Colombia’s state-run oil company Ecopetrol announced Monday it was slashing its projected capital expenditure by 60% for 2016 as the oil price shows no sign of a quick recovery.

Ecopetrol slashes capital expenditure

BOGOTÁ, December 14, 2015 – Colombia’s state-run oil company Ecopetrol announced a 60% cut in its 2016 capital expenditure on Monday as the oil price shows no sign of a quick recovery.

The company plans to allocate $4.8 billion for investments next year as Latin america’s fourth-largest oil producer. Colombia has 2.4 billion barrels of proved oil reserves and output of 990,000 barrels of oil per day, according to the BP 2015 Statistical Review.

Ecopetrol targets an average production increase of 1-2% every year until 2020. In April 2015, the company offered a block divestment plan to farm out five onshore and three offshore blocks to raise capital.

Ecopetrol’s shares have plummeted with the slumping oil prices to a market value of $13.5 billion.

For more news and features about Colombia, click here.

Read our latest insights on: