(Ecopetrol, 7.Feb.2022) — Ecopetrol S.A. (BVC: ECOPETROL,NYSE: EC) announced its consolidated proven oil, condensate, and natural gas reserves (1P reserves, according to the standard international denomination), which include the results of Ecopetrol and its subsidiaries, as of 31 December 2021.
HIGHLIGHTS:
Proven oil and gas reserves increased by 13%, up to 2,002 MBOE[1]
– The Reserve-Replacement Ratio (RRR) of 200% implies that, for each barrel produced in the year by the company, two barrels were added to reserves.
– The Ecopetrol Group’s average reserve life increased to 8.7 years, exceeding the 2014 figure when the average Brent was $102 per barrel (compared to $69.2 per barrel in 2021).
– The incorporation of proven reserves for the Ecopetrol Group was 462 MBOE, of which 282 MBOE were primarily due to outstanding performance within development fields, optimal and timely maturity of new projects, and greater capacity to execute and implement enhanced recovery expansion projects. Excluding the price effect, the RRR would have been 122%.
– Proven gas reserves increased by 7.9% as compared to 2020, with an RRR of 176%.
– 89% of the reserves correspond to fields in Colombia, increasing the average reserve life up to 8 years, while the remaining 11% corresponds to the operation of Ecopetrol Permian and Ecopetrol America in the United States.
Reserves were estimated based on the United States Securities and Exchange Commission (SEC) standards and methodology. 99.5% of the reserves were certified by four independent specialized firms (Ryder Scott Company, DeGolyer and MacNaughton, Gaffney, Cline & Associates, and Sproule International Limited).
The SEC-defined price used for the 2021 valuation of reserves was $69.2 per barrel of Brent versus $43.4 per barrel of Brent in 2020.
At the end of 2021, the net proven reserves of the Ecopetrol Group were 2,002 MBOE. The Reserve-Replacement Ratio was 200% and the average reserve life was equivalent to 8.7 years.
In 2021, the Ecopetrol Group incorporated 462 MBOE of proven reserves and the total accumulated production was 231 MBOE. Of the total balance of reserves, 72% are liquid reserves, with an average life of 8.2 years, while the remaining 28% are gas reserves, with an average life of 10.4 years.
Of the 462 MBOE incorporated, 61% (282 MBOE) was primarily a result of performance within development fields, optimal and timely maturity of new projects, and greater capacity to execute and implement enhanced recovery expansion projects in fields such as Chichimene, Castilla, and Akacias, among others. The remaining volumes correspond primarily to the favorable effect of the recovery of international oil prices during 2021.
As a result of Ecopetrol’s sale of Savia Peru effective as of January 2021, a disincorporation of said company’s reserves was carried out for 3.5 MBOE.
83% of the proven reserves are owned by Ecopetrol, while the other Ecopetrol Group companies contributed with 17% of the 2,002 MBOE, mainly due to the operation of Ecopetrol Permian and Ecopetrol America in the United States.
The 13% increase achieved in reserves in 2021 demonstrates the strength of the Ecopetrol Group’s hydrocarbon portfolio, which supports the company’s sustainable growth path within its energy transition strategy.
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