Ecopetrol Secures Full Ownership of Block CPO-09 with Strategic Acquisition

Ecopetrol S.A. (NYSE: EC), Colombia's state-owned oil and gas company, has announced a strategic acquisition to purchase Repsol's remaining 45% stake in block CPO-09. This move enables Ecopetrol to consolidate its ownership of the asset, which is expected to add 41 million barrels to its reserves and increase daily production by 7,000 barrels of oil. The transaction, executed under Ecopetrol's right of first refusal within the Joint Operating Agreement (JOA), follows Repsol's previously announced transaction with Geopark on November 29.

The CPO-09 block, located in the municipalities of Villavicencio, Acacías, Guamal, Castilla La Nueva, San Martín, Lejanías, El Dorado, El Castillo, and Granada, is strategically situated in the Piedemonte Llanero region. This acquisition strengthens Ecopetrol's position in the exploitation of the Llanos Orientales basin and consolidates its presence in the region.

With this acquisition, Ecopetrol expects to add approximately 41 million barrels to its reserves and estimates an increase in its daily production by approximately 7,000 barrels of oil. This operation strengthens Ecopetrol's position in the exploitation of the Llanos Orientales basin and consolidates its presence in the region. To complete this transaction, Ecopetrol will need to carry out the corresponding procedures before the National Hydrocarbons Agency and the Superintendence of Industry and Commerce, which are expected to be undertaken in the coming days.

Ecopetrol reaffirms its commitment to the country's energy future, highlighting the importance of hydrocarbons as a key resource for energy sustainability, while steadily advancing towards a fair and responsible energy transition. The timing of this acquisition is particularly strategic given current oil market dynamics and Colombia's push for energy security. Full ownership of CPO-09 provides Ecopetrol complete control over production scheduling, capital allocation, and field optimization strategies, enabling streamlined decision-making for future development.



From a financial perspective, this asset consolidation aligns with Ecopetrol's vertical integration strategy while potentially unlocking operational synergies. The proximity to existing infrastructure and Ecopetrol's deep understanding of the basin's geology reduce execution risk. However, the transaction's full value will depend on successful regulatory approvals and the undisclosed purchase price relative to the asset's current market value and future development costs.

This acquisition demonstrates Ecopetrol's commitment to maintaining its dominant position in Colombia's energy sector while balancing conventional hydrocarbon growth with energy transition goals. The CPO-09 block's strategic location in the Piedemonte Llanero region offers significant operational advantages and synergy potential with existing assets, allowing Ecopetrol to optimize production and costs across its Llanos basin portfolio. The deal's structure through the exercise of right of first refusal indicates a defensive move to prevent competitive entry into a core operating area, securing improved capital allocation flexibility and eliminating potential partner misalignment in future development decisions.

In conclusion, Ecopetrol's acquisition of Repsol's 45% stake in block CPO-09 is a strategic move that strengthens the company's position in the Llanos Orientales basin, adds significant reserves and production, and aligns with its long-term goals of maintaining a dominant position in Colombia's energy sector while balancing conventional hydrocarbon growth with energy transition goals.