Ecopetrol S.A. (NYSE:EC) Q2 2023 Earnings Call Transcript

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Andres Cardona: And the last question, with respect to the living of the Ministry of Minds Energy, is there a possibility for new routes for awarding areas for exploration and search for gas and oil? And I should mention that this continues to be a public policy of the government or will it depend on the Ministry of Mines and Energy and whoever is the head or leader of the ministry? And also, the analysis and exercises to the implications of this in their macroeconomic aspect and also with the participation of the Ministry of Finance and Public Credit.

Jaime Caballero : What we have been doing very rigorously is to participate in technical groups with representatives of these entities in order to show them what we have in respect of contracts that are enforced to undertake the search. And we have been making some announcements that are small but important. And in that line, we’ll continue working with a contract that are enforced and obviously favoring the institutionality as to the macroeconomic relevance of the availability or not of those new contracts.

Operator: Thank you to you all for your answers. Catherina does some [indiscernible].

Unidentified Analyst: Good morning. I have two questions. The first one is related to your opinion with respect to the mentions of the President of Colombia in respect of Ecopetrol. Yes. I am in Spanish.

Unidentified Company Representative: Okay. You can ask.

Unidentified Analyst: Thank you. Well, good morning to you all. I have two questions. The first one is related to the announcement made by the President of the Colombia with respect to the strategy and the role of Ecopetrol in terms of the development of unconventional projects. He mentioned it in [indiscernible] and in this regard, I would like to understand if, for example, Ecopetrol will try to absorb projects in this regard that had been abundant by other companies because of the difficulties of making them viable due to their challenge with the communities. Or what is the plan of that role that the government has mentioned Ecopetrol in the development of this project in these areas or other areas of course? And my second question is related to the fact that recently we became aware of a document that shows the guideline of the roadmap for energy transition.

And in that document, there is even a possibility that very soon we will be having to import gas Ecopetrol with the current ones. And when you think of the estimated reserves, they’re quite different. If you compare them with Ecopetrol had showed in the 2020 plan. So, I would like to know what your opinion with respect to those figures is and what is the alignment if they have with the expectations of Ecopetrol, and if you could tell us if there have been any changes in these expectations with respect to the plan that we knew with respect to Ecopetrol strategy? Thank you.

Diana Escobar: Thank you, Catherine, and welcome to this conference. In the context of the possibility of Ecopetrol becoming an important factor in the development of power generation from unconventional sources of non-renewable energy. We cannot ignore in particular the great potential in this region of energy with and so radiation. Those potentialities are determined and they also constitute one of the plans of a corporate role in its 2020, 2040 road map. And so far, as, based on these energy resources, it is possible to think about the development of energy in the transition that we have already mentioned, such as green hydrogen, and methanol. So, in this road map, we are foreseeing investment and potential for development.

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