Ecopetrol To Spend $80 Billion Through 2020

Ecopetrol EC, Colombia's state-run oil company, released its fourth-quarter results today after the close of U.S. markets and while the results were impressive, the company's plans to spend $80 billion on exploration and production activities through 2020 is the real news. Ecopetrol's fourth-quarter profit climbed to $1.42 billion from $875.7 million a year earlier as the company benefited from rising oil prices and increased production. Revenue jumped to $5.82 billion from $4.4 billion a year earlier. Ecopetrol, which is nearly 90% owned by the Colombian government, said it increased its crude oil production by 420,000 barrels per day in 2010. The company said its proven reserves jumped 11.4% to 1.714 billion barrels of oil equivalent.

''In exploratory activities, hydrocarbons were discovered in 10 exploratory wells in Colombia and one in Brazil, development programs helped boost business group production to 615.9 million barrels of oil equivalent, in line with our strategic plan forecast, the company said in a statement.

In 2010, Ecopetrol partnered with Canada's Talisman Energy TLM to acquire BP's BP Colombia assets. Ecopetrol said production results from that business will be reflected in this year's numbers. Earlier this month, Ecopetrol acquired Royal Dutch Shell's 50% interest in a Cano Sur exploration block, giving the Colombian firm 100% control of that project. Ecopetrol announced 10 new oil finds in Colombia last year and one in Brazil. The company also does business in Peru and the U.S. section of the Gulf of Mexico. The company accounts for 60% of Colombia's oil production.