The 2016 investment plan is a part of its new corporate strategy, and represents a drop of approximately 40% from the 2015 investment plan, amidst sliding oil prices.
As per the new plan, the oil and gas company plans to focus on achieving greater efficiencies and profitability in all areas.
Ecopetrol plans to invest in maintaining average daily production of around 755 thousand barrels of oil equivalent (MBOED).
Of the total approved investment for Ecopetrol Group, $2.78bn will be used for projects of Ecopetrol S.A., and $2.01bn for projects of its affiliates and subsidiaries.
Ecopetrol plans to make 96% of the investments in Colombia and 4% abroad through affiliates of Ecopetrol S.A.
The investments will mainly focus on more efficient production of crude oil and gas, evaluate recent exploratory discoveries, commission of the new Cartagena refinery, and boost transport capacity, the company said.
The Cartagena refinery is being upgraded with an investment of $6.4bn, to expand its refining capacity to around 165,000 barrels per day.
The complex features crude and visbreaking units, fluid catalytic cracker, and light products, polymerization, amine, sulphur, and impurities treatment plants.
In July 2015, Ecopetrol made hydrocarbon discovery in Kronos-1 well in ultra-deepwater of Colombian south Caribbean area.
