
|
5.C.
|
Research
and Development, Patents and Licenses, etc.
|
86
|
5.D.
|
Trend
Information
|
86
|
5.E.
|
Off-Balance
Sheet Arrangements
|
86
|
5.F.
|
Tabular
Disclosure of Contractual Obligations
|
86
|
5.G.
|
Safe
Harbor
|
90
|
ITEM
6.
|
Directors,
Senior Management and Employees
|
90
|
6.A.
|
Directors
and Senior Management
|
90
|
6.B.
|
Compensation
|
94
|
6.C.
|
Board
Practices
|
94
|
6.D.
|
Employees
|
95
|
6.E.
|
Share
Ownership
|
99
|
ITEM
7.
|
Major
Shareholders and Related Party Transactions
|
99
|
7.A.
|
Major
Shareholders
|
99
|
7.B.
|
Related
Party Transactions
|
99
|
7.C.
|
Interests
of Experts and Counsel
|
102
|
ITEM
8.
|
Financial
Information
|
102
|
8.A.
|
Consolidated
Statements and Other Financial Information
|
102
|
8.B.
|
Significant
Changes
|
102
|
ITEM
9.
|
The
Offer and Listing
|
102
|
9.A.
|
Offer
and Listing Details
|
102
|
9.B.
|
Plan
of Distribution
|
104
|
9.C.
|
Markets
|
104
|
9.D.
|
Selling
Shareholders
|
106
|
9.E.
|
Expenses
of the Issue
|
106
|
ITEM
10.
|
Additional
Information
|
106
|
10.A.
|
Share
Capital
|
106
|
10.B.
|
Memorandum
and Articles of Incorporation
|
106
|
10.C.
|
Material
Contracts
|
110
|
10.D.
|
Exchange
Controls
|
111
|
10.E.
|
Taxation
|
112
|
10.F.
|
Dividends
and Paying Agents
|
118
|
10.G.
|
Statement
by Experts
|
118
|
10.H.
|
Documents
on Display
|
118
|
10.I.
|
Subsidiary
Information
|
118
|
ITEM
11.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
118
|
ITEM
12.
|
Description
of Securities Other than Equity Securities
|
120
|
12.A.
|
Debt
Securities
|
120
|
12.B.
|
Warrants
and Rights
|
120
|
12.C.
|
Other
Securities
|
120
|
12.D.
|
American
Depositary Shares
|
121
|
ITEM
13.
|
Defaults,
Dividend Arrearages and Delinquencies
|
122
|
ITEM
14.
|
Material
Modifications to the Rights of Security Holders and Use of
Proceeds
|
122
|
ITEM
15.
|
Controls
and Procedures
|
122
|
ITEM
16.
|
[Reserved]
|
124
|
16.A.
|
Audit
Committee Financial Expert
|
124
|
16.B.
|
Code
of Ethics
|
124
|
16.C.
|
Principal
Accountant Fees and Services
|
124
|
16.D.
|
Exemptions
from the Listing Standards for Audit Committee
|
125
|
16.E.
|
Purchases
of Equity Securities by the Issuer and Affiliated
Purchasers
|
125
|
16.F.
|
Change
in Registrant’s Certifying Accountant
|
125
|
16.G.
|
Corporate
Governance
|
125
|
ITEM
17.
|
Financial
Statements
|
129
|
ITEM
18.
|
Financial
Statements
|
129
|
ITEM
19.
|
Exhibits
|
130
|
|
·
|
Drilling
and exploration activities
|
|
·
|
Future
production rates
|
|
·
|
Import
and export activities
|
|
·
|
Liquidity,
cash flow and uses of cash flow
|
|
·
|
Projected
capital expenditures
|
|
·
|
Dates
by which certain areas will be developed or will come
on-stream
|
|
·
|
Allocation
of capital expenditures to exploration and production
activities
|
|
·
|
Changes
in international crude oil and natural gas
prices
|
|
·
|
Competition
|
|
·
|
Limitations
on our access to sources of
financing
|
|
·
|
Significant
political, economic and social developments in Colombia and other
countries where we do business
|
|
·
|
Military
operations, terrorist acts, wars or
embargoes
|
|
·
|
Regulatory
developments
|
|
·
|
Technical
difficulties
|
|
·
|
Other
factors discussed in this document as “Risk
Factors”
|
|
·
|
a
treaty exists between Colombia and the country where the judgment was
granted or there is reciprocity in the recognition of foreign judgments
between the courts of the relevant jurisdiction and the courts of
Colombia;
|
|
·
|
the
foreign judgment does not relate to “in rem rights” vested
in assets that were located in Colombia at the time the suit was filed and
does not contravene or conflict with Colombian laws relating to public
order other than those governing judicial
procedures;
|
|
·
|
the
foreign judgment, in accordance with the laws of the country where it was
rendered, is final and is not subject to appeal and a duly certified and
authenticated copy of the judgment has been presented to a competent court
in Colombia;
|
|
·
|
the
foreign judgment does not refer to any matter upon which Colombian courts
have exclusive jurisdiction;
|
|
·
|
no
proceeding is pending in Colombia with respect to the same cause of
action, and no final judgment has been awarded in any proceeding in
Colombia on the same subject matter and between the same parties;
and
|
|
·
|
in
the proceeding commenced in the foreign court that issued the judgment,
the defendant was served in accordance with the law of such jurisdiction
and in a manner reasonably designated to give the defendant an opportunity
to defend against the action.
|
bpd
|
Barrels
per day
|
boe
|
Barrels
of oil equivalent
|
btu
|
British
thermal units
|
cf
|
Cubic
feet
|
cfpd
|
Cubic
feet per day
|
mcf
|
Million
cubic feet
|
mcfpd
|
Million
cubic feet per day
|
mbtu
|
Million
British thermal units
|
gbtu
|
Giga
British thermal units
|
gbtud
|
Giga
British thermal units per day
|
gcf
|
Giga
Cubic feet
|
ITEM 1.
|
Identity
of Directors, Senior Management and
Advisors
|
ITEM 2.
|
Offer
Statistics and Expected Timetable
|
ITEM 3.
|
Key
Information
|
3.A.
|
Selected
Financial Data
|
BALANCE SHEET
|
||||||||||||||||||||||||
For the year ended December 31,
|
||||||||||||||||||||||||
2009(1)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||||||
(US$
|
||||||||||||||||||||||||
in thousands except
for common share
and dividends per
share amounts)
|
(Pesos in millions except for
common share and dividends
per share amounts)
|
|||||||||||||||||||||||
Total
assets
|
27,178,702 | 55,559,517 | 48,702,412 | 48,112,080 | 42,137,722 | 32,664,817 | ||||||||||||||||||
Shareholders’
Equity
|
15,932,628 | 32,569,957 | 34,619,717 | 26,808,467 | 20,835,746 | 13,285,251 | ||||||||||||||||||
Number of common shares(3)
|
40,472,512,588 | 40,472,512,588 | 40,472,512,588 | 40,472,512,588 | (2) | 36,384,788,817 | 36,384,788,817 | |||||||||||||||||
Dividends
declared per share:
|
0.11 | 220.0 | (4) | 115.0 | (4) | 123.0 | (4) | 55.0 | 35.7 | |||||||||||||||
Amounts
in accordance with U.S. GAAP
|
||||||||||||||||||||||||
Total
Assets
|
21,198,326 | 43,334,253 | 40,244,452 | 29,698,528 | 26,517,482 | |||||||||||||||||||
Ecopetrol
Shareholders’ Equity
|
11,027,096 | 22,541,921 | 27,425,735 | 20,991,031 | 18,015,386 | |||||||||||||||||||
Number of common shares(3)
|
40,472,512,588 | 40,472,512,588 | 40,472,512,588 | 40,472,512,588 | 36,384,788,817 | |||||||||||||||||||
Dividends
declared per share:
|
0.11 | 220.0 | 115.0 | 123.0 | 55.0 |
(1)
|
Amounts
stated in U.S. dollars have been translated for the convenience of the
reader at the rate of Ps$2,044.23 to US$1.00, which is the Representative
Market Rate at December 31, 2009, the last business day of the year,
as reported and certified by the Superintendency of
Finance.
|
(2)
|
Includes
48,512,147 new shares, before the 1 to 400 split, issued to the Republic
of Colombia or the Nation on April 27, 2007 as a result of the
capitalization of developed reserves in accordance with Decree 2625 of
2000.
|
(3)
|
Number
of common shares include (i) a 1 to 400 stock split occurred in
July 2007 which for purposes of comparability and dividends per share
has been applied as if it had occurred in 2003, (ii) 48,512,147
shares issued to the Nation on April 2007 representing in-kind
contributions, and (iii) 4,087,723,771 shares issued to the public in
connection with our initial offering of shares in
Colombia.
|
(4)
|
Represents
payments made in 2009 and 2008 based on net income and retained earnings
for the years ended December 31, 2008 and 2007,
respectively. In 2007 dividends were declared and paid on
36,384,788,817 shares. In the same year, dividend payments to
the Nation amounted to Ps$4,475,399 million of which
Ps$3,052,236 million corresponded to net income and
Ps$1,423,163 million to retained earnings paid prior to our initial
public offering in the fourth quarter of 2007. See Item 5
—”Operating and Financial Review and Prospects — Pre-IPO Distribution of
Retained Earnings”.
|
INCOME STATEMENT
|
||||||||||||||||||||||||
For the year ended December 31,
|
||||||||||||||||||||||||
2009(1)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||||||
(US$
in thousands
except for
income per share
and average
number of
shares amounts)
|
(Pesos in millions except for net
income per share and average
number of shares amounts)
|
|||||||||||||||||||||||
Total revenue
|
14,873,273 | 30,404,390 | 33,896,669 | 22,332,320 | 18,389,965 | 15,512,903 | ||||||||||||||||||
Operating
income
|
3,851,494 | 7,873,339 | 12,657,358 | 8,959,138 | 4,798,437 | 4,543,292 | ||||||||||||||||||
Net
operating
|
||||||||||||||||||||||||
income
per share
|
0.10 | 195 | 313 | 292 | 113,038 | 107,027 | ||||||||||||||||||
Income
before
|
||||||||||||||||||||||||
income
tax
|
3,546,981 | 7,250,844 | 16,011,204 | 7,065,304 | 4,891,142 | 4,288,330 | ||||||||||||||||||
Net
income
|
2,510,507 | 5,132,054 | 11,629,677 | 5,179,792 | 3,391,373 | 3,253,756 | ||||||||||||||||||
Weighted
average number of shares outstanding(2)
|
40,472,512,588 | 40,472,512,588 | 40,472,512,588 | 30,702,164,870 | 42,449,825 | 42,449,825 | ||||||||||||||||||
Net
income per share(3)
|
0.06 | 127 | 287 | 169 | 79,891 | 76,648 | ||||||||||||||||||
Amounts
in accordance with U.S. GAAP
|
||||||||||||||||||||||||
Total
revenue
|
14,456,091 | 29,551,574 | 33,849,213 | 22,784,694 | 19,461,739 | |||||||||||||||||||
Operating
income
|
3,158,820 | 6,457,354 | 9,840,311 | 8,455,099 | 7,245,976 | |||||||||||||||||||
Net
operating income per share
|
0.08 | 160 | 243 | 229 | 199 | |||||||||||||||||||
Income
before
|
||||||||||||||||||||||||
income
tax and non-controlling interest
|
3,427,860 | 7,007,335 | 13,427,443 | 8,710,648 | 7,765,863 | |||||||||||||||||||
Net
income attributable to Ecopetrol
|
2,239,703 | 4,578,468 | 8,841,883 | 6,144,685 | 6,636,424 | |||||||||||||||||||
Net
income per Share
|
0.06 | 113 | 218 | 166 | 182 | |||||||||||||||||||
Average
number
|
||||||||||||||||||||||||
of
shares outstanding(4)
|
40,472,512,588 | 40,472,512,588 | 40,472,512,588 | 36,922,352,491 | 36,384,788,817 |
(1)
|
Amounts
stated in U.S. dollars have been translated for the convenience of the
reader at the rate of Ps$2,044.23 to US$1.00, which was the Representative
Market Rate at December 31, 2009, the last business day of the year,
as reported and certified by the Superintendency of
Finance.
|
(2)
|
The
weighted average number of common shares outstanding during 2007 was
30,702,164,870 as a result of the application of the 1 to 400 stock
split, capitalization of reserves by the Nation and initial public
offering in Colombia, which represents a net income per share of Ps$169,
compared to Ps$79,891 during 2006 when the average number of shares
outstanding was 42,449,825.
|
(3)
|
Net
Income per share is calculated using the weighted-average number of
outstanding shares at December 31 of each year, adjusted for a
1 to 400 stock split and the contribution to equity from the
Nation.
|
(4)
|
Amounts
calculated in accordance with U.S. GAAP which differs in certain respects
with the calculation of weighted average number of shares for Colombian
Government Entity GAAP.
|
Exchange Rates
|
||||||||||||||||
High
|
Low
|
Average
|
Period-End
|
|||||||||||||
Year
ended December 31,
|
||||||||||||||||
2005
|
2,397.25 | 2,272.95 | 2,320.77 | 2,284.22 | ||||||||||||
2006
|
2,634.06 | 2,225.44 | 2,357.98 | 2,238.79 | ||||||||||||
2007
|
2,261.22 | 1,877.88 | 2,078.35 | 2,014.76 | ||||||||||||
2008
|
2,392.28 | 1,652.41 | 1,966.26 | 2,243.59 | ||||||||||||
2009
|
2,596.37 | 1,825.68 | 2,156.29 | 2,044.23 | ||||||||||||
January 2010
|
2,044.23 | 1,957.82 | 1,978.19 | 1,982.29 | ||||||||||||
February 2010
|
2,003.76 | 1,914.87 | 1,952.89 | 1,932.32 | ||||||||||||
March 2010
|
1,934.21 | 1,888.05 | 1,909.10 | 1,928.59 | ||||||||||||
April 2010
|
1,973.05 | 1,911.07 | 1,940.36 | 1,969.75 | ||||||||||||
May 2010
|
2,029.54 | 1,950.44 | 1,984.36 | 1,971.55 | ||||||||||||
June 2010
|
1,971.55 | 1,886.05 | 1,925.90 | 1,916.46 |
Source:
|
Superintendency
of Finance for historical data. Banco de la República
or the Colombian Central Bank (www.banrep.gov.co) for
averages.
|
3.B.
|
Capitalization
and Indebtedness
|
3.C.
|
Reasons
for the Offer and Use of Proceeds
|
3.D.
|
Risk
Factors
|
|
·
|
Changes
in international prices of natural gas and refined
products;
|
|
·
|
Long-term
changes in the demand for crude oil, natural gas and refined
products;
|
|
·
|
Regulatory
changes;
|
|
·
|
Inventory
levels;
|
|
·
|
Increase
in the cost of capital;
|
|
·
|
Adverse
economic conditions;
|
|
·
|
Development
of new technologies;
|
|
·
|
Economic
and political events, especially in the Middle East and elsewhere with
high levels of crude oil
production;
|
|
·
|
The
willingness and ability of the Organization of the Petroleum Exporting
Countries or OPEC and its members to set production levels and
prices;
|
|
·
|
Local
and global demand and supply;
|
|
·
|
Development
of alternative fuels;
|
|
·
|
Weather
conditions; and
|
|
·
|
Terrorism
and global conflict.
|
|
·
|
Unexpected
drilling conditions;
|
|
·
|
Pressure
or irregularities in formations;
|
|
·
|
Security
problems;
|
|
·
|
Equipment
failures or accidents;
|
|
·
|
Fires,
explosions, blow-outs and surface
cratering;
|
|
·
|
Title
problems;
|
|
·
|
Other
adverse weather conditions; and
|
|
·
|
Shortages
or delays in the availability or in the delivery of
equipment.
|
ITEM 4.
|
Information
on the Company
|
4.A.
|
History
and Development of the Company
|
4.B.
|
Business
Overview
|
|
·
|
Investing
in high potential hydrocarbon areas in Colombia and
abroad;
|
|
·
|
Selectively
acquiring reserves;
|
|
·
|
Implementing
new strategies and deploying state-of-the art technologies to increase
reserve recovery of new and mature
fields;
|
|
·
|
Investing
in the development of natural gas and heavy crude oil;
and
|
|
·
|
Entering
into new joint ventures with regional and international oil companies in
Colombia and abroad.
|
For the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Owned
and operated by Ecopetrol
|
||||||||||||
Productive(1)
|
2 | 4 | 1 | |||||||||
Dry(2)
|
7 | 6 | 3 | |||||||||
Total
|
9 | 10 | 4 | |||||||||
Operated
by Ecopetrol in Joint Venture
|
||||||||||||
Productive
|
- | 1 | 1 | |||||||||
Dry
|
- | 0 | 2 | |||||||||
Total
|
- | 1 | 3 | |||||||||
Operated
by Partner in Joint Venture
|
||||||||||||
Productive
|
3 | 1 | – | |||||||||
Dry
|
3 | 1 | 5 | |||||||||
Total
|
6 | 2 | 5 | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
3.2 | 5 | 1.4 | |||||||||
Dry
|
8.2 | 6.4 | 5.6 | |||||||||
Total
|
11.4 | 11.4 | 7 | |||||||||
Sole Risk(3)
|
||||||||||||
Productive
|
4 | 8 | 8 | |||||||||
Dry
|
5 | 12 | 13 | |||||||||
Total
|
9 | 20 | 21 | |||||||||
Hocol
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Productive
|
1 | - | - | |||||||||
Dry
|
2 | - | ||||||||||
Total
|
3 | - | - | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
0.2 | - | - | |||||||||
Dry
|
2 | - | - | |||||||||
Total
|
2.2 | - | ||||||||||
INTERNATIONAL
|
||||||||||||
Ecopetrol
America Inc.
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Productive
|
- | - | - | |||||||||
Dry
|
2 | 1 | - | |||||||||
Total
|
2 | 1 | - | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
- | - | ||||||||||
Dry
|
0.4 | 0.3 | - | |||||||||
Total
|
0.4 | 0.3 | - | |||||||||
Ecopetrol
Oleo e Gas do Brasil
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Productive
|
0 | - | - | |||||||||
Dry
|
1 | - | - | |||||||||
Total
|
1 | - | - | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
- | |||||||||||
Dry
|
0.3 | - | - | |||||||||
Total
|
0.3 | - | - | |||||||||
Ecopetrol
del Perú
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Productive
|
- | - | - | |||||||||
Dry
|
- | 1 | - | |||||||||
Total
|
- | 1 | - | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
- | - | ||||||||||
Dry
|
- | 0.5 | - | |||||||||
Total
|
- | 0.5 | - | |||||||||
Savia
Perú
|
||||||||||||
Gross
Exploratory Wells
|
||||||||||||
Productive
|
1 | - | - | |||||||||
Dry
|
1 | - | - | |||||||||
Total
|
2 | - | - | |||||||||
Net
Exploratory Wells
|
||||||||||||
Productive
|
0.5 | |||||||||||
Dry
|
0.5 | - | - | |||||||||
Total
|
1 | - | - |
(1)
|
A
productive well is an exploratory well that is not a dry
well.
|
(2)
|
A
dry well or hole is an exploratory well found to be incapable of producing
either crude oil or natural gas in sufficient quantities to justify
completion as a crude oil or natural gas
well.
|
(3)
|
We
do not take any risk in sole risk contracts but we benefit from successful
exploratory efforts. See Item 4 — “Overview of Exploration
and Production Contractual
Arrangements.”
|
For the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
|
||||||||||||
Northeastern
Region:
|
||||||||||||
Gross
wells owned and operated by Ecopetrol
|
– | – | – | |||||||||
Gross
wells in Joint Ventures(1)
|
6 | 1 | 2 | |||||||||
Net
Wells
|
3 | 1 | 1 | |||||||||
Mid-Magdalena
Valley Region:
|
||||||||||||
Gross
wells owned and operated by Ecopetrol
|
100 | 90 | 77 | |||||||||
Gross
wells in Joint Ventures
|
249 | 344 | 153 | |||||||||
Net
Wells
|
227 | 285 | 146 | |||||||||
Central
Region:
|
||||||||||||
Gross
wells owned and operated by Ecopetrol
|
46 | 41 | 29 | |||||||||
Gross
wells in Joint Ventures
|
115 | 66 | 17 | |||||||||
Net
Wells
|
113 | 79 | 38 | |||||||||
Catatumbo-Orinoquía
Region:
|
||||||||||||
Gross
wells owned and operated by Ecopetrol
|
4 | 5 | 8 | |||||||||
Gross
wells in Joint Ventures
|
12 | 59 | 53 | |||||||||
Net
Wells
|
10 | 36 | 36 | |||||||||
Southern
Region:
|
||||||||||||
Gross
wells owned and operated by Ecopetrol
|
7 | 10 | 6 | |||||||||
Gross
wells in Joint Ventures
|
48 | 36 | 58 | |||||||||
Net
Wells
|
23 | 27 | 33 | |||||||||
Hocol
|
||||||||||||
Gross
wells owned and operated by Hocol
|
8 | - | - | |||||||||
Gross
wells in Joint Ventures
|
1 | - | - | |||||||||
Net
Wells
|
8 | - | - | |||||||||
Total
Gross wells owned and operated in Colombia
|
165 | 146 | 120 | |||||||||
Total
Gross wells in Joint Ventures in Colombia
|
431 | 506 | 283 | |||||||||
Total
Net Wells (Colombia)
|
384 | 428 | 254 | |||||||||
INTERNATIONAL
|
||||||||||||
Savia
Perú
|
||||||||||||
Gross
wells
|
5 | - | - | |||||||||
Net
Wells
|
5 | - | - | |||||||||
Total
Gross Wells (International)
|
5 | - | - | |||||||||
Total
Net Wells (International)
|
5 | - | - |
(1)
|
Net
wells correspond to the sum of wells entirely owned by us and our
ownership percentage of wells owned in joint venture with our
partners.
|
For the Year ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(thousand
bpd)
|
||||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
|
||||||||||||
Northeastern
region:
|
||||||||||||
Joint
venture operation
|
36.9 | 40.4 | 47.5 | |||||||||
Direct
operation
|
— | — | — | |||||||||
Total
Northeastern region
|
36.9 | 40.4 | 47.5 | |||||||||
Mid-Magdalena
Valley region:
|
||||||||||||
Joint
venture operation
|
16.9 | 15.1 | 12.7 | |||||||||
Direct
operation
|
56.6 | 50.7 | 39.4 | |||||||||
Total
Mid-Magdalena Valley region
|
73.4 | 65.8 | 52.1 | |||||||||
Central
region:
|
||||||||||||
Joint
venture operation
|
44.5 | 28.6 | 15.3 | |||||||||
Direct
operation
|
111.5 | 93.7 | 82.8 | |||||||||
Total
Central region
|
156.0 | 122.3 | 98.1 | |||||||||
Catatumbo-Orinoquía
region:
|
||||||||||||
Joint
venture operation
|
67.1 | 70.9 | 64.9 | |||||||||
Direct
operation
|
2.9 | 3.0 | 6.0 | |||||||||
Total
Catatumbo-Orinoquia region
|
70.0 | 73.9 | 70.9 | |||||||||
Southern
region:
|
||||||||||||
Joint
venture operation
|
35.4 | 33.6 | 35.2 | |||||||||
Direct
operation
|
26.6 | 24.3 | 22.9 | |||||||||
Total
Southern region
|
62.0 | 57.9 | 58.1 | |||||||||
Minor
Fields:
|
||||||||||||
Joint
venture operation
|
6.6 | — | — | |||||||||
Direct
operation
|
0.5 | — | — | |||||||||
Total
Minor Fields
|
7.2 | — | — | |||||||||
Hocol
S.A(1)
|
||||||||||||
Joint
venture operation
|
6.3 | — | — | |||||||||
Direct
operation
|
7.8 | — | — | |||||||||
Total
Hocol
|
14.1 | — | — | |||||||||
Production
Tests
|
0.3 | 1.3 | — | |||||||||
Total
Average Daily Crude Oil Production (Colombia)
|
419.8 | 361.6 | 326.7 | |||||||||
INTERNATIONAL
|
||||||||||||
Savia
Perú
|
5.3 | — | — | |||||||||
Ecopetrol
America
|
0.9 | 0.3 | — | |||||||||
Total
Average Daily Crude Oil Production (International)
|
6.2 | 0.3 | — | |||||||||
TOTAL AVERAGE DAILY CRUDE OIL
PRODUCTION
|
426.0 | 361.9 | 326.6 |
Crude
Oil Average Sales Price
|
||||||||||||
(U.S.
dollars per barrel)(2)
|
60.86 | 85.30 | 65.10 | |||||||||
Crude
Oil Average Sales Price
|
||||||||||||
(Ps$
per barrel)(2)
|
131,059 | 167,797 | 135,173 | |||||||||
Aggregate
Average Lifting Costs of Crude Oil
(U.S. dollars
per barrel)(3)
|
8.27 | 8.33 | 7.22 | |||||||||
Aggregate
Average Lifting Costs of Crude Oil
(Ps$ per
barrel)(3)
|
17,825 | 16,376 | 15,057 |
(1)
|
Hocol
and Savia Perú production figures correspond to their
equivalent daily productions since their respective months of
acquisitions.
|
(2)
|
Corresponds
to Ecopetrol’s average sales price on an unconsolidated
basis.
|
(3)
|
Lifting
costs per barrel are calculated based on total production, which includes
royalties, and correspond to Ecopetrol’s lifting costs on an
unconsolidated basis.
|
Production Acreage at
December 31, 2009
|
Average crude oil production for the
year ended December 31, 2009(1)
|
|||||||||||
Developed and Undeveloped
|
(thousand bpd)
|
|||||||||||
Gross
|
Net
|
|||||||||||
(in
acres)
|
||||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
|
||||||||||||
Northeastern
region
|
200,350 | 120,210 | 36.9 | |||||||||
Mid-Magdalena
Valley region
|
835,370 | 531,187 | 73.4 | |||||||||
Central
region
|
464,954 | 291,287 | 156.0 | |||||||||
Catatumbo-Orinoquía
region
|
640,839 | 389,669 | 70.0 | |||||||||
Southern
region
|
1,476,199 | 836,721 | 62.0 | |||||||||
Minor
Fields
|
558,667 | 165,253 | 7.2 | |||||||||
Hocol
|
37,264 | 10,681 | 14.1 | |||||||||
Total
(Colombia)
|
4,213,642 | 2,345,008 | 419.5 | |||||||||
INTERNATIONAL
|
||||||||||||
Savia
Perú
|
10,933,233 | 10,933,233 | 5.5 | |||||||||
Ecopetrol America
Inc.
|
5,760 | 530 | 0.9 | |||||||||
Total
(International)
|
10,938,993 | 10,933,763 | 6.4 | |||||||||
TOTAL
|
15,152,635 | 13,278,771 | 426.0 |
(1)
|
Does
not include 0.28 thousand bpd of production from exploratory
activities.
|
At December 31, 2009
|
||||||||||||||||||||||||
Crude Oil
|
Natural Gas
|
Natural Gas and
Crude Oil
|
||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||
COLOMBIA
|
||||||||||||||||||||||||
Ecopetrol
|
||||||||||||||||||||||||
Northeastern
region
|
1 | 1 | 62 | 33 | 64 | 33 | ||||||||||||||||||
Mid-Magdalena
Valley region
|
2,837 | 1,939 | 7 | 4 | 0 | 0 | ||||||||||||||||||
Central
region
|
532 | 395 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Catatumbo-Orinoquía
region
|
728 | 463 | 1 | 1 | 0 | 0 | ||||||||||||||||||
Southern
region
|
908 | 547 | 5 | 2 | 6 | 3 | ||||||||||||||||||
Minor
fields
|
69 | 38 | 15 | 10 | 4 | 1 | ||||||||||||||||||
Hocol
|
252 | 115 | 2 | 2 | 0 | 0 | ||||||||||||||||||
Total
(Colombia)
|
5,327 | 3,497 | 92 | 52 | 74 | 37 | ||||||||||||||||||
INTERNATIONAL
|
||||||||||||||||||||||||
Savia
Perú
|
652 | 652 | ||||||||||||||||||||||
Ecopetrol America
Inc.
|
8 | 1 | ||||||||||||||||||||||
Total
(International)
|
— | — | — | — | 660 | 653 | ||||||||||||||||||
TOTAL
|
5,327 | 3,497 | 92 | 52 | 734 | 690 | ||||||||||||||||||
For the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(million barrels)
|
||||||||||||
Ecopetrol
|
||||||||||||
Crude
oil purchased from the ANH
|
35.1 | 32.6 | 31.0 | |||||||||
Crude
oil purchased from our Business partners
|
26.4 | 18.8 | 12.7 | |||||||||
Hocol
|
||||||||||||
Crude
oil purchased from our Business partners
|
4.8 | — | — | |||||||||
Total
|
66.3 | 51.4 | 43.7 |
At December 31,
2009
|
For the year ended December 31,
|
|||||||||||||||
Number of fields
|
2009
|
2008
|
2007
|
|||||||||||||
(thousand bpd)
|
||||||||||||||||
Ecopetrol
|
||||||||||||||||
Northeastern
region:
|
||||||||||||||||
Joint
Venture
|
5 | 36.8 | 40.4 | 47.5 | ||||||||||||
Direct
Operation
|
— | — | — | — | ||||||||||||
Total
Northeastern region
|
5 | 36.8 | 40.4 | 47.5 | ||||||||||||
Mid-Magdalena
Valley region:
|
||||||||||||||||
Joint
Venture
|
13 | 6.2 | 4.1 | 5.2 | ||||||||||||
Direct
Operation
|
31 | 56.5 | 50.9 | 39.0 | ||||||||||||
Total
Mid-Magdalena Valley region
|
44 | 62.7 | 55.0 | 44.2 | ||||||||||||
Central
region:
|
||||||||||||||||
Joint
Venture
|
14 | 6.5 | 1.4 | 1.5 | ||||||||||||
Direct
Operation
|
17 | 13.8 | 20.8 | 23.5 | ||||||||||||
Total
Central region
|
31 | 20.3 | 22.2 | 25 | ||||||||||||
Catatumbo-Orinoquía
region:
|
||||||||||||||||
Joint
Venture
|
53 | 67.1 | 67.9 | 64.1 | ||||||||||||
Direct
Operation
|
5 | 2.9 | 4.8 | 5.7 | ||||||||||||
Total
Catatumbo-Orinoquía region
|
58 | 70.0 | 72.7 | 69.8 | ||||||||||||
Southern
region:
|
||||||||||||||||
Joint
Venture
|
37 | 35.4 | 13 | 17.6 | ||||||||||||
Direct
Operation
|
33 | 26.6 | 23.9 | 22.9 | ||||||||||||
Total
Southern region
|
70 | 62.0 | 36.9 | 40.5 | ||||||||||||
Minor
fields:
|
||||||||||||||||
Joint
Venture
|
41 | 6.6 | — | — | ||||||||||||
Direct
Operation
|
4 | 0.5 | — | — | ||||||||||||
Total
Minor fields
|
45 | 7.1 | — | — | ||||||||||||
Hocol
|
||||||||||||||||
Minor
fields (Hocol):
|
||||||||||||||||
Joint
Venture
|
— | — | — | — | ||||||||||||
Direct
Operation
|
9 | 5.1 | — | — | ||||||||||||
Total
Minor fields (Hocol)
|
9 | 5.1 | — | — | ||||||||||||
TOTAL
|
262 | 264.0 | 227.2 | 227 |
For the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(mcfpd)
|
||||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
|
||||||||||||
Northeastern
region:
|
||||||||||||
Joint
Venture
|
494.4 | 451.8 | 375.4 | |||||||||
Direct
Operation
|
— | — | — | |||||||||
Total
Northeastern region
|
494.4 | 451.8 | 375.4 | |||||||||
Mid-Magdalena
Valley region:
|
||||||||||||
Joint
Venture
|
4.0 | 6.0 | 8.1 | |||||||||
Direct
Operation
|
19.4 | 21.4 | 21.5 | |||||||||
Total
Mid-Magdalena
|
||||||||||||
Total
Valley region
|
23.3 | 27.4 | 29.6 | |||||||||
Central
region:
|
||||||||||||
Joint
Venture
|
— | — | — | |||||||||
Direct
Operation
|
3.9 | 1.7 | 1.6 | |||||||||
Total
Central region
|
3.9 | 1.7 | 1.6 | |||||||||
Catatumbo-Orinoquía
region:
|
||||||||||||
Joint
Venture
|
0.2 | 1.0 | 1.1 | |||||||||
Direct
Operation
|
0.5 | — | — | |||||||||
Total
Catatumbo-Orinoquía region
|
0.7 | 1.0 | 1.1 | |||||||||
Southern
region:
|
||||||||||||
Joint
Venture
|
3.4 | 2.8 | 3.3 | |||||||||
Direct
Operation
|
1.7 | 2.2 | 1.0 | |||||||||
Total
Southern region
|
5.2 | 5.0 | 4.3 | |||||||||
Minor
Fields:
|
||||||||||||
Joint
venture operation
|
1.9 | — | — | |||||||||
Direct
operation
|
— | — | — | |||||||||
Total
Minor Fields
|
1.9 | — | — | |||||||||
Hocol(1)
|
||||||||||||
Joint
venture operation
|
4.0 | — | — | |||||||||
Direct
operation
|
— | — | — | |||||||||
Total
Hocol
|
4.0 | — | — | |||||||||
Production
Tests
|
0.2 | |||||||||||
Total
Natural Gas Production (Colombia)
|
533.6 | 486.9 | 412.0 | |||||||||
INTERNATIONAL
|
||||||||||||
Savia
Perú(1)
|
5.3 | |||||||||||
Ecopetrol
America
|
0.4 | |||||||||||
Total
Natural Gas Production (International)
|
5.7 | — | — | |||||||||
TOTAL
NATURAL GAS PRODUCTION
|
539.2 | 486.9 | 412.0 | |||||||||
Natural
Gas Average Sales Price (U.S. dollars per thousand cf)
|
2.94 | 3.47 | 2.06 | |||||||||
Natural
Gas Average Sales Price (Ps$ per thousand cf)
|
6,321 | 6,818 | 4,270 | |||||||||
Aggregate
Average Lifting Costs of Natural Gas (U.S. dollars per thousand cf)(2)(3)
|
0.38 | 0.52 | 0.49 | |||||||||
Aggregate
Average Lifting Costs of Natural Gas (Ps$ per thousand cf)(2)(3)
|
829 | 1,015 | 1,024 |
(1)
|
Hocol
and Savia Perú production figures correspond to their equivalent daily
productions since their respective months of
acquisitions.
|
(2)
|
Corresponds
to lifting costs from La Guajira
fields.
|
(3)
|
During
2009, we modified our methodology for calculating our natural gas lifting
cost as follows: we now calculate this cost by taking our production cost
and dividing it by our produced volumes (including royalties) rather than
using the total volume produced by our fields as the
denominator. Our 2008 and 2007 natural gas lifting costs have
been restated under the new
methodology.
|
Developed and Undeveloped
Production Acreage as of
December 31, 2009
|
Average natural gas
production for the year ended
December 31, 2009
|
|||||||||||
(in acres)
|
(thousand cfpd)
|
|||||||||||
Gross
|
Net
|
|||||||||||
COLOMBIA
|
||||||||||||
Ecopetrol
S.A.
|
||||||||||||
Northeastern
region
|
238,801 | 142,127 | 494.4 | |||||||||
Mid-Magdalena
Valley region
|
744,723 | 442,798 | 23.3 | |||||||||
Central
region
|
201,415 | 129,384 | 3.9 | |||||||||
Catatumbo-Orinoquía
region
|
10,166 | — | 0.7 | |||||||||
Southern
region
|
241,933 | 121,802 | 5.2 | |||||||||
Minor
fields(1)
|
24,859 | 12,430 | 2.1 | |||||||||
Hocol
|
114 | 80 | 4.0 | |||||||||
Total
(Colombia)
|
1,462,011 | 848,621 | 533.6 | |||||||||
INTERNATIONAL
|
||||||||||||
Savia
Perú
|
9,295 | 9,295 | 5.3 | |||||||||
Ecopetrol America
Inc.
|
— | — | 0.4 | |||||||||
Total
(International)
|
9,295 | 9,295 | 5.7 | |||||||||
TOTAL
|
1,471,306 | 857,916 | 539.2 |
(1)
|
Minor
fields production figures include production from production
tests.
|
At December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Crude Oil
(million
barrels)
|
Gas
(gcf)
|
Crude Oil
(million
barrels)
|
Gas
(gcf)
|
Crude Oil
(million
barrels)
|
Gas
(gcf)
|
|||||||||||||||||||
PROVED
DEVELOPED RESERVES
|
||||||||||||||||||||||||
Colombia
|
||||||||||||||||||||||||
Ecopetrol
S.A.
|
||||||||||||||||||||||||
Northeastern
region
|
65.2 | 1674.9 | 66.3 | 680.0 | 87.5 | 1119.8 | ||||||||||||||||||
Mid-Magdalena
Valley region
|
148.0 | 24.4 | 134.2 | 33.3 | 153.0 | 66.1 | ||||||||||||||||||
Central
region
|
196.2 | 0.0 | 137.3 | 0.0 | 152.4 | 0.0 | ||||||||||||||||||
Catatumbo
– Orinoquía region
|
68.6 | 0.0 | 76.5 | 0.0 | 93.1 | 0.0 | ||||||||||||||||||
Southern
region
|
97.5 | 3.8 | 92.4 | 4.9 | 158.5 | 19.4 | ||||||||||||||||||
Minor
Fields
|
6.6 | 0.8 | 10.9 | 2.0 | 6.8 | 5.2 | ||||||||||||||||||
Hocol
|
29.7 | 3.1 | — | — | — | — | ||||||||||||||||||
Total
(Colombia)
|
611.6 | 1707.0 | 517.6 | 720.1 | 651.3 | 1210.5 | ||||||||||||||||||
International
|
||||||||||||||||||||||||
Savia
Perú
|
14.2 | 23.0 | — | — | — | — | ||||||||||||||||||
Ecopetrol
America
|
4.7 | 2.6 | 0.8 | 0.5 | — | — | ||||||||||||||||||
Total
(International)
|
18.8 | 25.6 | 0.8 | 0.5 | — | — | ||||||||||||||||||
TOTAL
PROVED DEVELOPED RESERVES
|
630.5 | 1732.6 | 518.4 | 720.6 | 651.3 | 1210.5 | ||||||||||||||||||
PROVED
UNDEVELOPED RESERVES
|
||||||||||||||||||||||||
Colombia
|
||||||||||||||||||||||||
Ecopetrol
S.A.
|
||||||||||||||||||||||||
Northeastern
region
|
75.8 | 584.7 | 41.5 | 1173.0 | 45.8 | 758.2 | ||||||||||||||||||
Mid-Magdalena
Valley region
|
99.1 | 7.5 | 77.2 | 5.3 | 59.2 | 10.9 | ||||||||||||||||||
Central
region
|
242.5 | 0.0 | 126.2 | 0.0 | 65.1 | 0.0 | ||||||||||||||||||
Catatumbo
– Orinoquía region
|
25.7 | 0.0 | 20.1 | 0.0 | 12.7 | 0.0 | ||||||||||||||||||
Southern
region
|
14.6 | 0.4 | 13.8 | 0.0 | 22.5 | 0.0 | ||||||||||||||||||
Minor
Fields
|
1.0 | 0.0 | 1.7 | 0.0 | 0.7 | — | ||||||||||||||||||
Hocol
|
19.3 | 0.4 | — | — | — | — | ||||||||||||||||||
Total
(Colombia)
|
478.0 | 593.0 | 280.5 | 1178.3 | 206.1 | 769.1 | ||||||||||||||||||
International
|
||||||||||||||||||||||||
Savia
Perú
|
14.9 | 3.8 | — | — | — | — | ||||||||||||||||||
Ecopetrol
America
|
0.0 | 0.0 | 0.0 | 0.0 | — | — | ||||||||||||||||||
Total
(International)
|
14.9 | 3.8 | 0.0 | 0.0 | — | — | ||||||||||||||||||
TOTAL
PROVED UNDEVELOPED RESERVES
|
492.8 | 596.9 | 280.5 | 1178.3 | 206.1 | 769.1 | ||||||||||||||||||
TOTAL
PROVED RESERVES (DEVELOPED AND UNDEVELOPED)
|
1123.3 | 2329.4 | 798.9 | 1898.9 | 857.4 | 1979.6 |
Net proved developed and undeveloped
Reserves
|
||||||||||||
Crude Oil
(million
barrels)
|
Gas (gcf)
|
Total (million boe)
|
||||||||||
Reserves
at December 31, 2007
|
857.4 | 1,979.6 | 1,209.9 | |||||||||
Revisions
|
44.2 | 54.5 | 53.9 | |||||||||
Extensions
and discoveries
|
8.3 | 0.8 | 8.4 | |||||||||
Production
|
(111.0 | ) | (136.0 | ) | (135.2 | ) | ||||||
Reserves
at December 31, 2008
|
798.9 | 1,898.9 | 1,137.0 | |||||||||
Revisions
|
318.98 | 548.55 | 416.7 | |||||||||
Extensions
and discoveries(1)
|
137.29 | 38.62 | 144.2 | |||||||||
Production
|
(131.85 | ) | (156.63 | ) | (159.7 | ) | ||||||
Reserves
at December 31, 2009
|
1,123.3 | 2,329.4 | 1,538.2 | |||||||||
Net
proved developed reserves
|
||||||||||||
At
December 31, 2007
|
651.3 | 1,210.5 | 866.9 | |||||||||
At
December 31, 2008
|
518.4 | 720.6 | 646.7 | |||||||||
At
December 31, 2009
|
630.5 | 1,732.6 | 939.0 |
|
·
|
Reduction of Our Initial
Participation. The Government reduced our initial
participation under the joint venture contracts from 50% to
30%. At December 31, 2009, we had 33 joint venture
contracts outstanding in which our participation was greater than or equal
to 50%, and 13 joint venture agreements are outstanding where our
participation was 30% or below.
|
|
·
|
Modified
R-Factor. The Government modified the formula used to
determine the increase in our share of total production or the
R-Factor. The R-Factor is calculated by dividing accumulated
revenues in cash by investments and costs. If the R-Factor
increases above a certain profitability threshold, then our share of
production increases above the initial 30%. Pursuant to the
1999 modifications, we raised the profitability threshold at which the
R-Factor triggers an increase in our share from 1.0 to
1.5. Private companies benefited from this modification because
our share remained at 30% for a longer period of time. In
addition, the R-Factor was calculated in constant dollars. This
new calculation method was designed to prevent inflation from causing an
increase in the R-Factor and a corresponding increase in our
share.
|
|
·
|
Risk Participation
Contracts. Under these contracts, we assumed 15% of the
exploration costs and risks at the beginning of the second year in
exchange for a larger participation in the future production and equal
representation on the executive committee of the joint
venture. At December 31, 2009, we had three risk
participation contracts in effect.
|
|
·
|
Incremental Production
Agreements. We currently have two types of incremental
production agreements, the standard incremental production agreements or
SIPA, and the development of incremental production project agreements or
DIPA. Under the SIPA, we calculate the total number of proved
developed reserves available in a specific field or well and then
establish a base production curve for the reserves. Any future
production exceeding the curve, which we refer to as incremental
production, results from extracting proved undeveloped reserves or
probable reserves which require additional investments funded by our
partners under the SIPA. We have the right to a previously
specified percentage of the incremental production. Our
percentage participation varies depending on the total amount invested by
our partners and on the R-Factor which cannot be lower than
1.5. The volume produced under the production curve is not
shared with our partners. At December 31, 2009, we had
five SIPAs in effect.
|
|
·
|
Shared-Risk Production
Contracts. Under these contracts, we remain as operators
of the field and assume responsibility for 50% of all investments and
costs. Private oil companies submit bids to enter into
agreements with us based upon the production percentage they will assign
to us. The successful bidder has the right to enter into the
shared-risk contract with us. At December 31, 2009, we had
one shared-risk production contract
outstanding.
|
|
·
|
Risk Service Production
Contracts. We began using the risk service production
contract in January 1998 to increase production through the use of
new technologies in crude oil fields then operated by our
partners. All investments in new technologies were made by our
partners who received a tariff payment based on a formula that took into
account the incremental production resulting from the technological and
operative investments. At December 31, 2009, we had two
risk service contracts outstanding for the development of the
Valdivia-Almagro field and the Rancho Hermoso field located in the Mirador
formation.
|
|
·
|
Discovered Undeveloped Fields
Contracts. We have entered into discovered undeveloped
fields contracts to promote exploration by private companies of both
undeveloped and inactive fields. Under this agreement, the
contracting party assumes all costs and expenses for the development and
operation of a field in exchange for a previously specified fee per
barrel, which varies depending on the production level. At
December 31, 2009, we had 20 discovered undeveloped fields contracts
outstanding, of which at least two contracts are nearing termination
because the fields have not been in production for some
time.
|
|
·
|
Sole Risk Contracts.
After 2000, the party deciding to enter in a sole risk contract has
the right to recover 100% of its investment and
costs. Thereafter, we can participate in the development of the
field sharing all new investment and costs. At
December 31, 2009, we had 15 sole risk contracts
outstanding.
|
|
·
|
One
Service and Technical
Cooperation Contract with Universidad Industrial de
Santander. Pursuant to this agreement, research can be
conducted as part of the development of the Colorado
field.
|
|
·
|
One Operation Agreement
under which production was being carried out on the Cocorná field while we
await the court of arbitration to make a final decision about the
termination of the Cocorná joint venture contract. This
agreement terminated on May 1, 2010 as the arbitration decision was issued
in favor of Ecopetrol.
|
|
·
|
One
Technical Alliance
Agreement with a service company to support the operation of Casabe
field in which Ecopetrol maintains operation and ownership of 100%
reserves.
|
|
·
|
Exploration and Production
Contract or E&P. Under the E&P contract the
contractor, including us, assumes all exploration and production
activities. The contractor also assumes all risks and costs of
exploration and is the sole owner of all production and assets involved in
the exploration and production activities for the term of the
contract. There is no partnership or joint venture between the
contractor and the ANH.
|
|
·
|
Technical Evaluation
Agreements or TEA. The scope of the technical evaluation
agreement is limited to exploration activities. Under this
agreement, the contractor can evaluate a specific area and decide whether
or not it will enter into an exploration and production
contract. The contractor assumes all risks and costs of the
activities and operations. The agreement may be entered into
for an 18-month period for on-shore areas and up to a 24-month period for
off-shore areas.
|
For
the year ended December 31,
|
||||||||||||||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||
Capacity
|
Through-
put
|
%
Use
|
Capacity
|
Through-
put
|
%
Use
|
Capacity
|
Through-
put
|
%
Use
|
||||||||||||||||||||||||||||
(bpd)
|
||||||||||||||||||||||||||||||||||||
Barrancabermeja
|
250,000 | 216,970 | 87% | 250,000 | 232,052 | 93% | 250,000 | 229,650 | 92% | |||||||||||||||||||||||||||
Reficar
|
80,000 | 78,920 | 99% | 80,000 | 78,028 | 98% | 80,000 | 80,270 | 100% | |||||||||||||||||||||||||||
Apiay
|
2,500 | 1,525 | 61% | 2,500 | 1,314 | 53% | 2,500 | 2,208 | 88% | |||||||||||||||||||||||||||
Orito
|
2,500 | 1,495 | 60% | 2,500 | 1,176 | 47% | 2,500 | 1,128 | 45% | |||||||||||||||||||||||||||
Total
|
335,000 | 298,910 | 89% | 335,000 | 312,570 | 93% | 335,000 | 313,256 | 94% |
For
the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(bpd)
|
||||||||||||
LPG,
propylene and Butane
|
17,122 | 18,227 | 18,019 | |||||||||
Motor
Fuels
|
75,174 | 77,110 | 78,663 | |||||||||
Jet
Fuel
|
52,413 | 15,861 | 15,152 | |||||||||
Diesel
|
15,375 | 60,633 | 66,931 | |||||||||
Fuel
Oil
|
44,390 | 48,747 | 41,387 | |||||||||
Lube
Base Oils and Waxes
|
2,288 | 2,031 | 1,752 | |||||||||
Aromatics
and solvents
|
3,301 | 2,893 | 3,227 | |||||||||
Asphalts
and Aromatic Tar
|
7,547 | 6,862 | 6,434 | |||||||||
Intermediates
|
881 | 998 | 477 | |||||||||
Total
|
218,491 | 233,363 | 232,042 | |||||||||
Difference
between Inventory of Intermediate Products
|
236 | 1,897 | (441 | ) | ||||||||
Total
Production
|
218,727 | 235,259 | 231,601 |
For
the year ended December 31,(1)
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(bpd)
|
||||||||||||
LPG,
Propylene and Butane
|
5,255 | 4,869 | 3,117 | |||||||||
Motor
Fuels
|
26,847 | 24,577 | 27,198 | |||||||||
Jet
Fuel and Kerosene
|
20,742 | 6,969 | 6,911 | |||||||||
Diesel
|
8,098 | 20,260 | 21,534 | |||||||||
Fuel
Oil
|
16,710 | 18,495 | 19,288 | |||||||||
Aromatic
Tar
|
945 | 820 | 1,162 | |||||||||
Other
Products
|
40 | 33 | 46 | |||||||||
Total
|
78,636 | 76,024 | 79,256 | |||||||||
Difference
between Inventory of Intermediate Products
|
1,619 | 2,176 | 1,499 | |||||||||
Total
Production
|
80,255 | 78,200 | 80,755 |
(1)
|
The
table shows the entire production of
Reficar.
|
For
the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Metric
Tons)
|
||||||||||||
Capacity
|
455,000 | 405,000 | 380,000 | |||||||||
Throughput
|
384,858 | 383,874 | 372,476 | |||||||||
%
Use
|
85 | % | 95 | % | 98 | % |
|
·
|
Improve
efficiency in all stages of logistic processes by using a variety of
transportation systems and focusing on operational excellence, safety
standards and high quality
services;
|
|
·
|
Construct
the necessary crude oil pipelines to transport our crude oil and heavy
crude oil from the fields to the refineries and ports and to construct the
necessary refined products pipelines to transport our refined products
according to demand; and
|
|
·
|
Selectively
invest in the development of new and more efficient transportation systems
and support upstream and downstream
strategies.
|
Pipeline
|
Kilometers
|
Product
Transported
|
Origin
|
Destination
|
Ownership
Percentage
|
||||||||
Caño
Limón-Coveñas
|
771.4 |
Crude
Oil
|
Caño
Limón
|
Coveñas
|
100.00 | % | |||||||
Oleoducto
del Alto Magdalena
|
397.4 |
Crude
Oil
|
Tenay
|
Vasconia
|
85.12 | % | |||||||
Oleoducto
de Colombia
|
480.8 |
Crude
Oil
|
Vasconia
|
Coveñas
|
65.57 | % | |||||||
Oleoducto
Central S.A. (Ocensa)
|
834.5 |
Crude
Oil
|
Cusiana
|
Coveñas
|
60.00 | % |
Pipeline
|
Kilometers
|
Product
Transported
|
Origin
|
Destination
|
Ownership
Percentage
|
||||||||
Oleoducto
Transandino
|
305.4 |
Crude
Oil
|
Southern
fields
|
Tumaco
Port
|
100.00 | % | |||||||
Oleoducto
de los Llanos (ODL)
|
235 |
Crude
Oil
|
East
fields
|
Monterrey
|
65.00 | % |
For
the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(thousand
bpd)
|
||||||||||||
Crude
oil transport
|
576.2 | 542.3 | 516.6 | |||||||||
Refined
products transport
|
223.3 | 209.5 | 193.8 | |||||||||
Total
|
799.5 | 751.8 | 710.4 |
For
the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(bpd)
|
||||||||||||
Hydrocarbon
theft
|
196 | 389 | 561 |
For
the year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(gbtud)
|
||||||||||||
Gas-fired
power plants
|
153.7 | 73.5 | 123.3 | |||||||||
Refineries
|
87.2 | 88.3 | 93.5 | |||||||||
Petrochemical
|
3.1 | 4.2 | 4.0 | |||||||||
Industrial
|
65.7 | 64.7 | 40.6 | |||||||||
Distributors(1)
|
172.2 | 192.2 | 152.9 | |||||||||
Compressed
Natural Gas
|
36.2 | 31.6 | 40.9 | |||||||||
Producers
|
30.3 | 36.1 | 60.0 | |||||||||
Total
Deliveries
|
548.4 | 490.5 | 515.2 |
(1)
|
Deliveries
to distributors include deliveries to industrial clients who are required
to purchase natural gas from
distributors.
|
For
the year ended December 31,
|
||||||||||||||||
2008
|
2009
|
2010
|
2011
|
|||||||||||||
(gbtud)
|
||||||||||||||||
Volume
Commitments
|
50 | 150 | 150 | 100 |
For
the year ended December 31,
|
||||||||||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
||||||||||||||||||||||
(gbtud)
|
||||||||||||||||||||||||||||
Volume Commitments(1)
|
669 | 730 | 373 | 271 | 324 | 271 | 256 |
(1)
|
Includes
royalty volumes that are managed by
Ecopetrol.
|
For
the year ended December 31,
|
||||||||||||||||||||
2010
|
2011
|
2012
|
2013
|
2014
|
||||||||||||||||
(gbtud)
|
||||||||||||||||||||
Guajira
Fields
|
464.6 | 450.0 | 409.5 | 347.7 | 315.0 | |||||||||||||||
Cusiana
and Cupiagua Fields
|
209.8 | 243.2 | 190.1 | 190.1 | 190.1 | |||||||||||||||
Other
Fields
|
51.1 | 74.2 | 63.9 | 60.5 | 55.6 | |||||||||||||||
Imports
|
0.0 | 0.0 | 39.0 | 85.0 | 127.0 | |||||||||||||||
Total
|
725.53 | 767.38 | 702.46 | 683.31 | 687.74 |
|
·
|
Studying
and approving the design and blueprints for private pipelines and
approving the construction of all
pipelines;
|
|
·
|
Establishing
the hydrocarbon transport tariffs based on the information furnished by
the service provider;
|
|
·
|
Issuing
the hydrocarbon transport
regulations;
|
|
·
|
Verifying
the calculation and payment of transport related taxes;
and
|
|
·
|
Managing
the information system for the oil product distribution
chain.
|
|
·
|
Take-or-Pay
Agreements. The buyer agrees to purchase a specific
amount or percentage of production of natural gas and the producer
guarantees the availability of 100% of the agreed
amount.
|
|
·
|
Optional Purchase
Agreements. The buyer agrees to pay a premium for its
right to take a fixed amount of natural gas and agrees to pay an exercise
price for the amount of natural gas made available. The
producer guarantees to have available 100% of the agreed-on
amount.
|
|
·
|
Interruptible Supply
Agreements. The parties may enter into contracts which
are interruptible if certain market conditions
exist.
|
|
·
|
Compliance. The
purpose of this program is to guarantee knowledge, assessment, disclosure
and compliance with all laws, regulations and requirements imposed by the
Ministry of Environment and other regulatory bodies. We
undertake environmental impact assessments and constantly review our
environmental plan.
|
|
·
|
Contingency
Planning. This program focuses on implementing
preventive actions in our operative areas in order to diminish the impact
of oil spills and establish the steps that need to be followed in case of
an emergency.
|
|
·
|
Eco-Efficiency. This
program is designed to minimize the environmental impacts resulting from
our (i) use of natural resources through activities such as water
uptake and forest exploitation and (ii) waste generation through
liquid emissions and creation of hazardous
waste.
|
|
·
|
Biodiversity. This
program implements initiatives to preserve endangered species in areas
where our activities have strong influence. During 2009, we
invested approximately Ps$24,126 million in investigation and
rehabilitation projects for the recovery of ecosystems and environmental
education in the areas where we
operate.
|
|
·
|
Environmental
Culture. This program seeks to promote an environmental
culture in our organization, in our activities, and in our and daily
life. We initiated several environmental campaigns to educate
our working force in areas such as occupational health and friendly
environmental practices.
|
|
·
|
Alternative Energy
Sources. This program is designed to develop alternative
energy sources, such as biodiesel and ethanol projects and
activities. During 2009, we invested approximately
US$7.5 million in Bioenergy S.A., a Colombian company of which we
currently own 85%. Bioenergy S.A. is expected to begin
operation during the first quarter of 2012 and to produce
92.75 Million liters per year of ethanol. Throughout 2009,
we worked on the technology for this plant and performed the necessary
activities in order to have a basic seedbed ready for the first
80 acres. In addition, we have continued to construct a
biodiesel plant in Barrancabermeja, Ecodiesel Colombia S.A, of which we
currently own 50%. Ecodiesel Colombia S.A. is expected to begin
commercial production during the first half of 2010 and to have a
production of approximately 100,000 tons of biodiesel per
year.
|
4.C.
|
Organizational
Structure
|
4.D.
|
Property,
Plant and Equipment
|
ITEM 4A.
|
Unresolved
Staff Comments
|
ITEM 5.
|
Operating
and Financial Review and Prospects
|
5.A.
|
Operating
Results
|
For the Year ended
December 31, |
2009/2008
|
For the Year ended
|
2008/2007
|
|||||||||||||||||
2009
|
2008
|
% change
|
December 31, 2007
|
% change
|
||||||||||||||||
(Pesos in millions)
|
|
(Pesos in millions)
|
||||||||||||||||||
Revenues:
|
||||||||||||||||||||
Total
Revenue
|
30,404,390 | 33,896,669 | (10 | )% | 22,332,320 | 52 | % | |||||||||||||
Cost
of Sales
|
19,906,073 | 19,084,436 | 4 | % | 12,121,833 | 57 | % | |||||||||||||
Gross
Profit
|
10,498,317 | 14,812,233 | (29 | )% | 10,210,487 | 45 | % | |||||||||||||
Operating
Expenses:
|
2,624,978 | 2,154,875 | 22 | % | 1,251,349 | 72 | % | |||||||||||||
Operating
Income
|
7,873,339 | 12,657,358 | (38 | )% | 8,959,138 | 41 | % | |||||||||||||
Non-operating
income (expenses):
|
(622,495 | ) | 3,353,846 |
n.m.
|
(1,893,834 | ) |
n.m.
|
|||||||||||||
Income
before income tax
|
7,250,844 | 16,011,204 | 55 | % | 7,065,304 | 127 | % | |||||||||||||
Income
tax:
|
2,114,029 | 4,381,982 | 52 | % | 1,885,512 | 132 | % | |||||||||||||
Non-controlling
interest:
|
(4,761 | ) | (455 | ) |
n.m.
|
- |
n.m.
|
|||||||||||||
Net
Income
|
$ | 5,132,054 | $ | 11,629,677 | 56 | % | $ | 5,179,792 | 125 | % |
For the Year ended
December 31,
|
2009/2008 |
For the Year ended
|
2008/2007
|
|||||||||||||||||
2009
|
2008
|
% change
|
December 31, 2007
|
% change
|
||||||||||||||||
(Pesos in millions)
|
(Pesos in millions)
|
|||||||||||||||||||
Production
Segment (1):
|
||||||||||||||||||||
Crude
oil:
|
||||||||||||||||||||
Export
sales
|
7,329,974 | 4,107,194 | 78.5 | % | 1,102,815 | 272.4 | % | |||||||||||||
Total
sales of crude oil
|
7,329,974 | 4,107,194 | 78.5 | % | 1,102,815 | 272.4 | % | |||||||||||||
Natural
Gas:
|
||||||||||||||||||||
Local
sales
|
547,792 | 464,588 | 17.9 | % | 407,291 | 14.1 | % | |||||||||||||
Other
income from local sales of natural gas
|
157,653 | 129,631 | 21.6 | % | 6,614 |
n.m.
|
||||||||||||||
Export
sales
|
307,820 | 310,389 | (0.8 | )% | 35 |
n.m.
|
||||||||||||||
Total
sales of natural gas
|
1,013,265 | 904,608 | 12.0 | % | 413,940 | 118.5 | % | |||||||||||||
Other
Income from Production Segment (2)
|
128,147 | 140,429 | (8.7 | )% | 115,824 | 21.2 | % | |||||||||||||
Total
production segment sales
|
8,471,386 | 5,152,231 | 64.4 | % | 1,632,579 | 215.6 | % | |||||||||||||
Production
segment eliminations in consolidation
|
(33,845 | ) | - |
n.m.
|
- |
n.m.
|
||||||||||||||
Total
production segment sales to third parties
|
8,437,901 | 5,152,231 | 63.8 | % | 1,632,579 | 215.6 | % | |||||||||||||
Refining
segment:
|
||||||||||||||||||||
Refined
Products:
|
||||||||||||||||||||
Local
sales(3)
|
11,850,849 | 14,876,906 | (20.3 | )% | 11,517,000 | 29.2 | % | |||||||||||||
Sales
of refined products allocated to our production segment(4)
|
(72,956 | ) | (90,628 | ) | (19.5 | )% | (94,734 | ) | (4.3 | )% | ||||||||||
Other
income from local sales of refined products(5)
|
56,521 | 61,612 | (8.3 | )% | 49,842 | 23.6 | % | |||||||||||||
Export
sales
|
4,136,988 | 3,273,018 | 26.4 | % | 2,156,388 | 51.8 | % | |||||||||||||
Total
refining segment sales:
|
15,971,402 | 18,120,908 | (11.9 | )% | 13,628,496 | 33.0 | % | |||||||||||||
Refining
segment eliminations in consolidation
|
(75,077 | ) | - |
n.m.
|
- |
n.m.
|
||||||||||||||
Total
Refining segment sales to third parties
|
15,896,325 | 18,120,908 | (12.3 | )% | 13,628,496 | 33.0 | % | |||||||||||||
Market
and supply segment:
|
||||||||||||||||||||
Crude
oil sales:
|
||||||||||||||||||||
Local
sales
|
3,636,242 | 4,774,401 | (23.8 | )% | 3,004,629 | 58.9 | % | |||||||||||||
Export
sales
|
4,485,538 | 4,589,088 | (2.3 | )% | 3,373,322 | 36.0 | % | |||||||||||||
Total
crude oil sales
|
8,121,780 | 9,363,489 | (13.3 | )% | 6,377,951 | 46.8 | % | |||||||||||||
Natural
gas sales:
|
||||||||||||||||||||
Local
sales
|
486,210 | 436,826 | 11.3 | % | 252,880 | 72.7 | % | |||||||||||||
Other
income from local sales of natural gas
|
80,726 | 72,003 | 12.1 | % | 60,471 | 19.1 | % | |||||||||||||
Export
sales
|
3,914 | 2,958 | 32.3 | % | 1 |
n.m.
|
||||||||||||||
Total
natural gas sales
|
570,850 | 511,787 | 11.5 | % | 313,352 | 63.3 | % | |||||||||||||
Refined
Products sales:
|
||||||||||||||||||||
Export
sales
|
69,865 | - |
n.m.
|
- |
n.m.
|
|||||||||||||||
Total
Market and Supply segment sales
|
8,762,495 | 9,875,276 | (11.3 | )% | 6,691,303 | 47.6 | % | |||||||||||||
Market
and Supply segment eliminations in consolidation
|
(3,618,048 | ) | - |
n.m.
|
- |
n.m.
|
||||||||||||||
Total
Market and Supply segment sales to third parties
|
5,144,447 | 9,875,276 | (47.9 | )% | 6,691,303 | 47.6 | % | |||||||||||||
Transportation
segment:
|
||||||||||||||||||||
Transportation
sales
|
1,596,766 | 752,599 | 112.2 | % | 695,268 | 8.2 | % | |||||||||||||
Sales
of transportation services allocated to our production, market and supply,
and refining segment
|
(16,832 | ) | (27,761 | ) | (39.4 | )% | (17,330 | ) | 60.2 | % | ||||||||||
Total
transportation sales
|
1,579,934 | 724,838 | 118.0 | % | 677,938 | 6.9 | % | |||||||||||||
Transportation
segment eliminations in consolidation
|
(675,507 | ) | - |
n.m.
|
- |
n.m.
|
||||||||||||||
Total
Transportation segment sales to third parties
|
904,427 | 724,838 | 24.8 | % | 677,938 | 6.9 | % | |||||||||||||
Other
sales(6)
|
354,549 | 308,702 | 14.9 | % | 139,188 | 121.8 | % | |||||||||||||
Adjustment
to other sales(7)
|
(333,259 | ) | (285,286 | ) | 16.8 | % | (120,687 | ) | 136.4 | % | ||||||||||
FAEP
|
- | - |
n.m.
|
(316,497 | ) |
n.m.
|
||||||||||||||
Total
sales
|
30,404,390 | 33,896,669 | (10.3 | )% | 22,332,320 | 51.8 | % |
(1)
|
Local
sales of crude oil are assigned to the Market and Supply segment, since
all the production sold was purchased from ANH and business partners and
thus did not come directly from our
production.
|
(2)
|
Corresponds
to sales of refined products, transportation services and industrial
services allocated to our production
segment.
|
(3)
|
Includes
motor fuel price differential reimbursements by the Government amounting
to Ps$1,778,050 million in 2007, Ps$3,070,479 million in 2008 and
Ps$196,533 million in 2009.
|
(4)
|
Corresponds
to sales of refined products from our Apiay and Orito refineries allocated
to our production segment.
|
(5)
|
Corresponds
to sales of transportation services and industrial services allocated to
our refining segment.
|
(6)
|
Includes
insurance premiums and sales of industrial services in
Colombia.
|
(7)
|
Corresponds
to sales of industrial services allocated to our production
segment.
|
For the Year ended
December 31,
|
2009/2008
|
For the Year
ended
December 31,
|
2008/2007
|
|||||||||||||||||
2009
|
2008
|
% change
|
2007
|
% change
|
||||||||||||||||
Crude oil:
|
||||||||||||||||||||
Local
sales (barrels)(1)
|
455,895 | 26,981,442 | (98.3 | )% | 20,859,714 | 29.3 | % | |||||||||||||
Export
sales (barrels)
|
92,921,245 | 54,592,797 | 70.2 | % | 34,724,093 | 57.2 | % | |||||||||||||
Average
price per local barrel (in U.S. dollars)(2)
|
67.77 | 89.95 | (24.7 | )% | 69.38 | 29.7 | % | |||||||||||||
Average
price per export barrel (in U.S. dollars) (3)
|
60.83 | 83.00 | (26.7 | )% | 62.54 | 32.7 | % | |||||||||||||
Weighted
average price per local and export barrel (in U.S.
dollars)
|
60.86 | 85.30 | (28.7 | )% | 65.10 | 31.0 | % | |||||||||||||
Natural
gas:
|
||||||||||||||||||||
Local
sales (mbtu)
|
167,095,380 | 146,955,743 | 13.7 | % | 160,056,709 | (8.2 | )% | |||||||||||||
Export
sales (mbtu)(4)
|
43,568,928 | 35,491,468 | 22.8 | % | 6,555 |
n.m.
|
||||||||||||||
Average
local price (mbtu) (in U.S. dollars)
|
2.72 | 3.12 | (12.7 | )% | 1.99 | 56.9 | % | |||||||||||||
Average
export price (mbtu) (in U.S. dollars)
|
3.27 | 4.30 | (23.9 | )% | 2.77 | 55.3 | % | |||||||||||||
Refined
products:
|
||||||||||||||||||||
Product
local sales (barrels)
|
86,211,706 | 69,312,065 | 24.4 | % | 71,191,548 | (2.6 | )% | |||||||||||||
Export
sales (barrels)
|
34,368,558 | 18,380,770 | 87.0 | % | 19,335,063 | (4.9 | )% | |||||||||||||
Average
local price per barrel (U.S. dollars)
|
67.18 | 106.02 | (36.6 | )% | 77.89 | 36.1 | % | |||||||||||||
Average
export price per barrel (U.S. dollars)
|
69.25 | 72.63 | (4.7 | )% | 53.81 | 35.0 | % |
(1)
|
Starting
in May 2009, no longer includes sales to
Reficar.
|
(2)
|
Corresponds
to average price per local barrel translated at an average exchange rate
of 2,156.29 for 2009, 1,966.26 for 2008 and 2,078.35 for
2007.
|
(3)
|
Corresponds
to the average of the actual prices at which we sold our crude oil in the
international markets.
|
(4)
|
We
initiated exports of natural gas to Venezuela in the third quarter of
2007.
|
For the Year ended
December 31,
|
2009/2008
|
For the Year ended
December 31,
|
2008/2007
|
|||||||||||||||||
2009
|
2008
|
% change
|
2007
|
% change
|
||||||||||||||||
(Pesos
in millions)
|
(Pesos
in millions)
|
|||||||||||||||||||
Cost
of sales
|
19,906,073 | 19,084,436 | 4 | % | 12,121,833 | 57 | % | |||||||||||||
Operating
expenses
|
2,624,978 | 2,154,875 | 22 | % | 1,251,349 | 72 | % | |||||||||||||
Operating
Income
|
7,873,339 | 12,657,358 | (38 | )% | 8,959,138 | 41 | % |
|
·
|
Purchases
of hydrocarbons from the ANH in 2009 decreased 22% to Ps$4,358,408 million
as compared with 2008 mainly as a result of lower average prices,
partially offset by an increase on the volumes
purchased. Purchases of hydrocarbons from the ANH in 2008
increased 43% to Ps$5,584,474 million as compared to 2007 as a result of
higher average prices on an increased number of barrels purchased as
compared to 2007.
|
|
·
|
Purchases
of crude oil from our business partners in 2009 increased 29% to
Ps$4,130,116 million as compared with 2008 mainly due to higher volumes
purchased as crude oil production from our business partners
increased. Purchases of crude oil from our business partners in
2008 increased 124% to Ps$3,193,690 million as compared to 2007 as a
result of higher volume purchased to meet existing supply obligations,
which amounted to 19 million barrels in 2008 compared to 12.9 million
barrels in 2007 and increases in average prices for crude
oil.
|
|
·
|
Purchases
of imported products in 2009 decreased 21% to Ps$2,739,681 million as
compared with 2008 as a result of lower average
prices. Purchases of imported products in 2008 increased to
Ps$3,470,987 million as compared to 2007 as a result of higher volumes
purchased in order to mix such imports with the local production of
gasoline and diesel in order to decrease the content of sulphur in our
fuels and a higher average international price for gasoline and
diesel.
|
|
·
|
Services
contracted with associations, which
are pro rata expenses for our joint ventures, increased
by 8.6% in 2009 to Ps$1,290,177 million as compared to 2008, mainly as a result of an increase in
production
activities. Services contracted with associations in 2008
increased 16.6% to Ps$1,188,294 million as compared to 2007 due to an
increase in production activities and
increases in the price of oil services as a result of a worldwide increase
in demand for oil services.
|
|
·
|
Maintenance
costs increased by 53% to Ps$1,274,618 million as compared to 2008, mainly
due to the consolidation of the maintenance costs of Ocensa and Hocol into
our results of operations. Maintenance costs increased by 40%
to Ps$593,331 million in 2008 as compared to 2007, mainly due to an
increase in tariffs and an increase in our production
activities.
|
|
·
|
Depreciation
costs increased by 85% to Ps$1,239,846 million as compared to 2008, mainly
due to the consolidation of Ocensa’s depreciation into our results of
operations. Depreciation costs decreased by 7% to Ps$670,279
million in 2008 as compared to 2007, mainly due to our no longer recording
Reficar’s depreciation costs in our consolidated results of operations
from April 2007 as a result of the transfer of a mjaority of Reficar’s
shares to Glencore.
|
|
·
|
Labor
costs in 2009 increased 22% to 918,264 million as compared to 2008 mainly
due to a 2.65% increase in the total number of Ecopetrol’s employees in
response to the increase in the exploration and production activities, and
an adjustment in wages which has been progressively implemented among all
of our employees. Labor costs increased 40% in 2008 as compared
to 2007 increased as a result of increases in wages, labor benefits and
bonuses paid as part of our personnel retention policies and an increase
in the number of our employees who are eligible to receive these
benefits.
|
|
·
|
Studies
and projects in 2009 compared to 2008 increased by 53% as a result of an
increase in the number of seismic studies and production projects
conducted. Studies and projects in 2008 increased, compared to 2007, as a result of higher maintenance
expenses for production projects, an increase in accounting for dry wells
and exploration costs.
|
|
·
|
Oil
pipeline transportation tariff payments in
2009 were eliminated beginning in
March 2009 when we began to
consolidate the operating results of OCENSA and
ODC. Oil
pipeline transportation tariff
payments increased in 2008, compared to 2007, as a result of higher volume
transported and maintenance of back-up product pipelines, offset in part
by a decrease in tariffs.
|
At December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Pesos in millions)
|
||||||||||||
Non-operating income(expenses):
|
|
|||||||||||
Financial
income, net
|
495,833 | 4,101,252 | 93,628 | |||||||||
Pension
expenses
|
(595,157 | ) | (1,144,925 | ) | (1,090,343 | ) | ||||||
Inflation
gain
|
22,355 | 30,473 | 41,132 | |||||||||
Other
income (expenses), net
|
(545,526 | ) | 367,046 | (938,251 | ) |
At December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
|
(Pesos in millions)
|
|||||||||||
Financial income:
|
|
|||||||||||
Exchange difference gain
|
14,672,907 | 10,863,242 | 3,772,753 | |||||||||
Interest and monetary
correction
|
479,694 | 682,542 | 161,125 | |||||||||
Income on valuation of investment portfolio
|
168,442 | 1,640,338 | 808,922 | |||||||||
(Pesos in millions)
|
||||||||||||
Financial expenses:
|
|
|||||||||||
Exchange difference loss
|
(14,798,550 | ) | (8,901,184 | ) | (4,385,021 | ) | ||||||
Interest
|
(138,801 | ) | (19,376 | ) | (1,021 | ) | ||||||
Financial Income, net:
|
495,833 | 4,101,252 | 93,628 |
5.B.
|
Liquidity
and Capital Resources
|
|
·
|
A
Ps$2.2 trillion (approximately US$1 billion) syndicated loan facility we
entered with a syndicate of local banks in May 2009. This loan
facility has a term of seven years with a two year grace
period. The interest rate under the facility equals the fixed
term deposit rate (DTF) plus an additional 4% (the anticipated quarterly
interest rate). Amortization is bi-annual under the
loan. In addition, as guarantee for the loan, we pledged our
direct stock in Reficar (which was 49% of the total shares at the time of
the loan), Oleoducto Central S.A. (Ocensa) and Propileno del Caribe
(Propilco). We used the proceeds from this loan to finance our
strategic plan.
|
|
·
|
An
issuance of US$1,500 million aggregate principal amounts of 7.625% Notes
Due 2019 (the “Original Notes”) on July 23, 2009. The Original
Notes were issued pursuant to Rule 144A/ Regulation S with registration
rights with the SEC. The Original Notes were subsequently
registered with the SEC on September 3, 2009 (the “Registered
Notes”). Concurrently with this registration, we commenced an
exchange offer to exchange up to U.S.$1.5 billion aggregate principal
amount of the Registered Notes for an equal principal amount of our
outstanding Original Notes under the terms and subject to the conditions
set forth in a prospectus dated September 3, 2009. The exchange
offer was carried out in compliance with the obligations acquired by us
under the Registration Rights Agreement referred to in the
prospectus. The exchange offer expired on October 2,
2009. Bonds exchange requests were received in an aggregate
amount of US$1,492,541,000. On October 7, 2009, we issued an
aggregate amount of US$1,492,541,000 in Registered Notes and cancelled an
aggregate amount of US$1,492,541,000 in Original Notes. In
addition, the Registered Notes were listed on the New York Stock
Exchange.
|
For the Year ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Pesos in millions)
|
||||||||||||
Exploration
& production
|
5,564,438 | 4,911,487 | 2,678,684 | |||||||||
Refining
and Petrochemicals
|
2,710,526 |
(1)
|
776,080 | 234,462 | ||||||||
Transportation
|
2,269,540 |
(2)
|
939,996 | 92,344 | ||||||||
Corporate
|
197,237 | 69,483 | 23,760 | |||||||||
Marketing
and Supply
|
8,455 | 7,549 | 7,712 | |||||||||
Total
|
10,750,197 | 6,704,595 | 3,036,962 |
(1)
|
Does not include Ps$868,053 million corresponding
to our initial share ownership in
Reficar.
|
(2)
|
Does not
include (i) Ps$636,832 million corresponding to non-controlling
interest capital expenditures and Ps$528,207 million corresponding to our
initial share ownership in Ocensa and (ii) Ps$31,087 million corresponding
to non-controlling interest capital expenditures and Ps$36,287
million corresponding to our
initial share ownership in
ODC.
|
5.C.
|
Research
and Development, Patents and Licenses,
etc.
|
5.D.
|
Trend
Information
|
5.E.
|
Off-Balance
Sheet Arrangements
|
5.F.
|
Tabular
Disclosure of Contractual
Obligations
|
Payments due by period
|
||||||||||||||||||||
Total
|
Less than 1
year
|
1-3
years
|
3 to 5
years
|
More than 5
years
|
||||||||||||||||
(Pesos in millions)
|
||||||||||||||||||||
Contractual
Obligations:
|
||||||||||||||||||||
Pension
Plan Obligations
|
16,076,329 | 574,152 | 1,311,108 | 1,391,040 | 12,800,029 | |||||||||||||||
Contract
Service Obligations
|
4,306,254 | 2,595,169 | 1,309,160 | 5,883 | 396,042 | |||||||||||||||
Operating
Lease Obligations
|
44,157 | 35,906 | 8,251 | 0 | 0 | |||||||||||||||
Natural
Gas Supply Agreements
|
1,422,512 | 59,736 | 551,066 | 4,432 | 807,277 | |||||||||||||||
Purchase
Obligations (oil and refining)
|
3,039 | 3,039 | 0 | 0 | 0 | |||||||||||||||
Energy
Supply Agreements
|
2,862,526 | 2,438,004 | 422,309 | 2,213 | ||||||||||||||||
Capital
expenditures
|
18,674,140 | 6,617,677 | 2,949,793 | 54,316 | 9,052,354 | |||||||||||||||
Build,
Operate, Maintain and Transfer Contracts (BOMT)
|
301,195 | 63,490 | 113,870 | 123,835 | 0 | |||||||||||||||
Capital
(Finance) Lease Obligations
|
71,163 | 21,563 | 48,538 | 1,062 | 0 | |||||||||||||||
Financial
Sector Debt
|
2,272,708 | 182,934 | 1,238,832 | 683,273 | 167,670 | |||||||||||||||
Bonds
|
3,369,584 | 215,702 | 615,140 | 345,138 | 2,193,603 | |||||||||||||||
Total
|
49,403,607 | 12,807,372 | 8,568,066 | 2,608,980 | 25,419,189 |
5.G.
|
Safe
Harbor
|
ITEM
6.
|
Directors,
Senior Management and Employees
|
6.A.
|
Directors
and Senior Management
|
6.B.
|
Compensation
|
6.C.
|
Board
Practices
|
Audit Committee(1)
|
Compensation and Nomination
Committee
|
Corporate Governance
Committee
|
||
Joaquin Moreno
|
Minister of Mines and Energy
|
Ignacio Sanín
|
||
Mauricio
Cárdenas
|
Fabio
Echeverri
|
Amylcar
Acosta
|
||
Maria
E. Velásquez
|
Maria
E. Velásquez
|
Minister
of Finance
|
||
Ignacio
Sanín
|
Amilcar
Acosta
|
|||
Business
Committee
|
||||
Joaquin
Moreno
|
||||
Mauricio
Cárdenas
|
||||
Maria
E. Velásquez
|
||||
Minister
of Mines and Energy
|
||||
Director
of National Planning Department
|
|
|
(1)
|
All
members of our audit committee must be
independent.
|
6.D.
|
Employees
|
December 2009(a)
|
Direct Employees (full
time)
|
Direct Employees average(2)
|
Temporary Employees
|
|||||||||
Exploration
and Production
|
||||||||||||
Exploration
|
130 | 123 | - | |||||||||
Production
|
1369 | 1372 | 57 | |||||||||
Others
|
240 | 238 | - | |||||||||
Total
Exploration and Production
|
1739 | 1733 | 57 | |||||||||
Downstream
|
|
|||||||||||
Refining
|
2080
|
2073
|
220
|
|||||||||
Transport
|
869 | 858 | 72 | |||||||||
Marketing
|
150 | 147 | 1 | |||||||||
Others
|
18 | 18 | - | |||||||||
Total
Downstream
|
3117 | 3096 | 293 | |||||||||
Corporate
|
1839 | 1849 | 117 | |||||||||
TOTAL(1)
|
6695 | 6678 | 467 | |||||||||
December 2008(b)
|
Direct Employees (full
time)
|
Direct Employees average(2)
|
Temporary Employees
|
|||||||||
Exploration
and Production
|
||||||||||||
Exploration
|
108 | 100 | - | |||||||||
Production
|
1,343 | 1,305 | 94 | |||||||||
Others
|
215 | 124 | - | |||||||||
Total
Exploration and Production
|
1,666 | 1,529 | 94 | |||||||||
Downstream
|
||||||||||||
Refining
|
2,056 | 1,991 | 212 | |||||||||
Transport
|
580 | 812 | 65 | |||||||||
Marketing
|
141 | 123 | 0 | |||||||||
Others
|
14 | 9 | 0 | |||||||||
Total
Downstream
|
3,061 | 2,935 | 277 | |||||||||
Corporate
|
1,790 | 1,700 | 130 | |||||||||
TOTAL(1)
|
6,517 | 6,154 | 501 | |||||||||
December 2007(c)
|
Direct Employees (full
time)
|
Direct Employees average(2)
|
Temporary Employees
|
|||||||||
Exploration
and Production
|
||||||||||||
Exploration
|
100 | 97 | 8 | |||||||||
Production
|
1,278 | 1,298 | 85 | |||||||||
Others
|
- | - | - | |||||||||
Total
Exploration and Production
|
1,378 | 1,395 | 93 | |||||||||
Downstream
|
||||||||||||
Refining
|
1,979 | 1,936 | 81 | |||||||||
Transport
|
762 | 768 | 23 | |||||||||
Marketing
|
113 | 113 | 9 | |||||||||
Others
|
- | - | - | |||||||||
Total
Downstream
|
2,854 | 2,817 | 113 | |||||||||
Corporate
|
1,631 | 1,638 | 114 | |||||||||
TOTAL(1)
|
5,863 | 5,850 | 320 |
(1)
|
At
the last day of each month.
|
(2)
|
Averages
are calculated on a monthly basis from January to December of
each year.
|
(a)
|
279
persons employed by us during 2009 were not included in our 2009 employee
statistics as they were involved in intermittent, non-regular activities
and do not classify as temporary
employees.
|
(b)
|
60
persons employed by us during 2008 were not included in our 2008 employee
statistics as they were involved in intermittent, non-regular activities
and do not classify as temporary
employees.
|
(c)
|
211
persons employed by us during 2007 were not included in our 2007 employee
statistics as they were involved in intermittent, non-regular activities
and do not classify as temporary
employees.
|
December 2009
|
Direct Employees (full
time)
|
|||
Ecopetrol
America Inc.
|
- | |||
Bioenergy
S.A.
|
62 | |||
Hocol
S.A.
|
152 | |||
Ocensa
|
130 | |||
ODC
S.A.
|
2 | |||
ODL
|
9 | |||
Ecopetrol
del Perú S.A.
|
4 | |||
Refinería
de Cartagena S.A.
|
106 | |||
Ecopetrol
Oleo e Gas do Brasil Ltda
|
4 | |||
Propilco
S.A.
|
231 | |||
TOTAL
SUBSIDIARIES(1)
|
700 |
December 2008
|
Direct Employees (full
time)
|
|||
Ecopetrol
America Inc.
|
- | |||
Bioenergy
S.A.
|
28 | |||
Hocol
S.A.
|
- | |||
Ocensa
|
- | |||
ODC
S.A.
|
- | |||
ODL
|
- | |||
Ecopetrol
del Perú S.A.
|
- | |||
Refinería
de Cartagena S.A.
|
- | |||
Ecopetrol
Oleo e Gas do Brasil Ltda
|
- | |||
Propilco
S.A.
|
223 | |||
TOTAL
SUBSIDIARIES(1)
|
251 |
(1)
|
At
the last day of each month.
|
|
1.
|
Unión
Sindical Obrera de la Industria del Petróleo — USO (Industry labor
union)
|
|
2.
|
Asociación
de Directivos Profesionales, Técnicos y Trabajadores de las Empresas de la
Rama de Actividad Económica del Recurso Natural del Petróleo y sus
Derivados de Colombia — ADECO (Industry labor
union)
|
|
3.
|
Sindicato
Nacional de Trabajadores de Empresas Operadoras, Contratistas,
Subcontratistas de Servicios y Actividades de la Industria del Petróleo y
Similares — SINDISPETROL (Industry labor
union)
|
|
4.
|
Sindicato
Nacional de Trabajadores de Ecopetrol — SINCOPETROL (Company labor
union)
|
|
·
|
Transportation
Subsidy. Monthly transportation subsidy depends on the
employee’s location and ranges between Ps$1,213 and
Ps$130,000;
|
|
·
|
Food
Subsidy. Daily food subsidy ranges between Ps$6,520 and
Ps$8,195 depending on the employee’s
location;
|
|
·
|
Lodging
Subsidy. Monthly lodging subsidy to employees ranges
between Ps$190,739 and $405,000;
|
|
·
|
Subsidy for
Education. Subsidy that covers 90% of tuition and board
expenses and fixed amounts of transportation and textbooks for our
employees and their children;
|
|
·
|
Stability
Clause. Employees who as of December 1, 2004 had
worked over 16 months cannot be fired without just
cause;
|
|
·
|
Retirement
Benefit. A retirement benefit is paid to our employees
who meet the following requirements: have worked for us for at
least 20 years and have reached the specific retirement age. In
order for employees to be eligible to receive the benefit, the number of
years working for us (in excess of 20), plus their age must be equal 70
years. The retirement benefit paid is equal to at least 75% of
the average compensation received by the employee during the last 12
months. This benefit expires on July 31,
2010. After July 31, 2010, we will transfer to pension
funds the amounts accrued under this benefit for each employee who did not
meet the requirements established by
law;
|
|
·
|
Public Retirement
Benefit. A retirement benefit is paid to our employees
who meet the following requirements: have worked for us and
other public or private company for a total period of at least 20 years,
are at least 50 years old, in the case of women, and 55 years old, in the
case of men. The retirement benefit paid is equal to 75% of the
average compensation received by the employee during the last 12
months. This benefit is paid in proportion to the time worked
for us, with the difference being assumed by the other companies for which
the employee has worked;
|
|
·
|
Retirement plan for new
employees. Employees hired after January 29, 2003
are not covered by our retirement scheme and are covered by the general
social security system;
|
|
·
|
Five-year
bonus. A cash benefit bonus accrued on a yearly basis
and paid for every 5-year period worked in the Company according to the
following scale:
|
5
years worked
|
Bonus
equivalent to 9 days of basic payment plus Ps$180,000
|
10
years worked
|
Bonus
equivalent to 14 days of basic payment plus Ps$180,000
|
15
years worked
|
Bonus
equivalent to 19 days of basic payment plus Ps$180,000
|
20
years worked
|
Bonus
equivalent to 24 days of basic payment plus Ps$180,000
|
25
years worked
|
Bonus
equivalent to 29 days of basic payment plus Ps$180,000
|
30
years worked
|
Bonus
equivalent to 34 days of basic payment plus
Ps$180,000
|
6.E.
|
Share
Ownership
|
ITEM 7.
|
Major
Shareholders and Related Party
Transactions
|
7.A.
|
Major
Shareholders
|
At December 31,
|
||||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Shareholders
|
Number
of shares
|
%
Ownership
|
Number
of shares
|
%
Ownership
|
Number
of shares
|
%
Ownership
|
||||||||||||||||||
Nation
|
36,384,788,817 | 89.9 | % | 36,384,788,817 | 89.9 | % | 36,384,788,817 | 89.9 | % | |||||||||||||||
Public
float
|
4,087,723,771 | 10.1 | % | 4,087,723,771 | 10.1 | % | 4,087,723,771 | 10.1 | % | |||||||||||||||
Total
|
40,472,512,588 | 100 | % | 40,472,512,588 | 100 | % | 40,472,512,588 | 100 | % |
7.B.
|
Related
Party Transactions
|
|
·
|
sales
and purchase of goods, properties and other
assets;
|
|
·
|
rendering
and receiving services;
|
|
·
|
lease
of assets;
|
|
·
|
depositing
and borrowing money; and
|
|
·
|
use
of public utilities.
|
Executive
Officer
|
Nature of the
Loan and Date
of
Disbursement
|
Principal
Amount of
the Loan
|
Amount
Outstanding at
December 31,
2009
|
Largest
Amount
Outstanding
during period
|
Termination
Date
|
Applicable
Interest
Rate
|
|||||||||||||
(Pesos
in millions)
|
|||||||||||||||||||
Javier
G. Gutiérrez
|
Housing,
June 2008
|
729 | 655.6 | 729 |
June 2028
|
UVR
|
|||||||||||||
Adriana
M. Echeverri
|
Housing,
June 2002
|
37.5 | 45.1 | 56.6 |
October,
2018
|
8%
|
|||||||||||||
Pedro
A. Rosales
|
Housing,
April 1997
and
September 2003
|
279.2 | 196.1 | 247.5 |
September 2018
|
UVR
|
7.C.
|
Interests
of Experts and Counsel
|
ITEM 8.
|
Financial
Information
|
8.A.
|
Consolidated
Statements and Other Financial
Information
|
8.B.
|
Significant
Changes
|
ITEM 9.
|
The
Offer and Listing
|
9.A.
|
Offer
and Listing Details
|
Shares
Traded on the BVC
|
||||||||||||||||||||
Pesos
per share
|
U.S.
dollars per share(1)
|
Average
|
||||||||||||||||||
High
|
Low
|
High
|
Low
|
number
of
shares
traded
per day
|
||||||||||||||||
2007
|
2,080 | 1,400 | 1.0187 | 0.6701 | 19,706,337 | |||||||||||||||
2008
|
2,895 | 1,575 | 1.6638 | 0.7647 | 21,063,806 | |||||||||||||||
2009
|
2,815 | 1,990 | 1.4707 | 0.7833 | 10,245,002 | |||||||||||||||
Most
recent quarters
|
||||||||||||||||||||
First
quarter 2008
|
2,095 | 1,575 | 1.1543 | 0.8003 | 18,601,066 | |||||||||||||||
Second
quarter 2008
|
2,895 | 2,095 | 1.6638 | 1.1417 | 25,198,314 | |||||||||||||||
Third
quarter 2008
|
2,730 | 2,390 | 1.5557 | 1.1640 | 19,266,325 | |||||||||||||||
Fourth
quarter 2008
|
2,600 | 1,825 | 1.1911 | 0.7647 | 21,214,848 | |||||||||||||||
First
quarter 2009
|
2,150 | 1,990 | 0.9384 | 0.7833 | 10,121,571 | |||||||||||||||
Second
quarter 2009
|
2,580 | 2,085 | 1.2363 | 0.8431 | 10,952,758 | |||||||||||||||
Third
quarter 2009
|
2,815 | 2,505 | 1.4208 | 1.1856 | 12,083,692 | |||||||||||||||
Fourth
quarter 2009
|
2,715 | 2,425 | 1.4707 | 1.1806 | 7,714,689 | |||||||||||||||
First
quarter 2010
|
2,710 | 2,370 | 1.4313 | 1.1958 | 7,013,937 | |||||||||||||||
Second
quarter 2010
|
2,790 | 2,630 | 1.4634 | 1.3035 | 6,314,608 | |||||||||||||||
Most
recent six months
|
||||||||||||||||||||
January 2010
|
2,495 | 2,370 | 1.2544 | 1.1958 | 6,395,938 | |||||||||||||||
February 2010
|
2,600 | 2,405 | 1.3508 | 1.2042 | 7,179,267 | |||||||||||||||
March 2010
|
2,710 | 2,560 | 1.4313 | 1.3248 | 7,380,692 | |||||||||||||||
April 2010
|
2,785 | 2,680 | 1.4338 | 1.3799 | 7,269,191 | |||||||||||||||
May 2010
|
2,790 | 2,630 | 1.4304 | 1.3035 | 8,342,527 | |||||||||||||||
June 2010
|
2,775 | 2,685 | 1.4634 | 1.3658 | 3,424,285 |
(1)
|
U.S.
dollars per common share translated at the Representative Market Rate for
each period.
|
ADRs
Traded on NYSE
|
||||||||||||
U.S.
dollars per share(1)
|
Average
number of
|
|||||||||||
High
|
Low
|
shares
traded per day
|
||||||||||
2008
|
27.25 | 15.04 | 42,074 | |||||||||
2009
|
29.99 | 15.31 | 48,289 | |||||||||
Most
recent quarters
|
||||||||||||
Third
quarter 2008
|
27.25 | 23.52 | 120,235 | |||||||||
Fourth
quarter 2008
|
24.50 | 15.04 | 31,219 | |||||||||
First
quarter 2009
|
19.50 | 15.31 | 42,277 | |||||||||
Second
quarter 2009
|
24.89 | 17.24 | 47,985 | |||||||||
Third
quarter 2009
|
28.77 | 23.64 | 48,341 | |||||||||
Fourth
quarter 2009
|
29.99 | 23.96 | 54,960 | |||||||||
First
quarter 2010
|
28.73 | 23.60 | 64,272 | |||||||||
Second
quarter 2010
|
29.58 | 26.00 | 65,182 |
ADRs
Traded on NYSE
|
||||||||||||
U.S.
dollars per share(1)
|
Average
number of
|
|||||||||||
High
|
Low
|
shares
traded per day
|
||||||||||
Most
recent six months
|
||||||||||||
January 2010
|
25.64 | 23.60 | 72,847 | |||||||||
February 2010
|
27.09 | 23.95 | 61,590 | |||||||||
March 2010
|
28.73 | 26.98 | 59,521 | |||||||||
April 2010
|
28.78 | 27.26 | 50,697 | |||||||||
May 2010
|
28.43 | 26.00 | 82,833 | |||||||||
June 2010
|
29.58 | 26.85 | 62,818 |
(1)
|
Each
ADR represents the right to receive 20 of our common
shares.
|
ADRs
Traded on Lima Stock Exchange
|
||||||||||||
U.S.
dollars per share(1)
|
Average
number of
|
|||||||||||
High
|
Low
|
shares
traded per day
|
||||||||||
2009
|
25.5 | 25.0 | 578 | |||||||||
Most
recent quarters
|
||||||||||||
Fourth
quarter 2009
|
25.5 | 25.0 | 578 | |||||||||
First
quarter 2010
|
28.3 | 23.8 | 302 | |||||||||
Second
quarter 2010
|
29.0 | 27.2 | 179 | |||||||||
Most
recent six months
|
||||||||||||
January 2010
|
25.5 | 23.8 | 525 | |||||||||
February 2010
|
26.2 | 26.2 | 112 | |||||||||
March 2010
|
28.3 | 28.0 | 175 | |||||||||
April 2010
|
27.2 | 27.2 | 200 | |||||||||
May 2010
|
27.4 | 27.4 | 50 | |||||||||
June 2010
|
29.0 | 29.0 | 288 |
(1)
|
Each
ADR represents the right to receive 20 of our common
shares.
|
9.B.
|
Plan
of Distribution
|
9.C.
|
Markets
|
Aggregate
Market Capitalization on BVC
|
||||||||
Market
Capitalization
|
Market
Capitalization
|
|||||||
(Ps$
in billions)
|
(US$
in billions)(1)
|
|||||||
December 31,
2009
|
287,082 | 140.44 |
(1)
|
Representative
Market Rate at December 31,
2009.
|
9.D.
|
Selling
Shareholders
|
9.E.
|
Expenses
of the Issue
|
ITEM 10.
|
Additional
Information
|
10.A.
|
Share
Capital
|
10.B.
|
Memorandum
and Articles of Incorporation
|
Board of Directors Member Shares
|
||||
Board Member
|
No. of Shares
for period
ending on
December 31,
2009
|
|||
Minister
of Mines and Energy
|
1,000 | |||
Minister
of Finance and Public Credit
|
0 | |||
National
Director of Planning
|
0 | |||
Fabio
Echeverri Correa
|
0 | |||
Ignacio
Sanín Bernal
|
0 | |||
Maria
E. Velasquez Restrepo
|
0 | |||
Joaquin
Moreno Uribe
|
50,000 | |||
German
Bernal Gutierrez
|
0 | |||
Mauricio
Cárdenas Santamaria
|
2,000 |
|
·
|
To
participate and vote in the decisions of the general shareholders
meeting;
|
|
·
|
To
receive dividends based on the financial performance of the Company in
proportion to their share
ownership;
|
|
·
|
To
transfer and sell shares according to our by-laws and Colombian
law;
|
|
·
|
To
inspect corporate books and records 15 business days prior to the ordinary
shareholders’ meeting where the year-end financial statements are to be
approved;
|
|
·
|
Upon
liquidation, to receive a proportional amount of the corporate assets
after the payment of external liabilities;
and
|
|
·
|
To
sell the shares, known as derecho de retiro, if a
corporate restructuring affects the economic or voting rights of the
shareholders in the terms and conditions established under Colombian
law.
|
|
·
|
Sale of
Assets. For a ten-year period counted from the date of
adoption of our by-laws or until the Nation loses its status as majority
shareholder, the Nation guarantees that any sale of 15% or more of our
assets requires the approval of the general shareholders’ meeting and that
the Nation would only be allowed to vote its shares in favor of the
proposal if 2% or more of our minority shareholders accept the
proposal.
|
|
·
|
Candidate
List. Pursuant to our by-laws and law 1118 of 2006, the
Nation will include in its candidate list for election of members of the
Board of Directors one member selected by the departments that produce
hydrocarbons. In addition, pursuant to the declaration of the
Nation dated July 26, 2007, the Nation will include in its candidate
list for election of members of the Board of Directors one member selected
by the ten largest minority shareholders. The minority
shareholders’ right to select a candidate loses its effect when minority
shareholders, according to their share participation, name a member to our
Board of Directors.
|
|
·
|
Extraordinary
Meetings. Our by-laws and corporate governance code
provide that the entity exercising permanent control over Ecopetrol S.A.
must instruct the Company’s CEO or Statutory Auditor to call an
extraordinary meeting of the Company’s shareholders when so requested by a
or plurality of shareholders holding at least 5% of the total number of
shares outstanding. Such requests shall be made in writing and
must clearly indicate the purpose of the
meeting.
|
|
·
|
Office for the Attention of
Shareholders. We created an office for the attention of
shareholders, our specialized unit responsible for receiving complaints
from our shareholders. Pursuant to our by-laws, shareholders
holding at least 5% of the total number of shares outstanding may request
that the office for the attention of shareholders a special audit of the
following documents: the income statement; the proposal for the
distribution of profits; the report of the Board of Directors as to the
economic and financial status of our company; the report from our general
counsel as to the legal status of our company; and the report from the
independent auditors. Special audits cannot be made of
documents that contain scientific, technological or statistical
information of our company, or agreement that gives us competitive and
economic advantages over our competitors, or in respect of any document
related to intellectual property. Shareholders also have the
right to propose good corporate governance recommendations to the office
for the protection of investors.
|
|
·
|
Others. Pursuant
to our by-laws, shareholders holding at least 5% of the total number of
shares outstanding may propose recommendations to our Board of Directors
pertaining to the management of our company. Any shareholder
may file a written petition to our Board of Directors to investigate
corporate governance violations that the shareholder believes to have been
committed.
|
|
·
|
the
vote of at least 70% of the shares present and entitled to vote at the
ordinary shareholders’ meeting is required to approve the issuance of
stock not subject to preemptive
rights;
|
|
·
|
the
vote of at least 78% of the shares represented entitled to vote is
required to approve the distribution of less than 50% of the annual net
profits. If the sum of all legal reserves (statutory, legal and
optional) exceeds the amount of the outstanding capital, the Company must
distribute at least 70% of the annual net
profits;
|
|
·
|
the
vote of at least 80% of the shares represented is required to approve the
payment of dividends in shares; and
|
|
·
|
the
vote of 100% of the outstanding and issued shares is required to replace a
vacancy on the Board of Directors without applying the electoral quotient
system.
|
10.C.
|
Material
Contracts
|
10.D.
|
Exchange
Controls
|
10.E.
|
Taxation
|
|
·
|
insurance
companies;
|
|
·
|
tax-exempt
organizations;
|
|
·
|
broker-dealers;
|
|
·
|
traders
in securities that elect to mark to
market;
|
|
·
|
banks
or other financial institutions;
|
|
·
|
partnerships
or other pass-through entities;
|
|
·
|
persons
whose functional currency for U.S. federal income tax purposes is not the
U.S. dollar;
|
|
·
|
real
estate investment trusts, regulated investment companies or grantor
trusts;
|
|
·
|
persons
that received our common stock or ADSs as compensation for the performance
of services;
|
|
·
|
U.S.
expatriates;
|
|
·
|
persons
that hold our common shares or ADSs as part of a hedge, straddle,
conversion or other integrated transaction;
or
|
|
·
|
persons
that own, directly, indirectly or constructively, 10% or more of the total
combined voting power of our
shares.
|
|
·
|
an
individual, who is a citizen or resident of the United
States;
|
|
·
|
a
corporation, or any other entity taxable as a corporation, created or
organized in or under the laws of the United States, any state thereof or
the District of Colombia;
|
|
·
|
an
estate, the income of which is subject to U.S. federal income tax
regardless of its source; or
|
|
·
|
a
trust if (i) a court within the United States is able to exercise
primary supervision over its administration and one or more U.S. persons
have the authority to control all substantial decisions of the trust or
(ii) if the trust has a valid election in effect under current U.S.
Treasury regulations to be treated as a U.S.
person.
|
|
·
|
at
least 75% of its gross income is passive income;
or
|
|
·
|
at
least 50% of the average value of its gross assets is attributable to
assets that produce passive income or are held for the production of
passive income.
|
10.F.
|
Dividends
and Paying Agents
|
10.G.
|
Statement
by Experts
|
10.H.
|
Documents
on Display
|
10.I.
|
Subsidiary
Information
|
ITEM 11.
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
Income
Statement 2009
|
Income
Statement Case
WTI(1) + US$1
|
Differs
Between Real
2009 and Case
WTI
|
Income
Statement Case
TRM(2) - 1%
|
Differs
Between Real
2009 and Case
TRM
|
||||||||||||||||
(Pesos
in billions)
|
||||||||||||||||||||
Local
Revenue
|
14,058.53 | 14,298.81 | 240.28 | 13,923.69 | (134.84 | ) | ||||||||||||||
Export
Revenue
|
16,345.86 | 16,539.75 | 193.89 | 16,219.73 | (126.12 | ) | ||||||||||||||
Total
Revenue
|
30,404.39 | 30,838.56 | 434.17 | 30,143.43 | (260.96 | ) | ||||||||||||||
Cost
of Sales
|
19,906.07 | 20,090.08 | 184.01 | 19,808.11 | (97.97 | ) | ||||||||||||||
Selling
Operating Expenses
|
1,962.64 | 1,962.51 | -0.13 | 1,962.51 | (0.13 | ) | ||||||||||||||
Administrative
Operating Expenses
|
662.34 | 662.66 | 0.32 | 662.66 | 0.32 | |||||||||||||||
Operating
Profit
|
7,873.34 | 8,123.32 | 249.98 | 7,710.15 | (163.19 | ) | ||||||||||||||
Non-Operating
Income (Expenses)
|
(622.50 | ) | (622.37 | ) | 0.13 | (622.37 | ) | 0.13 | ||||||||||||
Profit
before Income Tax
|
7,250.84 | 7,500.95 | 250.11 | 7,087.79 | (163.06 | ) | ||||||||||||||
Income
Tax
|
2,118.79 | 2,186.20 | 67.41 | 2,074.57 | (44.22 | ) | ||||||||||||||
Net
Income
|
5,132.05 | 5,314.75 | 182.70 | 5,013.22 | (118.83 | ) |
(1)
|
Average
WTI for 2009 was US$61.80 for
barrel.
|
(2)
|
Average
Market Representative Rate for 2009 was $2,153.30 per US$1 on a calendar
day basis
|
|
·
|
The
base scenario on which our sensitivity analysis is made corresponds to the
Consolidated Statements of Financial, Economic and Social Activity or
Income Statement for 2009 as
presented elsewhere in this annual
report.
|
|
·
|
The
sensitivity of the WTI price index is the increase of one dollar per
barrel of crude oil in the average WTI reference price based on a 365-day year for 2009. Prices assumed correspond
to real prices for crude oil, natural gas and refined products for 2009, adjusted to account for the differences
between such real prices and the WTI reference price.
|
|
·
|
The
sensitivity of our results to changes in the exchange rates is the
decrease by 1% on the average exchange rate for 2009 on a calendar day
basis. Prices assumed correspond
to real prices of crude oil, natural gas and refined products in 2009,
proportionally adjusted to account for differences between such real prices and the monthly average exchange
rate.
|
VARIATION ON WTI REFERENCE
PRICE
|
VARIATION ON AVERAGE EXCHANGE
RATE
|
|
OPERATING INCOME
|
||
Local
Sales
|
Local
Sales
|
|
Crude
Oil
|
Crude
Oil
|
|
Refined
products
|
Refined
products
|
|
Natural
gas
|
Natural
gas
|
|
Exports
|
Exports
|
|
Crude
Oil
|
Crude
Oil
|
|
Refined
products
|
Refined
products
|
|
Natural
gas
|
Natural
gas
|
|
COST OF SALES
|
||
Local
purchases
|
Local
purchases
|
|
Purchases
from business partners
|
Purchases
from business partners
|
|
Purchases
of hydrocarbons from the ANH
|
Purchases
of hydrocarbons from the ANH
|
|
Purchases
of Natural gas
|
Purchases
of Natural gas
|
|
Imports
|
Imports
|
|
Crude
Oil
|
Crude
Oil
|
|
Products
|
Products
|
|
NON-OPERATING INCOME
|
||
Exchange
income
|
||
Exchange
loss
|
ITEM 12.
|
Description
of Securities Other than Equity
Securities
|
12.A.
|
Debt
Securities
|
12.B.
|
Warrants
and Rights
|
12.C.
|
Other
Securities
|
12.D.
|
American
Depositary Shares
|
|
·
|
a
fee of US$1.50 per ADR or ADRs for transfers of certificated or direct
registration ADRs;
|
|
·
|
a
fee of up to US$0.05 per ADS for any cash distribution made pursuant to
the deposit agreement;
|
|
·
|
a
fee of US$0.05 per ADS per calendar year (or portion thereof) for services
performed by the Depositary in administering our ADR program (which fee
may be charged on a periodic basis during each calendar year and shall be
assessed against holders of ADRs as of the record date or record dates set
by the Depositary during each calendar year and shall be payable in the
manner described in the next succeeding
provision);
|
|
·
|
any
other charge payable by any of the Depositary, any of the Depositary’s
agents, including, without limitation, the custodian, or the agents of the
Depositary’s agents in connection with the servicing of our shares or
other deposited securities (which charge shall be assessed against
registered holders of our ADRs as of the record date or dates set by the
Depositary and shall be payable at the sole discretion of the Depositary
by billing such registered holders or by deducting such charge from one or
more cash dividends or other cash
distributions);
|
|
·
|
a
fee for the distribution of securities (or the sale of securities in
connection with a distribution), such fee being in an amount equal to the
fee for the execution and delivery of ADSs which would have been charged
as a result of the deposit of such securities (treating all such
securities as if they were shares) but which securities or the net cash
proceeds from the sale thereof are instead distributed by the Depositary
to those holders entitled thereto;
|
|
·
|
stock
transfer or other taxes and other governmental
charges;
|
|
·
|
cable,
telex and facsimile transmission and delivery charges incurred at your
request;
|
|
·
|
transfer
or registration fees for the registration of transfer of deposited
securities on any applicable register in connection with the deposit or
withdrawal of deposited securities;
|
|
·
|
expenses
of the Depositary in connection with the conversion of foreign currency
into U.S. dollars; and
|
|
·
|
such
fees and expenses as are incurred by the Depositary (including, without
limitation, expenses incurred in connection with compliance with foreign
exchange control regulations or any law or regulation relating to foreign
investment) in delivery of deposited securities or otherwise in connection
with the Depositary’s or its custodian’s compliance with applicable laws,
rules or regulations.
|
ITEM 13.
|
Defaults,
Dividend Arrearages and
Delinquencies
|
ITEM 14.
|
Material
Modifications to the Rights of Security Holders and Use of
Proceeds
|
ITEM 15.
|
Controls
and Procedures
|
|
·
|
pertain
to the maintenance of records that, in reasonable detail, accurately and
fairly reflect transactions and dispositions of our
assets;
|
|
·
|
provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures are being made
only in accordance with authorization of our management and directors;
and
|
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on our financial
statements.
|
|
·
|
perform
an assessment of our closing and reporting process to identify areas where
our process controls and efficiency can be improved. These improvements
will allow for more comprehensive review of our preparation and analysis
of the differences existing between Colombian Government Entity GAAP and
U.S. GAAP; and
|
|
·
|
improve
the accounting skills and U.S. GAAP expertise of our accounting group
through training, hiring of experienced personnel and the support of U.S.
GAAP experts.
|
ITEM 16.
|
[Reserved]
|
16.A.
|
Audit
Committee Financial Expert
|
16.B.
|
Code
of Ethics
|
16.C.
|
Principal
Accountant Fees and Services
|
At December 31,
|
||||||||||||
2009 (PwC)
|
2008 (PwC)
|
2007 (E&Y)
|
||||||||||
(in millions of pesos, excluding 16% value added
tax)
|
||||||||||||
Audit
fees
|
4,435 | 2,117 | 3,465 | |||||||||
Audit
– related fees
|
1,306 | 168 | 0 | |||||||||
Total
|
5,741 | 2,285 | 3,465 |
16.D.
|
Exemptions
from the Listing Standards for Audit
Committee
|
16.E.
|
Purchases
of Equity Securities by the Issuer and Affiliated
Purchasers
|
16.F.
|
Change
in Registrant’s Certifying
Accountant
|
16.G.
|
Corporate
Governance
|
ITEM 17.
|
Financial
Statements
|
ITEM 18.
|
Financial
Statements
|
ITEM 19.
|
Exhibits
|
Exhibit No.
|
Description
|
|
1.1
|
By-laws
of Ecopetrol S.A. dated November 6, 2007 as recorded under Public Deed No.
5314 of November 14, 2007 (incorporated by reference to Exhibit 1.1 on
Form 20-F filed with the U.S. Securities and Exchange Commission on
September 12, 2008 (File No. 001-34175)).
|
|
4.1
|
Transportation
Agreement between Ecopetrol S.A. and Ocensa S.A., dated March 31, 1995
(incorporated by reference to Exhibit 4.1 on Form 20-F filed with the U.S.
Securities and Exchange Commission on September 12, 2008 (File No.
001-34175)).
|
|
4.2
|
Natural
Gas Transportation Agreement between Ecopetrol S.A. and Empresa Colombiana
de Gas-Ecogás, dated October 6, 2006 (incorporated by reference to Exhibit
4.2 on Form 20-F filed with the U.S. Securities and Exchange Commission on
September 12, 2008 (File No. 001-34175)).
|
|
4.3
|
Indenture,
dated as of July 23, 2009, between the Company and The Bank of New York
Mellon, as trustee (incorporated by reference to Exhibit 4.2 to the
Company’s Form F-4 filed with the U.S. Securities and Exchange Commission
on July 31, 2009 (File No. 333-160965)).
|
|
8.1
|
Subsidiaries
of Ecopetrol S.A.
|
|
12.1
|
Section
302 Certification of the Chief Executive Officer.
|
|
12.2
|
Section
302 Certification of the Chief Financial Officer.
|
|
13.1
|
Section
906 Certification of the Chief Executive Officer.
|
|
13.2
|
Section
906 Certification of the Chief Financial Officer.
|
|
23.1
|
Consent
of Ernst & Young Audit Ltda.
|
|
23.2
|
Consent
of PricewaterhouseCoopers Ltda.
|
|
23.3
|
Consent
of Ryder Scott.
|
|
23.4
|
Consent
of Gaffney, Cline & Associates.
|
|
23.5
|
Consent
of DeGolyer and MacNaughton.
|
|
99.1
|
Third
Party Reserve Report of Ryder Scott.
|
|
99.2
|
Third
Party Reserve Report of Gaffney, Cline &
Associates.
|
|
99.3
|
Third
Party Reserve Report of DeGolyer and
MacNaughton.
|
ECOPETROL
S.A.
|
||
By:
|
/s/ Adriana M. Echeverri
|
|
Name: Adriana
M. Echeverri
|
||
Title: Chief
Financial Officer
|
||
By:
|
/s/ Javier G. Gutiérrez
|
|
Name: Javier
G. Gutiérrez
|
||
Title: Chief
Executive Officer
|
||
Region
|
Contract
Name
|
Type of
Agreement
|
Purpose
|
Operator
|
Partners
|
Ownership
Percentage
|
Term of
Contract
|
Expiration
Date
|
Right of
Reversion
upon
Termination
|
Royalty
|
||||||||||
Southern
|
Abanico
|
Joint
Venture
|
E&P
|
Kappa
Resources Colombia Limited
|
Kappa
Resources Colombia Limited
|
50%
|
28
years
|
October 11,
2024
|
Yes
|
5%
to 25%
|
||||||||||
Minor
Fields
|
Alcaravan
|
Joint
Venture
|
E&P
|
Harken
de Colombia Ltd.
|
Harken
de Colombia Ltd.
|
50%
|
28
years
|
February 13,
2021
|
No
|
20%
|
||||||||||
Southern
|
Ambrosia
|
Joint
Venture
|
E&P
|
Interoil
|
Interoil
|
30%
|
25
years
|
December 27,
2027
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Arjona
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Vetra-
NCT Consortium
|
Vetra-
NCT Consortium
|
35%
|
10
years
|
March 9,
2017
|
Yes
|
8%
to 25%
|
||||||||||
Southern
|
Armero
|
Joint
Venture
|
E&P
|
Interoil
|
Interoil
|
50%
|
28
years
|
December 31,
2010
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Barranca
Lebrija
|
Discovered
Undeveloped Field
|
Develop
Field
|
Union
Temporal Mocam
|
Union
Temporal Mocam
|
8%
|
10
years
|
December 31,
2013
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Bocachico
|
Joint
Venture- Sole Risk
|
E&P
|
Harken
de Colombia Ltd.
|
Harken
de Colombia Ltd.
|
0%
|
28
years
|
March 7,
2022
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Bolivar
|
Joint
Venture- Sole Risk
|
E&P
|
Harken
de Colombia Ltd.
|
Harken
de Colombia Ltd - Harken Energy Corporation
|
0%
|
28
years
|
June 12,
2024
|
Yes
|
20%
|
||||||||||
Southern
|
Boqueron
|
Joint
Venture
|
E&P
|
Petrobras
|
Petrobras/Nexen
|
50%
|
28
years
|
October 2,
2023
|
Yes
|
5%
to 25%
|
||||||||||
Southern
|
Caguan
|
Joint
Venture
|
E&P
|
Petrobras
|
Petrobras/
Pacific
|
50%
|
28
years
|
December 31,
2011
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Camoa
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Drilling
and Workover Services Ltda.
|
Drilling
and Workover Services Ltda.
|
20%
|
10
years
|
December 28,
2013
|
Yes
|
6%
to 25%
|
||||||||||
Catatumbo-Orinoquía
|
Campo
Rico
|
Joint
Venture
|
E&P
|
Emerald
Energy PLC Sucursal Colombia
|
Emerald
Energy PLC Sucursal Colombia
|
50%
|
25
years
|
May 24,
2027
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Capachos
|
Joint
Venture
|
E&P
|
Repsol
YPF
|
Repsol
YPF
|
50%
|
28
years
|
September 15,
2025
|
Yes
|
5%
to 8%
|
||||||||||
Central
|
Caracara
|
Joint
Venture
|
E&P
|
CEPCOLSA
|
CEPCOLSA
|
30%
|
28
years
|
April 9,
2029
|
Yes
|
8%
to 25%
|
||||||||||
Mid
– Magdalena Valley
|
Carare
las Monas
|
Joint
Venture
|
Production
|
Petrosantander
|
Petrosantander
|
30%
|
Until
economic limit
|
Until
economic limit
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Carbonera
la Silla
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Mompos
Oil Company Inc.
|
Mompos
Oil Company Inc.
|
6%
|
10
years
|
October 25,
2014
|
Yes
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Casanare
|
Joint
Venture
|
E&P
|
Perenco
|
Perenco
- Hocol and Homcol
|
64%
|
Until
economic limit
|
Until
economic limit
|
No
|
20%
|
||||||||||
Minor
Fields
|
Cerrito
|
Joint
Venture
|
E&P
|
Kappa
Resources Colombia Limited
|
Kappa
Resources Colombia Limited
|
0%
|
27.5
years
|
August 17,
2029
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Chaparral
|
Joint
Venture
|
E&P
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploracion y Produccion Colombia
|
50%
|
28
years
|
October 4,
2012
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Chenche
|
Discovered
Undeveloped Field
|
E&P
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploracion y Produccion Colombia
|
70%
|
10
years
|
December 28,
2013
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Chipalo
|
Joint
Venture- Sole Risk
|
E&P
|
Kappa
Resources Colombia Limited
|
Kappa
Resources Colombia Limited
|
0%
|
28
years
|
February 27,
2026
|
Yes
|
8%
to 25%
|
||||||||||
Catatumbo-Orinoquía
|
Chipiron
|
Joint
Venture
|
E&P
|
Occidental
de Colombia Inc.
|
Occidental
de Colombia Inc. and Occidental Andina
|
30%
|
25
years
|
February 13,
2028
|
Yes
|
8%
to 25%
|
||||||||||
Mid
– Magdalena Valley
|
Acuerdo
de Cooperación Campo Teca
|
Arbitration
Court
|
E&P
|
Mansarovar
Energy Colombia Ltd.
|
Mansarovar
Energy Colombia Ltd.
|
100%
|
28
years
|
October
08 , 2008/tribunal
|
Yes
|
32%
|
||||||||||
Catatumbo-Orinoquía
|
Corocora
|
Joint
Venture
|
E&P
|
Perenco
|
Hocol
S.A - Perenco
|
56%
|
Until
economic limit
|
Until
economic limit
|
No
|
8%
to 25%
|
||||||||||
Catatumbo-Orinoquía
|
Cosecha
|
Joint
Venture
|
E&P
|
Occidental
de Colombia Inc.
|
Occidental
de Colombia Inc.
|
30%
|
28
years
|
October 31,
2030
|
Yes
|
8%
to 25%
|
||||||||||
Southern
|
CPR
Santana
|
Risk
participation contract
|
E&P
|
Gran
Tierra Colombia
|
Gran
Tierra Colombia
|
65%
|
28
years
|
July 27,
2015
|
Yes
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Cravo
Norte
|
Joint
Venture
|
E&P
|
Occidental
de Colombia Inc.
|
Occidental
de Colombia Inc.
|
59.98%
|
Until
economic limit
|
Until
economic limit
|
No
|
5%
to 25%
|
Minor
Fields
|
Dindal
|
Joint
Venture- Sole Risk
|
E&P
|
SIPETROL
|
SIPETROL
|
60%
|
28
years
|
March 22,
2021
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Entrerrios
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Union
Temporal Andina
|
Union
Temporal Andina
|
61%
|
10
years
|
December 28,
2013
|
Yes
|
8%
to 25%
|
||||||||||
Southern
|
Espinal
|
Risk
participation contract
|
E&P
|
Petrobras
|
Petrobras
|
55%
|
28
years
|
October,
2015
|
Yes
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Estero
|
Joint
Venture
|
E&P
|
Perenco
|
Perenco
- Hocol and Homcol
|
89%
|
Until
economic limit
|
Until
economic limit
|
No
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Garcero
|
Joint
Venture
|
E&P
|
Perenco
|
Perenco
- Hocol and Homcol
|
76%
|
Until
economic limit
|
Until
economic limit
|
No
|
5%
to 25%
|
||||||||||
Minor
Fields
|
Guachiria
|
Joint
Venture
|
E&P
|
Solana
Petroleum Exploration Colombia Limited
|
Solana
Petroleum Exploration Colombia Limited
|
13%
|
28
years
|
September 30,
2031
|
Yes
|
8%
to 25%
|
||||||||||
Northeastern
|
Guajira
|
Joint
Venture
|
E&P
|
Chevron
Petroleum Company
|
Chevron
Petroleum Company
|
57%
|
Until
economic limit
|
Until
economic limit
|
No
|
20%
|
||||||||||
Minor
Fields
|
Guarimena
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploracion y Produccion Colombia
|
81%
|
10
years
|
January 17,
2018
|
Yes
|
8%
to 25%
|
||||||||||
Southern
|
Guayuyaco
|
Joint
Venture
|
E&P
|
Gran
Tierra Colombia
|
Gran
Tierra Colombia
|
30%
|
28
years
|
May 30,
2030
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Hato
Nuevo
|
Discovered
Undeveloped Field
|
E&P
|
NCT
Consortium
|
NCT
Consortium
|
41%
|
10
years
|
July 3,
2016
|
Yes
|
32%
|
||||||||||
Southern
|
Hobo
|
Joint
Venture
|
E&P
|
Petrobras
|
Petrobras
|
50%
|
28
years
|
December 31,
2011
|
Yes
|
20%
|
||||||||||
Mid
– Magdalena Valley
|
La
Cira
|
Business
Cooperation
|
E&P
|
Ecopetrol
S.A.
|
Occidental
de Colombia and Ecopetrol S.A.
|
52%
|
Until
economic limit
|
Until
economic limit
|
Yes
|
8%
to 20%
|
||||||||||
Minor
Fields
|
La
Punta
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploracion y Produccion Colombia
|
70%
|
10
years
|
December 28,
2013
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Las
Quinchas
|
Joint
Venture- Sole Risk
|
E&P
|
Kappa
Resources Colombia Limited
|
Kappa
Resources Colombia Limited
|
7%
|
Until
economic limit
|
Until
economic limit
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Lebrija
|
Joint
Venture- Sole Risk
|
E&P
|
Petroleos
del Norte S.A.
|
Petroleos
del Norte S.A.
|
0%
|
28
years
|
August 26,
2013
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Magangué
|
Joint
Venture
|
E&P
|
Solana
Petroleum Exploration (Colombia Limited)
|
Solana
Petroleum Exploration (Colombia Limited)
|
58%
|
28
years
|
January 1,
2018
|
Yes
|
20%
|
||||||||||
Southern
|
Mana
|
Joint
Venture
|
E&P
|
Interoil
|
Interoil
|
30%
|
25
years
|
November 11,
2028
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Maracas
|
Joint
Venture- Sole Risk
|
E&P
|
Texican
Oil Ltd.
|
Texican
Oil Ltd.
|
0%
|
28
years
|
March 5,
2024
|
Yes
|
20%
|
||||||||||
Southern
|
Matambo
|
Joint
Venture
|
E&P
|
Emerald
Energy PLC Sucursal Colombia
|
Emerald
Energy PLC Sucursal Colombia
|
50%
|
28
years
|
November 29,
2024
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Mugrosa
|
Discovered
Undeveloped Field
|
Develop
Field
|
Cosacol
S.A.
|
Cosacol
S.A.
|
75%
|
10
years
|
July 25,
2015
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Nancy-Burdine-
Maxime
|
Discovered
Undeveloped Field
|
E&P
|
Union
Temporal II&B
|
Union
Temporal II&B
|
41%
|
10
years
|
December 28,
2013
|
Yes
|
20%
|
||||||||||
Mid
– Magdalena Valley
|
Nare
|
Joint
Venture
|
Production
|
Mansarovar
Energy Colombia Ltd.
|
Mansarovar
Energy Colombia Ltd.
|
50%
|
28
years
|
November 5,
2021
|
Yes
|
20%
|
||||||||||
Southern
|
Neiva
|
Incremental
Production
|
E&P
|
Ecopetrol
S.A.
|
Petrominerales
|
31%
|
22
years
|
June 5,
2023
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Opon
|
Joint
Venture
|
Production
|
Compañía
Operadora Petrocolombia
|
Compañía
Operadora Petrocolombina
|
0%
|
28
years
|
July 14,
2015
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Opon-6
|
Joint
Venture- Sole Risk
|
E&P
|
Compañía
Operadora Petrocolombia
|
Compañía
Operadora Petrocolombina
|
0%
|
28
years
|
July 14,
2015
|
Yes
|
20%
|
||||||||||
Southern
|
Orito
|
Incremental
Production
|
E&P
|
Ecopetrol
S.A.
|
Petrominerales
|
21%
|
22
years
|
June 5,
2023
|
Yes
|
8%
to 25%
|
||||||||||
Catatumbo-Orinoquía
|
Orocue
|
Joint
Venture
|
E&P
|
Perenco
|
Perenco
and Hocol
|
63%
|
Until
economic limit
|
Until
economic limit
|
No
|
20%
|
||||||||||
Southern
|
Ortega
|
Incremental
Production
|
E&P
|
Ecopetrol
S.A.
|
Hocol
S.A.
|
31%
|
22
years
|
March 18,
2023
|
Yes
|
8%
incremental, 20% basica
|
Mid
– Magdalena Valley
|
Palagua
|
Incremental
Production
|
Production
|
Union
Temporal IJP
|
Union
Temporal Ismocol, Joshi- Petcar- Parko
|
34%
|
22
years
|
July 14,
2023
|
Yes
|
20%
|
||||||||||
Southern
|
Palermo
|
Joint
Venture
|
E&P
|
Hocol
S.A.
|
Hocol
S.A.
|
50%
|
28
years
|
April 30,
2012
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Pavas-
Cachira
|
Discovered
Undeveloped Field
|
Develop
Field
|
Ismocol
de Colombia S.A.
|
Union
Temporal Isomocol, Joshi- Petcar- Parko
|
5%
|
10
years
|
December 29,
2013
|
Yes
|
20%
|
||||||||||
Northeastern
|
Piedemonte
|
Joint
Venture
|
E&P
|
BP
|
BP
|
50%
|
28
years
|
February 29,
2020
|
Yes
|
20%
|
||||||||||
Central
|
Piriri
|
risk
participation contract
|
E&P
|
Metapetroleum
|
Pacific
Rubiales
|
50%
|
28
years
|
June 30,
2016
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Playon
|
Discovered
Undeveloped Field
|
Develop
Field
|
Serinpet
|
Representaciones
y Servicios de Petroleos Serinpet
|
54%
|
10
years
|
July 12,
2015
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Puerto
Barco
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Avante
Colombia
|
Vetra
Exploracion y Produccion Colombia - Avante Colombia
|
6%
|
10
years
|
December 29,
2013
|
Yes
|
20%
|
||||||||||
Southern
|
Puli
|
Joint
Venture
|
E&P
|
Interoil
|
Interoil
|
50%
|
28
years
|
February 29,
2012
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Quebrada
Roja
|
Discovered
Undeveloped Field
|
Develop
Field
|
Campos
de Producción Consortium
|
Campos
de Producción Consortium
|
58%
|
10
years
|
July 12,
2015
|
Yes
|
20%
|
||||||||||
Northeastern
|
Recetor
|
Joint
Venture
|
E&P
|
BP
|
BP
Explotarion Co (Colombia) Ltd. - BP Santiago
|
50%
|
28
years
|
May 29,
2017
|
Yes
|
20%
|
||||||||||
Northeastern
|
Rio
Chitamena
|
Joint
Venture
|
E&P
|
BP
|
BP
Explotarion Co (Colombia) Ltd. - BP Santiago
|
50%
|
28
years
|
January 31,
2019
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Rio
de Oro
|
Discovered
Undeveloped Field
|
E&P-
Discovered and Undeveloped Field
|
Avante
Colombia
|
Vetra
Exploracion y Produccion Colombia - Avante Colombia
|
12%
|
10
years
|
December 29,
2013
|
Yes
|
20%
|
||||||||||
Southern
|
Rio
Opia
|
Joint
Venture
|
E&P
|
Interoil
|
Interoil
|
30%
|
28
years
|
June 23,
2030
|
Yes
|
8%
to 25%
|
||||||||||
Southern
|
Río
Paez (La Hocha)
|
Joint
Venture- Sole Risk
|
E&P
|
Hocol
S.A.
|
Hocol
S.A.
|
0%
|
28
years
|
April 26,
2029
|
Yes
|
5%
La Hocha
|
||||||||||
Minor
Fields
|
Río
Seco
|
Joint
Venture- Sole Risk
|
E&P
|
SIPETROL
|
SIPETROL
|
0%
|
28
years
|
August 21,
2023
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Rompida
|
Discovered
Undeveloped Field
|
Develop
Field
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploración y Producción Colombia
|
19%
|
10
years
|
December 30,
2013
|
Yes
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Rondon
|
Joint
Venture
|
E&P
|
Occidental
de Colombia Inc.
|
Occidental
de Colombia Inc.
|
50%
|
28
years
|
January 8,
2023
|
Yes
|
8%
to 25%
|
||||||||||
Central
|
Rubiales
|
Joint
venture
|
E&P
|
Metapetroleum
|
Pacific
Rubiales
|
60%
|
28
years
|
June 30,
2016
|
Yes
|
20%
|
||||||||||
Southern
|
San
Jacinto (La Cañada Norte)
|
Joint
Venture
|
E&P
|
Hocol
S.A.
|
Hocol
S.A.
|
50%
|
28
years
|
December 22,
2024
|
Yes
|
8%
La Cañada Norte
|
||||||||||
Minor
Fields
|
San
Luis
|
Joint
Venture
|
E&P
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploración y Producción Colombia
|
50%
|
28
years
|
May 8,
2014
|
Yes
|
20%
|
||||||||||
Northeastern
|
Santiago
de las Atalayas
|
Joint
Venture
|
E&P
|
BP
|
BP
Explotarion Co (Colombia) Ltd. - BP Santiago
|
50%
|
28
years
|
June 30,
2010
|
Yes
|
20%
|
||||||||||
Southern
|
Suroriente
|
Incremental
Production
|
E&P
|
Colombia
Energy
|
Colombia
Energy
|
48%
|
22
years
|
June 11,
2024
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Tambaqui
|
Joint
Venture- Sole Risk
|
E&P
|
Hupecol
|
Hupecol
|
50%
|
28
years
|
February 28,
2026
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Tapir
|
Joint
Venture- Sole Risk
|
E&P
|
Petrolco
|
Petrolco
and Doreal Energy
|
0%
|
28
years
|
February 24,
2023
|
Yes
|
20%
|
||||||||||
Northeastern
|
Tauramena
|
Joint
Venture
|
E&P
|
BP
|
BP
Explotarion Co (Colombia) Ltd. - BP Santiago
|
50%
|
28
years
|
July 3,
2016
|
Yes
|
20%
|
||||||||||
Catatumbo-Orinoquía
|
Tibú
|
Business
Cooperation
|
E&P
|
Ecopetrol
S.A.
|
Tibú
Consortium formed by Petrobras Colombia Limited and Petrobras Energía de
Colombia
|
60%
|
Undetermined
|
Undetermined
|
no
|
8%
to 25%
|
||||||||||
Mid
– Magdalena Valley
|
Tisquirama
|
Joint
Venture
|
Production
|
Petroleos
del Norte S.A.
|
Petroleos
del Norte S.A – Petrosantander
|
60%
|
Until
economic limit
|
Until
economic limit
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Toca
|
Discovered
Undeveloped Field
|
Develop
Field
|
Campos
de Producción Consortium
|
Campos
de Producción Consortium
|
58%
|
10
years
|
July 12,
2015
|
Yes
|
8%
|
Minor
Fields
|
Tolima
B
|
Joint
Venture- Sole Risk
|
E&P
|
Vetra
Exploracion y Produccion Colombia
|
Vetra
Exploracion y Produccion Colombia
|
50%
|
28
years
|
June 12,
2014
|
Yes
|
20%
|
||||||||||
Central
|
Upia
B
|
Joint
Venture
|
E&P
|
Petrobras
|
PETROBRAS
|
50%
|
28
years
|
Feb 29,
2012
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Colorado
|
Services
and Technical Cooperation
|
Production
|
Universidad
Industrial de Santander
|
Universidad
Industrial de Santander
|
1%
|
10
Years
|
2016
|
No
|
20%
|
||||||||||
Minor
Fields
|
El
piñal
|
Joint
Venture- Sole Risk
|
E&P
|
Petrosantander
|
Petrosantander
|
50%
|
28
years
|
July 28,
2018
|
Yes
|
20%
|
||||||||||
Minor
Fields
|
Fortuna
|
Joint
Venture- Sole Risk
|
E&P
|
Emerald
Energy PLC Sucursal Colombia
|
Emerald
Energy PLC Sucursal Colombia
|
20%
|
28
years
|
December18,
2031
|
Yes
|
14,5
and 8%
|
||||||||||
Southern
|
Doima
|
Joint
Venture
|
E&P
|
Hocol
S.A.
|
Hocol
S.A
|
39%
|
30
years
|
February
16, 2039
|
Yes
|
6.4%
|
||||||||||
Mid
– Magdalena Valley
|
Guariquies
|
Sahered
Risk production contract
|
E&P
|
Ecopetrol
S.A.
|
Ramshorn
|
55%
and R Factor
|
25
years
|
May
24, 2029
|
Yes
|
8%
to 20%
|
||||||||||
Minor
Fields
|
Berlin
|
Discovered
Undeveloped Field
|
Develop
Field
|
Sadeven
s.a.
|
Sadeven
s.a.
|
35%
|
10
Years
|
July 17,
2015
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Bravo
|
Discovered
Undeveloped Field
|
Develop
Field
|
Sadeven
s.a.
|
Sadeven
s.a.
|
7%
|
10
Years
|
July 17,
2015
|
Yes
|
8%
to 25%
|
||||||||||
Minor
Fields
|
Buganviles
|
Joint
Venture
|
E&P
|
Hollywell
Resources S.A. / Kappa Resources S.A.
|
Kappa
Resources S.A.
|
30%
|
28
años
|
27-Nov-08
|
Yes
|
8%
to 25%
|
||||||||||
Hocol
|
|
Guarrojo
|
|
E&P
|
|
E&P
|
|
Hocol
S.A.
|
|
|
100%
|
|
24
años
|
|
24-Feb-30
|
|
No
|
|
8%
to 25%
|
Reports
of Independent Registered Public Accounting Firms
|
F-3
|
|
Consolidated
Financial Statements
|
||
Consolidated
Balance Sheets
|
F-7
|
|
Consolidated
Statements of Financial, Economic, Social and Environmental
Activities
|
F-8
|
|
Consolidated
Statements of Changes in Shareholders’ Equity
|
F-9
|
|
Consolidated
Statements of Cash Flows
|
F-10
|
|
Notes
to Consolidated Financial Statements
|
|
F-12
|
ERNST
& YOUNG AUDIT LTDA.
|
/s/ Francisco J. González R.
Francisco
J. González R.
Statutory
Auditor
Professional
Card 13442-T
Designated
by Ernst & Young Audit Ltda. – TR
530
|
December 31
|
||||||||
2009
|
2008
|
|||||||
(In
millions of Colombian pesos)
|
||||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents (Notes 2 and
3)
|
$ | 3,562,119 | $ | 2,113,803 | ||||
Investments
(Notes 2 and
4)
|
462,258 | 3,749,919 | ||||||
Accounts
and notes receivable, net (Notes 2 and
5)
|
2,969,120 | 5,877,282 | ||||||
Inventories,
net (Note
6)
|
2,042,697 | 1,611,296 | ||||||
Advances
and deposits (Notes 2
and 7)
|
3,018,779 | 2,248,122 | ||||||
Pension
plan assets (Note
11)
|
- | 80,263 | ||||||
Prepaid
expenses (Note
8)
|
62,815 | 24,215 | ||||||
Total
current assets
|
12,117,788 | 15,704,900 | ||||||
Non-current
assets:
|
||||||||
Investments
(Notes 2 and
4)
|
3,710,739 | 8,688,320 | ||||||
Accounts
and notes receivable, net (Note
5)
|
226,781 | 194,912 | ||||||
Property,
plant and equipment, net (Note
9)
|
16,782,503 | 8,077,488 | ||||||
Natural
and environmental resources, net (Note
10)
|
11,155,381 | 8,054,049 | ||||||
Advances
and Deposits (Note
7)
|
253,681 | 271,121 | ||||||
Deferred
charges (Note
12)
|
1,886,529 | 1,595,683 | ||||||
Other
assets (Note
13)
|
3,034,698 | 935,978 | ||||||
Revaluations
(Note
21)
|
6,391,417 | 5,179,961 | ||||||
Total
assets
|
$ | 55,559,517 | $ | 48,702,412 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Financial
obligations (Note
14)
|
$ | 437,081 | $ | 281,026 | ||||
Accounts
payable and related parties (Notes 2 and
15)
|
3,280,232 | 1,708,647 | ||||||
Taxes
payable (Note
16)
|
2,433,022 | 3,906,468 | ||||||
Labor
and pension plan obligations (Note
17)
|
165,463 | 129,658 | ||||||
Estimated
liabilities and provisions (Notes 2 and
18)
|
1,154,415 | 673,973 | ||||||
Total
current liabilities
|
7,470,213 | 6,699,772 | ||||||
Long-term
liabilities:
|
||||||||
Financial
obligations (Note
14)
|
5,714,354 | 5,473 | ||||||
Accounts
payable (Note
15)
|
51,154 | - | ||||||
Labor
and pension plan liabilities (Note
17)
|
2,669,331 | 2,164,787 | ||||||
Estimated
liabilities and provisions (Note
18)
|
3,411,977 | 2,542,791 | ||||||
Other
long-term liabilities (Note
19)
|
2,731,220 | 2,426,921 | ||||||
Total
liabilities
|
22,048,249 | 13,839,744 | ||||||
Non-controlling
interest (Note
20)
|
941,311 | 242,951 | ||||||
Shareholders’
equity (Note 21 and see
accompanying statement)
|
32,569,957 | 34,619,717 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 55,559,517 | $ | 48,702,412 | ||||
Memorandum
accounts (Note
22)
|
$ | 138,884,829 | $ | 118,874,631 |
Year ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(In
millions of Colombian pesos, except for the net income per
share
expressed in pesos)
|
||||||||||||
Revenue
(Note
23)
|
||||||||||||
Local
sales
|
$ | 14,058,534 | $ | 21,597,999 | $ | 16,002,997 | ||||||
Foreign
sales
|
16,345,856 | 12,298,670 | 6,645,820 | |||||||||
FAEP
|
- | - | (316,497 | ) | ||||||||
Foreign
sales, net
|
16,345,856 | 12,298,670 | 6,329,323 | |||||||||
Total
revenue
|
30,404,390 | 33,896,669 | 22,332,320 | |||||||||
Cost
of sales (Note
24)
|
19,906,073 | 19,084,436 | 12,121,833 | |||||||||
10,498,317 | 14,812,233 | 10,210,487 | ||||||||||
Operating
expenses (Note
25)
|
||||||||||||
Administration
|
662,336 | 382,101 | 322,044 | |||||||||
Selling
|
1,962,642 | 1,772,774 | 929,305 | |||||||||
Operating
income
|
7,873,339 | 12,657,358 | 8,959,138 | |||||||||
Non-operating
income (expenses)
|
||||||||||||
Financial
income, net (Note
26)
|
495,833 | 4,101,252 | 93,628 | |||||||||
Pension
expenses (Notes 17 and
27)
|
(595,157 | ) | (1,144,925 | ) | (1,090,343 | ) | ||||||
Inflation
gain (Note
28)
|
22,355 | 30,473 | 41,132 | |||||||||
Other
(expenses) income, net (Note
29)
|
(545,526 | ) | 367,046 | (938,251 | ) | |||||||
Income
before income tax
|
7,250,844 | 16,011,204 | 7,065,304 | |||||||||
Income
tax (Note
16)
|
||||||||||||
Current
|
1,948,819 | 3,611,020 | 2,006,484 | |||||||||
Deferred
tax
|
165,210 | 770,962 | (120,972 | ) | ||||||||
2,114,029 | 4,381,982 | 1,885,512 | ||||||||||
Non-controlling
interest
|
(4,761 | ) | 455 | - | ||||||||
Net
income
|
$ | 5,132,054 | $ | 11,629,677 | $ | 5,179,792 | ||||||
Net
income per share
|
$ | 126.80 | $ | 287.35 | $ | 168.71 |
Subscribed and
paid-in capital
|
Additional
paid-in capital
|
Legal and
other reserves
|
Incorporated
Institutional equity and
other
|
Surplus from
equity method
|
Surplus from
revaluations
|
Public accounting
application effect
|
Retained
earnings
|
Total Equity
|
||||||||||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 10,113,334 | $ | 3,850,814 | $ | 1,910,686 | $ | 108,730 | $ | (2,271 | ) | $ | 5,647,382 | $ | - | $ | 5,179,792 | $ | 26,808,467 | |||||||||||||||||
Distribution
of dividends ($115 per share)
|
- | - | 4,415 | - | - | - | - | (4,658,755 | ) | (4,654,340 | ) | |||||||||||||||||||||||||
Subscribed
capital receivable and additional paid-in capital
|
4,457 | 824,607 | - | - | - | - | - | - | 829,064 | |||||||||||||||||||||||||||
Addition
to additional paid in capital – execution of warranties
|
- | 3,855 | - | - | - | - | - | - | 3,855 | |||||||||||||||||||||||||||
Appropriation
to reserves
|
- | - | 517,639 | - | - | - | - | (517,639 | ) | - | ||||||||||||||||||||||||||
Adjustment
in translation of foreign subsidiaries and equity method
|
- | - | - | - | 143,018 | - | - | (3,398 | ) | 139,620 | ||||||||||||||||||||||||||
Addition
to incorporated institutional equity
|
- | - | - | 2,635 | - | - | - | - | 2,635 | |||||||||||||||||||||||||||
Surplus
from revaluations
|
- | - | - | - | 1,340,356 | (1,479,650 | ) | - | - | (139,294 | ) | |||||||||||||||||||||||||
Devaluation
in Property, Plant and Equipment
|
- | - | - | - | - | 1,012,229 | (1,012,229 | ) | - | - | ||||||||||||||||||||||||||
Pending
responsibility rulings
|
- | - | - | 814 | - | - | (781 | ) | - | 33 | ||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | - | - | 11,629,677 | 11,629,677 | |||||||||||||||||||||||||||
Balance
as of December 31, 2008
|
10,117,791 | 4,679,276 | 2,432,740 | 112,179 | 1,481,103 | 5,179,961 | (1,013,010 | ) | 11,629,677 | 34,619,717 | ||||||||||||||||||||||||||
Distribution
of dividends ($220 per share)
|
- | - | - | - | - | - | - | (8,903,953 | ) | (8,903,953 | ) | |||||||||||||||||||||||||
Subscribed
capital receivable and additional paid-in capital
|
- | 24,324 | - | - | - | - | - | - | 24,324 | |||||||||||||||||||||||||||
Addition
to additional paid-in capital - execution of
warranties
|
- | 16,720 | - | - | - | - | - | - | 16,720 | |||||||||||||||||||||||||||
Surplus
from revaluations
|
- | - | - | - | - | 1,211,456 | - | - | 1,211,456 | |||||||||||||||||||||||||||
Devaluation
in property, plant and equipment
|
- | - | - | - | - | - | 714,205 | - | 714,205 | |||||||||||||||||||||||||||
Appropriation
to legal reserve
|
- | - | 1,163,072 | - | - | - | - | (1,163,072 | ) | - | ||||||||||||||||||||||||||
Appropriation
to investment reserves
|
- | - | 1,563,692 | - | - | - | - | (1,563,692 | ) | - | ||||||||||||||||||||||||||
Addition
to incorporated institutional equity
|
- | - | - | 43,350 | - | - | - | - | 43,350 | |||||||||||||||||||||||||||
Adjustment
in translation of foreign subsidiaries and equity method
|
- | - | - | - | (288,956 | ) | - | - | - | (288,956 | ) | |||||||||||||||||||||||||
Unrealized
Income
|
1,040 | 1,040 | ||||||||||||||||||||||||||||||||||
Net
income
|
- | - | - | - | - | - | - | 5,132,054 | 5,132,054 | |||||||||||||||||||||||||||
Balance
as of December 31, 2009
|
$ | 10,117,791 | $ | 4,720,320 | $ | 5,159,504 | $ | 155,529 | $ | 1,192,147 | $ | 6,391,417 | $ | (298,805 | ) | $ | 5,132,054 | $ | 32,569,957 |
Year ended December 31
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(In
millions of Colombian pesos)
|
||||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income
|
$ | 5,132,054 | $ | 11,629,677 | $ | 5,179,792 | ||||||
Adjustments
to reconcile net income to cash provided by operating
activities:
|
||||||||||||
Deferred
Income Tax, net
|
165,210 | 770,962 | (120,972 | ) | ||||||||
Depreciation
of Property, Plant and Equipment
|
1,262,643 | 691,488 | 750,074 | |||||||||
Amortizations
|
||||||||||||
Natural
Resources
|
1,274,979 | 947,788 | 572,743 | |||||||||
Abandonment
of installations
|
199,939 | 139,795 | 92,716 | |||||||||
Actuarial
Calculation
|
502,665 | 645,770 | 695,057 | |||||||||
Intangibles
|
152,235 | 37,496 | 14,892 | |||||||||
Deferred
charges
|
94,288 | 73,343 | 173,883 | |||||||||
Deferred
monetary correction, net
|
(22,355 | ) | (30,473 | ) | (41,132 | ) | ||||||
Provisions
|
||||||||||||
Accounts
receivable
|
30,734 | 2,275 | 20,276 | |||||||||
Inventories
|
33,161 | 49,380 | 115,944 | |||||||||
Property,
Plant and Equipment
|
127,826 | - | 1,790 | |||||||||
Legal
Proceedings
|
271,091 | 62,380 | 1,096,117 | |||||||||
Other
|
- | 103,062 | - | |||||||||
Recovery
of provisions
|
||||||||||||
Inventories
|
(118,652 | ) | (8,711 | ) | (21,010 | ) | ||||||
Property,
Plant and Equipment
|
(17,091 | ) | (18,813 | ) | - | |||||||
Legal
Proceedings
|
(83,258 | ) | (832,788 | ) | (281,507 | ) | ||||||
Other
|
(5,564 | ) | (139,554 | ) | (265,436 | ) | ||||||
Net
changes in operating assets and liabilities
|
||||||||||||
Decrease
(increase) Debtors
|
2,030,376 | 5,946,536 | (1,853,727 | ) | ||||||||
Decrease
(increase) Inventories
|
(291,819 | ) | (237,710 | ) | (397,365 | ) | ||||||
Decrease
(increase) Deferred and other assets
|
(1,408,834 | ) | (865,556 | ) | 1,198,025 | |||||||
(Decrease)
increase Accounts payable
|
1,536,580 | 423,182 | 334,558 | |||||||||
(Decrease)
increase Taxes payable
|
(1,473,446 | ) | 988,828 | 855,264 | ||||||||
(Decrease)
increase Labor obligations
|
37,684 | (9,246,210 | ) | 25,942 | ||||||||
(Decrease)
increase Estimated liabilities and provisions
|
(24,809 | ) | (697,407 | ) | 1,258,884 | |||||||
Net
cash provided by operating activities
|
9,405,637 | 10,434,740 | 9,404,808 | |||||||||
Cash
flows from investing activities
|
||||||||||||
Payment
in acquisition of companies, net of cash acquired
|
(1,082,580 | ) | (1,275,049 | ) | - | |||||||
Purchase
of investments
|
(7,939,870 | ) | (27,801,568 | ) | (33,328,213 | ) | ||||||
Investments
redemption and sale
|
15,917,196 | 27,054,516 | 28,296,998 | |||||||||
Investments
in natural and environmental resources
|
(3,613,355 | ) | (1,844,917 | ) | (2,013,947 | ) | ||||||
Additions
to Property, Plant and Equipment
|
(9,237,307 | ) | (4,861,067 | ) | (1,082,887 | ) | ||||||
Net
cash used in investing activities
|
(5,955,916 | ) | (8,728,085 | ) | (8,128,049 | ) | ||||||
Cash
flows from financing activities
|
||||||||||||
Non-controlling
interest
|
698,360 | 242,950 | - | |||||||||
Financial
obligations
|
6,140,588 | 106,942 | - | |||||||||
Debts
from credit and financing operations
|
21,205 | 128,778 | (39,305 | ) | ||||||||
Received
from associates – capitalization
|
41,044 | 832,919 | 5,359,968 | |||||||||
Payment
of dividends
|
(8,902,602 | ) | (4,654,340 | ) | (4,475,399 | ) | ||||||
Net
cash provided (used) by financing activities
|
(2,001,405 | ) | (3,342,751 | ) | 845,264 | |||||||
Net
increase (decrease) in cash and cash equivalents
|
1,448,316 | (1,636,096 | ) | 2,122,023 | ||||||||
Cash
and cash equivalents at beginning of year
|
2,113,803 | 3,749,899 | 1,627,876 | |||||||||
Cash
and cash equivalents at end of year
|
3,562,119 | 2,113,803 | 3,749,899 |
2009
|
2008
|
2007
|
||||||||||
Attachment
1 – Cash and cash equivalents detail
|
||||||||||||
Cash
|
$ | 82 | $ | 408 | $ | 399 | ||||||
Banks
and savings entities
|
1,508,846 | 1,395,199 | 1,160,069 | |||||||||
Special
and in-transit funds
|
1,690,815 | 703,577 | 123,251 | |||||||||
Temporary
investments
|
362,376 | 14,619 | 2,466,180 | |||||||||
Total
cash and cash equivalents
|
$ | 3,562,119 | $ | 2,113,803 | $ | 3,749,899 |
1.
|
Economic
Entity and Principal Accounting Policies and
Practices
|
Subsidiaries
|
Participation
Percentage
ECP
|
Activity
|
Subsidiaries
|
|||
Ecopetrol
Oleo é Gas do Brasil
Ltda.
|
100
|
Exploration,
exploitation, transportation, storage,
distribution
and selling of hydrocarbons, by-
|
||||
Ecopetrol
del Peru S.A.
|
100
|
products
and products, as well as investigation,
|
-
|
|||
Ecopetrol
America Inc.
|
100
|
development
and selling of energy sources
|
||||
Black
Gold Re Ltd.
|
100
|
Manage
all business associated with the total or partial, direct or indirect
execution of insurance and reinsurance of Ecopetrol’s and of its affiliate
and/or subsidiary Company risks.
|
-
|
|||
Andean
Chemicals Ltd.
|
100
|
Manage
all business associated with Ecopetrol’s, Propilco’s and its affiliate
companies’ operations.
|
Bioenergy
S.A.
Refinería
de Cartagena
Propileno
del Caribe
|
|||
ODL
Finance S.A.
|
65
|
Design,
construct, operate, sell, exploit and be the direct or indirect owner of
crude oil pipeline systems for hydrocarbon transportation of private use
in Colombia.
|
ODL
S.A.
ODL
- Colombia Branch office
|
|||
Propilco
S.A.
|
100
|
Production
and selling of polypropylene resin
|
Comai
S.A.
|
|||
Bionergy
S.A.
|
80
|
Construction
and operation of bio-fuel production plants, and others
related
|
-
|
|||
Ecopetrol
Global Energy
|
100
|
Investment
vehicle.
|
Ecopetrol
America Inc
|
|||
Ecopetrol
Transportation Company Limited
|
100
|
Investment
vehicle.
|
Ecopetrol
Pipelines International Limited
|
|||
Ecopetrol
Pipelines International Limited
|
100
|
Investment
vehicle.
|
-
|
|||
Oleoducto
Central S.A. - Ocensa
|
60
|
Crude
oil transportation through pipelines.
|
-
|
|||
Refineria
de Cartagena S.A.
|
100
|
Hydrocarbons
refining, selling and distribution.
|
-
|
|||
COMAI
- Compounding and Masterbatching Industry Ltda.
|
100
|
Manufacture
of polypropylene compounds and master batches for a wide range of
uses.
|
-
|
|||
Hocol
Limited
|
||||||
Hocol
Petroleum Limited
|
100
|
Investment
vehicle.
|
Hocol
S.A.
|
|||
Homcol
Cayman Inc
|
||||||
Oleoducto
de Colombia S.A. – ODC
|
66
|
Crude
oil transportation through pipelines.
|
-
|
Number of contracts
|
||||||||||||||||||||
Contract Type
|
Ecopetrol
S.A.
|
Hocol
Petroleum
Ltd.
|
Ecopetrol
Oleo é Gas do
Brasil Ltda.
|
Ecopetrol
America Inc.
|
Ecopetrol del
Perú S.A.
|
|||||||||||||||
Exploration
|
51 | 9 | 9 | 22 | 5 | |||||||||||||||
Production
|
46 | 9 | - | 1 | - | |||||||||||||||
Discovered,
undeveloped fields
|
20 | - | - | - | - | |||||||||||||||
Sole
risk
|
15 | 1 | - | - | - | |||||||||||||||
Incremental
production
|
5 | 1 | - | - | - | |||||||||||||||
Production
service with risk
|
3 | - | - | - | - | |||||||||||||||
Business
collaboration
|
2 | - | - | - | - | |||||||||||||||
Services
and technical collaboration
|
1 | - | - | - | - | |||||||||||||||
143 | 20 | 9 | 23 | 5 |
·
|
Investments,
|
·
|
Property,
plant and equipment,
|
·
|
Intangibles,
|
·
|
Retirement
pensions and
|
·
|
Provisions.
|
·
|
Representation
on the Board of Directors or equivalent regulatory organ of the associated
entity.
|
·
|
Participation
in policy-making processes.
|
·
|
Significant
transactions between the investor and the associated
entity.
|
·
|
Secondment
of officers, or
|
·
|
Supply
of essential technical
information.
|
•
|
Crude
oil and natural gas inventories for the Company’s own production, at
production cost.
|
•
|
Crude
oil purchases, at acquisition costs, including transportation and delivery
costs incurred.
|
•
|
Finished
goods inventory, at total production costs (at each
refinery).
|
•
|
Work
in progress inventory, at production
costs.
|
•
|
Raw
material inventory, at weighted average
cost.
|
%
|
||||
Buildings
and pipelines
|
5 | |||
Plants
and equipment
|
10 | |||
Transportation
equipment
|
20 | |||
Computers
|
33.3 |
a.
|
Investments
|
b.
|
Property,
Plant and Equipment
|
2.
|
Assets
and liabilities denominated in foreign
currency
|
2009
|
2008
|
|||||||||||||||
Thousands of
US$ dollars
|
Equivalent
millions of COP
|
Thousands of
US$ dollars
|
Equivalent
millions of COP
|
|||||||||||||
Assets:
|
||||||||||||||||
Cash
and cash equivalents
|
1,133,720 | $ | 2,317,585 | 1,504,857 | $ | 3,376,282 | ||||||||||
Investments
|
1,602,179 | 3,275,223 | 4,243,339 | 9,520,313 | ||||||||||||
Accounts
and notes receivables
|
792,713 | 1,620,487 | 1,930,970 | 4,332,305 | ||||||||||||
Advances
and deposits
|
120,923 | 247,194 | 171,040 | 383,744 | ||||||||||||
Other
assets
|
713,950 | 1,459,478 | - | - | ||||||||||||
4,363,485 | $ | 8,919,967 | 7,850,206 | $ | 17,612,644 | |||||||||||
Liabilities:
|
||||||||||||||||
Financial
obligations
|
1,601,090 | $ | 3,272,996 | 103,171 | 231,473 | |||||||||||
Estimated
liabilities and provisions
|
1,519,417 | 3,106,037 | 926,695 | 2,079,124 | ||||||||||||
Accounts
payable
|
607,508 | 1,241,886 | 347,957 | 780,670 | ||||||||||||
Other
liabilities
|
503,388 | 1,029,041 | 557,331 | 1,250,422 | ||||||||||||
4,231,403 | $ | 8,649,960 | 1,935,154 | $ | 4,341,689 | |||||||||||
Net
Asset Position
|
132,082 | $ | 270,007 | 5,915,052 | $ | 13,270,955 |
3.
|
Cash
and cash equivalents
|
2009
|
2008
|
|||||||
Banks
and saving entities
|
$ | 1,508,846 | $ | 1,395,199 | ||||
Special
and revolving funds (1)
|
1,690,815 | 703,577 | ||||||
Cash
|
82 | 408 | ||||||
Sight
investments (2)
|
362,376 | 14,619 | ||||||
$ | 3,562,119 | $ | 2,113,803 |
(1)
|
Includes
savings in special funds in local and foreign currencies in the amount of
$1,690,781 (2008 - $698,980) and investments in overnight operations in
the amount of $34 (2008 - $4,597). The year-to-year difference
results from higher liquidity needs to support new business opportunities
during the first quarter of 2009.
|
(2)
|
Represented
by trust rights and time deposits of $167,403 from Reficar, $124,271 from
Hocol, $54,366 from Ocensa, $6,790 from Oleoducto de Colombia, $6,865 from
Propilco, $2,373 from Ecopetrol Oleo e Gas do Brasil, $305 from Ecopetrol,
and $3 from Bioenergy.
|
4.
|
Investments
|
2009
|
2008
|
|||||||
Current:
|
||||||||
Fixed
yield:
|
||||||||
Investment
Funds administered by third parties (1)
|
$ | 197,485 | $ | 2,077,218 | ||||
Bonds
and securities of private or foreign entities (1)
|
60,330 | 1,099,487 | ||||||
Trust
Funds
|
77,929 | 326,941 | ||||||
Bonds
issued by the Colombian Government
|
126,375 | 224,053 | ||||||
Specific
destination Funds – Legal Contingencies
|
- | 10,212 | ||||||
Treasury
Securities – TES
|
- | 6,970 | ||||||
Time
deposits
|
- | 5,038 | ||||||
Other
investments
|
139 | - | ||||||
Total
Current
|
$ | 462,258 | $ | 3,749,919 | ||||
Long
Term:
|
||||||||
Variable yield - Shares
(3)
|
$ | 777,503 | $ | 2,404,695 | ||||
Fixed
yield:
|
||||||||
Bonds
and securities of foreign entities
|
1,834,779 | 5,094,596 | ||||||
Bonds
issued by the Colombian Government
|
602,039 | 754,054 | ||||||
Specific
destination Funds – Legal Contingencies
|
380,463 | 378,461 | ||||||
Treasury
Securities- TES
|
94,252 | 56,529 | ||||||
Other
investments (2)
|
21,703 | - | ||||||
3,710,739 | 8,688,335 | |||||||
Less:
Provision for investments protection
|
- | (15 | ) | |||||
Total
Long term
|
$ | 3,710,739 | $ | 8,688,320 |
(1)
|
During
year 2009 an amount of US$839 million was collected from deposits in three
investment funds which have been destined to working capital and new
acquisitions of the Company.
|
(2)
|
Corresponds
to the remaining resources in amount of $21,584 derived from the
production of the Teca Field – Cocorná Association Contract, which are
currently held in trust waiting for the decision of the Arbitration Court
on the continuity of the association contract with Mansarovar Energy
Colombia Ltd.
|
(3)
|
A
summary of long-term investments of variable yield as of December 31,
2009, valued under the cost method, is set forth
below:
|
Number of shares
and/or quotas
|
Participation
percentage
|
Valuation
date
|
Historical
Cost
|
Intrinsic /
Market Value
|
Revaluations
(provisions)
|
||||||||||||||||
STRATEGIC
|
|||||||||||||||||||||
Sociedad
Portuaria de Olefinas
|
249,992 | 49.99 |
Dec-2009
|
$ | 317 | $ | 417 | $ | 100 | ||||||||||||
Zona
Franca de Cartagena S.A.
|
244 | 8.18 |
Dec-2009
|
239 | 669 | 431 | |||||||||||||||
Sociedad
Portuaria del Dique
|
10 | 0.5 |
Dec-2009
|
5 | 8 | 3 | |||||||||||||||
Total
strategic
|
$ | 561 | $ | 1,094 | $ | 534 | |||||||||||||||
NON
STRATEGIC
|
|||||||||||||||||||||
Empresa
de Energía de Bogotá
|
6,310,980 | 7.35 |
Nov-2009
|
$ | 169,421 | $ | 503,027 | $ | 333,606 | ||||||||||||
Interconexión
Eléctrica S.A
|
58,925,480 | 5.48 |
Dec-2009
|
69,549 | 764,853 | 695,304 | |||||||||||||||
Propaise
S.A.
|
18,744,883 | 0.99 |
Dec-2009
|
10 | - | - | |||||||||||||||
Total
non-strategic
|
$ | 238,980 | $ | 1,267,880 | $ | 1,028,910 |
Number of
shares and/or
quotas
|
Participation
percentage
|
Valuation
date
|
Historical
Cost
|
Adjusted cost
|
Equity method
effect
|
||||||||||||||||
Significant
influence
|
|||||||||||||||||||||
Serviport
S.A.
|
53,714,116 | 49.00 |
Nov-09
|
$ | 2,081 | $ | 7,433 | $ | 5,352 | ||||||||||||
Ecodiesel
Colombia S.A.
|
7,750,000,000 | 50.00 |
Nov-09
|
7,750 | 7,921 | 171 | |||||||||||||||
Offshore
International Group(1)
|
250 | 50.00 |
Dec-09
|
404,664 | 363,199 | (41,465 | ) | ||||||||||||||
Invercolsa
S.A.(2)
|
889,410,047 | 31.76 |
Nov-09
|
60,282 | 148,844 | 88,562 | |||||||||||||||
Arces
Group (3)
|
10,001 | 100.00 |
Dec-09
|
6,000 | 3,919 | (2,081 | ) | ||||||||||||||
Amadine
Holding (3)
|
500 | 100.00 |
Dec-09
|
6,657 | 6,646 | (11 | ) | ||||||||||||||
Total
|
$ | 487,434 | $ | 537,962 | $ | 50,528 |
(1)
|
Offshore
International Group Inc.
|
(2)
|
Restrictions
over variable income long-term
investments
|
(3)
|
As
of December 31 of 2009 these companies were undergoing liquidation
proceedings
|
Company
|
Assets
|
Liabilities
|
Equity
|
Results of the
period
|
||||||||||||
Black
Gold Re Ltd
|
$ | 230,652 | $ | 5,384 | $ | 225,268 | $ | 14,705 | ||||||||
Ecopetrol
Oleo é Gas do Brasil Ltda.
|
31,340 | 10,928 | 20,412 | (139,743 | ) | |||||||||||
Ecopetrol
America Inc
|
1,249,328 | 12,880 | 1,236,448 | (318,609 | ) | |||||||||||
Ecopetrol
del Perú S.A.
|
81,228 | 10,450 | 70,778 | (3,347 | ) | |||||||||||
Andean
Chemicals Limited
|
1,717,785 | 1,193,676 | 524,109 | (65,597 | ) | |||||||||||
Polipropileno
del Caribe S.A.
|
983,246 | 354,652 | 628,594 | 47,712 | ||||||||||||
Compounding
and Masterbatching Industry Ltda – COMAI.
|
76,539 | 28,516 | 48,023 | 27,114 | ||||||||||||
Bioenergy
S.A.
|
64,928 | 6,593 | 58,335 | (2,476 | ) | |||||||||||
ODL
Finance S.A.
|
1,381,021 | 959,245 | 421,776 | 12,419 | ||||||||||||
Oleoducto
Central
|
1,773,783 | 63,824 | 1,709,959 | - | ||||||||||||
Ecopetrol
Transportation Company
|
509,716 | 27,418 | 482,298 | 634 | ||||||||||||
Hocol
Petroleum Limited
|
1,901,317 | 608,693 | 1,292,624 | 330,590 | ||||||||||||
Oleoducto
de Colombia
|
311,550 | 27,090 | 284,460 | (22,027 | ) | |||||||||||
Refinería
de Cartagena
|
3,046,293 | 572,520 | 2,473,773 | (127,854 | ) | |||||||||||
Ecopetrol
Global Energy
|
1,242,406 | 8 | 1,242,398 | (316,887 | ) |
Company
|
Assets
|
Liabilities
|
Equity
|
Results of the
period
|
||||||||||||
Black
Gold Re Ltd
|
$ | 245,470 | $ | 13,277 | $ | 232,193 | $ | 18,515 | ||||||||
Ecopetrol
Oleo é Gas do Brasil Ltda.
|
17,727 | 20 | 17,707 | (1,907 | ) | |||||||||||
Ecopetrol
America Inc.
|
1,294,425 | 30,068 | 1,264,357 | (243,317 | ) | |||||||||||
Ecopetrol
del Perú S.A.
|
25,588 | 6,103 | 19,485 | (43,333 | ) | |||||||||||
Andean
Chemicals Limited
|
392,795 | 15,816 | 376,979 | 8,255 | ||||||||||||
Polipropileno
del Caribe S.A.
|
970,284 | 410,340 | 559,944 | 53,346 | ||||||||||||
ODL
Finance S.A.
|
680,004 | 3,376 | 676,628 | 186 |
Company
|
Economic Activity
|
Net result
2009
|
Net result
2008
|
|||||||
Interconexión
Eléctrica S.A. (1)
|
Operation,
maintenance, transmission and sale of electrical power.
|
$ | 371,996 | $ | 179,495 | |||||
Empresa
de Energía de Bogotá S.A. ESP. (2)
|
Electrical
energy power transmission
|
$ | 786,888 | $ | 230,756 | |||||
Invercolsa
S.A. (1)
|
Investments
in energy sector companies including activities inherent to the industry
and commerce of hydrocarbons and mining.
|
$ | 71,903 | $ | 111,773 | |||||
Serviport
S.A. (1)
|
Provision
of support services for loading and unloading of crude oil ships, supply
of equipment for the same purpose, load inspections and
measurements.
|
$ | 941 | $ | (500 | ) | ||||
Ecodiesel
Colombia S.A. (1)
|
Production,
sale and distribution of bio-fuels and oleo-chemicals.
|
$ | 336 | $ | 76 | |||||
Offshore
International Group
|
Exploration,
development, production and processing of hydrocarbons.
|
$ | 69,845 | $ | - |
(1)
|
Information
as of November 30, 2009
|
(2)
|
Preliminary
information as of December 31, 2009
|
Maturity
|
1 - 3 Years
|
3 - 5 Years
|
> 5 Years
|
Total
|
||||||||||||
Bonds
and securities of foreign entities
|
$ | 1,681,593 | $ | 101,843 | $ | 51,343 | $ | 1,834,779 | ||||||||
Bonds
issued by the Colombian Government
|
311,367 | 290,672 | - | 602,039 | ||||||||||||
Treasury
Securities - TES
|
36,149 | 45,905 | 12,198 | 94,252 | ||||||||||||
Other
investments
|
21,703 | - | - | 21,703 | ||||||||||||
Fund
for legal contingencies
|
61,227 | 139,009 | 180,227 | 380,463 | ||||||||||||
$ | 2,112,039 | $ | 577,429 | $ | 243,768 | $ | 2,933,236 |
Maturity
|
1 - 3 Years
|
3 - 5 Years
|
> 5 Years
|
Total
|
||||||||||||
Private
Bonds
|
$ | 4,145,510 | $ | 757,805 | $ | 191,281 | $ | 5,094,596 | ||||||||
Bonds
and securities issued by the Colombian Government
|
144,180 | 442,297 | 167,577 | 754,054 | ||||||||||||
Treasury
Securities - TES
|
31,317 | 13,863 | 11,349 | 56,529 | ||||||||||||
Fund
for legal contingences
|
131,250 | 159,726 | 87,485 | 378,461 | ||||||||||||
$ | 4,452,257 | $ | 1,373,691 | $ | 457,692 | $ | 6,283,640 |
5.
|
Accounts
and notes receivable
|
2009
|
2008
|
|||||||
Current
portion
|
||||||||
Customers:
|
||||||||
Local
|
$ | 975,743 | $ | 555,405 | ||||
Foreign
|
1,202,517 | 530,495 | ||||||
Price
differentials to be received from the Ministry of Mines and Energy
(1)
|
263,513 | 3,970,115 | ||||||
Other
debtors
|
300,586 | 350,227 | ||||||
Related
parties
|
- | 237,236 | ||||||
Reimbursements
and investment yields (2)
|
99,798 | 111,977 | ||||||
Association
contracts – Joint operations
|
85,582 | 52,821 | ||||||
Doubtful
accounts
|
62,038 | 33,008 | ||||||
Accounts
receivable from employees
|
16,780 | 29,951 | ||||||
Notes
receivable
|
14,661 | 22,680 | ||||||
Industrial
service customers
|
11,965 | 17,046 | ||||||
3,033,183 | 5,910,961 | |||||||
Less
allowance for doubtful accounts
|
(64,063 | ) | (33,679 | ) | ||||
Total
current portion
|
$ | 2,969,120 | $ | 5,877,282 | ||||
Long-term
portion
|
||||||||
Local
customers
|
$ | - | $ | 859 | ||||
Loans
to employees (3)
|
204,647 | 149,051 | ||||||
Credit
portfolio (4)
|
22,129 | 41,010 | ||||||
Others
|
5 | 3,992 | ||||||
Total
long-term portion
|
$ | 226,781 | $ | 194,912 |
Maturity in days
|
||||||||||||
0 - 180 | 181 - 360 |
More than 361*
|
||||||||||
Current
accounts receivable
|
$ | 2,037,815 | $ | - | $ | - | ||||||
Past
Due accounts receivable
|
127,899 | 5,777 | 6,769 | |||||||||
2,165,714 | 5,777 | 6,769 | ||||||||||
Local
customers
|
974,241 | 75 | 1,427 | |||||||||
Foreign
customers
|
1,191,473 | 5,702 | 5,342 | |||||||||
$ | 2,165,714 | $ | 5,777 | $ | 6,769 |
Maturity in days
|
||||||||||||
0 - 180 | 181 - 360 |
More than 361*
|
||||||||||
Current
accounts receivable
|
$ | 1,036,244 | $ | 2,131 | $ | 859 | ||||||
Past
Due accounts receivable
|
47,525 | - | 1,507 | |||||||||
1,083,769 | 2,131 | 2,366 | ||||||||||
Local
customers
|
555,405 | - | - | |||||||||
Foreign
customers
|
530,495 | - | - | |||||||||
$ | 1,085,900 | $ | - | $ | - |
2009
|
2008
|
2007
|
||||||||||
Initial
balance
|
$ | 33,679 | $ | 28,665 | $ | 23,847 | ||||||
Additions
(New provisions)
|
34,608 | 3,100 | 15,591 | |||||||||
Adjustments
to existing allowance
|
(3,445 | ) | 2,319 | 3,064 | ||||||||
Recoveries
|
(779 | ) | (405 | ) | (13,837 | ) | ||||||
Ending
balance
|
$ | 64,063 | $ | 33,679 | $ | 28,665 |
(1)
|
Corresponds
to accounts receivable from the Ministry of Mines and Energy for a total
amount of $263,513 regarding the recognition of the regular motor gasoline
and Diesel price differential and the opportunity cost. During the year
payments in amount of $4,105,909 were received corresponding to the
opportunity cost and price differential of the regular motor gasoline and
Diesel for year 2008. The opportunity cost accrued for 2009 was of
$235,704.
|
(2)
|
Made
up by (i) dividends receivable from Interconexión Eléctrica S.A. – ISA in
amount of $2,117 and (ii) return and yield of investments receivable in
amount of $96,669.
|
(3)
|
By
means of Leg contracts 058-80 of 1980 and 4008928 of 2006, the
administration, management and control of loans granted to employees by
the Company were given to Cavipetrol. In its capacity as administrator,
Cavipetrol acts as custodian in its database and financial system of the
detail by employee of said loans and their respective
conditions.
|
Year
|
Amount
|
|||
2010
|
$ | 25,488 | ||
2011
|
27,782 | |||
2012
|
30,282 | |||
2013
|
33,008 | |||
2014
and following
|
88,087 | |||
$ | 204,647 |
(4)
|
A
summary of the long-term recovery portfolio for each of the following five
years is provided below:
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
||||||||||||||||||||
Applicable interest rate
|
Dec-10 to
Nov-11
|
Dec-11 to
Nov-12
|
Dec-12 to
Nov-13
|
Dec-13 to
Nov-14
|
Dec-14 to
Nov-15
|
More than 5
years
|
||||||||||||||||||
DTF
previous month
|
$ | 87 | $ | 14 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
CPI
+ 6
|
9 | 19 | 19 | 5 | - | - | ||||||||||||||||||
CPI
+ 6
|
46 | 61 | 61 | 49 | - | - | ||||||||||||||||||
CPI
|
37 | 18 | 18 | 18 | 19 | 79 | ||||||||||||||||||
ECP
opportunity rate -Bank Average
|
285 | - | - | - | - | - | ||||||||||||||||||
DTF
+ 6 points
|
10 | - | - | - | - | - | ||||||||||||||||||
Greater
between 6% EA and CPI for semester starting July 2009
|
9,311 | 2,164 | 6,500 | - | - | - | ||||||||||||||||||
DTF
+ 6.25% T.A. percent points in its equivalent to E.A, starting on March
30, 2011
|
3,300 | - | - | - | - | - | ||||||||||||||||||
Total
annual recovery
|
$ | 13,085 | $ | 2,276 | $ | 6,598 | $ | 72 | $ | 19 | $ | 79 | ||||||||||||
Total
|
$ | 22,129 |
DTF:
|
Average
of interest rates for fixed term deposits, promulgated by the
Superintendency of Finance.
|
CPI:
|
Consumer
Price Index, as indicated by the Colombian
Government
|
ECP:
|
Ecopetrol
|
EA:
|
Effective
Annual Rate
|
6.
|
Inventories
|
2009
|
2008
|
|||||||
Finished
Products:
|
||||||||
Fuels
|
$ | 555,359 | $ | 465,388 | ||||
Petrochemicals
|
101,302 | 108,352 | ||||||
Crude
oil
|
763,800 | 602,210 | ||||||
Natural
gas
|
- | 41 | ||||||
Purchased
Products:
|
||||||||
Crude
oil
|
23,212 | 35,568 | ||||||
Fuel
|
84,189 | 132,295 | ||||||
Petrochemicals
|
5,704 | 31,934 | ||||||
Natural
gas
|
- | - | ||||||
Raw
Materials:
|
||||||||
Crude
oil
|
74,343 | 96,970 | ||||||
Petrochemicals
|
29,045 | 29,596 | ||||||
Natural
gas
|
- | - | ||||||
In-process
Products:
|
||||||||
Fuel
|
316,129 | 203,328 | ||||||
Petrochemicals
|
19,458 | 3,826 | ||||||
In
transit inventories
|
21,870 | 11,279 | ||||||
Materials
for the production of assets
|
93,298 | 9,907 | ||||||
Packing
material
|
- | 2,144 | ||||||
In
transit materials
|
- | 5,922 | ||||||
Total
|
2,087,709 | 1,738,760 | ||||||
Less
allowance for inventories
|
(45,012 | ) | (127,464 | ) | ||||
Total
|
$ | 2,042,697 | $ | 1,611,296 |
2009
|
2008
|
2007
|
||||||||||
Initial
balance
|
$ | 127,464 | $ | 80,971 | $ | 752 | ||||||
Adjustments
to allowance, net
|
(82,452 | ) | 46,493 | 80,219 | ||||||||
Ending
balance
|
$ | 45,012 | $ | 127,464 | $ | 80,971 |
7.
|
Advances
and Deposits
|
2009
|
2008
|
|||||||
Short
term
|
||||||||
Official
Entities (1)
|
$ | 2,350,646 | $ | 1,465,401 | ||||
Partners
in joint operations (2)
|
474,920 | 578,368 | ||||||
Advances
to contractors
|
27,907 | 19,805 | ||||||
Agreements
|
19,364 | 16,880 | ||||||
Customs
agents
|
12,611 | 14,484 | ||||||
Advances
to suppliers
|
42,496 | 82,623 | ||||||
Related
parties
|
89,782 | 2,528 | ||||||
Advances
for assets acquisition
|
- | 67,308 | ||||||
Advances
to employees
|
1,053 | 725 | ||||||
3,018,779 | 2,248,122 | |||||||
Long-term
|
||||||||
Advances
and deposits
|
253,681 | 271,121 | ||||||
Total
|
$ | 3,272,460 | $ | 2,519,243 |
(1)
|
Includes
transactions with the National Tax and Customs Administration - DIAN for
advance income tax for 2009 in an amount totaling $1,889,555, self
withholdings, and others in an amount totaling $461,091 (in 2008,
$498,671).
|
(2)
|
Joint
operations:
|
2009
|
2008
|
|||||||
Contracts
in which Ecopetrol is not the operator:
|
||||||||
BP
Exploration Company Colombia
|
$ | 25,845 | $ | 112,230 | ||||
Meta
Petroleum Ltd.
|
73,450 | 80,092 | ||||||
Mansarovar
Energy Colombia Ltd.
|
3,712 | 48,579 | ||||||
Occidental
Andina LLC
|
21,386 | 36,996 | ||||||
Petrobras
Colombia Limited
|
33,877 | 31,438 | ||||||
Anadarko
Petroleum Corporation
|
2,495 | 25,410 | ||||||
Petróleo
Brasileiro S.A. - Petrobras
|
120 | - | ||||||
Occidental
de Colombia Inc.
|
10,864 | 16,997 | ||||||
BHP
Billiton Petroleum Colombia
|
5,111 | 9,129 | ||||||
Hocol
S.A.
|
- | 7,370 | ||||||
Petrobras
Internacional Braspetro B.V.
|
5,042 | 3,716 | ||||||
CEPSA
Colombia S.A.
|
7,258 | 2,228 | ||||||
Perenco
Colombia Limited
|
1,262 | 1,770 | ||||||
Kappa
Resources Colombia Ltd.
|
1,694 | 1,199 | ||||||
Chevron
Petroleum Company
|
76,693 | - | ||||||
Other
operations
|
61,253 | 64,961 | ||||||
Contracts
in which Ecopetrol is the operator:
|
||||||||
Oleoducto
Caño Limón
|
55,931 | 120,797 | ||||||
La
Cira
|
51,415 | 8,303 | ||||||
Tibú
|
4,120 | 3,087 | ||||||
CRC
2004 – 01
|
1,559 | 730 | ||||||
JOA
Caño Sur
|
6,135 | 200 | ||||||
JOA
Platanillo
|
- | 22 | ||||||
Shared
risk Catleya
|
706 | 20 | ||||||
Other
operations
|
24,992 | 3,094 | ||||||
Total
|
$ | 474,920 | $ | 578,368 |
8.
|
Prepaid
expenses
|
2009
|
2008
|
|||||||
Insurance
(1)
|
$ | 20,199 | $ | 14,247 | ||||
Others
(2)
|
42,616 | 9,968 | ||||||
Total
|
$ | 62,815 | $ | 24,215 |
(1)
|
$13,242
corresponds to Ecopetrol S.A and is valid to April
2010.
|
(2)
|
Includes
mainly the resources paid by America Inc. for cash call in amount of
$38,603; and $2,698 for purchase and maintenance of the vehicles assigned
to top officers of Ecopetrol through
leasing.
|
9.
|
Property,
Plant and Equipment, net
|
2009
|
2008
|
|||||||
Plant
and equipment
|
$ | 13,438,144 | $ | 11,291,735 | ||||
Construction
in progress (1)
|
6,487,411 | 3,435,379 | ||||||
Pipelines,
networks and lines (2)
|
13,171,399 | 4,081,579 | ||||||
Buildings
|
2,184,484 | 1,194,298 | ||||||
Equipment
on deposit and in transit
|
1,221,822 | 949,724 | ||||||
Transportation
equipment and other fixed assets
|
389,728 | 286,864 | ||||||
Computer
equipment
|
313,891 | 281,037 | ||||||
Land
|
302,420 | 76,660 | ||||||
Total
|
37,509,299 | 21,597,276 | ||||||
Accumulated
depreciation
|
(20,226,621 | ) | (12,426,330 | ) | ||||
Provision
for property, plant and equipment (3)
|
(500,175 | ) | (1,093,458 | ) | ||||
Total
|
$ | 16,782,503 | $ | 8,077,488 |
(1)
|
The
representative amounts corresponds to infrastructure projects such as the
Barrancabermeja’s Refinery modernization project and fuel hydro treatment
plant; drilling projects of Apiay, Suria and Reforma wells – Direct
Operation; drilling project of the Santiago de las Atalayas well – Joint
Operation; start-up of the injection plants of Isla IV in the Mid
Magdalena; construction of the Chichimene Station; construction of the
naphtha pipeline Mansilla – Tocancipá, and the physical infrastructure
adaptation project of Ecopetrol’s
premises.
|
(2)
|
Increase
corresponds mainly to the incorporation of assets from Oleoducto Central
and Oleoducto de Colombia into the Group of Companies’ consolidated
financial statements.
|
(3)
|
Corresponds
to the final result of the appraisal made by Ecopetrol to the fixed assets
in the year 2009, which represents the devaluation of assets by comparison
of their net book value and their technical
appraisal.
|
2009
|
2008
|
2007
|
||||||||||
Initial
balance
|
$ | 1,093,458 | $ | 105,118 | $ | 97,227 | ||||||
Additions
(new provisions)
|
144,431 | 1,013,116 | 9,037 | |||||||||
Provision
from business combination
|
- | 770 | - | |||||||||
Adjustment
of existing provisions
|
(714,605 | ) | (6,733 | ) | (1,146 | ) | ||||||
Recoveries
|
(23,109 | ) | (18,813 | ) | - | |||||||
Ending
balance
|
$ | 500,175 | $ | 1,093,458 | $ | 105,118 |
Type of asset
|
Adjusted cost
|
Accumulated
depreciation
|
Revaluations
|
Allowances
|
Fair Value
|
|||||||||||||||
Plants
and equipment
|
$ | 13,438,144 | $ | 9,410,022 | $ | 3,506,575 | $ | (347,839 | ) | 11,171,442 | ||||||||||
Pipelines,
networks and lines
|
13,171,399 | 9,373,243 | 787,908 | (71,262 | ) | 1,661,697 | ||||||||||||||
Construction
in progress
|
6,487,411 | - | - | - | - | |||||||||||||||
Buildings
|
2,184,484 | 966,755 | 777,504 | (67,442 | ) | 1,812,927 | ||||||||||||||
Equipment
on deposit and in transit
|
1,221,822 | - | - | - | - | |||||||||||||||
Computer
equipment
|
313,892 | 239,540 | 30,425 | (5,636 | ) | 33,391 | ||||||||||||||
Transportation
equipment and other fixed assets
|
389,727 | 237,061 | 96,802 | (7,996 | ) | 93,656 | ||||||||||||||
Land
|
302,420 | - | 162,760 | - | 53,938 | |||||||||||||||
Total
|
$ | 37,509,299 | $ | 20,226,621 | $ | 5,361,974 | $ | (500,175 | ) | 14,827,051 |
Type of asset
|
Adjusted cost
|
Accumulated
depreciation
|
Revaluations
|
Allowances
|
Fair Value
|
|||||||||||||||
Plants
and equipment
|
$ | 11,291,735 | $ | 8,795,252 | $ | 3,613,491 | $ | (636,241 | ) | 10,978,466 | ||||||||||
Pipelines,
networks and lines
|
4,081,579 | 2,644,522 | 308,518 | (158,006 | ) | 714,405 | ||||||||||||||
Construction
in progress
|
3,435,379 | - | - | - | 12,224 | |||||||||||||||
Buildings
|
1,194,298 | 532,271 | 529,766 | (270,227 | ) | 1,008,253 | ||||||||||||||
Equipment
on deposit and in transit
|
949,724 | - | - | - | - | |||||||||||||||
Computer
equipment
|
281,037 | 229,026 | 25,617 | (20,789 | ) | 25,581 | ||||||||||||||
Transportation
equipment and other fixed assets
|
286,864 | 225,259 | 73,950 | (8,195 | ) | 74,915 | ||||||||||||||
Land
|
76,660 | - | 11,668 | - | 26,635 | |||||||||||||||
Total
|
$ | 21,597,276 | $ | 12,426,330 | $ | 4,563,010 | $ | (1,093,458 | ) | 12,840,479 |
10.
|
Natural
and Environmental Resources, net
|
2009
|
2008
|
|||||||
Amortizable
crude oil investments
|
$ | 17,676,586 | $ | 13,727,384 | ||||
Less:
Accumulated amortization (1)
|
(8,756,267 | ) | (7,007,255 | ) | ||||
8,913,329 | 6,720,129 | |||||||
Plugging
and abandonment, dismantling of facilities and environmental recovery
costs
|
2,942,370 | 1,965,902 | ||||||
Less:
Accumulated amortization
|
(1,247,047 | ) | (1,091,504 | ) | ||||
1,695,323 | 874,398 | |||||||
Reservoirs
and appraisals (2)
|
701,590 | 701,590 | ||||||
Less:
Accumulated depletion
|
(598,330 | ) | (580,132 | ) | ||||
103,260 | 121,458 | |||||||
Exploration
in progress (3)
|
443,469 | 338,064 | ||||||
Total
|
$ | 11,155,381 | $ | 8,054,049 |
(1)
|
Amortization
increase of crude oil investments resulted from the difference on the
applied WTI price which increased from US$44,6 bl. to US$61,18 bl. in
accordance with the SEC methodology. On the other hand $2,996,112 was
capitalized mainly for the Cusiana, Cupiagua, Capachos Sur, Rubiales,
Girasol and Casabe fields, among
others.
|
(2)
|
These
reserves were received from the reversions of concession contracts in an
amount totaling $520,218 currently administered by Gerencia Sur and
$181,372 by Magdalena Medio.
|
(3)
|
Corresponds
to the exploratory fields from Ecopetrol America Inc $95,806, Ecopetrol
Perú $36,012, Hocol $109,472, Ecopetrol Brasil $14,743 Ecopetrol S.A
$187,436.
|
11.
|
Pension
Plan Assets
|
2009
|
2008
|
|||||||
Consorcio
Fidubogotá – Fiducolpatria
|
$ | - | $ | 17,399 | ||||
Consorcio
Fidupopular – Fiduoccidente
|
- | 14,980 | ||||||
Consorcio
Fiduagraria - Fiducoldex - Helm Trust
|
- | 9,610 | ||||||
Consorcio
BBVA - Corficolombiana – Fidubogotá
|
- | 9,677 | ||||||
Consorcio
Fiducafé - Fiduprevisora - Fidupetrol
|
- | 16,805 | ||||||
Consorcio
Fiducolombia - Santander Investment
|
- | 11,792 | ||||||
Total
|
- | 80,263 | ||||||
Less: short
term redeemable portion (1)
|
$ | - | $ | 80,263 |
(1)
|
Amount
reimbursed to Ecopetrol in March 2009 which corresponded to the remainder
resulting from the partial transfer (commutation) of monthly pension
obligations made through the mechanism approved by the Ministry of Social
Security in December 2008.
|
2008
|
||||||||
Transferred amount
|
Non-transferred amount
|
|||||||
Pension
Liability (*)
|
$ | 10,092,528 | $ | 2,157,286 | ||||
Trust
funds
|
$ | 10,172,791 | $ | 80,263 | ||||
Coverage
|
100.8 | % | 4 | % |
*
|
The
Company’s pension liability includes health care and education reserves
and the actuarial calculation of its joint operations personnel, using the
participation percentage initially agreed to in each respective
contract. These amounts were not part of the transfer of
pension liabilities.
|
2009
|
2008
|
|||||||
Initial
balance
|
$ | 80,263 | $ | 9,495,674 | ||||
Yields
|
- | 1,171,960 | ||||||
Payments
|
- | (494,843 | ) | |||||
Transfer
of pension liability
|
- | (10,092,528 | ) | |||||
Reimbursement
from trust funds
|
(80,263 | ) | - | |||||
Ending
balance
|
$ | - | $ | 80,263 |
12.
|
Deferred
Charges
|
2009
|
2008
|
|||||||
Deferred
income tax
|
$ | 1,408,659 | $ | 1,285,648 | ||||
Other
deferred charges (net)
|
419,342 | 235,720 | ||||||
Charges
of deferred monetary correction, net
|
58,528 | 66,279 | ||||||
Deferred
reinsurance expenses
|
- | 8,036 | ||||||
$ | 1,886,529 | $ | 1,595,683 |
13.
|
Other
Assets
|
2009
|
2008
|
|||||||
Goodwill
(1)
|
$ | 2,507,552 | $ | 668,614 | ||||
National
Royalties Fund
|
76,185 | 82,147 | ||||||
Trust
funds (2)
|
83,342 | 77,255 | ||||||
Intangibles:
Trademarks, licenses, patents, software (3)
|
96,027 | 45,968 | ||||||
Abandonment
of installations fund
|
- | 31,283 | ||||||
Deposits
held in trust (4)
|
258,745 | 20,879 | ||||||
Other
assets (5)
|
12,847 | 9,832 | ||||||
$ | 3,034,698 | $ | 935,978 |
(1)
|
Goodwill
corresponds to:
|
|
(i)
|
$621,099
to the net amount between goodwill and the monthly amortization as of
December 31, 2009 relating to the acquisition of Andean Chemicals Limited
and Polipropileno del Caribe S.A., with an estimated amortization term of
17 years and 8 months, determined based on the net present value of the
investment reduced by the amount of the estimated future cash
flows.
|
(ii)
|
$773,492
to the purchase of Offshore International Group, which is subject to the
adjustments that may arise to the purchase price, with an estimated term
for amortization of 14 years determined based on the valuation of the
reserves of block Z2B, the only block in
production.
|
(iii)
|
$507,255
as a result of the purchase of IPL Enterprises (now Ecopetrol
Transportation Company) with an estimated term for amortization of 15
years determined based on Ocensa’s outstanding contractual agreements as
of the date of the negotiation.
|
|
(iv)
|
$605,706
to the acquisition of Hocol Petroleum Limited with an estimated term for
amortization of 16 years determined based on the net present value of the
estimated future cash flows.
|
(2)
|
Includes
|
|
(i)
|
Contributions
and share in amount of $68,024 into the National Hydrocarbons Fund created
to support future hydrocarbon investment, exploration and production
contracts in minor fields, projects managed by the private equity fund of
Hydrocarbons of Colombia
|
|
(ii)
|
Contributions
of $5,728 to the Procuraduria Fund created for general benefit projects in
municipalities near the Cicuco field under the Company’s direct operation:
Cicuco, Mompox and Talaigua Nueva (the objective of the fund is to
disburse the amounts according to each project’s development, which will
be carried out by the municipalities through agreements with Incoder and
the Ministry of Environment) and
|
|
(iii)
|
Contributions
of $9,590 to the Colpet, Condor and Sagoc Fund for possible contingencies
in the liquidation of these former
subsidiaries.
|
(3)
|
Intangible
assets corresponds to assets acquired, showing an increase of $50,062 as
compared to December 2008. Assets increase comprises acquisitions of
licenses and software.
|
(4)
|
Corresponds
to the FAEP deposits to the National Royalties Fund in favor of Ecopetrol.
Its sole purpose is the payment of debts and financing for development
projects and programs in hydrocarbon producing and non-producing
municipalities and departments. Ecopetrol disburses amounts after the
Ministry of Finance issues the corresponding
approvals.
|
(5)
|
Includes
restricted funds in amount of $11,815 (2008 - $73) and $1,015, mainly
represented by legal deposits destined to attend labor, civil and tax
claims.
|
14.
|
Financial
Obligations
|
2009
|
2008
|
|||||||
Short
term
|
||||||||
Foreign
currency debt
|
$ | 101,968 | $ | 231,015 | ||||
Local
currency debt
|
335,113 | 11 | ||||||
Issued
Bonds
|
- | 50,000 | ||||||
Total
short term
|
437,081 | 281,026 | ||||||
Long
term
|
||||||||
Foreign
currency debt
|
13,845 | 561 | ||||||
Local
currency debt
|
2,648,009 | 4,912 | ||||||
Foreign
currency issued bonds
|
3,052,500 | - | ||||||
Total
long term
|
5,714,354 | 5,473 | ||||||
Total
|
$ | 6,151,435 | $ | 286,499 |
Entity
|
Currency
|
Interest rate
|
USD
(Thousand)
|
COP
(Million)
|
||||||||
Short
term
|
||||||||||||
Banco
Agrario (1)
|
COP
|
DTF
+ 4 TA
|
- | 1,601 | ||||||||
Banco
BBVA (1)
|
COP
|
DTF
+ 4 TA
|
- | 1,465 | ||||||||
Banco
BBVA (2)
|
USD
|
0,98%
|
49,174 | 100,523 | ||||||||
Banco
Bogota (6)
|
COP
|
25,82%
|
- | 19 | ||||||||
Banco
Bogotá (1)
|
COP
|
DTF
+ 4 TA
|
- | 1,889 | ||||||||
Banco
Bogotá (2)
|
USD
|
1,19%
|
22,992 | 47,002 | ||||||||
Banco
Bogota (3)
|
USD
|
0,43%
|
|
250 | 511 | |||||||
Banco
Colmena BCSC (1)
|
COP
|
DTF
+ 4 TA
|
|
- | 163 | |||||||
Banco
Av Villas (1)
|
COP
|
DTF
+ 4 TA
|
- | 407 | ||||||||
Banco
Occidente (1)
|
COP
|
DTF
+ 4 TA
|
- | 814 | ||||||||
Banco
Occidente (5)
|
COP
|
DTF
+ 5 TA
|
- | 67,500 | ||||||||
Banco
Popular (1)
|
COP
|
DTF
+ 4 TA
|
- | 1,616 | ||||||||
Banco
Popular (5)
|
COP
|
DTF
+ 5 TA
|
- | 30,000 | ||||||||
Banco
Santander (1)
|
COP
|
DTF
+ 4 TA
|
- | 488 | ||||||||
Banco
Santander (2)
|
USD
|
1,13%
|
5,902 | 12,065 | ||||||||
Bancolombia
(1)
|
COP
|
DTF
+ 4 TA
|
- | 12,605 | ||||||||
Bancolombia
(6)
|
COP
|
25,08%
|
- | 10 | ||||||||
Bank
of New York- Bonds issued Ecopetrol
|
USD
|
49,880 | 101,968 | |||||||||
Davivienda
(1)
|
COP
|
DTF
+ 4 TA
|
- | 10,542 | ||||||||
Finandina
(4)
|
COP
|
15,34%
|
- | 8 | ||||||||
Helm
Bank (1)
|
COP
|
DTF
+ 4 TA
|
- | 1,352 | ||||||||
Helm
Bank (2)
|
USD
|
1,09%
|
21,670 | 44,298 | ||||||||
Helm
Bank (6)
|
COP
|
24,02%
|
- | 117 | ||||||||
Leasing
Bancolombia (5)
|
COP
|
DTF
+ 5.3%TA
|
- | 116 | ||||||||
Uniandes
(3)
|
COP
|
9,57%
|
- | 2 | ||||||||
Total
short term
|
149,868 | 437,081 | ||||||||||
Long
term
|
||||||||||||
Banco
Agrario (1)
|
COP
|
DTF
+ 4 TA
|
- | 196,700 | ||||||||
Banco
AVVillas (5)
|
COP
|
DTF
+ 5 TA
|
- | 45,000 | ||||||||
Banco
BBVA- (1)
|
COP
|
DTF
+ 4 TA
|
- | 180,000 | ||||||||
Banco
Bogotá (1)
|
COP
|
DTF
+ 4 TA
|
- | 232,000 | ||||||||
Banco
Bogota (5)
|
COP
|
DTF
+ 5 TA
|
- | 340,000 | ||||||||
Banco
Colmena BCSC (1)
|
COP
|
DTF
+ 4 TA
|
- | 20,000 | ||||||||
Banco
Av Villas (1)
|
COP
|
DTF
+ 4 TA
|
- | 50,000 | ||||||||
Banco
Occidente (1)
|
COP
|
DTF
+ 4 TA
|
- | 100,000 | ||||||||
Banco
Popular (1)
|
COP
|
DTF
+ 4 TA
|
- | 118,000 | ||||||||
Banco
Popular (5)
|
COP
|
DTF
+ 5 TA
|
- | 37,500 | ||||||||
Banco
Santander (1)
|
COP
|
DTF
+ 4 TA
|
- | 60,000 | ||||||||
Bancolombia (1)
|
COP
|
DTF
+ 4 TA
|
- | 750,000 | ||||||||
Bancolombia
(4)
|
COP
|
20.0469%
EA
|
- | 4,180 | ||||||||
Bancolombia
(7)
|
COP
|
DTF
+ 5.3%TA
|
- | 622 | ||||||||
Bank
of New York- Bonds issued Ecopetrol
|
USD
|
7.625%
|
1,500,000 | 3,066,345 | ||||||||
Davivienda (1)
|
COP
|
DTF
+ 4 TA
|
- | 450,000 | ||||||||
Helm
Bank - (1)
|
COP
|
DTF
+ 4 TA
|
- | 63,500 | ||||||||
Leasing
Bancolombia (6)
|
COP
|
DTF
+ 5.3%TA
|
- | 398 | ||||||||
UniAndes
(3)
|
COP
|
9,57%
|
- | 109 | ||||||||
Total
long term
|
1,500,000 | 5,714,354 | ||||||||||
Total
|
1,649,868 | 6,151,435 |
(1)
|
Includes:
|
|
(i)
|
The
disbursement of the syndicated loan with 11 local banks issued in an
amount of $2,220,200 to finance Ecopetrol’s investment
plans. In order to guarantee coverage of 120% of the credit
amount, Ecopetrol granted the banks a stock pledge over the
shares of stock it owns, either directly or indirectly, in the following
companies:
|
Company
|
Amount
|
|||
Oleoducto
Central S.A.
|
1,110,035 | |||
Refinería
de Cartagena S.A.
|
1,274,796 | |||
Polipropileno
del Caribe S.A.
|
279,409 | |||
Total
|
2,664,240 |
|
(ii)
|
On
July 23, 2009 the Company issued US$ 1.5 billion, 7.625% unsecured and
unsubordinated Notes due 2019 (the “Notes”) under Rule 144A/Regulation S,
with registration rights before the SEC. The Notes were issued pursuant to
an Indenture dated as of July 23, 2009 (the “Indenture”) between the
Company and The Bank of New York Mellon, as
trustee.
|
|
·
|
Coupon:
7,625%
|
|
·
|
Make
Whole on Optional Redemption: 50 basis points over equivalent U.S.
Treasury Securities.
|
|
·
|
Interests
Payment Dates: July 23 and January 23 of each year, starting January 23,
2010.
|
|
·
|
Maturity
Date: July 23, 2019
|
|
·
|
Denominations:
US$1.000 / US$1.000
|
|
·
|
Require
the Company to duly and punctually pay interest on the Notes at the rate
of 7.625% per year on January 23 and July 23 of each year, beginning on
January 23, 2010;
|
|
·
|
Require
the Company to duly and punctually pay principal on the Notes on the
maturity date of July 23, 2019;
|
|
·
|
Limit
the ability of the Company and its material subsidiaries to incur any
lien, except for certain permitted liens, to secure the payment of public
external indebtedness of the Company or any of its material subsidiaries,
except in cases where the Notes are secured equally and ratably with (or
prior to) such indebtedness (but only for so long as such indebtedness is
so secured); and
|
|
·
|
Require
the Company to make an offer to purchase all or any portion of outstanding
Notes held by holders upon the occurrence of a Change of Control
Repurchase Event (as defined in the
Indenture).
|
(2)
|
Propilco’s
total debt is denominated in U.S. dollars at December 31, 2009 this debt
totaled US$ 99,738
|
(3)
|
Comai
|
(4)
|
Bioenergy
|
(5)
|
ODL
Finance’s debt is guaranteed by the “Ship or Pay (SoP)” contracts
mentioned in note 31: ODL’s long-term debt expires as follows: $130,000 in
2011, $130,000 in 2012, $130,000 in 2013, and $32,500 in
2014.
|
(6)
|
Hocol
|
(7)
|
Reficar
|
15.
|
Accounts
payable and transactions with related
parties
|
2009
|
2008
|
|||||||
Short
term
|
||||||||
Advances
from Partners
|
$ | 555,620 | $ | 532,833 | ||||
Deposits
received from third parties
|
817,937 | 397,731 | ||||||
Suppliers
|
1,207,724 | 386,237 | ||||||
Related
parties
|
- | 19,002 | ||||||
Purchase
of hydrocarbons from the Agencia Nacional de Hidrocarburos -
ANH
|
441,533 | 210,056 | ||||||
Reimbursement
of exploratory costs
|
141,775 | 120,627 | ||||||
Other
payables (1)
|
109,952 | 38,996 | ||||||
Dividends
payable (2)
|
3,510 | 2,158 | ||||||
Insurance
and reinsurance payable
|
2,181 | 1,007 | ||||||
$ | 3,280,232 | $ | 1,708,647 | |||||
Long
term
|
||||||||
Other
payables
|
$ | 51,154 | - |
(1)
|
Includes
$37,577 payable to the Fuel Price Stabilization Fund due to the
participation differential generated during
2009.
|
(2)
|
It
corresponds to dividends payable to shareholders who bought Company’s
shares on an installment payment plan and are in arrears there under.
Shareholders’ rights have been suspended pursuant with article 397 of the
Commercial Code and will be restored once the installment payments are
brought up to date.
|
Accounts
receivable
|
Advances
receivable
|
Accounts
payable
|
||||||||||
Hocol
Petroleum Ltd.
|
- | 10,003 | 28,448 | |||||||||
Ocensa
S.A.
|
2,123 | - | 296,717 | |||||||||
Refinería
de Cartagena S.A.
|
360,138 | - | 35,775 | |||||||||
Andean
Chemicals Limited
|
1,170,739 | - | - | |||||||||
Black
Gold Re Ltd.(1)
|
- | - | 197,485 | |||||||||
Balance
as of December 2009
|
1,533,000 | 10,003 | 558,425 | |||||||||
Balance
as of December 2008
|
238,370 | 2,528 | 229,325 |
(1)
|
Corresponds
to amounts received in
administration.
|
Sales and
services
|
Leases
|
Others
|
||||||||||
Revenue:
|
||||||||||||
Refinería
de Cartagena S.A.
|
3,701,421 | - | - | |||||||||
Ocensa
S.A.
|
18,406 | 15,883 | - | |||||||||
Andean
Chemicals Limited
|
- | - | 62,103 | |||||||||
Oleoducto
de Colombia S.A.
|
8,084 | - | - | |||||||||
Compounding
and Masterbatching (COMAI)
|
73,797 | - | - | |||||||||
Year
ended December 31, 2009
|
3,801,708 | 15,883 | 62,103 | |||||||||
Year
ended December 31, 2008
|
4,778,329 | 13,849 | 53,954 |
Purchase of
products
|
Transportation
costs
|
Other
|
||||||||||
Expenses:
|
||||||||||||
Andean
Chemicals Limited
|
- | - | - | |||||||||
Hocol
Petroleum Ltd.
|
93,675 | - | - | |||||||||
Ocensa
S.A.
|
- | 540,060 | - | |||||||||
Oleoducto
de Colombia S.A.
|
- | 28,880 | - | |||||||||
Refinería
de Cartagena S.A.
|
373,199 | - | - | |||||||||
Year
ended December 31, 2009
|
466,874 | 568,940 | - | |||||||||
Year
ended December 31, 2008
|
- | 577,120 | 29,223 |
16.
|
Taxes
Payable
|
2009
|
2008
|
|||||||
Income
tax and other taxes
|
$ | 1,940,756 | $ | 3,618,553 | ||||
Income
and VAT with holdings
|
194,217 | 129,737 | ||||||
Special
tax and surcharge on gasoline (1)
|
124,667 | 92,935 | ||||||
Industry
and commerce and other minor taxes
|
123,707 | 20,917 | ||||||
Sales
tax payable
|
49,675 | 44,326 | ||||||
Total
|
$ | 2,433,022 | $ | 3,906,468 |
(1)
|
This
tax is levied on sales and/or consumption of regular and premium gasoline
and diesel. The funds collected for this tax are paid to the National
Treasury Office of the Ministry of Finance. The special tax is paid on the
basis of the percentage participation of each beneficiary in the national
monthly consumption of regular and premium
gasoline.
|
2009
|
2008
|
2007
|
||||||||||
Current
income tax
|
$ | 1,948,819 | $ | 3,611,020 | $ | 2,006,484 | ||||||
Deferred
tax:
|
||||||||||||
Asset
|
(69,230 | ) | 494,757 | (155,118 | ) | |||||||
Liability
|
234,440 | 276,205 | 34,146 | |||||||||
165,210 | 770,962 | (120,972 | ) | |||||||||
$ | 2,114,029 | $ | 4,381,982 | $ | 1,885,512 |
2009
|
2008
|
|||||||
Deferred
tax asset:
|
||||||||
Initial
balance
|
$ | 1,285,648 | $ | 1,779,874 | ||||
Net
activity for the year
|
69,230 | (494,757 | ) | |||||
Balance
from subsidiaries acquired in 2009
|
53,781 | 531 | ||||||
Ending
balance
|
$ | 1,408,659 | $ | 1,285,648 | ||||
Deferred
tax liability:
|
||||||||
Initial
balance
|
$ | 944,816 | $ | 644,857 | ||||
Net
activity for the year
|
234,438 | 276,205 | ||||||
Balance
from subsidiaries acquired in 2009
|
15,594 | 23,754 | ||||||
Ending
balance
|
$ | 1,194,848 | $ | 944,816 |
2009
|
2008
|
2007
|
||||||||||
Income
before income taxes
|
$ | 7,250,844 | $ | 16,011,204 | $ | 7,065,304 | ||||||
Monetary
correction gain
|
(3,471 | ) | 25,300 | 23,711 | ||||||||
Effect
of tax inflation adjustment
|
108,615 | (87,788 | ) | (391,391 | ) | |||||||
Non
deductible costs and expenses
|
1,256,081 | 813,248 | 432,278 | |||||||||
Special
deductions and deductible tax expenses
|
(3,291,472 | ) | (2,837,230 | ) | (1,176,608 | ) | ||||||
Other
taxable income
|
182,199 | 1,085,307 | 55,972 | |||||||||
Income
not constituting income or capital gains
|
(126,460 | ) | (907,847 | ) | (22,772 | ) | ||||||
Non
taxable income
|
(727,029 | ) | (1,185,857 | ) | (594,954 | ) | ||||||
Non
deductible provisions
|
574,403 | 243,623 | 1,184,895 | |||||||||
Non
taxable trust funds yields
|
(250,265 | ) | (890,538 | ) | 238,327 | |||||||
Net
exempt income
|
(29,540 | ) | (1,372,083 | ) | (863,946 | ) | ||||||
Excess
of presumptive over ordinary income
|
403,226 | - | - | |||||||||
Net
effect of consolidation of taxable income
|
(443,949 | ) | 75,269 | - | ||||||||
Net
taxable income
|
4,932,722 | 10,972,608 | 5,950,816 | |||||||||
Tax
on taxable income
|
1,948,819 | 3,611,020 | 2,023,277 | |||||||||
Tax
discounts
|
- | - | (16,793 | ) | ||||||||
Net
current income tax
|
$ | 1,948,819 | $ | 3,611,020 | $ | 2,006,484 |
17.
|
Labor
Obligations
|
2009
|
2008
|
|||||||
Current
|
||||||||
Bonuses
and allowances (1)
|
$ | 57,022 | $ | 40,773 | ||||
Vacations
|
47,061 | 37,593 | ||||||
Severance
(2)
|
42,598 | 32,391 | ||||||
Pension
bonds issued and interest (4)
|
- | 848 | ||||||
Salaries
and pensions payable
|
13,078 | 12,491 | ||||||
Interest
on severance
|
3,347 | 2,996 | ||||||
Others
|
2,357 | 2,566 | ||||||
Total
current
|
165,463 | 129,658 | ||||||
Long
term
|
||||||||
Retirement
pensions and other benefits ECP (3)
|
2,583,117 | 2,082,072 | ||||||
Retirement
pensions joint operations
|
77,826 | 75,215 | ||||||
Pension
bonds issued and interests (4)
|
- | 7,500 | ||||||
Other
|
8,388 | - | ||||||
Total
long-term
|
2,669,331 | 2,164,787 | ||||||
Total
|
$ | 2,834,794 | $ | 2,294,445 |
(1)
|
Includes
provision for the 2009 variable compensation bonus in the amount of
$30,339 to be paid in 2010. Also includes provision for retirement bonus
in the amount of $6,829.
|
(2)
|
Increase
obeys to the hiring of 560 new employees in
Ecopetrol.
|
(3)
|
Corresponds
to the actuarial reserve amount for health and education, which has not
been transferred and has not been
funded.
|
2009
|
2008
|
Variation
|
||||||||||
Health
|
||||||||||||
Active
personnel
|
287,909 | 276,496 | 11,413 | |||||||||
Pensioners
|
1,789,843 | 1,390,062 | 399,781 | |||||||||
Education
|
||||||||||||
Active
personnel
|
104,951 | 110,306 | (5,355 | ) | ||||||||
Pensioners
|
400,414 | 305,208 | 95,206 | |||||||||
Totals
|
2,583,117 | 2,082,072 | 501,045 |
|
Increase
obeys to 908 additional beneficiaries in the reserve and to the costs
incurred in for health and education in 2009 which are reflected in the
actuarial projection.
|
(4)
|
Variation
results from the transfer of the issued pension bonds included in the
actuarial reserves which will be paid through the Autonomous Pension Trust
funds (PAP) and are controlled through the memorandum
accounts.
|
Headcount
|
||||||||
2009
|
2008
|
|||||||
Bonds
reserve – retired personnel
|
10,017 | 10,391 | ||||||
Bonds
reserve – persons retiring after 2010
|
3,374 | 3,410 | ||||||
Health
care and education reserve (active and pensioners)
|
17,901 | 17,375 | ||||||
Pension
reserve (active and pensioners)
|
16,127 | 16,149 |
18.
|
Estimated
Liabilities and Provisions
|
2009
|
2008
|
|||||||
Current
|
||||||||
Provision
for legal proceedings (1) (See Note 30)
|
$ | 680,022 | $ | 547,942 | ||||
Provisions
for contingencies (2)
|
96,859 | 87,255 | ||||||
Provision
for pension funds (3)
|
2,203 | 4,000 | ||||||
Other
provisions
|
192,631 | 34,776 | ||||||
Provision
for pension obligations (6)
|
178,594 | - | ||||||
Provision
for abandonment, dismantling of facilities and environmental recovery
costs (4)
|
4,106 | - | ||||||
Total
current
|
$ | 1,154,415 | $ | 673,973 | ||||
Long-
term
|
||||||||
Provision
for abandonment, dismantling of facilities and environmental recovery
costs (4)
|
3,013,097 | 1,964,756 | ||||||
Provision for
royalties (5)
|
380,933 | 388,674 | ||||||
Provision
for pension obligations (6)
|
- | 178,594 | ||||||
Other
provisions (7)
|
17,947 | 10,767 | ||||||
Total
long-term
|
3,411,977 | 2,542,791 | ||||||
Total
|
$ | 4,566,392 | $ | 3,216,764 |
(1)
|
The
movement of the provisions for legal proceedings during fiscal years ended
December 2009 and 2008 is set forth
below:
|
Number
of cases
|
Provisions
Amount
|
|||||||
Initial
balance as of December 2008
|
603 | 547,942 | ||||||
Additions
(new provisions)
|
252 | 36,714 | ||||||
Adjustments
to existing provisions
|
(135 | ) | 122,691 | |||||
Recoveries
|
(29 | ) | (27,325 | ) | ||||
Ending
balance as of December 2009
|
691 | 680,022 |
(2)
|
Include
$59,938 for possible payment claims to PDVSA related to the cleaning and
decontamination of the Maracaibo lake in Venezuela; $20,000 related to the
proceeding filed by Compañías Asociadas de Gas - ASOGAS against Ecopetrol
regarding inappropriate billing of the GLP transportation tariff; $3,242
related to spillages with environmental impact; $500 related to the
retirement bonus of Hocol S.A. personnel; $544 related to the success
commission payable to the attorney in law handling the proceeding filed by
Industrias Crizasa against Ecopetrol, and $721 related to potential
liabilities from arbitration
decisions.
|
(3)
|
Corresponds
to the estimated pending pension contributions of employees who joined
Ecopetrol after January 29, 2003 (Law 797 of 2003) and until the first
quarter of 2004, who were covered by the General Pension
Regulations.
|
(4)
|
Difference
between December 2008 of $1,052,447 includes the updating of liabilities
furnished by the Production Vice-presidency of Ecopetrol of $1,203,773;
the effect from foreign currency exchange of $(188,225); the use of
liabilities related to the abandonment wells in $18,799 for the Casabe, La
Cira-Infantas, Floreña, Cantagallo, Sardinata, Tibú, Petrolea, La Cira,
Palagua, Sabana and Lisama-Llanito fields; $73,832 from Hocol and $10,383
from America Inc.
|
2009
|
2008
|
2007
|
||||||||||
Initial
Balance
|
$ | 1,964,756 | $ | 1,528,374 | $ | 1,355,989 | ||||||
Retirements
and uses
|
(21,964 | ) | (2,853 | ) | (1,296 | ) | ||||||
Additions
|
1,188,670 | 54,418 | 94,887 | |||||||||
Changes
in estimation
|
80,243 | 208,131 | 214,485 | |||||||||
Exchange
rate effect
|
(194,502 | ) | 176,686 | (135,691 | ) | |||||||
Final
Balance
|
$ | 3,017,203 | $ | 1,964,756 | $ | 1,528,374 |
(5)
|
Includes
a provision related to a claim of Comuneros of Santiago de las Atalayas
and Pueblo Viejo of Cusiana, originated in Royalties Contracts 15, 15ª and
16 and 16ª executed with Ecopetrol, but declared null and void by the
Colombian Council of State. Of this amount, $90,752 corresponds to the
initial claimed amounts, together with the valuation of the fund where the
amounts are invested and $290,180 corresponds to interests. The decision
on the extraordinary appeal presented by the Comuneros is
pending.
|
(6)
|
Corresponds
to the provision of the pension reserve for employees that are expected to
accept the “Plan 70” retirement plan on July 31 of
2010.
|
(7)
|
It
corresponds to provision to cover the arbitration regarding Mansarovar
Energy Colombia Ltda. controversy related to the termination date of
Cocorná Association contract.
|
19.
|
Other
long term liabilities
|
2009
|
2008
|
|||||||
Advances
received from Ecogas for BOMT obligations
|
996,787 | 1,250,281 | ||||||
Deferred
income tax liability
|
1,194,848 | 944,816 | ||||||
Credit
for deferred monetary correction
|
200,230 | 227,605 | ||||||
Other
liabilities (1)
|
339,355 | 2,789 | ||||||
Deferred
commissions
|
- | 1,430 | ||||||
Total
|
2,731,220 | 2,426,921 |
(1)
|
Includes
$330,238 of ODL Finance which corresponds to credit portfolio
securitization through an Autonomous Trust
Fund.
|
20.
|
Non-controlling
Interest
|
Subsidiary
|
2009
|
2008
|
% of other
shareholders
|
|||||||||
Bioenergy
S.A.
|
11,696 | 8,682 | 20,05 | % | ||||||||
ODL
Finance S.A.
|
147,621 | 234,269 | 35,00 | % | ||||||||
Oleoducto
Central S.A.
|
684,054 | - | 40,00 | % | ||||||||
Oleoducto
de Colombia S.A.
|
97,940 | - | 34,43 | % | ||||||||
941,311 | 242,951 |
21.
|
Equity
|
2009
|
2008
|
|||||||
Authorized
capital
|
15,000,000 | 15,000,000 | ||||||
Capital
to be subscribed
|
(4,881,872 | ) | (4,881,872 | ) | ||||
Subscribed
Capital
|
10,118,128 | 10,118,128 | ||||||
Subscribed
capital pending payment
|
(337 | ) | (337 | ) | ||||
Subscribed
and paid-in capital
|
10,117,791 | 10,117,791 | ||||||
Additional
paid-in capital
|
4,721,457 | 4,704,737 | ||||||
Additional
paid-in capital receivable
|
(1,137 | ) | (25,461 | ) | ||||
Additional
paid-in capital
|
4,720,320 | 4,679,276 | ||||||
Surplus
from revaluations
|
6,391,417 | 5,179,961 | ||||||
Devaluation
of assets
|
(298,024 | ) | (1,012,229 | ) | ||||
Responsibilities
from pending rulings
|
(781 | ) | (781 | ) | ||||
Effects
of RCP application
|
(298,805 | ) | (1,013,010 | ) | ||||
Net
income
|
5,132,054 | 11,629,677 | ||||||
Legal
reserve
|
3,591,397 | 2,428,325 | ||||||
Appropriation
for new explorations
|
1,568,107 | 4,415 | ||||||
Accounting
clearance
|
17,804 | 17,804 | ||||||
Surplus
from equity method
|
1,287,118 | 1,340,357 | ||||||
Incorporated
institutional equity
|
137,725 | 94,375 | ||||||
Foreign
exchange conversion adjustment
|
(94,971 | ) | 140,746 | |||||
Total
equity
|
32,569,957 | 34,619,717 |
2009
|
2008
|
|||||||
Property,
plant and equipment:
|
||||||||
Plant
and equipment (1)
|
$ | 3,506,575 | $ | 3,613,491 | ||||
Buildings
|
777,504 | 529,766 | ||||||
Pipelines
and networks
|
787,908 | 308,518 | ||||||
Land
|
162,760 | 11,668 | ||||||
Communication
and computer equipment
|
30,424 | 25,616 | ||||||
Other
assets
|
96,803 | 73,951 | ||||||
5,361,974 | 4,563,010 | |||||||
Variable
yield investments:
|
||||||||
Interconexión
Eléctrica S.A.
|
695,303 | 348,822 | ||||||
Empresa
de Energía de Bogotá S.A. ESP.
|
333,606 | 268,129 | ||||||
Propaise
S.A.
|
100 | - | ||||||
Zona
Franca Industrial
|
431 | - | ||||||
Sociedad
Portuaria El Dique
|
3 | - | ||||||
1,029,443 | 616,951 | |||||||
Total
|
$ | 6,391,417 | $ | 5,179,961 |
(1)
|
In
2009 the Company carried out the assets physical count for their valuation
process, giving full compliance to the obligation of performing physical
inventories counts at least every three
years.
|
22.
|
Memorandum
Accounts
|
2009
|
2008
|
|||||||
Debtor
/ Rights:
|
||||||||
Exploitation
Rights - Decree 727 of 2007 (1)
|
$ | 46,503,863 | $ | 21,870,515 | ||||
Pension
Trust funds (2)
|
10,971,723 | 10,092,528 | ||||||
Costs
and expenses (deductible and non deductible)
|
14,422,782 | 9,763,156 | ||||||
Other
contingent rights and debtor accounts (3)
|
11,480,671 | 5,420,473 | ||||||
Securities
given in custody and guarantee
|
3,045,181 | 9,583,641 | ||||||
Execution
of investment projects
|
780,040 | 761,276 | ||||||
Legal
proceedings
|
441,675 | 602,436 | ||||||
Fiscal
differences
|
313,572 | - | ||||||
87,959,507 | 58,094,025 | |||||||
Creditor
/ Obligations:
|
||||||||
Contractual
guarantees (4)
|
12,420,129 | 26,187,641 | ||||||
Pension
trust funds
|
10,899,026 | 10,092,528 | ||||||
Non-tax
liabilities
|
5,205,671 | 5,603,395 | ||||||
Non-taxable
income
|
5,826,947 | 4,197,768 | ||||||
Mandate
contracts (5)
|
1,460,073 | 1,576,785 | ||||||
Administration
Funds - Dec 1939 of 2001 and 2652 of 2002
|
972,641 | 972,390 | ||||||
Legal
proceedings
|
2,283,219 | 1,636,275 | ||||||
Goods
received in custody (6)
|
7,949,960 | 9,214,520 | ||||||
Future
BOMT payments
|
504,288 | 713,099 | ||||||
Guarantees
granted to Oleoducto Central S.A. (7)
|
- | 404,569 | ||||||
Other
contingent obligations (8)
|
3,403,368 | 181,636 | ||||||
50,925,322 | 60,780,606 | |||||||
$ | 138,884,829 | $ | 118,874,631 |
(1)
|
As
of December 31, 2009 Ecopetrol updated its estimated volumes of net
reserves (without royalties) determined by the international methodology
for reserves calculations; certification process for 2009 started in
September and results were obtained in January
2010.
|
(2)
|
Reflects
the contingent right (debtor account) on the resources delivered to PAP,
to pay the transferred pension liability in order to control the existence
of liquid resources present in the trust fund. The commuted (transferred)
amount as of December 31, 2009 was $10,971,723 ($10,092,528 as of December
31, 2008) which solely corresponds to pension allowances, shares and
pension bonds; the amounts regarding health and education are included in
the pension liabilities owed by Ecopetrol. The commuted (transferred)
amounts, as well as their yields, cannot change destination or be returned
to the Company until the pension obligations have been entirely
covered.
|
2009
|
2008
|
|||||||
Consorcio
Fidubogotá - Fiducolpatria
|
$ | 2,378,039 | $ | 2,187,742 | ||||
Consorcio
Fidupopular - Fiduoccidente
|
2,032,621 | 1,883,653 | ||||||
Consorcio
Fiduagraria - Fiducoldex - Helm Trust
|
1,306,940 | 1,208,338 | ||||||
Consorcio
BBVA - Fidubogotá - Corficolombiana
|
1,331,711 | 1,216,868 | ||||||
Consorcio
Fiducafé - Fiduprevisora - Fidupetrol
|
2,299,552 | 2,113,131 | ||||||
Consorcio
Fiducolombia - Santander Investment
|
1,622,860 | 1,482,796 | ||||||
Total
|
$ | 10,971,723 | $ | 10,092,528 |
(3)
|
Balance
of the tax memorandum accounts groups the differences between the values
of both equity and results accounts taken from the tax return for 2008 and
the accounting balances. Differences correspond to concepts such as
revaluations and provisions not accepted by tax regulations, the
difference in the method for amortization of crude oil investments which
for accounting purposes is made by production units and for tax purposes
by the straight-line method, and the effect of the generated inflation
adjustment, among others.
|
(4)
|
Includes
(i) contracts pending to implement in Pesos, Dollars, and Euros at the
representative market rate at December 31, 2009, (ii) $11,889,152 in
standby letters credit which guarantees contracts entered into by
Ecopetrol in an amount totaling $523,772 and (iii) $7,205 in documentary
credit letters. The difference between December 2008 values are
due to contract balances for 2009.
|
(5)
|
Includes
the amount of assets received in custody by Refinería de Cartagena S.A. to
comply with the obligations entered into under the warrant operating
agreement between the Company and said entity to operate the Cartagena
refinery.
|
(6)
|
Corresponds
to non-renewable natural resources received by the Nation for $7,883,514
calculated based on SEC prices and discount rates. Additionally, the
balance is represented by the inventories of sold products pending
delivery to customers, for $65,374 from Ecopetrol, $934 from Propilco, $28
from Ocensa and inventories held on consignment for self consumption in
the different plants of Ecopetrol for
$110.
|
(7)
|
In
March 2009, Ecopetrol acquired Enbridge Inc.’s shares in Ocensa. As a
result, the contingent obligations to provide the necessary funds to repay
capital contributions and the preferred dividends to the remaining
Ocensa’s shareholders have ended.
|
(8)
|
Includes
basically the closed pledge in amount of $2,664,240 of the stock shares
that Ecopetrol owns directly or indirectly in Oleoducto Central, Refinería
de Cartagena S.A. and Polipropileno del Caribe S.A., guaranteeing 120%
coverage of the syndicated loan granted by the local banks. (See note
14)
|
23.
|
Revenue
|
2009
|
2008
|
2007
|
||||||||||
Local
Sales
|
||||||||||||
Medium
distillates
|
$ | 5,097,467 | $ | 5,914,627 | $ | 4,889,373 | ||||||
Gasoline
|
5,015,900 | 3,644,345 | 3,346,360 | |||||||||
Services
|
1,113,075 | 921,652 | 821,197 | |||||||||
Natural
gas
|
1,000,517 | 901,414 | 660,171 | |||||||||
Plastic
and rubber
|
571,007 | 382,519 | - | |||||||||
L.P.G.
and propane
|
469,551 | 612,771 | 604,752 | |||||||||
Asphalt
|
314,230 | 390,544 | 257,177 | |||||||||
Other
products
|
262,060 | 985,247 | 641,288 | |||||||||
Crude
oil
|
18,194 | 4,774,401 | 3,004,629 | |||||||||
13,862,001 | 18,527,520 | 14,224,947 | ||||||||||
Recognition
of Price differential (1)
|
196,533 | 3,070,479 | 1,778,050 | |||||||||
14,058,534 | 21,597,999 | 16,002,997 | ||||||||||
Foreign
sales
|
||||||||||||
Crude
oil
|
11,815,512 | 8,696,282 | 4,476,137 | |||||||||
Fuel
oil
|
1,660,911 | 2,093,012 | 1,560,399 | |||||||||
Gasoline
|
1,654,669 | 186,197 | 269,248 | |||||||||
Other
products
|
642,877 | 744,957 | 82,348 | |||||||||
Natural
gas
|
311,734 | 313,348 | 37 | |||||||||
Diesel
|
178,530 | 246,158 | - | |||||||||
Traded
gasoline
|
69,866 | - | - | |||||||||
Naphtha
|
- | 2,693 | 244,393 | |||||||||
Petroleum
savings and stabilization Fund – FAEP
|
- | - | (316,497 | ) | ||||||||
16,334,099 | 12,282,647 | 6,316,065 | ||||||||||
Premium
income, net
|
11,757 | 16,023 | 13,258 | |||||||||
16,345,856 | 12,298,670 | 6,329,323 | ||||||||||
$ | 30,404,390 | $ | 33,896,669 | $ | 22,332,320 |
(1)
|
Corresponds
to Decree 4839 applied at December 2008 which determines the price
differential (value generated between the parity price and the regulated
price, which may be either negative or positive). As of
December 31, 2009 the negative price differential was $326,453 and is
recorded as a lower income amount of medium distillates and gasoline in
local sales. As of December 31, 2009 the positive differential was
$260,933 (2008 - $3,070,479) in Ecopetrol, affected by a negative price
differential from Cartagena refinery of
$64,400.
|
24.
|
Cost
of Sales
|
2009
|
2008
|
2007
|
||||||||||
Variable
Cost
|
||||||||||||
Purchase
of hydrocarbons from the ANH (1)
|
$ | 4,358,408 | $ | 5,584,474 | $ | 3,912,315 | ||||||
Purchase
of crude oil in association and concession
|
4,130,116 | 3,193,690 | 1,425,945 | |||||||||
Imported
products
|
2,739,681 | 3,470,987 | 681,485 | |||||||||
Amortization
and depletion
|
1,474,918 | 1,087,583 | 665,459 | |||||||||
Process
materials
|
166,785 | 113,427 | 93,017 | |||||||||
Electrical
power
|
156,405 | 112,355 | 91,036 | |||||||||
Purchase
of natural gas and other products
|
57,335 | 230,977 | 203,697 | |||||||||
Depreciation
by production units
|
48,834 | - | - | |||||||||
Insurance
premium costs, net
|
554 | 1,898 | 6,237 | |||||||||
Costs
of sale of contributions in kind
|
- | - | 432,144 | |||||||||
Absorption
of the cost in final inventory balances
|
(55,042 | ) | (239,033 | ) | (390,416 | ) | ||||||
Adjustment
in volumes from other assignations and project charges
|
(334,658 | ) | (132,040 | ) | (254,808 | ) | ||||||
Fixed
Cost
|
||||||||||||
Services
contracted with associations
|
1,290,177 | 1,188,294 | 1,059,522 | |||||||||
Maintenance
|
1,274,618 | 831,553 | 593,331 | |||||||||
Depreciation
|
1,239,846 | 670,279 | 719,811 | |||||||||
Labor
costs
|
918,264 | 751,826 | 531,171 | |||||||||
Transportation
services for hydrocarbons
|
637,029 | 581,945 | 648,586 | |||||||||
Project
expense
|
524,441 | 571,941 | 696,089 | |||||||||
Ecopetrol
contracted services
|
451,222 | 294,351 | 312,768 | |||||||||
Taxes
|
326,767 | 199,175 | 127,534 | |||||||||
Materials
and operations supplies
|
316,218 | 266,134 | 212,322 | |||||||||
Amortization
of deferred charges, intangibles and insurance premiums
|
94,288 | 73,343 | 173,883 | |||||||||
Amortization
of actuarial liability
|
82,812 | 207,363 | 161,825 | |||||||||
General
costs
|
7,055 | 23,914 | 18,880 | |||||||||
$ | 19,906,073 | $ | 19,084,436 | $ | 12,121,833 |
(1)
|
Corresponds
to the crude oil and natural gas purchases of Ecopetrol from the Agencia
Nacional de Hidrocarburos derived from national production, both under the
Company’s direct operation and under the operation of third
parties.
|
25.
|
Operating
Expenses
|
2009
|
2008
|
2007
|
||||||||||
Administration
|
||||||||||||
Labor
|
$ | 281,123 | $ | 189,757 | $ | 156,959 | ||||||
Depreciation
and amortization (1)
|
175,032 | 58,705 | 45,059 | |||||||||
General
expenses
|
149,644 | 65,087 | 50,146 | |||||||||
Maintenance
|
17,361 | 11,295 | 11,730 | |||||||||
Rentals
|
17,322 | 10,156 | 24,255 | |||||||||
Active
personnel amortization of pension actuarial liability
|
12,770 | 44,055 | 32,494 | |||||||||
Taxes
|
9,084 | 3,046 | 1,401 | |||||||||
662,336 | 382,101 | 322,044 | ||||||||||
Selling
|
||||||||||||
Studies
and projects (2)
|
1,396,482 | 912,751 | 425,355 | |||||||||
Taxes
|
181,109 | 182,886 | 155,374 | |||||||||
General
expenses (3)
|
166,480 | 113,024 | 35,452 | |||||||||
Natural
Gas pipeline transportation
|
141,889 | 102,862 | 75,474 | |||||||||
Labor
expenses
|
43,495 | 26,759 | 11,622 | |||||||||
Non-compliance
gas delivery charges
|
27,851 | - | - | |||||||||
Maintenance
|
5,336 | 5,090 | 75,305 | |||||||||
Crude
oil pipeline transportation tariff
|
- | 422,697 | 146,721 | |||||||||
Active
personnel amortization of pension actuarial liability
|
- | 6,705 | 4,002 | |||||||||
1,962,642 | 1,772,774 | 929,305 | ||||||||||
$ | 2,624,978 | $ | 2,154,875 | $ | 1,251,349 |
(1)
|
In
2009 $139,909 were amortized in regard to goodwill acquired from Offshore
International Group, IPL Enterprise, Hocol, Andean Chemicals Limited and
Propilco (2008 - $27,512).
|
(2)
|
These
expenses correspond to seismic and exploratory activities from Ecopetrol
$785,628, Ecopetrol America Inc $350,080, Ecopetrol Oleo e Gas do Brasil
$138,421, Hocol $117,857, Ecopetrol de Peru $4,147, Bioenergy
349.
|
(3)
|
Corresponds
mainly to customs operation expenses, leases, freight charges, utilities
and administration contracts from Ecopetrol in the amount of $104,524,
from Propilco in the amount of $57,158, from Comai in the amount of
$2,515, from Hocol in the amount of $2,240 and from Refinería de Cartagena
in the amount of $43.
|
26.
|
Financial
Income, Net
|
2009
|
2008
|
2007
|
||||||||||
Income
|
||||||||||||
Exchange
difference gain (1)
|
$ | 14,672,907 | $ | 10,863,242 | $ | 3,772,753 | ||||||
Interest
and monetary correction (2)
|
479,694 | 682,542 | 161,125 | |||||||||
Income
on valuation of investment portfolio
|
168,442 | 1,640,338 | 808,922 | |||||||||
Income
on valuation of derivatives (3)
|
159,245 | 4,782 | - | |||||||||
Dividends
in cash
|
31,687 | 39,472 | 25,387 | |||||||||
Income
from equity method
|
55,143 | 110,824 | - | |||||||||
Others
|
1,802 | - | - | |||||||||
15,568,920 | 13,341,200 | 4,768,187 | ||||||||||
Expenses
|
||||||||||||
Exchange
difference loss (1)
|
(14,798,550 | ) | (8,901,184 | ) | (4,385,021 | ) | ||||||
Loss
on valuation of derivatives (3)
|
(84,492 | ) | (74,685 | ) | (43,696 | ) | ||||||
Interest
|
(138,801 | ) | (19,376 | ) | (1,021 | ) | ||||||
Administration
and securities issuance
|
(23,438 | ) | (52,277 | ) | (76,770 | ) | ||||||
Others
|
(27,806 | ) | (6,820 | ) | (1,147 | ) | ||||||
Loss
on application of equity method
|
- | (185,606 | ) | (115 | ) | |||||||
Discount
on cash purchases of shares
|
- | - | (166,789 | ) | ||||||||
(15,073,087 | ) | (9,239,948 | ) | (4,674,559 | ) | |||||||
$ | 495,833 | $ | 4,101,252 | $ | 93,628 |
(1)
|
The
8.9% Colombian peso revaluation against the U.S. dollar during 2009 and
the U.S. dollars Company’s indebtedness originated an almost neutral
effect in the results due to the exchange difference. The final effect was
unfavorable in an amount totaling $125,643 compared to a positive exchange
difference during 2008 of $1,962,058, as a result of 11.4% devaluation
during such period. The net position is active in dollars and decreased
from USD 5,9 billion in 2008 to USD 132 million in
2009.
|
(2)
|
In
2009, $235,704 was recorded regarding the opportunity cost of the
cumulative receivable balance of the differential price for regular
gasoline and diesel of 2008 in accordance to Resolution 180639 of April 29
of 2009 (2008 - $93,218). Income is estimated for 2009 applying the
following interest rates: 9.29% EA for April’s month payment, 9.344 % EA
for August and 9.398% EA for December (Resolution 180639). In addition the
reference rate for recognition of the opportunity cost of the fuel price
differential during the third quarter of 2009 is 4.142%. The opportunity
cost was recognized for year 2008 based on the definition made by CONFIS
in its meeting of February 21, 2008, equivalent to a rate of 4.48% EA
(Resolution 181496).
|
(3)
|
Profits
of $66,862 were recorded at Ecopetrol from asphalt hedging and of $906
were recorded from exchange rates hedging . Losses of $19,021 were
recorded from WTI hedging and of $4,736 from other hedging. Likewise,
Cartagena refinery recorded profits from exchange rate hedging in an
amount totaling $30,742.
|
27.
|
Pension
expenses
|
2009
|
2008
|
2007
|
||||||||||
Amortization
of pension actuarial calculation (1)
|
$ | 407,083 | $ | 986,565 | $ | 955,381 | ||||||
Health
care services
|
132,322 | 107,213 | 86,520 | |||||||||
Education
services
|
55,752 | 51,147 | 48,442 | |||||||||
$ | 595,157 | $ | 1,144,925 | $ | 1,090,343 |
(1)
|
In
December 2008 the Company partially commutated (transferred) the amount
corresponding to the pension provisions by transferring said obligations
and funds supporting them to pension trust funds. In 2009 the Company did
not recognize any actuarial amortization of pensions given that the
current yield of the self-standing funds covers the growth on pensions
liability during 2009 for pensions and monthly payments exceeding growth
in $72,696. In 2009 only health and education actuarial amortization was
recognized in amount of $407,083 ($195,341 in
2008).
|
28.
|
Inflation
gain
|
29.
|
Other
income (expenses), Net
|
2009
|
2008
|
2007
|
||||||||||
Other
Income
|
||||||||||||
Recovery
of provisions (1)
|
$ | 224,565 | $ | 999,866 | $ | 555,438 | ||||||
BOMTs
deferred income
|
- | - | 4,008 | |||||||||
Recuperation
of exploration expenses
|
148,996 | - | - | |||||||||
Expense
recovery
|
61,972 | 7,459 | 39,575 | |||||||||
Income
for services
|
48,878 | 3,605 | 6,685 | |||||||||
Income
from transferred rights
|
28,116 | - | - | |||||||||
Income
from undeveloped discovered fields
|
19,257 | 1,228 | 13,622 | |||||||||
Indemnities
received
|
16,305 | 6,367 | 1,703 | |||||||||
Recovery
from services to associates
|
14,219 | 22,840 | 70,133 | |||||||||
Other
minor income
|
134,885 | 23,303 | 64,062 | |||||||||
Income
on sale of property, plant and equipment
|
3,579 | 10,435 | 8,724 | |||||||||
700,772 | 1,075,103 | 763,950 | ||||||||||
Other
expenses
|
||||||||||||
Provisions
(2)
|
(462,812 | ) | (114,035 | ) | (1,240,400 | ) | ||||||
Taxes
|
(352,459 | ) | (299,673 | ) | (328,871 | ) | ||||||
Tariff
and natural gas pipelines availability – BOMT
|
(89,906 | ) | (95,505 | ) | - | |||||||
Fuel
losses
|
(99,771 | ) | (93,854 | ) | (56,648 | ) | ||||||
Contributions
and donations
|
(40,497 | ) | (35,293 | ) | (9,535 | ) | ||||||
Inspection
quota
|
(26,986 | ) | (25,811 | ) | (25,934 | ) | ||||||
Surveillance
and security
|
(23,026 | ) | (16,052 | ) | (14,457 | ) | ||||||
Other
minor expenses
|
(151,034 | ) | (26,135 | ) | (23,208 | ) | ||||||
Loss
on sale and retirement of assets
|
193 | (1,399 | ) | (3,148 | ) | |||||||
(1,246,298 | ) | (707,757 | ) | (1,702,201 | ) | |||||||
$ | (545,526 | ) | $ | 367,046 | $ | (938,251 | ) |
(1)
|
A
detail of the recovery of provisions is as
follows:
|
2009
|
2008
|
2007
|
||||||||||
Product
and materials inventories
|
$ | 118,652 | $ | 8,711 | $ | 21,010 | ||||||
Legal
Proceedings
|
83,258 | 832,788 | 46,934 | |||||||||
Fixed
assets, receivable and others
|
17,091 | 18,813 | 27,355 | |||||||||
Other
recoveries
|
5,564 | - | - | |||||||||
Investment
|
- | 130,543 | 1,322 | |||||||||
Taxes
|
- | 9,011 | 117,680 | |||||||||
BOMT
Provisions
|
- | - | 221,055 | |||||||||
Project
expenses
|
- | - | 120,082 | |||||||||
$ | 224,565 | $ | 999,866 | $ | 555,438 |
(2)
|
A
detail of provisions is as follows:
|
Legal
Proceedings
|
$ | (271,091 | ) | $ | (59,305 | ) | $ | (1,096,117 | ) | |||
Products
and materials inventories
|
(33,161 | ) | (49,379 | ) | (115,944 | ) | ||||||
Receivables
|
(30,734 | ) | (2,275 | ) | (20,276 | ) | ||||||
Devaluation
of property, plant and equipment
|
(127,826 | ) | - | - | ||||||||
Contributions
to pension funds
|
- | (3,076 | ) | - | ||||||||
Investments
|
- | - | (6,273 | ) | ||||||||
Property,
plant and equipment and other
|
- | - | 1,790 | |||||||||
$ | (462,812 | ) | $ | (114,035 | ) | $ | (1,240,400 | ) |
30.
|
Contingencies
|
Proceeding
|
Claim
|
Amount of the
Provision
|
||||
Foncoeco
(*)
|
Profit
participation fund of the employees and ex employees of
Ecopetrol
|
139,933 | ||||
Municipio
de Aguazul, Tauramena
|
Class
Action. Administrative proceeding of the Solidarity Contribution Fund to
the electricity self-taxation
|
139,688 |
Proceeding
|
Claim
|
Amount of the
Provision
|
||||
Municipio
de Arauca
|
Class
Action. Contributions to the solidarity and redistribution of income fund
as a consequence of the generation of electricity, according to the Law
142 of 1994.
|
121,051 | ||||
Departamento
del Tolima
|
Class
Action for the recalculation of royalties with 20% specified in Law 141 of
1994.
|
82,287 | ||||
Municipio
de Melgar
|
Class
Action requesting the recovery to the Department of Tolima of the amounts
not collected regarding royalties corresponding to the Guandó
well.
|
40,351 | ||||
Universidad
de Cartagena and Junta Especial de la Estampilla
|
Constitutional
Action in which the Universidad de Cartagena requests the compliance
action for the payment of the stamp on operations carried out in Bolivar,
especially in Cartagena de Indias port.
|
22,866 | ||||
Consorcio
Protécnica Ltda (under liquidation) - Constructora Kepler S.A. De
C.V.
|
Time
over run in construction said to be Ecopetrol’s fault that altered the
economic and financial equilibrium of the contract against the contracting
consortium .
|
10,000 |
*
|
Expert’s
report of 2005 calculated in $542,000 the damages owed by Ecopetrol in the
Ordinary Civil Action filed by Foncoeco which claims that Ecopetrol must
pay principal and interest on the profit participation fund for the
employees of the Company which was established by the Board of Directors.
It is the opinion of the Company’s management and its legal advisors that
there are sufficient arguments to demonstrate that this lawsuit will not
proceed, particularly because the basis of the report includes amounts not
authorized by the Board of Directors, therefore, at December 2009 closing
date a provision in amount of just $139,933 (2008 - $100,000).was recorded
for this proceeding.
|
31.
|
Commitments
|
Counterpart
|
Effective date
in 2010
|
Expiration date
in 2010
|
Volume
|
STRIKE
PRICE
|
CALL
PRICE
|
||||||||
BP.
Products North America Inc.
|
January
1
|
December
31
|
480,000
Bls.
|
US$ |
71
|
9.80 | |||||||
J.
Aron & Company (Goldman Sachs)
|
January
1
|
December
31
|
600,000
Bls.
|
US$ |
71
|
9.73 | |||||||
JP
Morgan
|
January
1
|
December
31
|
480,000
Bls.
|
US$ |
71
|
9.85 | |||||||
Morgan
Stanley
|
January
1
|
December
31
|
480,000
Bls.
|
US$ |
70
|
9.96 |
Counterpart
|
Effective date in
2010
|
Maturity in 2010
|
Volume
|
STRIKE
PRICE
|
|||||||
Morgan
Stanley
|
January
1
|
January
30
|
300,000
|
Bls. | US$ | 1.02 |
1.
|
An
additional amount might have to be paid in February 2011 depending on the
behavior of the crude oil average price per barrel. Below is a
summary of the additional amount to be paid depending on the actual
recorded WTI crude barrel price between January 1, 2010 and December 31,
2010:
|
|
•
|
Less
than US$55, the amount to be paid is
zero
|
|
•
|
Higher
than US$55 and less than US$60, the amount to be paid is US$25 million;
or
|
|
•
|
Higher
than US$60 and less than US$65, the amount to be paid is US$40
million.
|
|
•
|
Higher
than US$65, the amount to be paid is US$65
million.
|
2.
|
An
additional payment, in a maximum amount of US$50 million, may have to be
paid in the first quarter of 2013 depending on the exploratory results of
the Huron well. The amount to be paid will be determined by considering
that, during a maximum period of two years (until December 2012), there
should be 2P type certified reserves. The calculation of the additional
payment is as follows: the reserves volume is multiplied by a percentage
(between 6% and 8%) of the average WTI price during a given period of time
to determine the base price to pay, subject to the maximum limit
established.
|
32.
|
Subsequent
Events
|
33.
|
Differences
between Colombian Governmental Entity accounting principles and U.S.
GAAP
|
2009
|
2008
|
2007
|
|||||||||||
Consolidated
net income under Colombian Government Entity GAAP
|
$ | 5,132,054 | $ | 11,629,677 | $ | 5,179,792 | |||||||
i.
|
Investment
securities:
|
||||||||||||
a. Unrealized
gain (loss)
|
639,073 | (924,715 | ) | 69,657 | |||||||||
b. Impairment
|
28,083 | 163,902 | (78,123 | ) | |||||||||
ii.
|
Investments
in non-marketable securities:
|
||||||||||||
a. Equity
method
|
(182,623 | ) | 164,734 | (36,960 | ) | ||||||||
b. Variable
Interest Entity (VIE)
|
320,600 | (367,743 | ) | 11,658 | |||||||||
iii.
|
Derivatives
|
25,505 | - | 6 | |||||||||
iv.
|
Exchange
of non-monetary assets
|
23,640 | 55,623 | 606,751 | |||||||||
v.
|
Deferred
charges
|
(35,722 | ) | (228 | ) | 240,293 | |||||||
vi.
|
Employee
benefit plans
|
(1,416,598 | ) | (1,451,179 | ) | (1,045,374 | ) | ||||||
vii.
|
Provisions,
allowances and contingencies
|
(24,833 | ) | 1,082,434 | 925,380 | ||||||||
viii.
|
Deferred
income taxes
|
(210,119 | ) | (159,891 | ) | (624,185 | ) | ||||||
ix.
|
Revenue
recognition:
|
||||||||||||
a. Revenue
– FAEP
|
- | - | 329,355 | ||||||||||
b. Cost
of sales – over and under
|
(111,126 | ) | (8,887 | ) | 16,607 | ||||||||
c. Other
income
|
10,765 | - | (97,127 | ) | |||||||||
x.
|
Inflation
adjustment
|
112,290 | 128,837 | 230,822 | |||||||||
xi.
|
Inventories
|
22,565 | 10,274 | (67,089 | ) | ||||||||
xii.
|
Lease
accounting
|
(43,163 | ) | 39,744 | (393,131 | ) | |||||||
xiii.
|
Prior
year adjustments
|
- | - | 574 | |||||||||
xiv.
|
Property,
plant and equipment:
|
||||||||||||
a.
Interest
|
(63,779 | ) | - | 1,228 | |||||||||
c.
Impairment
|
(395,044 | ) | (121,296 | ) | (65,137 | ) | |||||||
d.
Capitalized expenses
|
(236,219 | ) | 76,167 | - | |||||||||
e.
Exchange difference
|
(16,028 | ) | - | - | |||||||||
xv.
|
Depreciation,
Depletion and Amortization
|
484,593 | (1,478,851 | ) | 227,754 | ||||||||
xvi.
|
Asset
retirement obligations
|
401,695 | (70,014 | ) | 10,039 | ||||||||
xvii.
|
Equity
contributions:
|
||||||||||||
a. Incorporated
institutional equity
|
20,692 | 21,217 | 9,304 | ||||||||||
b. Contributions
in kind
|
- | - | 432,144 | ||||||||||
c. Reversion
of concession rights contributed as capital
|
18,199 | 24,117 | 17,562 | ||||||||||
xviii.
|
Public
offering costs and discount on issuance of shares
|
- | - | 242,885 | |||||||||
xix.
|
Indebtedness
cost
|
8,800 | - | - | |||||||||
xx.
|
Business
combinations:
|
||||||||||||
a. Goodwill
|
139,909 | 27,512 | - | ||||||||||
b. Fair
value adjustments to assets and liabilities acquired
|
25,217 | 449 | - | ||||||||||
xxi.
|
Non-controlling
Interest
|
(99,958 | ) | - | - | ||||||||
Consolidated
net income under U.S. GAAP attributable to Ecopetrol S.A.
|
$ | 4,578,468 | $ | 8,841,883 | $ | 6,144,685 |
2009
|
2008
|
||||||||
Consolidated
shareholders’ equity under Colombian Government Entity
GAAP
|
$ | 32,569,957 | $ | 34,619,717 | |||||
i.
|
Investment
securities:
|
||||||||
a. Unrealized
gain
|
581,841 | - | |||||||
ii.
|
Investments
in non-marketable securities:
|
||||||||
a. Equity
method
|
(1,507,543 | ) | (991,927 | ) | |||||
b. Variable
Interest Entity (VIE)
|
320,600 | (320,600 | ) | ||||||
d. Valuation
surplus
|
(1,029,443 | ) | (616,951 | ) | |||||
iii.
|
Derivatives
|
30,489 | - | ||||||
iv.
|
Exchange
of non-monetary assets
|
686,014 | 662,374 | ||||||
v.
|
Deferred
charges
|
25,697 | (7,133 | ) | |||||
vi.
|
Employee
benefit plans
|
(1,511,824 | ) | (563,814 | ) | ||||
vii.
|
Provisions
– allowance and contingencies
|
16,477 | 183,852 | ||||||
viii.
|
Deferred
income taxes
|
212,175 | 470,044 | ||||||
ix.
|
Revenue
recognition:
|
||||||||
b. Cost
of sales – over and under
|
(89,261 | ) | 10,984 | ||||||
c. Other
income
|
4,433 | - | |||||||
x.
|
Inflation
adjustment
|
(3,568,525 | ) | (863,496 | ) | ||||
xi.
|
Inventories
|
(31,017 | ) | (66,570 | ) | ||||
xii.
|
Lease
accounting
|
399,734 | 444,117 | ||||||
xiv.
|
Property,
plant and equipment:
|
||||||||
a. Interest
|
(24,011 | ) | 39,768 | ||||||
b. Revaluation
of property, plant and equipment and public accounting
effect
|
(5,361,974 | ) | (3,505,449 | ) | |||||
c. Impairment
|
(692,398 | ) | (297,319 | ) | |||||
d. Capitalized
expenses
|
(774,373 | ) | (555,684 | ) | |||||
e. Exchange
difference
|
(233,563 | ) | (217,535 | ) | |||||
xv.
|
Depreciation,
Depletion and Amortization
|
2,295,829 | (820,184 | ) | |||||
xvi.
|
Asset
retirement obligations
|
425,351 | (24,054 | ) | |||||
xvii.
|
Equity
contributions:
|
||||||||
a. Incorporated
institutional equity
|
(82,870 | ) | (60,907 | ) | |||||
c. Reversion
of concession rights contributed as capital
|
(103,260 | ) | (121,459 | ) | |||||
xix.
|
Indebtedness
cost
|
8,800 | - | ||||||
xx.
|
Business
combinations:
|
||||||||
a. Goodwill
|
116,805 | 48,471 | |||||||
b. Fair
value adjustments to assets and liabilities acquired
|
(196,291 | ) | (20,510 | ) | |||||
xxi.
|
Non-controlling
Interest
|
54,072 | - | ||||||
Consolidated
Ecopetrol shareholders’ equity under U.S. GAAP
|
$ | 22,541,921 | $ | 27,425,735 |
2009
|
2008
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 3,861,532 | $ | 4,812,595 | ||||
Investments
|
||||||||
Available
for sale
|
178,832 | 1,345,760 | ||||||
Held
to maturity
|
7,876 | - | ||||||
Accounts
and notes receivable, net
|
2,530,379 | 5,891,412 | ||||||
Inventories
|
1,929,977 | 1,569,165 | ||||||
Advances
and deposits
|
1,200,682 | 887,634 | ||||||
Prepaid
expenses and other assets
|
62,759 | 25,492 | ||||||
Deferred
income taxes
|
1,015,488 | 1,968,177 | ||||||
Total
current assets
|
10,787,525 | 16,500,235 | ||||||
Investments
|
||||||||
Available
for sale
|
4,118,555 | 7,327,755 | ||||||
Held
to maturity
|
130,740 | 179,096 | ||||||
Accounts
and notes receivable, net
|
226,781 | 194,912 | ||||||
Restricted
assets
|
380,463 | 388,892 | ||||||
Property,
plant and equipment, net
|
13,098,446 | 7,696,192 | ||||||
Natural
and environmental resources, net
|
9,431,458 | 6,456,158 | ||||||
Goodwill
|
2,385,113 | 627,610 | ||||||
Deferred
charges and other assets
|
1,280,359 | 793,339 | ||||||
Deferred
income taxes
|
1,475,559 | - | ||||||
Direct
finance lease long-term
|
19,254 | 80,263 | ||||||
Total
Assets
|
$ | 43,334,253 | $ | 40,244,452 | ||||
Liabilities
and shareholders’ equity
|
||||||||
Current
liabilities:
|
||||||||
Financial
obligations
|
$ | 437,111 | $ | 281,841 | ||||
Accounts
payable and related parties
|
3,571,680 | 1,834,041 | ||||||
Capital
lease liability
|
82,356 | 102,657 | ||||||
Taxes
payable
|
567,271 | 2,570,886 | ||||||
Labor
and pension plan obligations
|
165,472 | 340,537 | ||||||
Estimated
liabilities and provisions
|
1,122,409 | 677,214 | ||||||
Total
current liabilities
|
5,946,299 | 5,807,176 | ||||||
Financial
obligations, long-term
|
5,725,099 | 5,473 | ||||||
Accounts
payable, long-term
|
248,571 | 279,882 | ||||||
Capital
lease liability
|
278,594 | 388,591 | ||||||
Pension
plan obligation and other labor obligations, long-term
|
4,359,751 | 2,518,307 | ||||||
Deferred
income tax, long-term
|
- | 774,463 | ||||||
Estimated
liabilities and provisions
|
2,841,371 | 1,748,014 | ||||||
Other
long-term liabilities
|
809,334 | 478,039 | ||||||
Total
non-current liabilities
|
14,262,720 | 6,192,769 | ||||||
Total
liabilities
|
20,209,019 | 11,999,945 | ||||||
Shareholders’
equity of Ecopetrol
|
22,541,921 | 27,425,735 | ||||||
Non-controlling
interest
|
583,313 | 818,772 | ||||||
Total
Equity
|
23,125,234 | 28,244,507 | ||||||
Total
liabilities and shareholders’ equity
|
$ | 43,334,253 | $ | 40,244,452 |
2009
|
2008
|
2007
|
||||||||||
Revenue:
|
||||||||||||
Local
sales
|
$ | 13,808,720 | $ | 21,550,543 | $ | 16,138,874 | ||||||
Foreign
sales
|
15,742,854 | 12,298,670 | 6,645,820 | |||||||||
Total
revenue
|
29,551,574 | 33,849,213 | 22,784,694 | |||||||||
Cost
of sales
|
19,136,478 | 17,927,991 | 10,942,526 | |||||||||
10,415,096 | 15,921,222 | 11,842,168 | ||||||||||
Operating
expenses:
|
||||||||||||
Administration
|
1,990,603 | 4,246,426 | 2,431,443 | |||||||||
Selling
|
1,967,139 | 1,834,485 | 955,626 | |||||||||
Operating
income
|
6,457,354 | 9,840,311 | 8,455,099 | |||||||||
Non-operating
income, net
|
549,981 | 3,587,132 | 255,549 | |||||||||
Income
before income tax
|
7,007,335 | 13,427,443 | 8,710,648 | |||||||||
Income
tax:
|
||||||||||||
Current
income tax
|
1,948,819 | 3,648,451 | 2,045,997 | |||||||||
Deferred
income tax
|
375,329 | 930,853 | 498,593 | |||||||||
2,324,148 | 4,579,304 | 2,544,590 | ||||||||||
Net
income
|
4,683,187 | 8,848,139 | 6,166,058 | |||||||||
Less:
Net (income) attributable to Non-controlling interest
|
(104,719 | ) | (6,256 | ) | (21,373 | ) | ||||||
Net
Income attributable to Ecopetrol S.A.
|
$ | 4,578,468 | $ | 8,841,883 | $ | 6,144,685 | ||||||
Earnings
per share (Basic and diluted) attributable to Ecopetrol common
shareholders
|
$ | 113.13 | $ | 218.47 | $ | 166.42 | ||||||
Weighted-average
shares outstanding (Basic and diluted)
|
40,472,512,588 | 40,472,512,588 | 36,922,352,491 |
2009
|
2008
|
2007
|
||||||||||
Cash
flows provided by operating activities:
|
||||||||||||
Net
income
|
$ | 4,683,187 | $ | 8,848,139 | $ | 6,166,058 | ||||||
Adjustments
to reconcile net income to cash provided by operating
activities:
|
||||||||||||
Equity
method in non-marketable securities
|
182,623 | (106,845 | ) | 36,960 | ||||||||
Depreciation,
depletion and amortization
|
4,144,035 | 3,177,935 | 1,467,372 | |||||||||
Impairment
|
395,044 | 113,087 | 65,137 | |||||||||
Provisions
|
547,354 | (569,969 | ) | 86,746 | ||||||||
Deferred
income tax
|
375,329 | 930,853 | 498,594 | |||||||||
Exchange
(loss) gain
|
(496,983 | ) | (1,390,953 | ) | 408,181 | |||||||
Net
changes in operating assets and liabilities:
|
||||||||||||
Accounts
and notes receivable
|
3,336,133 | (2,383,061 | ) | 1,534,251 | ||||||||
Inventories
|
(32,049 | ) | (255,090 | ) | (316,950 | ) | ||||||
Deferred
charges and other assets
|
(28,095 | ) | (245,528 | ) | (33,721 | ) | ||||||
Accounts
payable and related parties
|
1,398,162 | 326,967 | (171,444 | ) | ||||||||
Taxes
payable
|
(2,678,083 | ) | 1,374,621 | 509,612 | ||||||||
Labor
obligations
|
311,513 | 401,445 | 1,231,621 | |||||||||
Estimated
liabilities and provisions
|
162,188 | 668,220 | 130,729 | |||||||||
Negative
goodwill
|
(182,868 | ) | - | - | ||||||||
Fair
value of pre-existent participation of business
combination
|
107,545 | - | - | |||||||||
Net
cash provided by operating activities
|
12,225,035 | 10,889,822 | 11,613,146 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Payment
for purchase of companies, net of cash acquired
|
(4,061,289 | ) | (1,274,751 | ) | - | |||||||
Purchase
of investment securities
|
(7,921,615 | ) | (27,814,744 | ) | (33,328,213 | ) | ||||||
Redemption
of investment securities
|
12,250,389 | 25,975,418 | 34,664,456 | |||||||||
Investment
in natural and environmental resources
|
(2,934,666 | ) | (3,574,418 | ) | (1,866,544 | ) | ||||||
Additions
to property, plant and equipment
|
(6,417,866 | ) | (3,869,577 | ) | (1,176,142 | ) | ||||||
Net
cash used in investing activities
|
(9,085,047 | ) | (10,558,072 | ) | (1,706,443 | ) | ||||||
Cash
flows from financing activities:
|
||||||||||||
Non-controlling
interest obligations
|
(340,178 | ) | 240,918 | (14,893 | ) | |||||||
Payment
of financial obligations
|
(310,420 | ) | (99,888 | ) | (425,879 | ) | ||||||
Proceeds
from financial obligations
|
6,152,400 | 235,720 | - | |||||||||
Proceeds
from issuance of shares
|
41,044 | 832,919 | 4,625,066 | |||||||||
Cash
paid to acquire a non-controlling interest
|
(998,903 | ) | - | - | ||||||||
Dividends
paid
|
(8,902,602 | ) | (4,652,182 | ) | (8,538,936 | ) | ||||||
Net
cash used in financing activities
|
(4,358,659 | ) | (3,442,513 | ) | (4,354,642 | ) | ||||||
Effect
of exchange rate changes on cash
|
(267,608 | ) | 83,923 | (116,558 | ) | |||||||
Net
(decrease) increase in cash and cash equivalents
|
(951,063 | ) | (3,194,687 | ) | 5,668,619 | |||||||
Cash
and cash equivalents at beginning of year
|
4,812,595 | 8,007,282 | 2,338,663 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 3,861,532 | $ | 4,812,595 | $ | 8,007,282 |
2009
|
2008
|
2007
|
||||||||||
Supplemental
cash flows information
|
||||||||||||
Cash
paid during the year
|
||||||||||||
Interest
|
$ | 107,343 | $ | 9,874 | $ | 23,426 | ||||||
Income
taxes
|
$ | 3,934,441 | $ | 1,869,475 | $ | 1,457,015 |
Non cash transactions
|
||||||||||||
Liabilities
assumed in business combinations
|
$ | 891,112 | $ | 184,807 | $ | - | ||||||
Exchange
of non-monetary assets
|
$ | - | $ | - | $ | 234,731 | ||||||
Assets
acquired through leasing contracts
|
$ | - | $ | 12,659 | $ | - | ||||||
Increase
of natural and environmental resources through asset retirement
obligations
|
$ | 96,766 | $ | 137,903 | $ | 83,088 |
Common Stock
|
||||||||||||||||||||||||||||||||||||
Millions
of
shares
|
Value
|
Additional
paid-
in-capital
|
Comprehensive
Income
|
Retained
earnings
|
Accumulated
Other
Comprehensive
income (loss)
|
Ecopetrol’s
Equity
|
Non-Controlling
Interest
|
Total Equity
|
||||||||||||||||||||||||||||
Balance
at January 1, 2007
|
36,385 | $ | 4,244,943 | $ | - | $ | - | $ | 15,443,181 | $ | (1,672,738 | ) | $ | 18,015,386 | $ | 565,119 | $ | 18,580,505 | ||||||||||||||||||
Issuance
of company shares
|
4,088 | 5,868,391 | $ | 3,607,929 | - | (4,851,254 | ) | - | 4,625,066 | 529 | 4,625,595 | |||||||||||||||||||||||||
Distribution
of dividends
|
- | - | - | - | (8,538,936 | ) | - | (8,538,936 | ) | (15,418 | ) | (8,554,354 | ) | |||||||||||||||||||||||
Other
contributions
|
- | - | - | - | 71,424 | - | 71,424 | - | 71,424 | |||||||||||||||||||||||||||
Net
income
|
- | - | - | $ | 6,166,058 | 6,144,685 | - | 6,144,685 | 21,373 | 6,166,058 | ||||||||||||||||||||||||||
Other
Comprehensive income, net of tax:
|
||||||||||||||||||||||||||||||||||||
Unrealized
earnings on investment securities, net of tax effect of
$(6,364)
|
- | - | - | 12,918 | - | - | 12,918 | - | 12,918 | |||||||||||||||||||||||||||
Amortization
of actuarial loss, net of tax effect of $(358,277)
|
- | - | - | 727,415 | - | - | 727,415 | - | 727,415 | |||||||||||||||||||||||||||
Translation
adjustment
|
- | - | - | (66,933 | ) | - | - | (66,927 | ) | (6 | ) | (66,933 | ) | |||||||||||||||||||||||
Total
other comprehensive income
|
- | - | - | 673,400 | - | 673,406 | - | - | - | |||||||||||||||||||||||||||
Comprehensive
income
|
- | - | - | $ | 6,839,458 | - | - | - | - | - | ||||||||||||||||||||||||||
Balance
at December 31, 2007
|
40,473 | 10,113,334 | 3,607,929 | - | 8,269,100 | (999,332 | ) | 20,991,031 | 571,597 | 21,562,628 | ||||||||||||||||||||||||||
Business
combination
|
8,718 | 8,718 | ||||||||||||||||||||||||||||||||||
Issuance
of company shares
|
- | 4,457 | 828,462 | - | - | - | 832,919 | 217,378 | 1,050,297 | |||||||||||||||||||||||||||
Distribution
of dividends
|
- | - | - | - | (4,654,340 | ) | - | (4,654,340 | ) | (141,634 | ) | (4,795,974 | ) | |||||||||||||||||||||||
Other
contributions
|
- | - | - | - | (23,742 | ) | - | (23,742 | ) | 139,566 | 115,824 | |||||||||||||||||||||||||
Comprehensive
income:
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net
income
|
- | - | - | $ | 8,848,139 | 8,841,883 | - | 8,841,883 | 6,256 | 8,848,139 | ||||||||||||||||||||||||||
Other
Comprehensive income, net of tax:
|
||||||||||||||||||||||||||||||||||||
Unrealized
earnings on investment securities, net of tax effect of
$(236,974)
|
- | - | - | 524,729 | - | - | 524,729 | - | 524,729 | |||||||||||||||||||||||||||
Amortization
of actuarial loss, net of tax effect of $(302,050)
|
- | - | - | 613,251 | - | - | 613,251 | - | 613,251 | |||||||||||||||||||||||||||
Translation
adjustment
|
- | - | - | 316,895 | - | - | 300,004 | 16,891 | 316,895 | |||||||||||||||||||||||||||
Total
other comprehensive income
|
- | - | - | 1,454,875 | - | 1,437,984 | - | - | - | |||||||||||||||||||||||||||
Comprehensive
income
|
- | - | - | $ | 10,303,014 | - | - | - | - | - | ||||||||||||||||||||||||||
Balance
at December 31, 2008
|
40,473 | 10,117,791 | 4,436,391 | 12,432,901 | 438,652 | 27,425,735 | 818,772 | 28,244,507 | ||||||||||||||||||||||||||||
Business
combination
|
- | - | - | - | - | - | - | 21,530 | 21,530 | |||||||||||||||||||||||||||
Acquired
non-controlling interest
|
- | - | (432,766 | ) | - | - | - | (432,766 | ) | (281,692 | ) | (714,458 | ) | |||||||||||||||||||||||
Other
non-controlling interest
|
- | - | - | - | - | - | - | 22,767 | 22,767 | |||||||||||||||||||||||||||
Issuance
of company shares
|
- | - | 41,044 | - | - | - | 41,044 | - | 41,044 | |||||||||||||||||||||||||||
Distribution
of dividends
|
- | - | - | - | (8,903,953 | ) | - | (8,903,953 | ) | (89,736 | ) | (8,993,689 | ) | |||||||||||||||||||||||
Comprehensive
income:
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net
income
|
- | - | - | $ | 4,683,187 | 4,578,468 | - | 4,578,468 | 104,719 | 4,683,187 | ||||||||||||||||||||||||||
Other
Comprehensive income, net of tax:
|
||||||||||||||||||||||||||||||||||||
Unrealized
earnings on investment securities, net of tax effect of
$15,389
|
- | - | - | (74,844 | ) | - | - | (74,844 | ) | - | (74,844 | ) | ||||||||||||||||||||||||
Amortization
of actuarial loss, net of tax effect of $(95,697)
|
- | - | - | 194,295 | - | - | 194,295 | - | 194,295 | |||||||||||||||||||||||||||
Translation
adjustment
|
- | - | - | (299,105 | ) | - | - | (286,058 | ) | (13,047 | ) | (299,105 | ) | |||||||||||||||||||||||
Total
other comprehensive income
|
- | - | - | (179,654 | ) | - | (166,607 | ) | - | - | - | |||||||||||||||||||||||||
Comprehensive
income
|
- | - | - | $ | 4,503,533 | - | - | - | - | - | ||||||||||||||||||||||||||
Balance
at December 31, 2009
|
40,473 | $ | 10,117,791 | $ | 4,044,669 | $ | 8,107,416 | $ | 272,045 | $ | 22,541,921 | $ | 583,313 | $ | 23,125,234 |
2009
|
2008
|
2007
|
||||||||||
Net
Income
|
$ | 4,683,187 | $ | 8,848,139 | $ | 6,166,058 | ||||||
Other
Comprehensive income, net of tax:
|
||||||||||||
Unrealized
earnings on investment securities, net of tax:
|
(74,844 | ) | 524,729 | 12,918 | ||||||||
Amortization
of actuarial loss, net of tax
|
194,295 | 613,251 | 727,415 | |||||||||
Translation
adjustment
|
(299,105 | ) | 316,895 | (66,933 | ) | |||||||
Total
other comprehensive income
|
(179,654 | ) | 1,454,875 | 673,400 | ||||||||
Comprehensive
income
|
4,503,533 | 10,303,014 | 6,839,458 | |||||||||
Comprehensive
income attributable to the non-controlling interest
|
(91,672 | ) | (23,147 | ) | (21,367 | ) | ||||||
Comprehensive
income attributable to Ecopetrol
|
$ | 4,411,861 | $ | 10,279,867 | $ | 6,818,091 |
2009
|
||||||||||||
Before-Income Tax
|
(Income Tax Expense)
|
Net of Income Tax
|
||||||||||
Amount
|
or Benefit
|
Amount
|
||||||||||
Unrealized
gain on securities available for sale
|
$ | 745,649 | $ | (246,065 | ) | $ | 499,584 | |||||
Pension
liability - net unamortized actuarial loss
|
(260,451 | ) | 85,949 | (174,502 | ) | |||||||
Cumulative
translation adjustment
|
(53,037 | ) | - | (53,037 | ) | |||||||
Other
comprehensive income (loss)
|
$ | 432,161 | $ | (160,115 | ) | $ | 272,045 |
2008
|
||||||||||||
Before-Income Tax
|
(Income Tax Expense)
|
Net of Income Tax
|
||||||||||
Amount
|
or Benefit
|
Amount
|
||||||||||
Unrealized
gain on securities available for sale
|
$ | 835,882 | $ | (261,454 | ) | $ | 574,428 | |||||
Pension
liability - net unamortized actuarial loss
|
(550,443 | ) | 181,646 | (368,797 | ) | |||||||
Cumulative
translation adjustment
|
233,021 | - | 233,021 | |||||||||
Other
comprehensive income (loss)
|
$ | 518,460 | $ | (79,808 | ) | $ | 438,652 |
2007
|
||||||||||||
Before-Income Tax
|
(Income Tax Expense)
|
Net of Income Tax
|
||||||||||
Amount
|
or Benefit
|
Amount
|
||||||||||
Unrealized
gain on securities available for sale
|
$ | 74,179 | $ | (24,480 | ) | $ | 49,699 | |||||
Pension
liability - net unamortized actuarial loss
|
(1,465,744 | ) | 483,696 | (982,048 | ) | |||||||
Cumulative
translation adjustment
|
(66,983 | ) | - | (66,983 | ) | |||||||
Other
comprehensive income (loss)
|
$ | (1,458,548 | ) | $ | 459,216 | $ | (999,332 | ) |
i.
|
INVESTMENT
SECURITIES
|
As of December 31, 2009
|
Aggregated
Fair
Value
|
Gross
Unrealized
Holding
Gains
|
Gross
Unrealized
Holding
Losses
|
Gross
Recognized
Losses
|
Cost
Basis
|
|||||||||||||||
Short-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
$ | 126,376 | $ | 5,472 | $ | (965 | ) | $ | (6,813 | ) | $ | 128,682 | ||||||||
Securities
issued or secured by government sponsored
enterprise (GSEs)
|
41,863 | 4,472 | - | - | 37,391 | |||||||||||||||
Securities
issued or secured by financial entities
|
10,593 | 1,093 | - | - | 9,500 | |||||||||||||||
Total
Short-term Investments Classified as Available for Sale
|
178,832 | 11,037 | (965 | ) | (6,813 | ) | 175,573 | |||||||||||||
Long-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
879,484 | 70,477 | (464 | ) | (9,189 | ) | 818,660 | |||||||||||||
Securities
issued or secured by government sponsored
enterprise (GSEs)
|
1,670,687 | 48,475 | - | - | 1,622,212 | |||||||||||||||
Securities
issued or secured by financial entities
|
592 | - | (412 | ) | - | 1,004 | ||||||||||||||
Securities
issued or secured by government USA
|
251,926 | - | (23,241 | ) | - | 275,167 | ||||||||||||||
Securities
issued by mixed – economy governmental entities
|
916,785 | 640,740 | - | - | 276,045 | |||||||||||||||
Total
Long-term Investments Classified as Available for Sale
|
3,719,474 | 759,692 | (24,117 | ) | (9,189 | ) | 2,993,088 | |||||||||||||
Total Available
for Sale
|
$ | 3,898,306 | $ | 770,729 | $ | (25,082 | ) | $ | (16,002 | ) | $ | 3,168,661 |
Aggregated Fair
Value
|
Gross Unrealized
Holding Gains
|
Gross
Unrealized
Holding Losses
|
Net Carrying
Amount
|
|||||||||||||
Short-term
Investments - Held to Maturity Securities:
|
||||||||||||||||
Other
debt securities
|
$ | 8,280 | $ | 404 | $ | - | $ | 7,876 | ||||||||
Total
Short-term Investments Classified as Held to Maturity
|
8,280 | 404 | - | 7,876 | ||||||||||||
Long-term
Investments- Held to Maturity Securities:
|
||||||||||||||||
Securities
issued or secured by Colombian government
|
129,769 | 9,343 | - | 120,426 | ||||||||||||
Securities
issued or secured by government USA
|
10,950 | 636 | - | 10,314 | ||||||||||||
Total
Long-term Investments Classified as Held to Maturity
|
140,719 | 9,979 | - | 130,740 | ||||||||||||
Total
Held to Maturity
|
$ | 148,999 | $ | 10,383 | $ | - | $ | 138,616 |
Aggregated
Fair
Value
|
Gross
Unrealized
Holding
Gains
|
Gross
Unrealized
Holding
Losses
|
Gross
Recognized
Losses
|
Cost
Basis
|
||||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||
Short-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
$ | 239,819 | $ | 17,825 | $ | (5,559 | ) | $ | - | $ | 227,553 | |||||||||
Securities
issued or secured by government sponsored enterprise
|
989,949 | 148,808 | (4,158 | ) | - | 845,299 | ||||||||||||||
Securities
issued or secured by financial entities
|
92,535 | 13,026 | - | - | 79,509 | |||||||||||||||
Other
debt securities
|
23,457 | 3,175 | - | - | 20,282 | |||||||||||||||
Total
Short-term Investments classified as Available for Sale
|
1,345,760 | 182,834 | (9,717 | ) | - | 1,172,643 | ||||||||||||||
Long-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
821,342 | 123,957 | (6,259 | ) | - | 724,733 | ||||||||||||||
Securities
issued or secured by government sponsored enterprise
|
2,515,761 | 427,156 | (215 | ) | (390 | ) | 2,110,413 | |||||||||||||
Securities
issued or secured by financial entities
|
596,792 | 110,263 | (64 | ) | 487,898 | |||||||||||||||
Securities
issued or secured by government USA
|
2,169,197 | 35,436 | (27,653 | ) | - | 2,161,414 | ||||||||||||||
Other debt
securities
|
1,452 | 144 | - | (95 | ) | 1,403 | ||||||||||||||
Total
Long-term Investments classified as Available for Sale
|
6,104,544 | 696,956 | (34,191 | ) | (485 | ) | 5,485,861 | |||||||||||||
Total Available for
Sale
|
$ | 7,450,304 | $ | 879,790 | $ | (43,908 | ) | $ | (485 | ) | $ | 6,658,504 |
Aggregated
Fair
Value
|
Gross
Unrecognized
Holding
Gains
|
Gross
Unrecognized
Holding
Losses
|
Net
Carrying
Amount
|
|||||||||||||
Long-term
Investments- Held to Maturity Securities
|
||||||||||||||||
Securities
issued or secured by Colombian government
|
$ | 132,133 | $ | 993 | $ | (2,533 | ) | $ | 133,693 | |||||||
Securities
issued or secured by government USA
|
12,436 | 1,129 | - | 11,307 | ||||||||||||
Other
debt securities
|
35,829 | 1,733 | - | 34,096 | ||||||||||||
Total
Long-term Investments Classified as Held to Maturity
|
$ | 180,398 | $ | 3,855 | $ | (2,533 | ) | $ | 179,096 |
Aggregated
Fair
Value
|
Gross
Unrealized
Holding
Gains
|
Gross
Unrealized
Holding
Losses
|
Gross
Recognized
Losses
|
Cost
Basis
|
||||||||||||||||
As of December 31,
2007
|
||||||||||||||||||||
Short-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
$ | 60,382 | $ | 2,084 | $ | (1,380 | ) | $ | - | $ | 59,678 | |||||||||
Securities
issued or secured by government entities
|
1,226,125 | 16,436 | (11,757 | ) | (76,343 | ) | 1,297,789 | |||||||||||||
Securities
issued or secured by financial entities
|
397,306 | 8,080 | (3,642 | ) | (15,968 | ) | 408,836 | |||||||||||||
Other
debt securities
|
136,457 | 4,255 | (496 | ) | (8,462 | ) | 141,160 | |||||||||||||
Total
Short-term Investments Classified as Available for Sale
|
1,820,270 | 30,855 | (17,275 | ) | (100,773 | ) | 1,907,463 | |||||||||||||
Long-term
Investments - Available for Sale Securities:
|
||||||||||||||||||||
Securities
issued or secured by Colombian government
|
63,165 | 1,251 | (186 | ) | - | 62,101 | ||||||||||||||
Securities
issued or secured by government entities
|
2,287,235 | 71,024 | (27,247 | ) | (104,033 | ) | 2,347,491 | |||||||||||||
Securities
issued or secured by financial entities
|
249,275 | 11,019 | (1,164 | ) | (1,179 | ) | 240,600 | |||||||||||||
Other
debt securities
|
113,553 | 7,751 | (1,846 | ) | (2,002 | ) | 109,651 | |||||||||||||
Total
Long-term Investments Classified as Available for Sale
|
2,713,228 | 91,045 | (30,443 | ) | (107,214 | ) | 2,759,843 | |||||||||||||
Total
Available for Sale
|
$ | 4,533,498 | $ | 121,900 | $ | (47,718 | ) | $ | (207,987 | ) | $ | 4,667,306 |
Aggregated
Fair
Value
|
Gross
Unrecognized
Holding
Gains
|
Gross
Unrecognized
Holding
Losses
|
Net
Carrying
Amount
|
|||||||||||||
Long-term
Investments- Held to Maturity Securities
|
||||||||||||||||
Securities
issued or secured by government entities
|
$ | 82,210 | $ | 2,766 | $ | - | $ | 79,444 | ||||||||
Other
debt securities
|
59,014 | 2,737 | (102 | ) | 56,379 | |||||||||||
Total
Long-term Investments Classified as Held to Maturity
|
$ | 141,224 | $ | 5,503 | $ | (102 | ) | $ | 135,823 |
As of December 31, 2009
|
||||||||||||||||
Available for Sale
|
Held to Maturity
|
|||||||||||||||
Cost Basis
|
Fair Value
|
Cost Basis
|
Fair Value
|
|||||||||||||
Due
in one year or less
|
$ | 175,573 | $ | 178,832 | $ | 7,876 | $ | 8,280 | ||||||||
Due
in one year to five years
|
2,737,281 | 3,475,706 | 130,740 | 140,719 | ||||||||||||
Due
in five years to ten years
|
255,807 | 243,768 | - | - | ||||||||||||
Total
|
$ | 3,168,661 | $ | 3,898,306 | $ | 138,616 | $ | 148,999 | ||||||||
As of December 31, 2008
|
||||||||||||||||
Available
for Sale
|
Held
to Maturity
|
|||||||||||||||
Cost Basis
|
Fair Value
|
Cost Basis
|
Fair Value
|
|||||||||||||
Due
in one year or less
|
$ | 1,172,643 | $ | 1,345,759 | $ | 60,254 | $ | 63,986 | ||||||||
Due
in one year to five years
|
5,157,100 | 5,765,696 | 118,842 | 116,412 | ||||||||||||
Due
in five years to ten years
|
328,761 | 338,849 | - | - | ||||||||||||
Total
|
$ | 6,658,504 | $ | 7,450,304 | $ | 179,096 | $ | 180,398 |
2009
|
2008
|
2007
|
||||||||||
Proceeds
from sales
|
$ | 9,693,609 | $ | 6,820,433 | $ | 805,550 | ||||||
Gains
|
25,759 | 15,626 | 747 | |||||||||
Losses
|
5,308 | 7,901 | 933 |
2009
|
2008
|
2007
|
||||||||||
Losses
|
$ | 727,697 | $ | 188,060 | $ | 27,730 | ||||||
Gains
|
$ | 38,539 | $ | 48,108 | $ | 5,219 |
a.
|
Unrealized
gain (loss)
|
Less than 12 months
|
More than 12 months
|
|||||||||||||||
Gross Unrealized Loss
|
Market Value
|
Gross Unrealized Loss
|
Market Value
|
|||||||||||||
2009
|
$ | (7,779 | ) | $ | 27,013 | $ | (28,857 | ) | $ | 337,965 | ||||||
2008
|
$ | (27,867 | ) | $ | 1,258,847 | $ | (16,041 | ) | $ | 268,894 | ||||||
2007
|
$ | (36,424 | ) | $ | 883,748 | $ | (11,294 | ) | $ | 187,604 |
b.
|
Impairment
|
a)
|
the
length of time and the extent to which the market value of the security
has been less than cost;
|
b)
|
the
financial condition and near-term prospects of the issuer, including any
specific events which influence the operations of the issuer (such as
changes in technology that may impair the earnings potential of the
investment, or the discontinuance of a segment of a business that may
affect the future earnings potential);
and
|
c)
|
carries
out the analysis as instructed in ASC paragraph 320-10-65-1 which includes
the comparison of the fair value and the amortized cost, evaluates the
intention to sell the security and if it is more-likely-than-not that the
Company will be required to sell the security prior to recovery, including
the existence of a credit
loss.
|
Credit Rating Agency
|
Short-term Credit Rating
|
Long-Term Credit Rating
|
||
Standard
& Poor’s
|
A-1
|
A
|
||
Moody’s
Investors Services
|
P-1
|
A2
|
||
Fitch
Ratings
|
F-1
|
A
|
ii.
|
INVESTMENTS
IN NON-MARKETABLE SECURITIES
|
a.
|
Equity
Method
|
·
|
Reversal
of valuations and allowances for losses recorded under
RCP
|
·
|
Reversal
of inflation adjustments recorded under
RCP
|
·
|
Inclusion
of share of earnings or losses under U.S. GAAP, net of intercompany
eliminations.
|
·
|
Inclusion
of share in other comprehensive income under U.S.
GAAP.
|
Company
|
Percentage
Of Voting
Interest
|
Equity
Calculated
under
U.S.
GAAP
|
Equity Under
Colombian
GAAP
|
Assets Under
Colombian
GAAP
|
Liabilities
Under
Colombian
GAAP
|
Net Income
(Loss) Under
Colombian
GAAP
|
Investment
Under U.S.
GAAP
Equity
Method
|
|||||||||||||||||||||
Invercolsa
S.A.
|
32 | % | $ | 230,058 | $ | 468,507 | $ | 479,104 | $ | 10,597 | $ | 71,902 | $ | 73,078 | ||||||||||||||
Serviport
S.A.
|
49 | % | 4,742 | 15,170 | 17,557 | 2,387 | 941 | 2,324 | ||||||||||||||||||||
Offshore
International Group
|
50 | % | 640,866 | 726,398 | 860,151 | 133,753 | 69,845 | 320,433 | ||||||||||||||||||||
Ecodiesel
S.A.
|
50 | % | 5,985 | 15,842 | 91,641 | 75,799 | 336 | 2,992 | ||||||||||||||||||||
$ | 398,827 |
Company
|
Percentage
Of Voting
Interest
|
Equity
Calculated
under
U.S.
GAAP
|
Equity Under
Colombian
GAAP
|
Assets Under
Colombian
GAAP
|
Liabilities
Under
Colombian
GAAP
|
Net Income
(Loss) Under
Colombian
GAAP
|
Investment
Under U.S.
GAAP
Equity
Method
|
|||||||||||||||||||||
Oleoducto
de Colombia S.A.
|
44 | % | $ | 3,716 | $ | 109,967 | $ | 150,450 | $ | 40,483 | $ | (23,862 | ) | $ | - | |||||||||||||
Invercolsa
S.A.
|
32 | % | 262,856 | 501,896 | 503,194 | 1,298 | 111,773 | 83,496 | ||||||||||||||||||||
Serviport
S.A.
|
49 | % | 2,909 | 12,768 | 16,092 | 3,324 | (500 | ) | 1,425 | |||||||||||||||||||
Refinería
de Cartagena S.A.
|
49 | % | 2,276,788 | 2,601,628 | 3,110,642 | 509,014 | 9,478 | 1,115,624 | ||||||||||||||||||||
Ecodiesel
S.A.
|
50 | % | 11,282 | 15,579 | 63,614 | 48,036 | 76 | 5,641 | ||||||||||||||||||||
$ | 1,206,186 |
2009
|
2008
|
2007
|
||||||||||
Assets
|
$ | 1,175,830 | $ | 1,000,110 | $ | 1,255,285 | ||||||
Liabilities
|
61,565 | 106,447 | 371,907 | |||||||||
Equity
|
$ | 1,114,265 | $ | 893,663 | $ | 883,378 | ||||||
Net
income
|
$ | 404,621 | $ | 10,284 | $ | 33,901 |
December 31, 2009:
|
||||||||||||
Investment
|
Number of
Shares
|
Participation
Percentage
|
Cost
|
|||||||||
Zona
Franca de Cartagena S.A.
|
244 | 8.18 | $ | 239 | ||||||||
Sociedad
Portuaria del Dique
|
10 | 0.5 | 5 | |||||||||
Propaise
S.A.
|
18,744,883 | 0.99 | 10 | |||||||||
Total
|
$ | 254 |
December 31, 2008:
|
||||||||||||
Investment
|
Number of
Shares
|
Participation
Percentage
|
Cost
|
|||||||||
Interconexión
Eléctrica S.A.
|
58,925,480 | 5.48 | $ | 124,113 | ||||||||
Empresa
de Energía de Bogotá S.A. ESP.
|
6,310,980 | 7.35 | 151,932 | |||||||||
Total
|
$ | 276,045 |
iii.
|
DERIVATIVES
|
2009
|
2008
|
2007
|
||||||||||||||||||||||
Realized
|
Unrealized
|
Realized
|
Unrealized
|
Realized
|
Unrealized
|
|||||||||||||||||||
Options
(1)
|
$ | 66,889 | $ | 25,943 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Swaps
|
(23,757 | ) | (438 | ) | (45,024 | ) | - | - | - | |||||||||||||||
Forwards
|
878 | - | (24,879 | ) | - | 43,696 | - | |||||||||||||||||
Total
|
$ | 44,010 | $ | 25,505 | $ | (69,903 | ) | $ | - | $ | 43,696 | $ | - |
(1)
|
Amounts
include premiums paid
|
iv.
|
EXCHANGE
OF NON-MONETARY ASSETS
|
v.
|
DEFERRED
CHARGES
|
vi.
|
EMPLOYEE
BENEFIT PLANS
|
2009
|
2008
|
2007
|
||||||||||||||||||||||||||||||||||
Components of net periodic
benefit costs:
|
Pension
|
Other
Benefits (*)
|
Total
|
Pension
|
Other
Benefits
(*)
|
Total
|
Pension
|
Other
Benefits
(*)
|
Total
|
|||||||||||||||||||||||||||
Service
cost
|
$ | 21,126 | $ | 40,279 | $ | 61,405 | $ | 57,957 | $ | 20,549 | $ | 78,506 | $ | 58,608 | $ | 20,352 | $ | 78,960 | ||||||||||||||||||
Interest
cost
|
1,037,577 | 474,634 | 1,512,211 | 861,042 | 787,838 | 1,648,880 | 757,536 | 302,210 | 1,059,746 | |||||||||||||||||||||||||||
Expected
Return on plan assets
|
(1,013,399 | ) | (416,474 | ) | (1,429,873 | ) | (366,541 | ) | (78,806 | ) | (445,347 | ) | (292,564 | ) | (63,184 | ) | (355,748 | ) | ||||||||||||||||||
Amortization
of net (gain) or loss
|
- | 1,992,091 | 1,992,091 | 270,231 | 143,337 | 413,568 | 904,528 | 232,876 | 1,137,404 | |||||||||||||||||||||||||||
Net
periodic pension cost under U.S. GAAP
|
45,304 | 2,090,530 | 2,135,834 | 822,689 | 872,918 | 1,695,607 | 1,428,108 | 492,254 | 1,920,362 | |||||||||||||||||||||||||||
Net
periodic pension cost under Colombian GAAP
|
- | (719,236 | ) | (719,236 | ) | 109,530 | (353,958 | ) | (244,428 | ) | (526,277 | ) | (348,711 | ) | (874,988 | ) | ||||||||||||||||||||
Difference
to be recognized under U.S. GAAP
|
$ | 45,304 | $ | 1,371,294 | $ | 1,416,598 | $ | 932,219 | $ | 518,960 | $ | 1,451,179 | $ | 901,831 | $ | 143,543 | $ | 1,045,374 |
*
|
Other
benefits include education, health, pension bonds and accrued
severance.
|
Pension Plans
|
Other Benefits
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Reconciliation of projected benefit
obligation:
|
||||||||||||||||
Projected
benefit obligation as of January 1
|
$ | (8,910,139 | ) | $ | (8,602,489 | ) | $ | (3,838,042 | ) | $ | (2,865,655 | ) | ||||
Cost
of service
|
(21,126 | ) | (57,957 | ) | (40,279 | ) | (20,549 | ) | ||||||||
Cost
of interest
|
(1,037,577 | ) | (861,042 | ) | (474,634 | ) | (787,838 | ) | ||||||||
Actuarial
(gain) loss
|
(920,726 | ) | 116,506 | (701,110 | ) | (341,386 | ) | |||||||||
Benefit
payments
|
550,678 | 494,843 | 209,850 | 177,386 | ||||||||||||
Projected
benefit obligation as of December 31
|
(10,338,890 | ) | (8,910,139 | ) | (4,844,215 | ) | (3,838,042 | ) | ||||||||
Reconciliation
of plan assets:
|
||||||||||||||||
Fair
value of plan assets as of January 1
|
8,501,667 | 7,815,380 | 1,671,124 | 1,680,294 | ||||||||||||
Reclassification
between plan assets
|
- | 216,553 | - | (216,553 | ) | |||||||||||
Actual
return on plan assets
|
1,013,399 | 964,577 | 416,474 | 207,383 | ||||||||||||
Company
contributions
|
- | - | - | - | ||||||||||||
Benefits
paid
|
(550,678 | ) | (494,843 | ) | - | - | ||||||||||
Actuarial
(gain) loss
|
182,017 | - | (262,280 | ) | - | |||||||||||
Fair
value of plan assets as of December 31
|
9,146,405 | 8,501,667 | 1,825,318 | 1,671,124 | ||||||||||||
Projected
benefit obligation, as of December 31
|
(524,622 | ) | (479,318 | ) | (3,426,309 | ) | (1,545,629 | ) | ||||||||
Amounts
recognized in other comprehensive income (loss)
|
(667,863 | ) | 70,846 | 407,412 | (621,289 | ) | ||||||||||
Net
liability under U.S. GAAP
|
(1,192,485 | ) | (408,472 | ) | (3,018,897 | ) | (2,166,918 | ) | ||||||||
Net
liability under RCP
|
(121,415 | ) | - | (2,578,143 | ) | (2,011,576 | ) | |||||||||
Net
effect under pension plan and other benefits
|
$ | (1,071,070 | ) | $ | (408,472 | ) | $ | (440,754 | ) | $ | (155,342 | ) |
Pension Plans
|
Other Benefits
|
Total
|
||||||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||||||||
Current
portion
|
$ | - | $ | - | $ | (245,315 | ) | $ | (209,523 | ) | $ | (245,315 | ) | $ | (210,294 | ) | ||||||||
Long-term
portion
|
(1,192,485 | ) | (408,472 | ) | (2,773,582 | ) | (1,957,395 | ) | (3,966,067 | ) | (2,365,867 | ) | ||||||||||||
Net
liability
|
$ | (1,192,485 | ) | $ | (408,472 | ) | $ | (3,018,897 | ) | $ | (2,166,918 | ) | $ | (4,211,382 | ) | $ | (2,575,390 | ) |
2009
|
2008
|
|||||||
Long-term
liability
|
||||||||
Pension
|
$ | 1,192,485 | $ | 408,472 | ||||
Health
|
2,343,212 | 1,586,115 | ||||||
Education
|
437,424 | 365,169 | ||||||
Bonds
|
(16,381 | ) | 5,340 | |||||
Severance
|
9,327 | 771 | ||||||
Total
long-term liability
|
$ | 3,966,067 | $ | 2,365,867 |
2009
|
2008
|
2007
|
||||||||||
Other
comprehensive income
|
||||||||||||
Actuarial
income (loss)
|
||||||||||||
Pension
|
$ | (667,863 | ) | $ | 70,846 | $ | (1,130,480 | ) | ||||
Health
|
(887,162 | ) | (1,747,418 | ) | (209,690 | ) | ||||||
Education
|
(123,837 | ) | (464,731 | ) | (125,574 | ) | ||||||
Bonds
|
1,418,411 | 1,590,860 | - | |||||||||
Total
other comprehensive income (loss)
|
(260,451 | ) | (550,443 | ) | (1,465,744 | ) | ||||||
Deferred
income tax effect
|
85,949 | 181,646 | 483,696 | |||||||||
Total
|
$ | (174,502 | ) | $ | (368,797 | ) | $ | (982,048 | ) |
Health
|
$ | 636,590 | ||
Education
|
$ | 81,203 |
2009
|
2008
|
|||||||||||||||||||||||
Pension
|
Health
|
Education
|
Pension
|
Health
|
Education
|
|||||||||||||||||||
Discount
rate
|
8.50 | % | 8.50 | % | 8.50 | % | 11.98 | % | 11.98 | % | 11.98 | % | ||||||||||||
Rate
of compensation and pension increases
|
5.06 | % | 4.00 | % | 4.00 | % | 9.67 | % | 8.67 | % | 7.67 | % | ||||||||||||
Expected
rate of return
|
4.33 | % | *** | *** | 4.69 | % | 4.69 | % | 4.69 | % | ||||||||||||||
Mortality
table
|
** | ** | ** | * | * | * |
*
|
Colombian
mortality table ISS, male and female,
1981-1989.
|
**
|
Colombian
Mortality Table ISS, male, and female,
2005-2008.
|
***
|
The
partial transfer does not include health and education
benefits.
|
Period
|
Pension Benefits
|
Health Care Benefits
|
Education
Benefits
|
|||||||||
2010
|
$ | 555,303 | $ | 162,507 | $ | 70,333 | ||||||
2011
|
590,830 | 156,058 | 58,765 | |||||||||
2012
|
582,053 | 152,523 | 55,179 | |||||||||
2013
|
573,083 | 148,807 | 51,131 | |||||||||
2014
|
563,947 | 144,913 | 46,051 | |||||||||
Years
2015 – 2019
|
1,913,130 | 477,537 | 121,412 |
1% Percentage Point
|
||||||||
Increase
|
Decrease
|
|||||||
Effect
on total of service and interest cost
|
$ | 258,622 | $ | 199,141 | ||||
Effect
on postretirement benefit obligation
|
$ | 2,831,320 | $ | 2,237,066 |
2009
|
2008
|
|||||||
Government
securities
|
51 | % | 64 | % | ||||
Private
bonds
|
24 | % | 13 | % | ||||
Foreign
currency
|
3 | % | 3 | % | ||||
Other
|
22 | % | 20 | % | ||||
100 | % | 100 | % |
vii.
|
PROVISIONS,
ALLOWANCES AND CONTINGENCES
|
•
|
Information
available prior to issuance of the financial statements indicates that it
is probable that an asset had been impaired or a liability had been
incurred at the date of the financial
statements.
|
•
|
The
amount of loss can be reasonably
estimated.
|
viii.
|
DEFERRED
INCOME TAXES
|
2009
|
2008
|
2007
|
||||||||||
Income
tax expense
|
$ | 2,324,148 | $ | 4,579,304 | $ | 2,544,590 | ||||||
Income
tax effects based on items of Other Comprehensive Income:
|
||||||||||||
Pension
Plan Liability
|
(95,697 | ) | (302,050 | ) | 358,277 | |||||||
Available-for-sale
securities
|
15,389 | (236,974 | ) | (6,364 | ) | |||||||
Additional
paid in capital
|
177,241 | - | - | |||||||||
$ | 2,421,081 | $ | 4,040,280 | $ | 2,896,503 |
2009
|
2008
|
2007
|
||||||||||
Current
provision
|
$ | 1,948,819 | $ | 3,648,451 | $ | 2,045,997 | ||||||
Deferred
tax
|
375,329 | 930,853 | 498,593 | |||||||||
$ | 2,324,148 | $ | 4,579,304 | $ | 2,544,590 |
2009
|
2008
|
2007
|
||||||||||
Nominal
income tax
|
33.00 | % | 33.00 | % | 34.00 | % | ||||||
Non
– taxable income
|
0.92 | % | (1.09 | )% | (0.89 | )% | ||||||
Non
– deductible expenses
|
2.19 | % | 3.56 | % | 1.14 | % | ||||||
Effect
of contribution in kind
|
- | - | (1.69 | )% | ||||||||
Others
|
(2.38 | )% | 1.94 | % | 0.08 | % | ||||||
Goodwill
fiscal amortization (ASC 830)
|
0.58 | % | - | - | ||||||||
Exempt
revenue
|
(0.14 | )% | (3.29 | )% | (3.37 | )% | ||||||
Changes
in tax rate
|
- | - | 0.10 | % | ||||||||
Effect
of foreign profit taxed at other rate
|
(0.02 | )% | (0.02 | )% | - | |||||||
Business
combination
|
(0.98 | )% | - | - | ||||||||
Effective
income tax under U.S. GAAP
|
33.17 | % | 34.10 | % | 29.21 | % |
2009
|
2008
|
2007
|
||||||||||
Deferred
income tax expense (exclusive of the effects of other components
below):
|
||||||||||||
Accounts
payable
|
$ | (21,072 | ) | $ | 8,192 | $ | 111,514 | |||||
Inventories,
principally due to inflation adjustments
|
19,168 | (14,554 | ) | (54,565 | ) | |||||||
Property,
plant and equipment, principally due to DD&A and inflation
adjustments
|
(568,471 | ) | 521,649 | 190,536 | ||||||||
Deferred
charges
|
177,228 | (70,630 | ) | 379,099 | ||||||||
Capital
lease assets
|
42,999 | 10,488 | 50,820 | |||||||||
Monetary
Correction and other
|
(44,921 | ) | (39,573 | ) | 377,656 | |||||||
Investments
|
318,291 | 655,164 | 175,221 | |||||||||
Direct
finance leases
|
(6,355 | ) | - | (461,312 | ) | |||||||
Estimated
liabilities and provisions
|
(470,479 | ) | (106,139 | ) | 75,919 | |||||||
Accounts
and notes receivable
|
(87,778 | ) | (19,110 | ) | (431,134 | ) | ||||||
Carryforward
losses
|
(146,932 | ) | - | - | ||||||||
Labor
obligations
|
(374,923 | ) | 51,299 | 13,305 | ||||||||
Deferred
income
|
8,237 | (156,470 | ) | - | ||||||||
Natural
and environmental resources due to inflation adjustments
and capitalized expenses
|
259,483 | (11,979 | ) | (26,418 | ) | |||||||
Valuation
allowance
|
93,281 | 4,126 | 8,004 | |||||||||
Additional
tax discount on the acquisition of productive assets according to ASC 740
(1)
|
1,321,469 | 637,418 | 462,676 | |||||||||
Excess
in presumptive income tax
|
(114,744 | ) | - | - | ||||||||
Other
|
(69,965 | ) | (4 | ) | 1,645 | |||||||
Amortization
of actuarial loss recorded in OCI
|
(95,697 | ) | (302,050 | ) | (375,343 | ) | ||||||
Unrealized
loss in available for sale securities
|
15,389 | (236,974 | ) | (7,428 | ) | |||||||
Amortization
of fiscal goodwill according to (ASC 830)
|
30,133 | - | - | |||||||||
Acquisitions
adjustments (2)
|
90,988 | - | - | |||||||||
Adjustment
to deferred tax assets and liabilities for enacted changes in
tax laws and rates
|
- | - | 8,399 | |||||||||
$ | 375,329 | $ | 930,853 | $ | 498,594 |
(1)
|
This
value corresponds to the deferred tax generated by the calculation of ASC
740, due to the implementation of the special deduction for investment in
productive assets.
|
(2)
|
This
value consists of the net balance of the deferred tax accounts of the
companies we acquired during 2009 at the time of the
acquisition.
|
2009
|
2008
|
|||||||
Deferred
income tax assets and liabilities
|
||||||||
Deferred
income tax assets:
|
||||||||
Inventories
|
$ | 60,482 | $ | 79,650 | ||||
Investments,
principally due to inflation adjustments
|
456,674 | 1,598,571 | ||||||
Accounts
and notes receivable
|
100,458 | 12,686 | ||||||
Deferred
income
|
148,233 | 156,470 | ||||||
Property,
plant and equipment, principally due to DD&A and inflation
adjustments
|
1,501,499 | 933,028 | ||||||
Deferred
charges
|
793 | 178,021 | ||||||
Financial
obligation, principally due to capitalized leasing
|
119,113 | 162,112 | ||||||
Pension
obligations
|
560,982 | 186,059 | ||||||
Accounts
payable
|
134,664 | 113,592 | ||||||
Carryforward losses
(1)
|
146,932 | - | ||||||
Excess
in presumptive income tax (2)
|
114,744 | - | ||||||
Other
|
16,083 | 4 | ||||||
Amortization
of fiscal goodwill according to ASC 830
|
376,976 | - | ||||||
Estimated
liabilities and provisions (3)
|
1,149,945 | 679,466 | ||||||
Total
gross deferred income tax assets
|
4,887,578 | 4,099,659 | ||||||
Less
valuation allowance
|
(103,427 | ) | (10,146 | ) | ||||
Deferred
income tax assets
|
4,784,151 | 4,089,513 | ||||||
Deferred
income tax liabilities
|
||||||||
Accounts
and notes receivable
|
- | 6 | ||||||
Natural
and environmental properties due to inflation adjustments
and capitalized expenses
|
440,494 | 181,011 | ||||||
Monetary
correction and other
|
445,289 | 490,210 | ||||||
Investments
|
1,400,966 | 2,224,572 | ||||||
Direct
finance lease
|
6,355 | - | ||||||
Deferred
income tax liabilities
|
2,293,104 | 2,895,799 | ||||||
Net
deferred income tax assets (4)
|
$ | 2,491,047 | $ | 1,193,714 |
(1)
|
Carryforward
losses are generated by subsidiaries and according to local tax laws,
these losses will not expire.
|
(2)
|
The
excesses in presumptive income tax are generated by subsidiaries and will
expire in 5 years.
|
(3)
|
Includes
$14,364 from Ecopetrol del Perú that is calculated at 29% income tax rate,
which is the income tax rate for this
company.
|
(4)
|
The
Company does not have the intention to repatriate dividends to the Head
Office from subsidiaries in the short term; for that reason the deferred
income taxes only include the deferred income taxes recognized by the
subsidiaries.
|
ix.
|
REVENUE
RECOGNITION
|
a.
|
Revenue
– FAEP
|
Year
|
USD (million)
|
Pesos
|
||||||
2010
|
31 | $ | 63,490 | |||||
2011
|
20 | 41,034 | ||||||
2012
|
18 | 37,486 | ||||||
2013
|
17 | 35,350 | ||||||
2014
|
17 | 34,725 | ||||||
Payments
after 2014
|
44 | 89,110 | ||||||
147 | $ | 301,195 |
2009
|
||||
Assets
|
||||
Property,
plant and equipment (Building offices)
|
$ | 10,987 | ||
Accumulated
depreciation
|
(1,481 | ) | ||
Net
value
|
$ | 9,506 | ||
Liabilities:
|
||||
Financial
obligations
|
$ | 11,258 |
Year
|
USD (million)
|
Pesos
|
||||||
2010
|
1.2 | $ | 2,549 | |||||
2011
|
1.2 | 2,549 | ||||||
2012
|
1.2 | 2,549 | ||||||
2013
|
1.3 | 2,549 | ||||||
2014
|
0.6 | 1,062 | ||||||
Payments
after 2014
|
- | - | ||||||
5.5 | $ | 11,258 |
1.
|
The
arrangement depends on a specific fixed asset, either identified
contractually or implicitly identified as no alternative item could
feasibly be used.
|
2.
|
The
purchaser has the right to control the use of the underlying fixed asset,
such control demonstrated by the existence of any of the following
qualitative conditions:
|
|
a)
|
The
purchaser can operate the asset or direct others to operate the asset
while obtaining or controlling more than a minor amount of the asset’s
output;
|
|
b)
|
The
purchaser can control physical access to asset while obtaining or
controlling more than a minor amount of the asset’s output;
or
|
|
c)
|
Probability
is remote that another party will get more than minor amount of the
asset’s output and the price is not fixed per
unit.
|
2009
|
2008
|
|||||||
Assets
|
||||||||
Property,
plant and equipment (Gas pipeline)
|
$ | 83,245 | $ | 83,245 | ||||
Accumulated
depreciation
|
(66,596 | ) | (61,046 | ) | ||||
Net
value
|
$ | 16,649 | $ | 22,199 | ||||
Liabilities:
|
||||||||
Financial
obligations
|
$ | 56,903 | $ | 77,513 |
Year
|
USD (thousands)
|
Pesos
|
||||||
2010
|
8 | $ | 16,162 | |||||
2011
|
9 | 18,848 | ||||||
2012
|
11 | 21,892 | ||||||
28 | $ | 56,902 |
2009
|
2008
|
2007
|
||||||||||
Beginning
balance at January 1
|
$ | 218,413 | $ | 206,300 | $ | 113,200 | ||||||
Additions
from business combination
|
143,541 | - | - | |||||||||
Additions
to capitalized exploratory well costs
|
349,162 | 268,041 | 288,910 | |||||||||
Reclassifications
to wells, facilities and equipment based on the determination of proved
reserves
|
(149,130 | ) | (163,817 | ) | (113,900 | ) | ||||||
Capitalized
exploratory well costs charged to expense*
|
(198,064 | ) | (92,111 | ) | (81,910 | ) | ||||||
Ending
balance at December 31
|
$ | 363,922 | $ | 218,413 | $ | 206,300 |
2009
|
2008
|
|||||||
Balance
at beginning of period
|
$ | 1,320,058 | $ | 980,082 | ||||
Liabilities
incurred in the current period
|
6,131 | 25,902 | ||||||
Abandonment
Cost from Business combination
|
58,143 | - | ||||||
Liabilities
revised
|
666,706 | 122,005 | ||||||
Liabilities
settled
|
(17,435 | ) | (3,120 | ) | ||||
Accretion
|
(33,895 | ) | 195,191 | |||||
Balance
at end of period
|
$ | 1,999,708 | $ | 1,320,058 |
a.
|
INCORPORATED
INSTITUTIONAL EQUITY
|
b.
|
CONTRIBUTIONS
IN KIND
|
c.
|
REVERSION
OF CONCESSION RIGHTS CONTRIBUTED AS
CAPITAL
|
Company
|
Acquisition Date
|
% acquired
|
Activity
|
||||
Hocol
|
May
27, 2009
|
100 | % |
Investment
vehicle
|
|||
Offshore
International Group – “OIG”
|
February
06, 2009
|
50 | % |
Hydrocarbons
exploration and production
|
|||
Reficar
|
May
27, 2009
|
51 | % |
Hydrocarbons
refining
|
Total
|
||||
Consideration:
|
||||
Cash
|
$ | 4,061,289 | ||
Contingent
consideration arrangement
|
22,401 | |||
Fair
value of Ecopetrol's equity interest in acquirees held before the business
combination
|
1,213,980 | |||
$ | 5,297,670 | |||
Recognized
amounts of identifiable assets acquired and liabilities
assumed:
|
||||
Financial
assets
|
1,963,286 | |||
Inventory
|
444,885 | |||
Property,
plant, and equipment
|
2,833,678 | |||
Other
assets
|
272,738 | |||
Financial
liabilities
|
(885,077 | ) | ||
Other
liabilities
|
(425,508 | ) | ||
Total
identifiable net assets
|
$ | 4,204,002 | ||
Non-controlling
interest in acquirees at fair value
|
(511,494 | ) | ||
Goodwill
|
$ | 1,605,162 |
Company
|
Balance
2008
|
Goodwill
acquired
during 2009
|
Balance
before tax
2009
|
Deferred
income tax*
|
Balance
2009
|
|||||||||||||||
Propilco
- Andean Chemicals
|
$ | 618,617 | $ | - | $ | 618,617 | $ | 899 | $ | 619,516 | ||||||||||
Refineria
de Cartagena
|
- | 1,029,840 | 1,029,840 | - | 1,029,840 | |||||||||||||||
Offshore
International Group
|
- | 758,190 | 758,190 | (31,426 | ) | 726,764 | ||||||||||||||
Bioenergy
|
8,993 | - | 8,993 | - | 8,993 | |||||||||||||||
TOTAL
|
$ | 627,610 | $ | 1,788,030 | $ | 2,415,640 | $ | (30,527 | ) | $ | 2,385,113 |
Company
|
Goodwill
|
Accumulated
Amortization
|
Balance
|
Net Effect
|
Remaining
time-years
|
|||||||||||||||
Andean
Chemicals Ltd
|
$ | 357,629 | $ | (33,655 | ) | $ | 323,974 | $ | 106,911 | 17.8 | ||||||||||
Offshore
International Group – “OIG”
|
821,994 | (48,502 | ) | 773,492 | 255,252 | 14.0 | ||||||||||||||
Hocol
|
628,456 | (22,750 | ) | 605,706 | 199,883 | 16.0 | ||||||||||||||
Total
|
$ | 1,808,079 | $ | (104,907 | ) | $ | 1,703,172 | $ | 562,046 |
Scenario
|
Average published price/barrel
(in U.S. Dollars)
|
Amount of Contingent Obligation
(in Millions of U.S. Dollars)
|
||||
1
|
Less
than $55
|
$ | - | |||
2
|
Equal
to $55 and less than $60
|
$ | 25 | |||
3
|
Equal
to $60 and less than $65
|
$ | 40 | |||
4
|
Equal
or more than $65
|
$ | 65 |
Scenario
|
Average published price/barrel
(in U.S. Dollars)
|
Amount of Contingent Obligation
(in Millions of U.S. Dollars) *
|
||||
1
|
Less
than $60
|
$ | - | |||
2
|
More
than $60 and less or equal that $70
|
$ | 200 | |||
3
|
More
than $70
|
$ | 300 |
Refinería de
Cartagena
S.A.
|
Hocol
Petroleum
Limited
|
Oleoducto de
Colombia S.A.
|
Offshore
International
Group
|
Total
|
||||||||||||||||
Fair
value of assets acquired and liabilities assumed under US GAAP during
2009
|
||||||||||||||||||||
Assets
acquired
|
$ | 1,123,775 | $ | 338,586 | $ | 19,622 | $ | 261,587 | $ | 1,743,570 | ||||||||||
Property,
plant and equipment, net
|
502,279 | 1,530,386 | 196,583 | 302,216 | 2,531,464 | |||||||||||||||
Accounts
receivable
|
272,685 | 317,688 | 9,649 | 37,866 | 637,888 | |||||||||||||||
Liabilities
assumed
|
(562,899 | ) | (463,332 | ) | (17,952 | ) | (133,201 | ) | (1,177,384 | ) | ||||||||||
Net
Assets Acquired
|
1,335,840 | 1,723,328 | 207,902 | 468,468 | 3,735,538 | |||||||||||||||
Total
purchase price net of cash received
|
2,365,680 | 1,623,395 | 124,967 | 1,226,658 | 5,340,700 | |||||||||||||||
Goodwill
(Negative goodwill)
|
$ | 1,029,840 | $ | (99,933 | ) | $ | (82,935 | ) | $ | 758,190 | $ | 1,605,162 |
Refinería de
Cartagena S.A.
|
Hocol
Petroleum
Limited
|
Oleoducto de
Colombia S.A.
|
Offshore
International
Group
|
Total
|
||||||||||||||||
Cash
Paid
|
$ | 1,206,497 | $ | 1,600,992 | $ | 27,142 | $ | 1,226,658 | $ | 4,061,289 |
UNAUDITED
PRO FORMA FINANCIAL INFORMATION
|
||||||||
2008
|
2009
|
|||||||
Consolidated
sales of Ecopetrol, December 31
|
$ | 33,849,213 | $ | 29,551,574 | ||||
Sales
of the companies acquired prior to the acquistion
|
7,388,318 | 2,570,354 | ||||||
Pro
forma Sales
|
$ | 41,237,531 | $ | 32,121,928 | ||||
Net
Earnings of Ecopetrol
|
$ | 8,848,139 | $ | 5,661,562 | ||||
Net
earnings of the companies acquired in 2009
|
271,341 | 136,977 | ||||||
Pro
forma Earnings
|
$ | 9,119,480 | $ | 5,798,539 | ||||
Weighted-average
shares outstanding
|
40,472,512,588 | 40,472,512,588 | ||||||
Earnings
per share
|
$ | 225.33 | $ | 143.27 |
Reficar
|
ODC
|
|||||||
Percentage
acquired
|
51.00% | 21.72% | ||||||
Bargain
Purchase
|
$ | (134,967) | $ | 27,422 | ||||
Gain
|
$ | 23,300 | $ | 4,608 |
Ocensa
|
Brazil
|
Peru
|
ODC
|
ODL
|
Bioenergy
|
Total
|
||||||||||||||||||||||
Balance
2006
|
$ | 565,119 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 565,119 | ||||||||||||||
Issuance
of company shares
|
- | 45 | 484 | - | - | - | 529 | |||||||||||||||||||||
Net
income (loss)
|
21,373 | - | - | - | - | - | 21,373 | |||||||||||||||||||||
Distribution
of dividends
|
(15,418 | ) | - | - | - | - | - | (15,418 | ) | |||||||||||||||||||
Translation
Adjustments
|
- | 4 | (10 | ) | - | - | - | (6 | ) | |||||||||||||||||||
Balance
2007
|
571,074 | 49 | 474 | - | - | - | 571,597 | |||||||||||||||||||||
Issuance
of company shares
|
- | - | - | - | 217,378 | 217,378 | ||||||||||||||||||||||
Other
Non-controlling Interest
|
- | (45 | ) | (484 | ) | - | - | - | (529 | ) | ||||||||||||||||||
Net
income (loss)
|
8,716 | - | - | - | - | (2,460 | ) | 6,256 | ||||||||||||||||||||
Distribution
of dividends
|
(141,634 | ) | - | - | - | - | - | (141,634 | ) | |||||||||||||||||||
Retained
Earnings
|
140,095 | - | - | - | - | - | 140,095 | |||||||||||||||||||||
Purchase
Price Allocation
|
- | - | - | - | - | 8,718 | 8,718 | |||||||||||||||||||||
Translation
Adjustments
|
- | ( 4 | ) | 10 | - | 16,885 | - | 16,891 | ||||||||||||||||||||
Balance
2008
|
578,251 | - | - | - | 234,263 | 6,258 | 818,772 | |||||||||||||||||||||
Acquired
Non-controlling Interest
|
(300,377 | )* | - | - | 21,495 | - | (2,810 | ) | (281,692 | ) | ||||||||||||||||||
Equity
reduction declared and paid
|
- | - | - | - | (78,405 | ) | - | (78,405 | ) | |||||||||||||||||||
Net
income (loss)
|
161,849 | - | - | (40,320 | ) | (14,274 | ) | (2,536 | ) | 104,719 | ||||||||||||||||||
Distribution
of dividends
|
(89,736 | ) | - | - | - | - | - | (89,736 | ) | |||||||||||||||||||
Retained
Earnings
|
95,790 | - | - | (1,622 | ) | 464 | 6,540 | 101,172 | ||||||||||||||||||||
Purchase
Price Allocation
|
- | - | - | 21,530 | - | - | 21,530 | |||||||||||||||||||||
Translation
Adjustments
|
- | - | - | (13,047 | ) | - | (13,047 | ) | ||||||||||||||||||||
Balance
2009
|
$ | 445,777 | $ | - | $ | - | $ | 1,083 | $ | 129,001 | $ | 7,452 | $ | 583,313 |
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||||||||
Current
assets
|
||||||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 524,575 | $ | 474,419 | $ | 284,071 | $ | 1 | $ | 2,279,053 | $ | - | $ | 3,562,119 | ||||||||||||||
Accounts
and notes receivable
|
1,729,683 | 881,807 | 470,252 | 150,352 | 484,201 | (747,175 | ) | 2,969,120 | ||||||||||||||||||||
Inventories
|
586,915 | 1,186,598 | 38,168 | 355,879 | - | (124,863 | ) | 2,042,697 | ||||||||||||||||||||
Investments
|
- | - | 77,929 | - | 580,802 | (196,473 | ) | 462,258 | ||||||||||||||||||||
Other
current assets
|
1,967,700 | 759,092 | 142,117 | 31,653 | 191,035 | (10,003 | ) | 3,081,594 | ||||||||||||||||||||
4,808,873 | 3,301,916 | 1,012,537 | 537,885 | 3,535,091 | (1,078,514 | ) | 12,117,788 | |||||||||||||||||||||
Investments
in non-consolidated companies
|
1,756,903 | 614,863 | 510,654 | 7,921 | 1,424,157 | - | 4,314,498 | |||||||||||||||||||||
Property,
plant and equipment, net
|
16,959,637 | 5,725,580 | 5,000,979 | 16,950 | 234,738 | - | 27,937,884 | |||||||||||||||||||||
Other
non-current assets
|
2,813,026 | 3,671,095 | 1,490,849 | 86,227 | 4,266,059 | (1,137,909 | ) | 11,189,347 | ||||||||||||||||||||
Non
Current assets
|
21,529,566 | 10,011,538 | 7,002,482 | 111,098 | 5,924,954 | (1,137,909 | ) | 43,441,729 | ||||||||||||||||||||
Total
assets
|
$ | 26,338,439 | $ | 13,313,454 | $ | 8,015,019 | $ | 648,983 | $ | 9,460,045 | $ | (2,216,423 | ) | $ | 55,559,517 | |||||||||||||
Accounts
payable
|
$ | (1,769,120 | ) | $ | (805,784 | ) | $ | (577,766 | ) | $ | (704,937 | ) | $ | (408,257 | ) | $ | 985,632 | $ | (3,280,232 | ) | ||||||||
Financial
obligations (short-term)
|
(20,434 | ) | (214,698 | ) | (99,983 | ) | - | (101,966 | ) | - | (437,081 | ) | ||||||||||||||||
Other
Current Liabilities
|
(1,155,241 | ) | (1,602,026 | ) | (408,600 | ) | (34,274 | ) | (552,759 | ) | - | (3,752,900 | ) | |||||||||||||||
Current
Liabilities
|
(2,944,795 | ) | (2,622,508 | ) | (1,086,349 | ) | (739,211 | ) | (1,062,982 | ) | 985,632 | (7,470,213 | ) | |||||||||||||||
Financial
obligations (long-term)
|
(1,369,726 | ) | (688,452 | ) | (589,832 | ) | - | (3,066,344 | ) | - | (5,714,354 | ) | ||||||||||||||||
Other
non Current Liabilities
|
(4,710,256 | ) | (1,686,981 | ) | (652,950 | ) | (32,003 | ) | (2,887,420 | ) | 1,105,928 | (8,863,682 | ) | |||||||||||||||
Non-current
liabilities
|
(6,079,982 | ) | (2,375,433 | ) | (1,242,782 | ) | (32,003 | ) | (5,953,764 | ) | 1,105,928 | (14,578,036 | ) | |||||||||||||||
Total
Liabilities
|
(9,024,777 | ) | (4,997,941 | ) | (2,329,131 | ) | (771,214 | ) | (7,016,746 | ) | 2,091,560 | (22,048,249 | ) | |||||||||||||||
Non-controlling
interest
|
- | (11,696 | ) | (929,615 | ) | - | - | - | (941,311 | ) | ||||||||||||||||||
Shareholders’
equity of Ecopetrol
|
(17,313,662 | ) | (8,303,817 | ) | (4,756,273 | ) | 122,231 | (2,443,299 | ) | 124,863 | (32,569,957 | ) | ||||||||||||||||
Total
Equity
|
(17,313,662 | ) | (8,315,513 | ) | (5,685,888 | ) | 122,231 | (2,443,299 | ) | 124,863 | (33,511,268 | ) | ||||||||||||||||
Total
liabilities and equity
|
$ | (26,338,439 | ) | $ | (13,313,454 | ) | $ | (8,015,019 | ) | $ | (648,983 | ) | $ | (9,460,045 | ) | $ | 2,216,423 | $ | (55,559,517 | ) | ||||||||
Capital
expenditures
|
$ | 5,564,438 | $ | 3,578,579 | $ | 3,501,953 | $ | 8,455 | $ | 197,237 | $ | 12,850,662 | ||||||||||||||||
Goodwill
|
$ | 1,393,705 | $ | 603,193 | $ | 510,654 | $ | - | $ | - | $ | - | $ | 2,507,552 |
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
|||||||||||||||||||
Current
assets
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 29,621 | $ | 25,702 | $ | 205,423 | $ | 1 | $ | 1,853,056 | $ | 2,113,803 | ||||||||||||
Accounts
and notes receivable
|
889,324 | 713,242 | 108,034 | 3,195 | 4,163,487 | 5,877,282 | ||||||||||||||||||
Inventories
|
695,998 | 514,696 | 1,609 | 312,697 | 86,296 | 1,611,296 | ||||||||||||||||||
Investments
|
- | - | - | - | 3,749,919 | 3,749,919 | ||||||||||||||||||
Other
current assets
|
1,311,415 | 567,679 | 224,437 | 1,573 | 247,496 | 2,352,600 | ||||||||||||||||||
2,926,358 | 1,821,319 | 539,503 | 317,466 | 10,100,254 | 15,704,900 | |||||||||||||||||||
Investments
in unconsolidated companies
|
636,010 | 1,307,996 | 48,221 | 7,790 | 404,678 | 2,404,695 | ||||||||||||||||||
Property,
plant and equipment, net
|
11,532,444 | 2,624,998 | 1,858,477 | 13,260 | 102,358 | 16,131,537 | ||||||||||||||||||
Other
non-current assets
|
3,748,875 | 2,256,078 | 884,312 | 37,319 | 7,534,696 | 14,461,280 | ||||||||||||||||||
Non
Current assets
|
15,917,329 | 6,189,072 | 2,791,010 | 58,369 | 8,041,732 | 32,997,512 | ||||||||||||||||||
Total
assets
|
$ | 18,843,687 | $ | 8,010,391 | $ | 3,330,513 | $ | 375,835 | $ | 18,141,986 | $ | 48,702,412 | ||||||||||||
Accounts
payable
|
$ | (751,117 | ) | $ | (532,743 | ) | $ | (287,843 | ) | $ | (3,280 | ) | $ | (133,664 | ) | $ | (1,708,647 | ) | ||||||
Other
Current Liabilities
|
(2,818,830 | ) | (1,171,709 | ) | (327,960 | ) | (9,907 | ) | (662,719 | ) | (4,991,125 | ) | ||||||||||||
Current
Liabilities
|
(3,569,947 | ) | (1,704,452 | ) | (615,803 | ) | (13,187 | ) | (796,383 | ) | (6,699,772 | ) | ||||||||||||
Non-current
liabilities
|
(3,133,747 | ) | (173,241 | ) | (191,295 | ) | (8,360 | ) | (3,633,329 | ) | (7,139,972 | ) | ||||||||||||
Total
Liabilities
|
(6,703,694 | ) | (1,877,693 | ) | (807,098 | ) | (21,547 | ) | (4,429,712 | ) | (13,839,744 | ) | ||||||||||||
Non-controlling
interest
|
- | (8,682 | ) | (234,269 | ) | - | - | (242,951 | ) | |||||||||||||||
Shareholders’
equity of Ecopetrol
|
(12,139,993 | ) | (6,124,016 | ) | (2,289,146 | ) | (354,288 | ) | (13,712,274 | ) | (34,619,717 | ) | ||||||||||||
Total
Equity
|
(12,139,993 | ) | (6,132,698 | ) | (2,523,415 | ) | (354,288 | ) | (13,712,274 | ) | (34,862,668 | ) | ||||||||||||
Total
liabilities and equity
|
$ | (18,843,687 | ) | $ | ( 8,010,391 | ) | $ | (3,330,513 | ) | $ | (375,835 | ) | $ | (18,141,986 | ) | $ | ( 48,702,412 | ) | ||||||
Capital
expenditures
|
$ | 4,911,487 | $ | 776,080 | $ | 939,996 | $ | 7,549 | $ | 69,483 | $ | 6,704,595 | ||||||||||||
Goodwill
|
$ | - | $ | 668,614 | $ | - | $ | - | $ | - | $ | 668,614 |
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
|||||||||||||||||||
Current
assets
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 117,231 | $ | 503 | $ | 20,008 | $ | 1 | $ | 3,612,156 | $ | 3,749,899 | ||||||||||||
Accounts
and notes receivable
|
892,734 | 1,213,755 | 24,147 | 55 | 139,213 | 2,269,904 | ||||||||||||||||||
Inventories
|
514,294 | 782,594 | 1,417 | - | 486 | 1,298,791 | ||||||||||||||||||
Investments
|
- | - | - | - | 5,954,502 | 5,954,502 | ||||||||||||||||||
Other
current assets
|
1,387,466 | 426,403 | 107,142 | 698 | 579,317 | 2,501,026 | ||||||||||||||||||
$ | 2,911,725 | 2,423,255 | 152,714 | 754 | 10,285,674 | 15,774,122 | ||||||||||||||||||
Investments
in unconsolidated companies
|
396,021 | 239,271 | 50,746 | 7,750 | 432,157 | 1,125,945 | ||||||||||||||||||
Property,
plant and equipment, net
|
7,887,869 | 1,941,755 | 1,203,771 | 14,105 | 233,368 | 11,280,868 | ||||||||||||||||||
FAEP
|
- | - | - | - | - | - | ||||||||||||||||||
Pension
Plan assets
|
- | - | - | - | 8,986,861 | 8,986,861 | ||||||||||||||||||
Other
non-current assets
|
3,805,094 | 2,603,033 | 737,494 | 46,619 | 3,752,044 | 10,944,284 | ||||||||||||||||||
Non
Current assets
|
12,088,984 | 4,784,059 | 1,992,011 | 68,474 | 13,404,430 | 32,337,958 | ||||||||||||||||||
Total
assets
|
$ | 15,000,709 | $ | 7,207,314 | $ | 2,144,725 | $ | 69,228 | $ | 23,690,104 | $ | 48,112,080 | ||||||||||||
Accounts
payable
|
(803,715 | ) | (530,031 | ) | (112,722 | ) | (15 | ) | (118,087 | ) | (1,564,570 | ) | ||||||||||||
Other
Current Liabilities
|
(2,546,871 | ) | (763,965 | ) | (355,851 | ) | (43,398 | ) | (791,129 | ) | (4,501,214 | ) | ||||||||||||
Current
Liabilities
|
$ | (3,350,586 | ) | (1,293,996 | ) | (468,573 | ) | (43,413 | ) | (909,216 | ) | (6,065,784 | ) | |||||||||||
Non-current
liabilities
|
(2,592,625 | ) | (383,365 | ) | (430,798 | ) | (33,565 | ) | (11,797,475 | ) | (15,237,828 | ) | ||||||||||||
Total
Liabilities
|
$ | (5,943,211 | ) | (1,677,361 | ) | (899,371 | ) | (76,978 | ) | (12,706,691 | ) | (21,303,612 | ) | |||||||||||
Shareholders’
equity of Ecopetrol
|
$ | (9,057,498 | ) | (5,529,953 | ) | (1,245,354 | ) | 7,750 | (10,983,413 | ) | (26,808,468 | ) | ||||||||||||
Total
Liabilities and equity
|
$ | (15,000,709 | ) | $ | (7,207,314 | ) | $ | (2,144,725 | ) | $ | (69,228 | ) | $ | (23,690,104 | ) | $ | (48,112,080 | ) | ||||||
Capital
expenditures
|
$ | 2,678,684 | $ | 234,462 | $ | 92,344 | $ | 7,712 | $ | 23,760 | $ | 3,036,962 |
Exploration
&
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Local
sales
|
$ | 833,592 | $ | 11,834,414 | $ | 1,579,934 | $ | 4,203,178 | $ | 9,533 | $ | (4,402,117 | ) | $ | 14,058,534 | |||||||||||||
Foreign
sales, net
|
7,637,794 | 4,136,988 | - | 4,559,317 | 11,757 | - | 16,345,856 | |||||||||||||||||||||
Inter-segment
net operating revenues
|
8,910,816 | 1,328,066 | 1,336,699 | 170,637 | - | (11,746,218 | ) | - | ||||||||||||||||||||
Total
Revenue
|
17,382,202 | 17,299,468 | 2,916,633 | 8,933,132 | 21,290 | (16,148,335 | ) | 30,404,390 | ||||||||||||||||||||
Cost
of sales
|
5,933,870 | 17,034,428 | 1,454,660 | 8,143,415 | 46,929 | (15,647,927 | ) | 16,965,375 | ||||||||||||||||||||
Depreciation,
depletion and amortization
|
1,868,371 | 418,341 | 641,154 | - | 12,832 | - | 2,940,698 | |||||||||||||||||||||
Selling
|
1,409,026 | 188,119 | 52,707 | 605,414 | 82,920 | (375,544 | ) | 1,962,642 | ||||||||||||||||||||
Administration
expenses
|
253,167 | 202,349 | 156,481 | 51,117 | 761 | (1,539 | ) | 662,336 | ||||||||||||||||||||
Costs
and expenses
|
9,464,434 | 17,843,237 | 2,305,002 | 8,799,946 | 143,442 | (16,025,010 | ) | 22,531,051 | ||||||||||||||||||||
Operating
income
|
7,917,768 | (543,769 | ) | 611,631 | 133,186 | (122,152 | ) | (123,325 | ) | 7,873,339 | ||||||||||||||||||
Financial
income (expenses), net
|
221,444 | (73,909 | ) | (66,610 | ) | 58,065 | 356,843 | - | 495,833 | |||||||||||||||||||
Pension
expenses
|
- | - | (4,414 | ) | - | (590,743 | ) | - | (595,157 | ) | ||||||||||||||||||
Other
non-operating income (expenses)
|
(100,716 | ) | (60,559 | ) | (130,607 | ) | (10,205 | ) | (219,545 | ) | (1,539 | ) | (523,171 | ) | ||||||||||||||
Other
expenses, net
|
120,728 | (134,468 | ) | (201,631 | ) | 47,860 | (453,445 | ) | (1,539 | ) | (622,495 | ) | ||||||||||||||||
Income
before income taxes and non-controlling interest
|
8,038,496 | (678,237 | ) | 410,000 | 181,046 | (575,597 | ) | (124,864 | ) | 7,250,844 | ||||||||||||||||||
Income
tax benefits (expense)
|
(2,239,098 | ) | 158,400 | (127,082 | ) | (48,966 | ) | 142,717 | - | (2,114,029 | ) | |||||||||||||||||
Net
income
|
5,799,398 | (519,837 | ) | 282,918 | 132,080 | (432,880 | ) | (124,864 | ) | 5,136,815 | ||||||||||||||||||
Less:
Net loss (income) attributable to Non-controlling
|
(39,270 | ) | 31,272 | 3,237 | - | - | - | (4,761 | ) | |||||||||||||||||||
Net
income for the year attributable to Ecopetrol S.A.
|
$ | 5,760,128 | $ | (488,565 | ) | $ | 286,155 | $ | 132,080 | $ | (432,880 | ) | $ | (124,864 | ) | $ | 5,132,054 |
Year ended December 31, 2008
|
||||||||||||||||||||||||||||
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Local
sales
|
$ | 734,648 | $ | 14,847,890 | $ | 724,838 | $ | 5,283,230 | $ | 7,393 | $ | - | $ | 21,597,999 | ||||||||||||||
Foreign
sales, net
|
4,417,583 | 3,273,018 | - | 4,592,046 | 16,023 | - | 12,298,670 | |||||||||||||||||||||
Inter-segment
net operating revenues
|
13,134,513 | 922,252 | 1,092,465 | 167,144 | - | (15,316,374 | ) | - | ||||||||||||||||||||
Total
Revenue
|
18,286,744 | 19,043,160 | 1,817,303 | 10,042,420 | 23,416 | (15,316,374 | ) | 33,896,669 | ||||||||||||||||||||
Cost
of sales
|
4,032,496 | 18,063,118 | 1,105,176 | 9,146,456 | 5,462 | (15,316,374 | ) | 17,036,334 | ||||||||||||||||||||
Depreciation,
depletion and amortization
|
1,505,540 | 351,387 | 188,585 | - | 2,590 | - | 2,048,102 | |||||||||||||||||||||
Selling
|
949,457 | 214,408 | 10,840 | 521,685 | 76,384 | - | 1,772,774 | |||||||||||||||||||||
Administration
expenses
|
262,634 | 244,159 | 158,562 | 32,578 | (315,832 | ) | - | 382,101 | ||||||||||||||||||||
Costs
and expenses
|
6,750,127 | 18,873,072 | 1,463,163 | 9,700,719 | (231,396 | ) | - | 36,555,685 | ||||||||||||||||||||
Operating
income
|
11,536,617 | 170,088 | 354,140 | 341,701 | 254,812 | - | 12,657,358 | |||||||||||||||||||||
Financial
income (expenses), net
|
909,111 | 62,161 | (82,989 | ) | (106,054 | ) | 3,319,023 | - | 4,101,252 | |||||||||||||||||||
Pension
expenses
|
- | - | (6,204 | ) | - | (1,138,721 | ) | - | (1,144,925 | ) | ||||||||||||||||||
Other
non-operating income (expenses)
|
129,037 | 173,890 | 140,748 | 825 | (46,981 | ) | - | 397,519 | ||||||||||||||||||||
Other
expenses, net
|
1,038,148 | 236,051 | 51,555 | (105,229 | ) | 2,133,321 | - | 3,353,846 | ||||||||||||||||||||
Income
before income taxes and non-controlling interest
|
12,574,765 | 406,139 | 405,695 | 236,472 | 2,388,133 | - | 16,011,204 | |||||||||||||||||||||
Income
tax benefits (expense)
|
(3,436,850 | ) | (125,797 | ) | (110,596 | ) | (64,629 | ) | (644,110 | ) | - | (4,381,982 | ) | |||||||||||||||
Net
income
|
9,137,915 | 280,342 | 295,099 | 171,843 | 1,744,023 | 11,629,222 | ||||||||||||||||||||||
Less:
Net loss (income) attributable to Non-controlling
|
- | - | 455 | - | - | - | 455 | |||||||||||||||||||||
Net
income for the year attributable to Ecopetrol S.A.
|
$ | 9,137,915 | $ | 280,342 | $ | 295,554 | $ | 171,843 | $ | 1,744,023 | $ | - | $ | 11,629,677 |
Year ended December 31, 2007
|
||||||||||||||||||||||||||||
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Eliminations
|
Total
|
||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||
Local
sales
|
$ | 529,729 | $ | 11,472,108 | $ | 677,938 | $ | 3,317,980 | $ | 5,242 | $ | - | $ | 16,002,997 | ||||||||||||||
Foreign
sales
|
1,102,850 | 2,156,388 | - | 3,373,323 | 13,259 | - | 6,645,820 | |||||||||||||||||||||
FAEP
|
- | - | - | (316,497 | ) | - | - | (316,497 | ) | |||||||||||||||||||
Foreign
sales, net
|
1,102,850 | 2,156,388 | - | 3,056,826 | 13,259 | - | 6,329,323 | |||||||||||||||||||||
Inter-segment
net operating revenues
|
9,996,500 | 553,640 | 766,151 | 189,154 | - | (11,505,445 | ) | - | ||||||||||||||||||||
Total
Revenue
|
11,629,079 | 14,182,136 | 1,444,089 | 6,563,960 | 18,501 | (11,505,445 | ) | 22,332,320 | ||||||||||||||||||||
Cost
of sales
|
3,459,322 | 12,092,084 | 790,255 | 5,496,151 | 5,182 | (11,505,445 | ) | 10,337,549 | ||||||||||||||||||||
Depreciation,
depletion and amortization
|
1,173,006 | 356,215 | 191,541 | - | 216 | - | 1,720,978 | |||||||||||||||||||||
Selling
|
458,026 | 148,283 | 102,004 | 380,842 | 76,254 | - | 1,165,409 | |||||||||||||||||||||
Administration
expenses
|
113,420 | 103,657 | 74,057 | 30,910 | - | - | 322,044 | |||||||||||||||||||||
Costs
and expenses
|
5,203,774 | 12,700,239 | 1,157,857 | 5,907,903 | 81,652 | (11,505,445 | ) | 13,545,980 | ||||||||||||||||||||
Operating
income
|
6,425,305 | 1,481,897 | 286,232 | 656,057 | (63,151 | ) | - | 8,786,340 | ||||||||||||||||||||
Financial
income (expenses), net
|
(45,989 | ) | (25,260 | ) | (16,284 | ) | (47,440 | ) | 228,601 | - | 93,628 | |||||||||||||||||
Pension
expenses
|
- | - | (5,660 | ) | - | (1,084,683 | ) | - | (1,090,343 | ) | ||||||||||||||||||
Other
non-operating income (expenses)
|
(289,114 | ) | (533,901 | ) | (109,076 | ) | 10,742 | 197,028 | - | (724,321 | ) | |||||||||||||||||
Other
expenses, net
|
(335,103 | ) | (559,161 | ) | (131,020 | ) | (36,698 | ) | (659,054 | ) | - | (1,721,036 | ) | |||||||||||||||
Income
before income taxes and non-controlling interest
|
6,090,202 | 922,736 | 155,212 | 619,359 | (722,205 | ) | - | 7,065,304 | ||||||||||||||||||||
Income
tax benefits (expense)
|
(1,625,288 | ) | (246,250 | ) | (41,421 | ) | (165,288 | ) | 192,735 | - | (1,885,512 | ) | ||||||||||||||||
Net
income for the year
|
$ | 4,464,914 | $ | 676,486 | $ | 113,791 | $ | 454,071 | $ | (529,470 | ) | $ | - | $ | 5,179,792 |
Sales
by Geographic Zones December 31, 2009
|
||||||||||
Zone
|
Products
|
Value
|
Participation
|
|||||||
Colombia*
|
Crude
oil, Refined, Petrochemicals and natural gas
|
$ | 14,134,884 | 46.5 | % | |||||
United
States of America
|
Crude
oil, Refined and Petrochemicals
|
10,875,221 | 35.8 | % | ||||||
Asia
|
Crude
oil, Refined and Petrochemicals
|
1,431,302 | 4.7 |
%
|
||||||
South
America
|
Crude
oil, Refined, Petrochemicals and natural gas
|
561,221 | 1.8 | % | ||||||
Central
America and Caribbean
|
Crude
oil, Refined and Petrochemicals
|
1,473,225 | 4.8 | % | ||||||
Europe
|
Crude
oil, Refined and Petrochemicals
|
1,207,367 | 4.0 | % | ||||||
Other
|
Petrochemicals
|
721,170 | 2.4 | % | ||||||
$ | 30,404,390 | 100.0 | % |
Sales
by Geographic Zones December 31, 2008
|
||||||||||
Zone
|
Products
|
Value
|
Participation
|
|||||||
Colombia
|
Crude
oil, Refined, Petrochemicals and natural gas
|
$ | 21,597,999 | 63.7 | % | |||||
United
States of America
|
Crude
oil, Refined and Petrochemicals
|
7,847,375 | 23.2 | % | ||||||
Asia
|
Crude
oil, Refined and Petrochemicals
|
1,516,946 | 4.5 | % | ||||||
South
America
|
Crude
oil, Refined, Petrochemicals and natural gas
|
1,024,709 | 3.0 | % | ||||||
Central
America and Caribbean
|
Crude
oil, Refined and Petrochemicals
|
1,188,904 | 3.5 | % | ||||||
Europe
|
Crude
oil, Refined and Petrochemicals
|
605,655 | 1.8 | % | ||||||
Other
|
Petrochemicals
|
115,081 | 0.3 | % | ||||||
$ | 33,896,669 | 100.0 | % |
Sales
by Geographic Zones December 31, 2007
|
||||||||||
Zone
|
Products
|
Value
|
Participation
|
|||||||
Colombia
|
Refined
and Petrochemicals
|
$ | 16,002,997 | 71.6 | % | |||||
United
States of America
|
Crude
oil and Refined
|
4,531,885 | 20.3 | % | ||||||
Central
America and Caribbean
|
Crude
oil and Refined
|
1,109,504 | 5.0 | % | ||||||
Europe
|
Crude
oil and Refined
|
673,948 | 3.0 | % | ||||||
Rest
of world
|
Crude
oil and Refined
|
13,986 | 0.1 | % | ||||||
$ | 22,332,320 | 100.0 | % |
Sales
of products by Segment for the year ended December 31,
2009
|
||||||||||||||||||||||||||||
Local
Sales
|
Exploration
&
Production
|
Refining
|
Transportation
|
Market
and
Supply
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Medium
distillates
|
$ | 9,571 | $ | 5,087,896 | $ | - | $ | - | $ | - | $ | - | $ | 5,097,467 | ||||||||||||||
Gasolines
|
- | 5,015,900 | - | - | - | - | 5,015,900 | |||||||||||||||||||||
Crude
Oil
|
- | - | - | 3,636,242 | - | (3,618,048 | ) | 18,194 | ||||||||||||||||||||
Other
products
|
194,460 | 456,907 | - | - | - | (75,077 | ) | 576,290 | ||||||||||||||||||||
Services
|
61,868 | 56,521 | 1,579,934 | 80,726 | 9,533 | (675,507 | ) | 1,113,075 | ||||||||||||||||||||
Natural
Gas
|
547,792 | - | - | 486,210 | - | (33,485 | ) | 1,000,517 | ||||||||||||||||||||
L.P.G.
|
19,901 | 449,650 | - | - | - | - | 469,551 | |||||||||||||||||||||
Diesel
and gasoline price differentials
|
- | 196,533 | - | - | - | - | 196,533 | |||||||||||||||||||||
Plastic
and rubber
|
- | 571,007 | - | - | - | - | 571,007 | |||||||||||||||||||||
Total
local sales
|
$ | 833,592 | $ | 11,834,414 | $ | 1,579,934 | $ | 4,203,178 | $ | 9,533 | $ | (4,402,117 | ) | $ | 14,058,534 |
Sales of products by Segment for the year ended December 31, 2009
|
||||||||||||||||||||||||||||
Foreign Sales
|
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Eliminations
|
Total
|
|||||||||||||||||||||
Crude
oil
|
$ | 7,329,974 | $ | - | $ | - | $ | 4,485,538 | $ | - | $ | - | $ | 11,815,512 | ||||||||||||||
Fuel
oil
|
- | 1,660,911 | - | - | - | 1,660,911 | ||||||||||||||||||||||
Gasoline
|
- | 1,654,670 | - | 69,865 | - | 1,724,535 | ||||||||||||||||||||||
Natural
Gas
|
307,820 | - | - | 3,914 | - | 311,734 | ||||||||||||||||||||||
Plastic
and rubber
|
- | 544,912 | - | - | - | 544,912 | ||||||||||||||||||||||
Other
products
|
- | 276,495 | - | - | 11,757 | 288,252 | ||||||||||||||||||||||
Total
foreign sales
|
$ | 7,637,794 | $ | 4,136,988 | $ | - | $ | 4,559,317 | $ | 11,757 | $ | - | $ | 16,345,856 |
Sales of products by Segment for the year ended December 31, 2008
|
||||||||||||||||||||||||
Local Sales
|
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
||||||||||||||||||
Medium
distillates
|
$ | 11,032 | $ | 5,903,595 | $ | - | $ | - | $ | - | $ | 5,914,627 | ||||||||||||
Gasoline
|
41 | 3,644,304 | - | - | - | 3,644,345 | ||||||||||||||||||
Crude
Oil
|
- | - | - | 4,774,401 | - | 4,774,401 | ||||||||||||||||||
Other
products
|
179,577 | 1,196,214 | - | - | - | 1,375,791 | ||||||||||||||||||
Services
|
55,806 | 61,612 | 724,838 | 72,003 | 7,393 | 921,652 | ||||||||||||||||||
Natural
Gas
|
464,588 | - | - | 436,826 | - | 901,414 | ||||||||||||||||||
L.P.G.
|
19,901 | 592,870 | - | - | - | 612,771 | ||||||||||||||||||
Diesel
and gasoline price differential
|
3,703 | 3,066,776 | - | - | - | 3,070,479 | ||||||||||||||||||
Plastic
and rubber
|
- | 382,519 | - | - | - | 382,519 | ||||||||||||||||||
Total
local sales
|
$ | 734,648 | $ | 14,847,890 | $ | 724,838 | $ | 5,283,230 | $ | 7,393 | $ | 21,597,999 |
Sales of products by Segment for the year ended December 31, 2008
|
||||||||||||||||||||||||
Foreign Sales
|
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
||||||||||||||||||
Crude
oil
|
$ | 4,107,194 | $ | - | $ | - | $ | 4,589,088 | $ | - | $ | 8,696,282 | ||||||||||||
Fuel
oil
|
- | 2,093,012 | - | - | - | 2,093,012 | ||||||||||||||||||
Gasoline
|
- | 186,197 | - | - | - | 186,197 | ||||||||||||||||||
Naphtha
|
- | 2,693 | - | - | - | 2,693 | ||||||||||||||||||
Jet
fuel
|
- | - | - | - | - | - | ||||||||||||||||||
Natural
Gas
|
310,389 | - | - | 2,958 | - | 313,347 | ||||||||||||||||||
Plastic
and rubber
|
- | 704,034 | - | - | - | 704,034 | ||||||||||||||||||
Other
products
|
- | 287,082 | - | - | 16,023 | 303,105 | ||||||||||||||||||
Total
foreign sales
|
$ | 4,417,583 | $ | 3,273,018 | $ | - | $ | 4,592,046 | $ | 16,023 | $ | 12,298,670 |
Sales of products by Segment for the year ended December 31, 2007
|
||||||||||||||||||||||||
Local Sales
|
Exploration
& Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
||||||||||||||||||
Medium
distillates
|
$ | 18,997 | $ | 4,870,376 | $ | - | $ | - | $ | - | $ | 4,889,373 | ||||||||||||
Gasoline
|
748 | 3,345,612 | - | - | - | 3,346,360 | ||||||||||||||||||
Crude
Oil
|
- | - | - | 3,004,629 | - | 3,004,629 | ||||||||||||||||||
Other
products
|
53,186 | 845,279 | - | - | - | 898,465 | ||||||||||||||||||
Services
|
27,900 | 49,646 | 677,938 | 60,471 | 5,242 | 821,197 | ||||||||||||||||||
Natural
Gas
|
407,291 | - | - | 252,880 | - | 660,171 | ||||||||||||||||||
L.P.G.
|
18,649 | 586,103 | - | - | - | 604,752 | ||||||||||||||||||
Diesel
and gasoline price differential
|
2,958 | 1,775,092 | - | - | - | 1,778,050 | ||||||||||||||||||
Total
local sales
|
$ | 529,729 | $ | 11,472,108 | $ | 677,938 | $ | 3,317,980 | $ | 5,242 | $ | 16,002,997 |
Sales of products by Segment for the year ended December 31, 2007
|
||||||||||||||||||||||||
Foreign Sales
|
Exploration &
Production
|
Refining
|
Transportation
|
Market and
Supply
|
Corporate
|
Total
|
||||||||||||||||||
Crude
oil
|
$ | 1,102,815 | $ | - | $ | - | $ | 3,373,322 | $ | - | $ | 4,476,137 | ||||||||||||
FAEP
|
- | - | - | (316,497 | ) | - | (316,497 | ) | ||||||||||||||||
Fuel
oil
|
- | 1,560,399 | - | - | - | 1,560,399 | ||||||||||||||||||
Gasoline
|
- | 269,248 | - | - | - | 269,248 | ||||||||||||||||||
Naphtha
|
- | 244,393 | - | - | - | 244,393 | ||||||||||||||||||
Jet
fuel
|
- | 71,378 | - | - | - | 71,378 | ||||||||||||||||||
Natural
Gas
|
35 | - | - | 1 | - | 36 | ||||||||||||||||||
Other
products
|
- | 10,970 | - | - | 13,259 | 24,229 | ||||||||||||||||||
Total
foreign sales
|
$ | 1,102,850 | $ | 2,156,388 | $ | - | $ | 3,056,826 | $ | 13,259 | $ | 6,329,323 |
2009
|
2008
|
|||||||||||||||
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||||||
Ministerio
de Hacienda y Crédito Público
|
$ | 1,015,691 | $ | 130,668 | $ | 1,503,458 | $ | 92,465 | ||||||||
Ministerio
de Minas y Energía
|
37,228 | - | 3,777,133 | - | ||||||||||||
U.A.E.
Agencia Nacional de Hidrocarburos
|
134,108 | 9,093 | 222,199 | 8 | ||||||||||||
E.S.P.
Empresa de Energía de Bogotá S.A.
|
503,217 | - | 169,611 | - | ||||||||||||
E.S.P.
Generadora de Energía del Caribe S.A.
|
54,337 | 23,735 | 65,978 | 14,179 | ||||||||||||
Interconexión
Eléctrica S.A.
|
766,969 | - | 71,537 | 127 | ||||||||||||
Entidades
Territoriales (Departamentos, Municipios)
|
17,438 | 7,399 | 37,915 | 7,824 | ||||||||||||
Empresas
Públicas de Medellín
|
33,038 | 62 | 15,169 | 129 | ||||||||||||
Isagen
S.A.
|
8,306 | 45 | 5,399 | 616 | ||||||||||||
E.S.P.
Transportadora de Gas del Interior S.A.
|
4,666 | - | 2,458 | 2,426 | ||||||||||||
Empresa
Colombiana de Gas
|
- | - | 2,193 | - | ||||||||||||
E.S.P.
Termoemcali S.A.
|
34,001 | - | 1,367 | 3,861 | ||||||||||||
E.S.P.
Gestión Energética S.A.
|
600 | - | 1,173 | 7 | ||||||||||||
Central
Hidroeléctrica de Caldas S.A. E.S.P
|
529 | - | 215 | 665 | ||||||||||||
Universidad
Industrial de Santander U.I.S.
|
18 | - | 3 | 244 | ||||||||||||
Dirección
de Impuestos y Aduanas Nacionales DIAN
|
11,961 | 73,328 | - | 791,021 | ||||||||||||
Others
|
484 | 3,855 | 906 | 6,082 | ||||||||||||
$ | 2,622,591 | $ | 248,185 | $ | 5,876,714 | $ | 919,654 |
2009
|
2008
|
2007
|
||||||||||||||||||||||
Income
|
Expenses
|
Income
|
Expenses
|
Income
|
Expenses
|
|||||||||||||||||||
Ministerio
de Minas y Energía
|
$ | - | $ | - | $ | 3,870,348 | $ | - | $ | 1,778,050 | $ | - | ||||||||||||
Dirección
de Impuestos y Aduanas Nacionales DIAN
|
19 | 2,344,905 | - | 4,855,718 | - | 2,289,777 | ||||||||||||||||||
Entidades
Territoriales (Departamentos, Municipios)
|
15 | 121,396 | - | 133,346 | - | 148,785 | ||||||||||||||||||
Contraloría
General de la República
|
- | 33,106 | - | 25,811 | - | 25,934 | ||||||||||||||||||
Ministerio
de Defensa Nacional
|
- | 12,128 | - | 15,774 | - | 10,928 | ||||||||||||||||||
Ministerio
de Transporte
|
- | - | - | 13,922 | - | 22,572 | ||||||||||||||||||
Inversiones
de Gases de Colombia S.A. - Invercolsa
|
- | - | 9,231 | - | 9,219 | - | ||||||||||||||||||
Unidad
de Planeación Minero Energética
|
- | 2,308 | - | 2,206 | - | 2,885 | ||||||||||||||||||
Others
|
745 | 19,526 | 1,653 | 7,311 | 218 | 2,815 | ||||||||||||||||||
$ | 779 | $ | 2,533,369 | $ | 3,881,232 | $ | 5,054,088 | $ | 1,787,487 | $ | 2,503,696 |
2009
|
2008
|
|||||||||||||||||||
|
Fair
Value
|
Level
1
|
Level
2
|
Level
3
|
Fair
Value
|
|||||||||||||||
Assets | ||||||||||||||||||||
Cash
and cash equivalents
|
$ | 3,861,532 | $ | 3,861,532 | $ | - | $ | - | $ | 4,812,595 | ||||||||||
Investment
securities
|
4,369,219 | 4,209,008 | 8,280 | 151,931 | 8,201,004 | |||||||||||||||
Derivatives
|
66,283 | - | 66,283 | - | - | |||||||||||||||
Accounts
Receivable
|
2,760,554 | - | 2,760,554 | - | 6,086,633 | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Financial
Obligations
|
6,162,210 | - | 6,162,210 | - | 287,314 | |||||||||||||||
Accounts
Payable
|
3,820,251 | - | 3,820,251 | - | 2,113,923 | |||||||||||||||
Capital
lease
|
496,397 | - | 496,397 | - | 436,102 |
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
|
||||
Investment
Securities
|
||||
Beginning
balance
|
$ | - | ||
Total
gains or losses (realized/unrealized)
|
- | |||
Included
in earnings
|
- | |||
Included
in other comprehensive income
|
- | |||
Purchases,
issuances, and settlements
|
- | |||
Transfers
in and/or out level 3
|
151,931 | |||
Ending
balance
|
151,931 | |||
The
amount of total gains or losses for the period included in earnings (or
changes in net assets) attributable to the change in unrealized gains or
losses relating to assets still held at the reporting date
|
- |
Description
|
2009
|
Level 1
|
Level 2
|
Level 3
|
Total Gains
(Losses)
|
|||||||||||||||
Long-lived
assets held and used
|
$ | 370,269 | $ | - | $ | - | $ | 370,269 | $ | 395,044 |
2009
|
2008
|
2007
|
||||||||||
Natural
and environmental properties – proved properties (1)
|
$ | 12,188,806 | $ | 8,657,429 | $ | 7,026,558 | ||||||
Wells,
equipment and facilities – property, plant and equipment
|
5,359,419 | 4,112,318 | 3,899,238 | |||||||||
Construction
in progress
|
2,321,427 | 1,828,945 | 1,108,023 | |||||||||
Accumulated
depreciation, depletion and amortization
|
(9,883,704 | ) | (7,637,750 | ) | (6,460,233 | ) | ||||||
Net
capitalized costs
|
$ | 9,985,948 | $ | 6,960,942 | $ | 5,573,586 |
(1)
|
In
accordance with ASC 410-20, Asset Retirement Obligations, during 2009,
2008 and 2007 an additional $6,131, $25,902 and $60,864 was added,
respectively, to the cost basis of oil and gas wells for wells
drilled.
|
2009
|
2008
|
2007
|
||||||||||
Acquisition
of Proved Properties (1)
|
$ | 2,879,233 | $ | 1,049,402 | $ | - | ||||||
Exploration
costs
|
1,273,486 | 941,369 | 497,737 | |||||||||
Development
costs
|
4,098,822 | 2,808,888 | 2,163,444 | |||||||||
Total
costs incurred
|
$ | 8,251,541 | $ | 4,799,659 | $ | 2,661,181 |
(1)
|
Includes
wells, equipment and facilities associated with Hocol S.A. and
OIG.
|
2009
|
2008
|
2007
|
||||||||||
Net
revenues
|
||||||||||||
Sales
|
$ | 8,724,917 | $ | 5,152,231 | $ | 1,632,579 | ||||||
Transfers
(1)
|
8,910,816 | 13,134,513 | 9,996,500 | |||||||||
Total
|
17,635,733 | 18,286,744 | 11,629,079 | |||||||||
Production
cost (2)
|
6,493,549 | 4,500,054 | 3,761,656 | |||||||||
Depreciation,
depletion and amortization (3)
|
1,123,633 | 775,852 | 545,188 | |||||||||
Exploration
expenses (4)
|
1,321,927 | 852,697 | 394,712 | |||||||||
Total
|
8,939,109 | 6,128,603 | 4,701,556 | |||||||||
Income
before income tax
|
8,696,624 | 12,158,141 | 6,927,523 | |||||||||
Income
Tax expense
|
(2,869,886 | ) | (4,012,187 | ) | (2,355,358 | ) | ||||||
Results
of operations for producing activities
|
$ | 5,826,738 | $ | 8,145,954 | $ | 4,572,165 |
(1)
|
The
Company transferred approximately 51%, 26% and 44% of its crude oil and
gas production; (percentages are based on the sales value in Colombian
pesos) to inter-company business units in 2009, 2008 and 2007,
respectively. Using volumes, those transfers were 35%, 40% and 44%,
respectively, in 2009, 2008 and 2007. The inter-company transfers were
recorded at values equal to the Company’s market
prices.
|
(2)
|
Production
costs are lifting costs incurred to operate and maintain productive wells
and related equipment and facilities, including such costs as operating
labor, materials, supplies, and fuel consumed in operations and the costs
of operating natural gas liquids plants. Production costs also include
administrative expenses and depreciation and amortization of equipment
associated with production
activities.
|
(3)
|
In
accordance with ASC 410-20, the combined depletion and accretion expense
related to asset retirement obligations that were recognized during 2009,
2008 and 2007 in depreciation, depletion and amortization expense was
approximately ($33,895), $195,191 and $18,392
respectively. The Company’s results of operations from oil and
gas producing activities for the years ending December 31, 2009, 2008
and 2007 are shown above.
|
(4)
|
Exploration
expenses include the costs of geological and geophysical activities and
non-productive exploratory wells. Depreciation and amortization expenses
relate to assets employed in development activities. In accordance with
ASU 2010-03, income taxes are based on statutory tax
rates.
|
a)
|
Through
existing wells with existing equipment and operating methods or in which
the cost of the required equipment is relatively minor compared to the
cost of a new well.
|
b)
|
Through
installed extraction equipment and infrastructure operational at the time
of the reserves estimate if the extraction is by means not involving a
well.
|
2009</di
v>
|
|
2008
|
2007
|
|||||||||||||||||||||||||||||||||
Oil
|
Gas
|
Total
|
Oil
|
Gas
|
Total
|
Oil
|
Gas
|
Total
|
||||||||||||||||||||||||||||
million
barrels
|
billion
cf
|
million
boe
|
million
barrels
|
billion
cf
|
million
boe
|
million
barrels
|
billion
cf
|
million
boe
|
||||||||||||||||||||||||||||
Proved
Reserves:
|
||||||||||||||||||||||||||||||||||||
Beginning
of year
|
798.9 | 1,898.9 | 1,137.0 | 857.4 | 1,979.6 | 1,209.9 | 921.2 | 1,860.4 | 1,252.5 | |||||||||||||||||||||||||||
Revisions
(1)
|
319.0 | 548.5 | 416.7 | 44.2 | 54.5 | 53.9 | 25.9 | 74.0 | 39.0 | |||||||||||||||||||||||||||
Extensions
and discoveries (2)
|
137.3 | 38.6 | 144.2 | 8.3 | 0.8 | 8.4 | 9.8 | 164.1 | 39.0 | |||||||||||||||||||||||||||
Production
|
(131.9 | ) | (156.6 | ) | (159.7 | ) | (111.0 | ) | (136.0 | ) | (135.2 | ) | (99.6 | ) | (118.8 | ) | (120.7 | ) | ||||||||||||||||||
End
of year
|
1,123.3 | 2,329.4 | 1,538.2 | 798.9 | 1,898.9 | 1,137.0 | 857.4 | 1,979.6 | 1,209.9 | |||||||||||||||||||||||||||
Proved
developed reserves:
|
||||||||||||||||||||||||||||||||||||
Beginning
of year
|
518.4 | 720.6 | 646.7 | 651.3 | 1,210.5 | 866.9 | 610.7 | 995.4 | 788.0 | |||||||||||||||||||||||||||
End
of year
|
630.5 | 1,732.6 | 939.1 | 518.4 | 720.6 | 646.7 | 651.3 | 1,210.5 | 866.9 | |||||||||||||||||||||||||||
Proved
undeveloped reserves: (3)
|
||||||||||||||||||||||||||||||||||||
Beginning
of year
|
280.5 | 1,178.3 | 490.3 | 206.1 | 769.1 | 343.0 | 310.5 | 865.0 | 464.5 | |||||||||||||||||||||||||||
End
of year
|
492.8 | 596.9 | 599.1 | 280.5 | 1,178.3 | 490.3 | 206.1 | 769.1 | 343.0 |
(1)
|
The
variation in the revisions of new projects in existing fields was 256
mboe, mainly in fields Rubiales (110mboe), Castilla (44 mboe), Chichimene
(32 mboe) and Pauto (15 mboe). New projects in these fields correspond to
78% of all projects.
|
(2)
|
The
increase in extension and discoveries of reserves is mainly due to the
inclusion of Petro-tech (Savia), Hocol and K2. Ecopetrol introduced new
reserves by 49 mboe.
|
(3)
|
During
2009, our total proved undeveloped reserves increased by 108.8 mboe to
599.2 mboe at December 31, 2009 from 490.4 mboe at December 31,
2008. At December 31, 2009, 82% of our total proved undeveloped
reserves corresponded to crude
oil.
|
Quantities under
Ecopetrol’s Policy
|
Quantities under
U.S. GAAP
|
Difference
|
||||||||||
Oil,
million of barrels
|
833.2 | 857.4 | (24.2 | ) | ||||||||
Gas,
billion cf
|
1,919.6 | 1,979.6 | (60.0 | ) | ||||||||
Total,
million boe
|
1,175.1 | 1,209.9 | (34.8 | ) |
2009
|
2008
|
2007
|
||||||||||
Future
cash inflows
|
$ | 137,518,875 | $ | 91,719,056 | $ | 156,132,956 | ||||||
Future
costs
|
||||||||||||
Production
|
(36,994,366 | ) | (30,923,136 | ) | (49,909,724 | ) | ||||||
Development
|
(14,245,475 | ) | (9,185,049 | ) | (4,483,284 | ) | ||||||
Income
Taxes
|
(27,574,537 | ) | (18,409,888 | ) | (30,561,458 | ) | ||||||
Abandonment
costs
|
(1,430,847 | ) | (645,382 | ) | (1,350,144 | ) | ||||||
Future
net cash flow
|
57,273,650 | 32,555,601 | 69,828,346 | |||||||||
10%
discount factor
|
(21,813,763 | ) | (13,897,290 | ) | (27,309,680 | ) | ||||||
Standardized
measure of discounted net cash flows
|
$ | 35,459,887 | $ | 18,658,311 | $ | 42,518,666 |
2009
|
2008
|
2007
|
||||||||||
Net
change in sales and transfer prices and in production (lifting)
cost related to future production
|
$ | 10,994,821 | $ | (21,567,415 | ) | $ | 25,567,846 | |||||
Changes
in estimated future development costs
|
(5,847,900 | ) | (3,858,978 | ) | 1,369,555 | |||||||
Sales
and transfer of oil and gas produced during the period
|
(11,491,435 | ) | (13,543,509 | ) | (7,425,045 | ) | ||||||
Net
change due to extension discoveries
|
1,129,590 | 137,845 | 1,168,704 | |||||||||
Net
change due to revisions in quantity estimates
|
16,770,839 | 1,759,641 | 2,175,445 | |||||||||
Previously
estimated development costs incurred during the period
|
4,098,822 | 2,808,888 | 2,163,444 | |||||||||
Accretion
of discount
|
1,865,831 | 4,251,867 | 2,299,461 | |||||||||
Other
– unspecified
|
5,802,156 | (1,906,546 | ) | (2,150,112 | ) | |||||||
Net
change in income taxes
|
(6,521,148 | ) | 8,057,853 | (5,645,244 | ) | |||||||
Aggregate
change in the Standardized measure of discounted future net cash flows for
the year
|
$ | 16,801,576 | $ | (23,860,354 | ) | $ | 19,524,054 |
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