Ecopetrol announces fresh austerity measures
BOGOTA, February 17, 2016 – Oil major Ecopetrol announced Tuesday a series of cost cutting actions expected to save some 1.6 trillion Colombian pesos, around USD 471 million.
In a press release, the Colombian oil major said it would sell non-core assets, the proceeds of which are estimated between USD 400 million and USD 900 million. Ecopetrol noted that exploration investments would be channelled to high-potential deepwater discoveries, mainly the July 2015 Kronos discovery, and onshore projects.
Additionally, Ecopetrol announced it would freeze operational expenditures at 50% of 2015 levels. The company will also put a cap on new hiring, trim advertising expenses and reduce its budgets for travel. The major’s financing needs for 2016 were adjusted to USD 1.5 billion-1.9 billion.
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