Colombia’s Ecopetrol says it will not do business with Venezuela following US OFAC restrictions

Ecopetrol’s president, Ricardo Roa, confirmed that the Colombian state-owned company would not conduct any business with Venezuela as long as US Office of Foreign Assets Control (OFAC) prohibitions were in effect.

This declaration represents an important position for Ecopetrol, particularly in light of recent geopolitical changes affecting the region’s oil and gas business.

According to local media W Radio, Roa’s comments come after Washington revoked Chevron’s operating license and gave the oil company one month to vacate the territory.

The Trump administration announced the decision after Venezuela did not comply with the commitments to receive illegal immigrants back, and continuing disputes over the elections in the country.

What influenced Ecopetrol’s decision

In a press briefing, Roa stated that the company will maintain a clear and responsible approach.

He further stated that it is a very important sign for the company and it is crystal clear that they will stay away from any negotiations and transactions with Venezuela under OFAC restrictions.

A key element that marks the path of Ecopetrol’s decision is the lack of the Antonio Ricaurte gas pipeline. This infrastructure is important for enabling energy exchanges between Colombia and Venezuela.

According to Roa, the lack of access to this pipeline hinders cross-border economic operations.

Another obstacle, along with logistical difficulties, is the lack of any certainty that gas could be exported from Venezuela to Colombia.

Without a robust energy commerce architecture in place, it would simply not make any business sense for Ecopetrol to conduct business in Venezuela, Roa said.

Ecopetrol’s fund-raising plans

Colombia’s state-controlled oil producer Ecopetrol plans to raise up to $2 billion in additional debt this year to support investments and is considering funding options through banks and capital markets, a company official said on Wednesday.

The debt will be allocated toward inorganic investments, including the acquisition of new assets or projects.

Corporate Vice President of Finance Camilo Barco stated in a call with investors that the company’s board had authorized $1 billion in structural debt and an additional $1 billion as a temporary measure.

Barco expressed confidence that the investment plan would gain momentum in the latter half of the year, necessitating some financing operations to execute the inorganic investment strategy.

Ecopetrol has outlined an investment plan ranging from $5.9 billion to $6.8 billion for the year, primarily funded by its cash reserves, which stood at $4.4 billion at the end of 2024.

Ecopetrol expects production to range between 740,000 and 750,000 barrels of oil equivalent per day (boepd) in 2025, Vice President of Hydrocarbons Rafael Guzman said.

The company reported an average production of 745,800 boepd last year, its highest level in nine years.

Ecopetrol reported a nearly 22% annual decline in net profit for 2024, impacted by a stronger US dollar and lower international oil prices.

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