Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Transition Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ECOPETROL S.A. |
Entity Central Index Key | 0001444406 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Trading Symbol | EC |
Entity Common Stock, Shares Outstanding | 41,116,694,690 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Consolidated statement of finan
Consolidated statement of financial position - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 7,075,758 | $ 6,311,744 |
Trade and other receivables, net | 5,700,334 | 8,194,243 |
Inventories, net | 5,658,099 | 5,100,407 |
Other financial assets | 1,624,018 | 5,321,098 |
Current tax assets | 1,518,807 | 1,031,307 |
Other assets | 1,778,978 | 1,020,428 |
Current assets subtotal | 23,355,994 | 26,979,227 |
Assets held for sale | 8,467 | 51,385 |
Total current assets | 23,364,461 | 27,030,612 |
Non-current assets | ||
Trade and other receivables, net | 786,796 | 755,574 |
Investment in associates and joint ventures | 3,245,072 | 1,844,336 |
Property, plant and equipment | 64,214,822 | 62,799,983 |
Natural and environmental resources | 29,072,798 | 23,075,450 |
Right-of-use assets | 456,225 | 0 |
Intangible assets | 483,098 | 410,747 |
Deferred tax assets | 6,809,347 | 3,879,427 |
Other financial assets | 3,355,274 | 2,826,717 |
Goodwill | 1,159,922 | 1,159,922 |
Other assets | 942,481 | 860,730 |
Total non-current assets | 110,525,835 | 97,612,886 |
Total assets | 133,890,296 | 124,643,498 |
Current liabilities | ||
Loans and borrowings | 5,012,173 | 4,019,927 |
Trade and other payables | 10,689,246 | 8,945,790 |
Provisions for employee benefits | 1,929,087 | 1,816,882 |
Current tax liabilities | 2,570,779 | 1,751,300 |
Accrued liabilities and provisions | 789,297 | 814,409 |
Other liabilities | 751,717 | 476,314 |
Total current liabilities | 21,742,299 | 17,824,622 |
Non-current liabilities | ||
Loans and borrowings | 33,226,966 | 34,042,718 |
Trade and other payables | 24,445 | 30,522 |
Provisions for employee benefits | 9,551,977 | 6,789,669 |
Deferred tax liabilities | 1,328,831 | 1,337,943 |
Non current tax liabilities | 70,543 | 0 |
Accrued liabilities and provisions | 9,128,991 | 6,939,603 |
Other liabilities | 584,616 | 570,641 |
Total non-current liabilities | 53,916,369 | 49,711,096 |
Total liabilities | 75,658,668 | 67,535,718 |
Equity | ||
Subscribed and paid in capital | 25,040,067 | 25,040,067 |
Additional Paid in Capital | 6,607,699 | 6,607,699 |
Reserves | 3,784,658 | 5,138,895 |
Other comprehensive income | 6,646,660 | 8,380,761 |
Retained earnings | 12,334,706 | 9,970,492 |
Equity attributable to owners of parent | 54,413,790 | 55,137,914 |
Non-controlling interest | 3,817,838 | 1,969,866 |
Total equity | 58,231,628 | 57,107,780 |
Total liabilities and equity | $ 133,890,296 | $ 124,643,498 |
Consolidated statement of profi
Consolidated statement of profit or loss - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated statement of profit or loss | |||
Sales revenue | $ 71,488,512 | $ 68,603,872 | $ 55,954,228 |
Cost of sales | (44,972,360) | (41,184,379) | (36,908,325) |
Gross profit | 26,516,152 | 27,419,493 | 19,045,903 |
Administrative expenses | (2,151,599) | (1,653,858) | (1,764,524) |
Operations and project expenses | (2,631,754) | (2,903,132) | (2,926,065) |
(Impairment loss) reversal of impairment loss of non-current assets, net | (1,762,437) | (368,634) | 1,311,138 |
Other operating income (expenses), net | 1,056,796 | (35,455) | 505,403 |
Operating income | 21,027,158 | 22,458,414 | 16,171,855 |
Financial results, net | |||
Finance income | 1,623,336 | 1,129,563 | 1,159,356 |
Financial expenses | (3,334,469) | (3,512,161) | (3,660,601) |
Foreign exchange gain | 40,639 | 372,223 | 5,514 |
Financial result, net | (1,670,494) | (2,010,375) | (2,495,731) |
Share of profits of associates and joint ventures | 366,904 | 165,836 | 93,538 |
Profit before income tax expense | 19,723,568 | 20,613,875 | 13,769,662 |
Income tax expense | (4,718,413) | (8,258,485) | (5,800,268) |
Net profit for the year | 15,005,155 | 12,355,390 | 7,969,394 |
Net profit attributable to: | |||
Owners of parent | 13,744,011 | 11,381,386 | 7,178,539 |
Non-controlling interest | 1,261,144 | 974,004 | 790,855 |
Net profit (loss) for the period | $ 15,005,155 | $ 12,355,390 | $ 7,969,394 |
Basic and diluted earnings per share | $ 334.3 | $ 276.8 | $ 174.6 |
Consolidated statement of compr
Consolidated statement of comprehensive income - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated statement of comprehensive income | |||
Net profit for the year | $ 15,005,155 | $ 12,355,390 | $ 7,969,394 |
Other comprehensive income that may be reclassified to profit or loss in subsequent periods -net of taxes: | |||
Cash flow hedge for future exports | 238,331 | (533,374) | (84,837) |
Hedge of a net investment in a foreign operation | (61,267) | (971,954) | 57,997 |
Cash flow hedge with derivative instruments | 46,451 | (52,174) | 35,768 |
Unrealized loss on equity instruments measured at fair value | 0 | 0 | (7,828) |
Foreign currency translation | 8,701 | 2,599,242 | (257,147) |
Other comprehensive income that will be reclassified to profit or loss, net of tax | 232,216 | 1,041,740 | (256,047) |
Other comprehensive income that will not to be reclassified to profit or loss in subsequent periods -net of taxes: | |||
Remeasurement loss on defined benefit plans | (1,799,829) | (4,290) | (1,548,043) |
Other gains (losses) | (175,494) | 0 | (11,817) |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (1,975,323) | (4,290) | (1,559,860) |
Other comprehensive income -loss for the year, net of tax | (1,743,107) | 1,037,450 | (1,815,907) |
Total comprehensive income for the year, net of tax | 13,262,048 | 13,392,840 | 6,153,487 |
Comprehensive income attributable to: | |||
Owners of parent | 11,502,149 | 12,363,132 | 5,353,778 |
Non-controlling interest | 1,759,899 | 1,029,708 | 799,709 |
Comprehensive income | $ 13,262,048 | $ 13,392,840 | $ 6,153,487 |
Consolidated statement of chang
Consolidated statement of changes in equity - COP ($) $ in Millions | Subscribed and paid-in capital | Additional paid-in capital | Reserves | Other comprehensive income | Retained earnings | Total | Non-controlling interest | Total |
Opening balance at Dec. 31, 2016 | $ 25,040,067 | $ 6,607,699 | $ 1,558,844 | $ 9,222,710 | $ (402,462) | $ 42,026,858 | $ 1,533,643 | $ 43,560,501 |
Net profit | 0 | 0 | 0 | 0 | 7,178,539 | 7,178,539 | 790,855 | 7,969,394 |
Dividends declared | 0 | 0 | 0 | 0 | (945,684) | (945,684) | (551,494) | (1,497,178) |
Other movements | 0 | 1 | 0 | 2 | (1,066) | (1,063) | (48) | (1,111) |
Appropriation of reserves, net | 0 | 0 | 619,025 | 0 | (619,025) | 0 | 0 | 0 |
Other comprehensive income | ||||||||
Cash flow hedge for future exports | 0 | 0 | 0 | (84,837) | 0 | (84,837) | 0 | (84,837) |
Hedge of a net investment in a foreign operation | 0 | 0 | 0 | 57,997 | 0 | 57,997 | 0 | 57,997 |
Cash flow hedge with derivative instruments | 0 | 0 | 0 | 25,984 | 0 | 25,984 | 9,784 | 35,768 |
Loss on equity instruments measured at fair value | 0 | 0 | 0 | (7,828) | 0 | (7,828) | 0 | (7,828) |
Foreign currency translation | 0 | 0 | 0 | (255,153) | 0 | (255,153) | (1,994) | (257,147) |
Remeasurement loss on defined benefit plans | 0 | 0 | 0 | (1,548,043) | 0 | (1,548,043) | 0 | (1,548,043) |
Other movements | 0 | 0 | 0 | (11,817) | 0 | (11,817) | 0 | (11,817) |
Closing balance at Dec. 31, 2017 | 25,040,067 | 6,607,700 | 2,177,869 | 7,399,015 | 5,210,302 | 46,434,953 | 1,780,746 | 48,215,699 |
Net profit | 0 | 0 | 0 | 0 | 11,381,386 | 11,381,386 | 974,004 | 12,355,390 |
Dividends declared | 0 | 0 | 0 | 0 | (3,659,386) | (3,659,386) | (840,626) | (4,500,012) |
Other movements | 0 | (1) | 0 | 0 | (784) | (785) | 38 | (747) |
Appropriation of reserves, net | 0 | 0 | 2,961,026 | 0 | (2,961,026) | 0 | 0 | 0 |
Other comprehensive income | ||||||||
Cash flow hedge for future exports | 0 | 0 | 0 | (533,374) | 0 | (533,374) | 0 | (533,374) |
Hedge of a net investment in a foreign operation | 0 | 0 | 0 | (971,954) | 0 | (971,954) | 0 | (971,954) |
Cash flow hedge with derivative instruments | 0 | 0 | 0 | (37,904) | 0 | (37,904) | (14,270) | (52,174) |
Foreign currency translation | 0 | 0 | 0 | 2,529,268 | 0 | 2,529,268 | 69,974 | 2,599,242 |
Remeasurement loss on defined benefit plans | 0 | 0 | 0 | (4,290) | 0 | (4,290) | 0 | (4,290) |
Other movements | 0 | |||||||
Closing balance at Dec. 31, 2018 | 25,040,067 | 6,607,699 | 5,138,895 | 8,380,761 | 9,970,492 | 55,137,914 | 1,969,866 | 57,107,780 |
Net profit | 0 | 0 | 0 | 0 | 13,744,011 | 13,744,011 | 1,261,144 | 15,005,155 |
Dividends declared | 0 | 0 | (3,659,386) | 0 | (9,251,256) | (12,910,642) | (1,010,206) | (13,920,848) |
Business combination | 0 | 0 | 0 | 0 | 0 | 0 | 1,606,390 | 1,606,390 |
Other movements | 0 | 0 | 0 | 0 | 176,608 | 176,608 | (350) | 176,258 |
Legal | 0 | 0 | 1,155,640 | 0 | (1,155,640) | 0 | 0 | 0 |
Fiscal and statutory reserves | 0 | 0 | 509,082 | 0 | (509,082) | 0 | 0 | 0 |
Occasional | 0 | 0 | 3,691,130 | 0 | (3,691,130) | 0 | 0 | 0 |
Appropriation of reserves, net | 0 | 0 | (3,050,703) | 0 | 3,050,703 | 0 | 0 | 0 |
Other comprehensive income | ||||||||
Cash flow hedge for future exports | 0 | 0 | 0 | 238,331 | 0 | 238,331 | 0 | 238,331 |
Hedge of a net investment in a foreign operation | 0 | 0 | 0 | (61,267) | 0 | (61,267) | 0 | (61,267) |
Cash flow hedge with derivative instruments | 0 | 0 | 0 | 34,651 | 0 | 34,651 | 11,800 | 46,451 |
Foreign currency translation | 0 | 0 | 0 | 29,507 | 0 | 29,507 | (20,806) | 8,701 |
Remeasurement loss on defined benefit plans | 0 | 0 | 0 | (1,799,829) | 0 | (1,799,829) | 0 | (1,799,829) |
Other movements | 0 | 0 | 0 | (175,494) | 0 | (175,494) | 0 | (175,494) |
Closing balance at Dec. 31, 2019 | $ 25,040,067 | $ 6,607,699 | $ 3,784,658 | $ 6,646,660 | $ 12,334,706 | $ 54,413,790 | $ 3,817,838 | $ 58,231,628 |
Consolidated statement of cash
Consolidated statement of cash flows - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flow provided by operating activities: | ||||
Net profit for the period | $ 15,005,155 | $ 12,355,390 | $ 7,969,394 | |
Adjustments to reconcile the net profit to net cash provided by operating activities: | ||||
Income tax expense | 4,718,413 | 8,258,485 | 5,800,268 | |
Depreciation, depletion and amortization | 8,582,783 | 7,704,850 | 8,281,347 | |
Foreign exchange income | (40,639) | (372,223) | (5,514) | |
Finance cost of loans and borrowings | 1,894,490 | 2,399,414 | 2,385,994 | |
Finance cost of post-employment benefits and abandonment costs | 757,509 | 668,782 | 753,047 | |
Withdrawal of exploratory assets and dry wells | 340,271 | 898,924 | 898,264 | |
Loss on disposal of non-current assets | 121,121 | 75,835 | 26,686 | |
(Gain) loss on acquisition of participations | [1] | (1,048,924) | 12,065 | (451,095) |
Loss on impairment of short-term assets | 90,441 | 136,044 | 30,600 | |
Impairment loss (reversal) of non-current assets | 1,762,437 | 368,634 | (1,311,138) | |
Loss (gain) on fair value adjustment of financial assets | 18,551 | (92,906) | (104,706) | |
Share of profit of associates and joint ventures | (366,904) | (165,836) | (93,538) | |
Net gain on the sale of assets held for sale | (2,846) | 0 | (166,389) | |
Gain on sale of equity instruments measured at fair value | 0 | 0 | (13,236) | |
Hedge ineffectiveness | 5,173 | 35,239 | 8,918 | |
Realized loss (gain) on foreign exchange cash flow hedges | 386,773 | (128,404) | (160,772) | |
Net change in operational assets and liabilities: | ||||
Trade and other receivables | 2,381,905 | (2,039,161) | (2,189,473) | |
Inventories | (597,552) | (448,135) | (323,626) | |
Trade and other payables | 1,389,064 | 1,355,175 | 21,417 | |
Tax assets and liabilities | (1,409,334) | (1,413,915) | (493,533) | |
Provisions for employee benefits | (234,629) | (181,060) | (227,384) | |
Provisions and contingencies | (253,043) | (89,345) | 104,135 | |
Other assets and liabilities | (492,745) | (218,542) | 451,263 | |
Cash flows from (used in) operations | 33,007,470 | 29,119,310 | 21,190,929 | |
Income tax paid | (5,295,703) | (6,650,116) | (4,217,303) | |
Net cash provided by operating activities | 27,711,767 | 22,469,194 | 16,973,626 | |
Cash flow from investing activities: | ||||
Investment in property, plant and equipment | (4,012,659) | (3,302,929) | (2,363,283) | |
Investment in natural and environmental resources | (9,798,193) | (5,051,828) | (3,426,405) | |
Acquisitions of intangibles | (168,289) | (105,669) | (175,868) | |
Acquisition of interests in joint operations | 0 | 0 | (141,950) | |
Sales (purchases) of other financial asset, net | 3,117,549 | (843,612) | 564,754 | |
Interests received | 481,674 | 383,624 | 405,562 | |
Dividends received | 189,169 | 108,991 | 270,136 | |
Proceeds from sales of assets held for sale | 0 | 0 | 159,041 | |
Proceeds from sales of equity instruments measured at fair value | 0 | 0 | 56,930 | |
Proceeds from sales of property, plant and equipment | 154,780 | 92,620 | 267,324 | |
Net cash used in investment activities | (10,035,969) | (8,718,803) | (4,383,759) | |
Cash flow used in financing activities: | ||||
Proceeds from borrowings | 359,876 | 517,747 | 444,827 | |
Repayment of borrowings | (1,596,630) | (9,270,262) | (9,007,340) | |
Interest payments | (1,766,223) | (2,610,562) | (2,696,979) | |
Repayment of borrowings | (300,326) | 0 | 0 | |
Dividends paid | (13,867,029) | (4,427,701) | (1,504,647) | |
Net cash used in financing activities | (17,170,332) | (15,790,778) | (12,764,139) | |
Exchange difference in cash and cash equivalents | 258,548 | 406,246 | (290,310) | |
Net increase (decrease) in cash and cash equivalents | 764,014 | (1,634,141) | (464,582) | |
Cash and cash equivalents at the beginning of the year | 6,311,744 | 7,945,885 | 8,410,467 | |
Cash and cash equivalent at the end of the year | 7,075,758 | 6,311,744 | 7,945,885 | |
Non-cash transactions | ||||
Recognition of right-of-use assets and lease liabilities | 685,128 | 0 | 0 | |
Fair value for change in participation in Invercolsa | $ 2,932,110 | $ 0 | $ 0 | |
[1] | For 2019, this corresponds mainly to gains related to the business combination of Invercolsa S.A. (see Note 12) |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2019 | |
Reporting entity | |
Reporting entity | 1. Reporting entity Ecopetrol S.A. (“Ecopetrol”) is a mixed economy company, of a commercial nature, incorporated in 1948 in Bogotá – Colombia, and the parent company of the Ecopetrol Business Group. Its corporate purpose is to conduct commercial or industrial activities related to the exploration, exploitation, production, refining, transportation, storage, distribution and commercialization of hydrocarbons and their derivatives and products, directly or through its subsidiaries (collectively referred to as “Ecopetrol Business Group”). 11.51% of Ecopetrol shares are publicly traded on the New York and Colombian Stock Exchanges. The remaining shares ( 88.49% of total outstanding shares) are owned by the Colombian Ministry of Finance and Public Credit. The address of the main office of Ecopetrol is Bogotá – Colombia, Carrera 13 No. 36 – 24. |
Basis for presentation
Basis for presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis for presentation | |
Basis for presentation | 2. Basis for presentation 2.1 Statement of compliance and authorization of The consolidated financial statements of Ecopetrol and its subsidiaries as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017 have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Accounting policies described in Note 4 have been applied consistently in all years presented. These consolidated financial statements were approved and authorized for issuance by the Board of Directors of Ecopetrol on March 31, 2020. 2.2 Basis for consolidation The consolidated financial statements were prepared by consolidating all companies set out in Exhibit 1, which are those over which Ecopetrol exercises direct or indirect control. Control is achieved when the Ecopetrol Business Group: · has power over the investee (including rights to manage relevant activities); · is exposed, or has the rights, to variable returns from its involvement with the investee; and · has the ability to use its power to affect its operational returns. This instance occurs when the Ecopetrol Business Group has less than a majority of the voting rights of an investee, and it still has the power over the investee to provide it with the practical ability to direct the relevant activities of the investee unilaterally. The Ecopetrol Business Group considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient or not to give it power, including: a) the percentage of the Ecopetrol Business Group’s voting rights relative to the size and apportionment of the shares of other vote holders; b) potential voting rights held by the Ecopetrol Business Group, other vote holders or other parties; c) rights arising from other contractual arrangements; and d) any additional facts and circumstances that indicate that the Ecopetrol Business Group has, or does not have, the current ability to direct the relevant activities, at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Subsidiaries are consolidated from the date on which control is obtained until the date that such control ceases. All inter–company assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the Ecopetrol Business Group were eliminated on consolidation. Unrealized losses are also eliminated. Non–controlling interest represents the proportion of profit, other comprehensive income and net assets in subsidiaries that are not attributable to Ecopetrol shareholders. The following subsidiaries were incorporated in the years indicated: 2019 a) The subsidiaries that started being consolidated as a result of obtaining control of Invercolsa are as follows: · Inversiones de Gases de Colombia S.A., whose main corporate purpose is to hold investments in companies associated with activities in the energy sector; the exploration, exploitation, refining, transformation, transport, distribution and sale of hydrocarbons and their derivatives in the national territory; and to encourage the establishment of new companies and to hold shares or corporate interests therein. · Alcanos de Colombia S.A. E.S.P., whose main corporate purpose is to provide fuel gas to homes in Neiva and throughout Colombia; to construct and operate gas pipelines, distribution networks, regulation, measurement and compressor stations and any works undertaken necessary for the management and commercialization of public services. · Metrogas de Colombia S.A. E.S.P., whose main corporate purpose is to commercialize and distribute fuel gas; to explore, store, use, transport, refine, purchase, sell and distribute hydrocarbons and their derivatives in all their forms and representations. · Gases del Oriente S.A. E.S.P., whose main corporate purpose is to provide fuel gas to homes by distributing gas and performing all activities complementary to the provision thereof. · Promotora de Gases del Sur S.A. E.S.P., whose main corporate purpose is to promote the affiliation of national or foreign capital, public or private and to achieve the gas massification project in the Huila department, through a gas pipeline from the Neiva municipality to the Hobo municipality. · Gasoducto de Oriente S.A., whose main corporate purpose is to design and construct hydrocarbon production and treatment plants, such as gas pipelines, oil pipelines and others, as well as to invest in projects related thereto. · Combustibles Líquidos de Colombia S.A. E.S.P., whose main corporate purpose is to commercialize wholesale fuel gas, to distribute LPG to homes and to carry out complementary activities to this distribution, as well as to store, transport, package, distribute and sell LPG. b) The two companies incorporated were the following: · Ecopetrol USA Inc., whose corporate purpose is to participate in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. · Ecopetrol Permian LLC., whose corporate purpose is to carry out any or all lawful businesses for which limited liability companies can be organized in accordance with the Delaware Limited Liability Companies Act. c) 2018 § Ecopetrol Energía S.A.S. E.S.P : whose corporate purpose is to commercialize electric power for the Ecopetrol Business Group Ecopetrol holds a 99% direct interest in the subsidiary and an indirect interest of the remaining 1% through Andean Chemicals Ltd. 2017 § Esenttia Resinas del Perú SAC : a wholly–owned subsidiary whose corporate purpose is to commercialize polypropylene resins and master batches in Peru. § ECP Hidrocarburos México S.A. de CV : a wholly–owned subsidiary, engaged in operating oil contracts in Mexico, starting with blocks 6 and 8 of Round 2.1 in shallow waters. 2.3 Basis of presentation The consolidated financial statements have been prepared on a historical cost basis, except for financial assets and liabilities that are measured at fair value through profit or loss and/or changes in other comprehensive income at the end of each reporting period, as explained in the accounting policies included below. Historical cost is generally based on fair value of the consideration given in exchange for goods and services. The fair value is the price that would be received from selling an asset or that would be paid for transferring a liability among market participants, in an orderly transaction, on the date of measurement. When estimating the fair value, the Ecopetrol Business Group uses assumptions that market participants would use for pricing an asset or liability at current market conditions, including risk assumptions. 2.4 Functional and presentation currency The consolidated financial statements are presented in Colombian Pesos, which is the Ecopetrol’s functional currency. For each Ecopetrol Business Group entity, its functional currency is determined based of the main economic environment where it operates. The statements of profit or loss and cash flows of subsidiaries with functional currencies different from Ecopetrol S.A.’s functional currency are translated at the exchange rates on the dates of the transaction or based on the monthly average exchange rate. Assets and liabilities are translated at the closing rate, and other equity items are translated at exchange rates at the time of the transaction. All resulting exchange differences are recognized in other comprehensive income. On disposal of all or significant part of a foreign operation, the cumulative translation adjustment related to the particular foreign operation is reclassified to profit or loss. The financial statements are presented in Colombian pesos rounded up to the closest million unit (COP$ 000,000) except when otherwise indicated. 2.5 Foreign currency Transactions in foreign currencies are initially recorded by the Ecopetrol Business Group’s entities at their respective functional currency spot rates at the transactions date. Monetary items denominated in foreign currencies are translated at the functional currency spot rates prevailing at the reporting date. Differences arising on settlement or translation or monetary items are recognized in profit or loss, in financial results, net, except those resulting from the conversion of loans and borrowings designated as cash flow hedges or net investment in a foreign operation hedge, which are recognized in other comprehensive income within equity. When the hedged item affects the financial results, exchange differences accumulated in equity are reclassified to profit or loss as part of operating results. Non–monetary items measured at fair value that are denominated in a foreign currency are translated using the exchange rates prevailing on the date when the fair value is determined. The gain or loss arising on translation of non–monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item. 2.6 Classification of assets and liabilities as current and non–current The Ecopetrol Business Group presents assets and liabilities in the consolidated statement of financial position based on whether assets are classified as current or non–current. An asset or liability is classified as current when: · It is expected to be realized or intended to be sold or consumed (or expected to be settled, in the case of liabilities) in the ordinary course of business; · Held mainly for the purpose of trading; · Expected to be realized (or to be settled, in the case of liabilities) within twelve months after the reporting period; or · In the case of the assets, it is cash or a cash equivalent, unless the exchange of such asset or liability is restricted or to be used to settle a liability at least twelve months after the reporting period ; or · In the case of a liability, there is no unconditional right to defer settlement of the liability until at least twelve months after the reporting period. Other assets and liabilities are classified as non–current. Deferred tax assets and liabilities are classified as non–current assets and liabilities. 2.7 Earnings per share (basic and diluted) Basic earnings per share is calculated by dividing the profit for the year attributable to equity holders of Ecopetrol S.A., the parent company, by the weighted average number of ordinary shares outstanding during the year. There is no potential dilution of shares. |
Significant estimates and accou
Significant estimates and accounting judgments | 12 Months Ended |
Dec. 31, 2019 | |
Significant estimates and accounting judgments | |
Significant estimates and accounting judgments | 3. Significant estimates and accounting judgments The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, sales revenues, costs and commitments recognized in the financial statements and the accompanying disclosures. The Ecopetrol Business Group based its assumptions and estimates on parameters available when these consolidated financial statements were prepared. Uncertainty about these assumptions and estimates could result in outcomes that required a material adjustment to the carrying amount of assets or liabilities affected in future periods. Changes in estimates are adjusted prospectively in the period in which the estimate is revised. In the process of applying the Ecopetrol Business Group’s accounting policies, management has made the following judgments and estimates which have the most significant impact on the amounts recognized in the consolidated financial statements: 3.1 Oil and gas reserves Hydrocarbon reserves are estimates of the amount of hydrocarbons that can be economically and legally extracted from the Ecopetrol Business Group’s oil and gas properties. The reserves estimation is performed annually as of December 31 in accordance with the United States Securities and Exchange Commission (SEC) definitions and rules set forth in Rule 4–10(a) of SEC Regulation S–X and the disclosure guidelines contained in the SEC final rule – Modernization of Oil and Gas Reporting. As required by current regulations, the future estimated date on which a field will no longer produce for economic reasons, is based on actual costs and average of crude prices (calculated as the arithmetical average of prices on the first day of the past 12 months). The estimated date for end of production will affect the amount of reserves, unless the prices have been defined by contractual agreements; therefore, if the prices and costs change from one year to the next, the proved reserves estimate also changes. Generally, our proved reserves decrease as prices go down and increase when prices go up. Reserves estimation is an inherently complex process and it involves professional judgments. Reserves estimations are prepared using geological, technical and economic factors, including projections of future production rates, oil prices, engineering data and duration and amount of future investments, and they imply a certain degree of uncertainty. These estimations reflect the regulatory and market conditions existing on the date of reporting, which could significantly differ from other conditions during the year or in future periods. Any changes in regulatory and/or market conditions and assumptions could materially affect the reserves estimation. Impact of oil reserves and natural gas in depreciation and depletion Changes to estimations for proven developed reserves may affect the carrying amounts of exploration and production assets, natural resources and environment, goodwill, liabilities for dismantling and depreciation, depletion and amortization. With all other variables remaining unchanged, a decrease in estimated proven reserves would increase, prospectively, depreciation, depletion and amortization costs, while an increase in reserves would reduce depreciation and amortization expenses, as depreciation, depletion and amortization charges are calculated using the units of production method. Information about the carrying amounts of exploration and production assets and the amounts charged to income, including depreciation, depletion and amortization, is presented in Notes 14 and 15. 3.2 Assets impairment Management uses its professional judgment in assessing the existence of evidence of an impairment loss or reversal, based on internal and external factors. When an indicator of impairment loss or reversal of impairment of prior period impairment exists, the Ecopetrol Business Group estimates the recoverable amount of the cash generating units (CGU), which is considered the greater of fair value less costs of disposal and the value in use. The assessments require the use of estimates and assumptions, such as, among other factors: (1) estimation of the volumes and market value of oil and natural gas reserves; (2) production profiles for oilfields and the future production of refined and petrochemical products; (3) investments, taxes and future costs; (4) useful life of assets; (5) long–term prices; (6) the discount rate, which is revised annually and determined as the weighted average cost of capital (WACC); and (7) changes in environmental regulation. The recoverable amount is compared to the carrying amount of the asset, thus determining whether the asset is impaired or if the impairment recognized in prior periods should be reversed. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the assets or in the CGU’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of an asset or CGU, other than goodwill, does not exceed either its recoverable amount, or the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset or CGU in prior periods. Future oil price assumptions are estimated at current market conditions. Expected production volumes, which comprise proven unproved, probable and possible reserves are used for impairment testing because management believes this to be the most appropriate indicator of expected future cash flows, which would also be considered by market participants. Reserves estimates are inherently imprecise and subject to risk and uncertainty. Furthermore, projections about unproved volumes are based on information that is necessarily less robust than what is available for mature reservoirs. These estimates and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which may also impact the recoverable amount of assets and/or CGUs, hence, may also affect the recognition of an impairment loss or the reversal of prior period impairment amounts. 3.3 Exploration and evaluation costs The application of the Ecopetrol Business Group’s accounting policy for exploration and evaluation costs requires judgment in order to determine whether future economic benefits are likely, either from future exploitation or sale, or whether activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Certain exploration and evaluation costs are initially capitalized when it is expected that commercially viable reserves will result. The Ecopetrol Business Group uses its professional judgment of future events and circumstances and makes estimates in order to annually assess the generation of future economic benefits for extracting oil resources, as well as technical and commercial analyses to confirm its intention of continuing their development. Changes regarding available information, such as drilling success level or changes in the project’s economics, production costs, and investment levels, as well as other factors, may result in capitalized exploration drilling costs being recognized in profit or loss for the period. The expenses for dry wells is included in operating activities in the consolidated statement of cash flows. 3.4 Determination of cash generating units (CGU) The allocation of assets in cash generating units requires significant judgment, as well as assessments regarding integration among assets, the existence of active markets, and similar exposure to market risk, shared infrastructure, and the way in which management monitors the operations. See Note 4.12 – impairment of non–financial assets for more information. 3.5 Abandonment and dismantling costs of fields and other facilities According to environmental and oil regulations, the Ecopetrol Business Group is required to bear the costs for the abandonment of oil extraction and transportation facilities, which include the cost of plugging and abandoning wells, dismantling facilities, and environmental remediation in the affected areas. Estimated abandonment and dismantling costs are recorded at the time of the installation of the assets and are reviewed annually. The calculations for these estimations are complex and involve significant judgments by Management. The ultimate decommissioning costs are uncertain and cost estimates can vary in response to many factors, including changes to relevant legal requirements, the emergence of new restoration techniques or experience at other production sites. The expected timing, extent and amount of expenditure may also change, for example, in response to changes in internal cost projections, changes in reserve estimates, future inflation rates and discount rates. The Ecopetrol Business Group considers that the abandonment and dismantling costs are reasonable, based on the experience of the Ecopetrol Business Group and market conditions; nevertheless, significant variations in external factors used for the calculation of the estimation could significantly impact the amounts recorded in the financial statements. 3.6 Pension plan and other benefits The determination of expenses, liabilities and adjustments relating to pension plans and other defined retirement benefits makes it necessary for management to use its judgment in the application of actuarial assumptions made in the actuarial calculation. The actuarial assumptions include estimates regarding future mortality, retirement, changes in compensation and discount rate in order to reflect the time value of money, in addition to the rate of return on the plan’s assets. Due to the complexity in the valuation of these variables, as well as their long-term nature, the estimated amounts are quite sensitive to any change in these assumptions. These assumptions are reviewed on an annual basis and may differ materially from actual results due to changes in economic and market conditions, regulatory changes, judicial rulings, higher or lower retirement rates, or longer or shorter life expectancies among employees. 3.7 Goodwill impairment In December of each year, the Ecopetrol Business Group performs an annual impairment test on goodwill to assess if its carrying amount may be impaired. The determination of the recoverable amount is described in Note 4.12, and its calculation requires assumptions and estimates. The Ecopetrol Business Group considers that the assumptions and estimations used are reasonable and supportable based on the current market conditions and are aligned to the risk profile of the related assets. However, if different assumptions and estimations are used, they could lead to different results. Valuation models used to determine fair value are sensitive to changes in the underlying assumptions. For example, sales volumes and prices that will be paid for the purchase of raw materials are assumptions that may vary in the future. Adverse changes in any of these assumptions could lead to the recognition of goodwill impairment. 3.8 Litigation The Ecopetrol Business Group is subject to claims relating to regulatory and arbitration proceedings, tax assessments and other claims arising in the normal course of business. Management evaluates these claims based on their nature, the likelihood that they materialize and the amounts involved, to decide on the amounts recognized and/or disclosed in the financial statements. This analysis, which may require considerable judgment, includes the assessment of current legal proceedings brought against the Ecopetrol Business Group and claims not yet initiated. A provision is recognized when the Ecopetrol Business Group has a present obligation derived from a past event, it is likely that an outflow of resources of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of such obligation can be made. 3.9 Taxes Calculation of the income tax provision requires interpretation of tax law in the jurisdictions where the Ecopetrol Business Group operates. Significant judgment is required to determine estimates for income tax on taxable profits and to evaluate the recoverability of deferred tax assets, which are based on the ability to generate sufficient taxable income during the periods in which such deferred taxes could be used or deduct. To the extent that future cash flows and taxable income differ significantly from the estimates, the Ecopetrol Business Group’s ability to realize the deferred tax assets recorded could be affected. Furthermore, changes in tax rules could limit the capacity of the Ecopetrol Business Group to obtain tax deductions in future years, as well as the recognition of new tax liabilities resulting from auditing conducted by the tax authorities. Tax positions taken involve a thorough assessment by Management, and are reviewed and adjusted in response to situations such as expiration in the applicability of laws, closing of tax audits, additional disclosures caused by any legal issue or a court decision relevant to a particular tax issue. The Ecopetrol Business Group records provisions based on estimated potential liabilities that could be derived from a tax audit. The amount of these provisions depends on factors such as previous experience in tax audits and different interpretations of tax legislation. The actual results may differ from the estimates recorded. 3.10 Hedge accounting The process of identifying hedging relationships between hedged items and the underlying instruments (derivative and non–derivative, such as long–term, foreign currency–denominated debt), and their corresponding effectiveness, requires the use of judgment by management. The Ecopetrol Business Group periodically monitors the alignment between its hedge instruments and its risk management policy. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Accounting policies | 4. Accounting policies The accounting policies indicated below have been applied consistently for all the periods presented. 4.1 Financial instruments A financial instrument is any contract that creates a financial asset for one entity and a financial liability or equity instrument for another entity. The classification of financial instruments depends on the nature and purpose for which the financial assets or liabilities were acquired and is determined at the time of initial recognition. Financial assets and financial liabilities are initially measured at their fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Loans and trade receivables, other receivables and financial assets held–to–maturity are measured subsequently measured at amortized cost using the effective interest method. Equity investments available for sale that do not have a market quotation price and for which fair value cannot be reliably measured are measured at cost less any impairment identified at the end of each reporting period. Measurements at fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the principal market of the asset or liability or in the absence of a principal market in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset for its most profitable use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate for the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are classified within the following scale, based on the lowest level input that is significant to the fair value measurement as a whole, as follows: · Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. The fair value of the Ecopetrol Business Group’s marketable securities with a quoted market price is based on Level 1 inputs. · Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observed. Level 2 inputs include prices of similar assets, prices obtained through quotations made by stockbrokers, and prices that can be substantially corroborated with other observable data with the same contractual terms. For derivative contracts for which a quoted market price is not available, fair value estimates are generally determined using models and other valuation methods, the key inputs for which include future prices, volatility estimates, price correlation, counterparty credit risk and market liquidity, as appropriate. For other assets and liabilities, fair value estimations are generally based on the net present value of expected future cash. · Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The Ecopetrol Business Group does not use Level–3 inputs for the measurement of financial assets and liabilities. The Ecopetrol Business Group may use Level–3 inputs for the calculation the recoverable amount of certain non–financial assets for the purpose of impairment testing. Effective interest rate method The effective interest rate method is a method of calculating the amortized cost of a financial instrument and accounting of income or financial cost over the relevant period. The effective interest rate is the discount rate that exactly discounts estimated future cash receipts or payments (including all fees, transaction costs and other premiums or discounts) through the expected life of the financial instrument (or, when appropriate, at a shorter period), to the net carrying amount on initial recognition. Impairment The Ecopetrol Business Group evaluates if there is objective evidence that a financial asset or group of financial assets are impaired. Financial assets are evaluated for the impairment indicators at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated future cash flows of the asset have been affected. For financial assets measured at amortized cost, the amount of the impairment loss recognized is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. 4.1.1 Cash and cash equivalents Cash and cash equivalents include cash on hand, financial investments that are highly liquid, bank deposits and special funds with original maturity dates of ninety days or less which are subject to an insignificant risk of changes in value. 4.1.2 Financial assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Ecopetrol Business Group has applied the practical expedient, the Ecopetrol Business Group initially measures a financial asset at its fair value plus, and, in the case of a financial asset not at fair value through profit or loss, at transaction costs. Trade receivables that do not contain a significant financing component or for which the Ecopetrol Business Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. The Ecopetrol Business Group classifies its financial assets in the following categories: a) Financial assets measured at fair value through profit or loss Financial assets are held for trading and financial assets designated at the time of the initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired to be sold or repurchased in the short term. They are recognized at their fair value and losses or profits arising at the time of re–measurement are recognized in the statement of profit or loss. b) Financial assets measured at fair value with changes in other comprehensive income These are equity instruments of other non–controlled and non–strategic companies not allowing for any type of control or significant influence thereon and where the Ecopetrol Business Group’s management does not intend to negotiate with them in the short term. These investments are recorded at their fair value and unrealized gains or losses are recognized in other comprehensive income. c) Financial assets at amortized cost This category is the most relevant to the Group. The Group's financial assets at amortized cost includes trade receivables, other receivables, loans to associates, and loans to employees. Loans and receivables are non–derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables, including trade and other receivables, are measured initially at fair value and then at amortized cost using the effective interest rate method, less impairment. Loans to employees are initially recorded using the present value of the future cash flows, discounted at the current market rate for similar loans. If the interest rate is less than the current market rate, fair value will be less than the amount of the loan. This difference is recorded as a benefit to employees. The Group measures financial assets at amortized cost if both of the following conditions are met: § The asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows § The contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. De–recognition of financial assets The Ecopetrol Business Group derecognizes a financial asset only upon the expiration of the contractual rights to the cash flows of the asset or, when it has transferred its rights to receive such cash flows or has assumed the obligation to pay the cash flows received in full without material delay to a third party and (a) it has transferred substantially all the risks and benefits inherent in the ownership of the financial asset or (b) it has neither transferred nor retained substantially all the risks and benefits of the asset, but has transferred control of the asset. When the Ecopetrol Business Group does neither transfer nor retain substantially all the risks and benefits of the asset or transfer control of the asset, the Ecopetrol Business Group continues to recognize the transferred asset, to the extent of its continuing participation, and it also recognizes the associated liability. 4.1.3 Financial liabilities Financial liabilities correspond to the financing obtained by the Ecopetrol Business Group through bank credit facilities and bonds, accounts payable to suppliers and creditors. Bonds and bank credit facilities (this is the category most relevant to the Group) are initially recognized at their fair value, net of directly attributable transactions cost. After initial recognition, interest–bearing credit facilities and bonds are subsequently measured at amortized cost, using the effective interest rate (EIR) method. The effective interest method amortization is included as a financial expense in the statement of profit or loss. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. Accounts payable to suppliers and creditors are short–term financial liabilities recorded at nominal value, since it does not significantly differ from fair value. Derecognition A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability has been replaced by another from the same lender, under substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de–recognition of the original liability and recognized as a new liability. The difference between the respective carrying amounts is recognized in the statement of profit or loss. 4.1.4 Derivative financial instruments and hedging activities Financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Changes in the fair value of derivatives are recognized as gains or losses in the statement of profit or loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedge item affects profit or loss. Changes in fair value of derivative contracts, which do not qualify or are not designated as hedges, including forward contracts for the purchase and sale of commodities under negotiation for physical delivery or receipt of the commodity are recorded in profit or loss. Derivatives embedded in the host contract are accounted for as separate derivatives at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. 4.1.5 Hedging operations For purposes of hedge accounting, hedges are classified as: § Cash flow hedges: hedges of the exposure to variability in cash flows attributable to a particular risk associated with all, or a component of, a recognized asset or liability or a highly probable forecast transaction, and that could affect profit or loss. § Hedges of net investments in foreign operations. § Fair value hedges: hedges of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular risk and that could affect profit or loss. At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine whether they have been highly effective throughout the financial reporting periods for which they were designated. 4.1.5.1 Cash flow hedge The effective portion of the gain or loss on the hedging instrument is recognized in Other Comprehensive Income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked or when the hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in other comprehensive income remains separately in equity until the forecast transaction occurs is recognized in the consolidated statement of profit or loss. When it is no longer expected that the initially hedged transaction will occur. Ecopetrol designates long–term loans as hedging instruments for its exposure to the exchange risk in future oil exports. See Note 28 for further information. 4.1.5.2 Hedge of net investment in a foreign operation Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized as OCI while any gains or losses relating to the ineffective portion are recognized in the statement of profit or loss. On the disposal of a foreign operation, the cumulative value of any such gains or losses recorded in equity is transferred to the statement of profit or loss. Ecopetrol allocates long–term loans as hedging instruments for its exposure to foreign exchange risk on its investment in subsidiaries whose functional currency is the U.S. dollar. See Note 28 for further information. 4.1.5.3 Fair value hedge The gain or loss on the hedging instrument shall be recognized in profit or loss or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income. The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. 4.2 Inventories Inventories are stated at the lower of cost and net realizable value. Inventories mainly comprise crude oil, fuels and petrochemicals and consumable inventories (spares and supplies). The cost of crude oil is the production costs, including transportation costs. The cost required to bring a pipeline into working order, is treated as part of the related pipeline. The cost of other inventories is determined based on the weighted average cost method, which includes acquisition costs (deducting commercial discounts, rebates and other similar items), transformation, and other costs incurred to bring inventory to their current location and condition, such as transportation costs. Consumable inventories (spares and supplies) are recognized as inventory and then charged to expense, maintenance or project to the extent that such items are consumed. Ecopetrol estimates the net realizable value of inventories at the end of the period. When the circumstances that previously caused inventories to be written down below cost no longer exist, or when there is clear evidence of an increase in the net realizable value because of a change in economic circumstances, the amount of the write–down is reversed. The reversal cannot be greater than the amount of the original write–down, so that the new carrying amount will always be the lower of the cost and the revised net realizable value. 4.3 Related parties Related parties are considered those in which one party has the ability to control, or has joint control of the other, or exercises significant influence over the other party in making financial or operational decisions, or is a member of key management personnel (or close relative of a member). The Ecopetrol Business Group considers related parties to be associates, joint ventures, key management executives, entities managing resources for payment of employee post–employment benefit plans and Colombian government entities for the purposes of certain relevant transactions, such as the purchase of hydrocarbons and the fuel price stabilization fund (see Note 30 – Related parties). 4.3.1 Investments in associates An associate is an entity over which the Ecopetrol Business Group has significant influence but not control. Significant influence is the power to participate in the financial and operational policy decisions of the investee, but it is not control or joint control over those policies. Generally, these entities are those in which the Ecopetrol Business Group holds an equity interest with voting rights of 20% to 50%. See Exhibit I – Consolidated companies, associates and joint ventures for further details . Investments in associates are accounted for using the equity method. Under this method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Ecopetrol Business Group’s share of net assets of the associate since the acquisition date. Goodwill related to the associate is included in the carrying amount of the investment and it is not tested for impairment separately. The Ecopetrol Business Group’s share of the results of operations of the associate is recognized in the consolidated statement of profit or loss. Any change in other comprehensive income is recognized in other comprehensive income of the Ecopetrol Business Group. After application of the equity method, the Ecopetrol Business Group determines if it is necessary to recognize an impairment on its investment in its associate. The Ecopetrol Business Group determines whether there is objective evidence that the investment is impaired. If there is such evidence, the amount of the impairment is calculated as the difference between the recoverable amount and its carrying value, and then the impairment is recognized in the consolidated statement of profit or loss. When necessary, the Ecopetrol Business Group makes adjustments to the accounting policies of associates to ensure consistency with the policies adopted by the Ecopetrol Business Group. Additionally, the equity method of these companies is measured on their most recent financial statements. 4.3.2 Joint ventures A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control exists only when decisions about the relevant activities require unanimous consent of the parties sharing such control. The accounting treatment for the recognition of joint ventures is the same as investments in associates. 4.4 Joint operations A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint operation contracts are entered into between Ecopetrol and third parties to share risk, secure capital, maximize operating efficiency and optimize the recovery of reserves. In these joint operations, one party is designated as the operator to execute the operations and report to partners according to their participating interests. Likewise, each party takes its share of the produced hydrocarbons (crude oil or gas), according to their share in production. When Ecopetrol participates as a non–operator partner, it records the assets, liabilities, sales revenues, cost of sales and expenses based on the operator’s report. When Ecopetrol is the direct operator of joint venture contracts, it records its percentage of assets, liabilities, sales revenues, costs and expenses, based on the participation of each partner in the items corresponding to assets, liabilities, sales revenues, costs and expenses. When the Ecopetrol Business Group acquires or increases its participation in a joint operation in which the activity constitutes a business combination, such transaction is recorded applying the acquisition method in accordance with IFRS 3 – Business combination. The acquisition cost is the sum of the consideration transferred, which corresponds to the fair value, on the date of acquisition of the assets transferred and the liabilities incurred. Any transaction cost related to the acquisition or increased share in the joint operation that constitutes a business combination is recognized in the consolidated statement of profit or loss. The excess of the sum of the consideration transferred and the amount paid in the operation is recognized as goodwill. If the result is in an excess value of the net assets acquired over the amount paid in the operation, the difference is recognized as income in the consolidated statement of profit or loss on the date of recognition of the transaction. 4.5 Non–current assets held for sale Non–current assets are classified as held for sale if their carrying values will be recovered principally through a sale transaction rather than through continued use. Non–current assets are classified as held for sale only when the sale is highly probable within one year from the classification date and the asset (or group of assets) is available for immediate sale in its present condition. These assets are measured at the lower of their carrying amount and fair value less related costs of disposal. 4.6 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Tangible components related to natural and environmental resources are part of property, plant and equipment. The initial cost of an assets comprises its purchase price or construction cost, including import duties and non–refundable purchase taxes, any costs directly attributable to bringing the asset into operation, costs of employee benefits arising directly from the construction or acquisition, borrowing costs incurred that are attributable to the acquisition and construction of qualifying assets and the initial estimate of the costs of dismantling and abandonment of the item. Spare parts and servicing equipment are recorded as inventories and recognized as an expense as they are used. Major spare parts and stand–by equipment that the entity expects to use during more than one period are recognized as property, plant and equipment. Any gain or loss arising from the disposal of a property, plant and equipment is recognized in profit or loss of the period. Subsequent disbursements Subsequent disbursements correspond to all payments to be made on existing assets in order to increase or extend the initial expected useful life, increase productivity or productive efficiency, allow for significant reduction of operating costs, increase the level of reserves in exploration or production areas or replace a part or component of an asset that is considered critical for the operation. The costs of repair, conservation and maintenance of a day to day nature are expensed as incurred. However, disbursements related to major maintenance are capitalized. Depreciation Property, plant and equipment is depreciated using the straight–line method, except for those associated with exploration and production activities which are depreciated using the units–of–production method. Technical useful lives are updated annually considering factors such as: additions or improvements (due to parts replacement or critical components for the asset’s operation), technological advances, obsolescence and other factors; the effect of this change is recognized from the period in which it was executed. Depreciation of an asset starts when it is ready to be used. Useful lives are determined based on the period over which an asset is expected to be available for use, physical exhaustion, technical or commercial obsolescence and legal limits or restrictions over the use of the asset. The estimated useful life of assets fluctuates in the following ranges: Plant and equipment 11 – 60 years Pipelines, networks and lines 11 – 50 years Buildings 11 – 50 years Other 6 – 40 years Land is recorded separately from buildings and facilities and it is not subject to depreciation. Depreciation methods and useful lives are reviewed annually and adjusted if appropriate. 4.7 Natural and environmental resources Recognition and measurement Ecopetrol uses the successful efforts method to account for exploration and production of crude oil and gas activities, following the provisions of IFRS 6 – Exploration for the evaluation of mineral resources. Exploration costs Acquisition and exploration costs are recorded as exploration and evaluation assets until the determination of whether the exploration drilling is successful or not; if determined to be unsuccessful, all costs incurred are recognized as expenses in the consolidated statement of profit or loss. Exploration costs are those incurred with the objective of identifying areas that are considered to have prospects of containing oil and gas reserves, including geological and geophysical, seismic costs, viability, and others, which are recognized as expenses when incurred. Furthermore, disbursements associated with the drilling of exploratory wells and those related to stratigraphic wells of an exploratory nature are charged as assets until it is determined if they are commercially viable; otherwise, they are expensed in the consolidated statement of profit or loss as dry wells expense. Other expenditures are recognized as expenses when incurred. An exploration and evaluation asset is no longer classified as such when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Exploration and evaluation assets are reclassified to the natural and environmental resources account after being assessed for impairment. All capitalized costs are subjected to technical and commercial revisions at least once a year to confirm the evaluation and exploration efforts continue on the fields; otherwise, these costs are written off through to profit or loss. Exploration costs are net of the revenues obtained from the sale of crude oil during the extensive testing period, net of cost of sales, since they are considered necessary to complete the asset. Development costs Development costs correspond to those costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering and storing. When a project is approved for development, the corresponding capitalized acquisition and exploration costs are classified as natural and environmental resources and costs subsequent to the exploration phase are capitalized as development costs of the properties that contain such natural resources. All development costs are capitalized, including drilling costs of unsuccessful development wells. Production costs Production costs are those incurred to operate and maintain productive wells, and are part of the corresponding equipment and facilities. Production activity includes extraction of oil and gas to the surface, its gathering, treatment and processing as well as storage in the field. Production costs are expenses recorded in the consolidated statement of profit or loss as incurred unless they add oil and gas reserves, in which case they are capitalized. Production and support equipment is recognized at cost and is part of property, plant and equipment subject to depreciation. Capitalized costs also include decommissioning, dismantling, retiring and restoration costs, as well as the estimated cost of future environmental obligations. The estimation includes plugging and abandonment costs, facility dismantling and environmental recovery of areas and wells. Changes arising in new abandonment liability estimations and environmental remediation are capitalized in the carrying amount of the related asset. Depletion Depletion of natural and environmental resources is determined using the unit–of–production method per field, using proved developed reserves as a base, except in limited exceptional cases that require greater judgment by Management to determine a better amortization factor of future economic benefits over the useful life of the asset. Depreciation rates are reviewed annually, based on reserves reports and the impact of any changes is recognized prospectively in the financial statements. Reserves are independently estimated by internationally recognized external consultants and approved by Ecopetrol’s Board of Directors. Proved reserves consist of the estimated quantities of crude oil and natural gas demonstrated with reasonable certainty by geological and engineering data to be recoverable in future years from known reserves under existing economic and operating conditions, that is, at the prices and costs that apply at the date of the estimation. Impairment Assets associated to exploration, evaluation and production are subject to review for possible impairment in their carrying amount. See Notes 3.2 — Asset impairment (reversal) and 4.12 — Impairment of non–financial assets . 4.8 Capitalization of borrowing costs Borrowing costs related to the acquisition, construction or production of a qualifying asset that requires a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset when it is probable that future economic benefits associated with the item will flow to the Ecopetrol Business Group and costs can be measured reliably. Other borrowing costs are recognized as finance costs. Projects that have been suspended but that th |
New standards and regulatory ch
New standards and regulatory changes | 12 Months Ended |
Dec. 31, 2019 | |
New standards and regulatory changes | |
New standards and regulatory changes | 5. New standards and regulatory changes 5.1 New standards adopted by the Group, effective as of January 1, 2019 IFRS 16 - Leases As of January 1, 2019, the Ecopetrol Business Group adopted IFRS 16, “Leases” (“IFRS 16”). The effects of the adoption of IFRS 16 are described below: IFRS 16 was issued in January 2016 and supersedes IAS 17 “Leases,” IFRIC 4 “Determining whether an Arrangement Contains a Lease" ("IFRIC 4"), SIC-15 “Operating leases – Incentives” and SIC-27 “Evaluating the Substance of Transactions in the Legal Form of a Lease.” IFRS 16 sets the principles of recognition, measurement, presentation and disclosure of leases and requires lessees to record all their leases under a balance sheet registration model similar to the recording of financial leases under IAS 17. The standard includes two practical expedients for lessees: leases of low-value assets and short-term leases (those with lease terms of 12 months or less). On the commencement date of the lease, a lessee is required to recognize a liability corresponding to the total lease payments and a right-of-use asset which is an asset representing the lessee’s right-of-use of the leased asset during the lease term. The lessees is required to separately recognize interest expense on the lease liability and the depreciation expense on the right-of-use asset. The Ecopetrol Business Group elected to use the transition practical expedient not to reassess whether a contract is, or contains, a lease at January 1, 2019. Instead the Group applied the standard only to contracts that were previously identified as leases under IAS 17 and IFRIC 4. a) Effect of adoption The Ecopetrol Business Group adopted IFRS 16, using the modified retrospective method of adoption. The Ecopetrol Business Group recognised right-of-use assets and subleases for COP$490,245 as of January 1, 2019, and a corresponding lease liability for the same amount. Therefore, there was no effect in retained earnings upon initial application. b) Summary of the new accounting policies Definition of a lease Prior to the application of IFRS 16, the Ecopetrol Business Group assessed at contract inception whether a contract is, or contained, a lease in accordance with IFRIC 4. Upon application of IFRS 16, the Ecopetrol Business Group assesses whether a contract is, or contains, a lease by determining whether it conveys the right-of-use of an asset (the underlying asset) for a period of time in exchange for consideration. To assess whether a contract conveys the right to control with an identified asset, the regulation of IFRS 16 are used. Ecopetrol Business Group as a lessee On the commencement date of the lease, the Ecopetrol Business Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying asset during the lease term. The interest expense on the lease liability and the depreciation expense on the right-of-use asset are recognised separately. Right-of-use assets The Ecopetrol Business Group recognizes right-of-use assets on the commencement date of the lease (that is, the date on which the underlying asset is available for use). The right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are amortized in a straight-line basis during the lease term. Right-of-use assets are subject to impairment assessment. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received Lease liabilities At the commencement date of the lease, the Ecopetrol Business Group recognizes lease liabilities measured at the present value of the lease payments to be made during the term of the lease. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Variable payments that do not depend on an index or rate are recognised as expenses in the period in which an event or condition indicates that the payment will occur. In order to calculate the present value of the lease payments, the Ecopetrol Business Group uses the incremental borrowing rate on the lease’s commencement date. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset. Short-term leases and low-value asset leases The Ecopetrol Business Group elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). Ecopetrol Business Group as a lessor Leases in which the Ecopetrol Business Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operational. Rental income is recognised in the statement of profit or loss on a straight-line basis over the lease terms. Other leases are classified as finance leases, and the Ecopetrol Business Group records an account receivable for an amount equal to the net investment in the lease. Joint Operating Agreements (JOA) In JOA agreements, the Ecopetrol Business Group assesses whether it controls the use of the asset. If the Ecopetrol Business Group, as the operator, controls the use of the asset, it recognizes the entire right-of-use and lease liability in the consolidated financial statements. In addition, the Ecopetrol Business Group assesses whether, due to the contractual characteristics of the lease, each of the parties to the joint arrangement need to account for their respective interests in the joint arrangement. c) Amounts recognized in the consolidated statement of financial position and in consolidated statement of profit or loss: The book values of the right-of-use assets, the lease liabilities and the movements for the period are detailed below: Right-of-use assets Lands and Plant and Right-of- Lease buildings equipment Vehicles use assets Sublease liabilities Balance as of December 31, 2018 (1) — — — — — 797,889 IFRS 16 adoption (January 1, 2019) 236,519 78,412 145,704 460,635 29,610 490,245 Additions 26,252 123,341 74,900 224,493 — 224,493 Amortization of the period (44,254) (50,944) (80,156) (175,354) — — Impairment loss — (53,488) — (53,488) — — Disposals (4) (57) — (61) — (50) Finance cost — — — — 3,302 76,139 Repayment of borrowings — — — — (3,476) (300,326) Exchange difference — — — — — 2,564 Balance as of December 31, 2019 218,513 97,264 140,448 456,225 29,436 1,290,954 (1) The right-of-use assets are tested for impairment. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 6. Cash and cash equivalents 2019 2018 Banks 5,813,306 4,511,078 Short–term investments 1,262,105 1,799,597 Cash 347 1,069 7,075,758 6,311,744 As of December 31, 2019, cash and cash equivalents balance included COP$85,286 (COP$92,331 as of December 31, 2018), of restricted cash to be used exclusively for the payment of loans principal and interest obtained by Oleoducto Bicentenario and Oleoducto de los Llanos. The use of short–term financial investments depends on the liquidity needs of the Ecopetrol Business Group. The fair value of cash and cash equivalents approximates their book value due to their short–term nature. The return on cash and cash equivalents for the years ended December 31, 2019 and 2018 were 3.2% and 3%, respectively. The following table reflects the credit quality of issuers of investments included in cash and cash equivalents: Rating 2019 2018 AAA 3,851,656 3,092,236 A-1 1,244,462 512,757 BRC1+ 673,342 470,623 BBB 569,514 1,305,037 F1+ 244,547 222,454 AA 229,473 107,520 A 167,404 — A-2 89,996 147,186 BB 43 — Baa2 10 — A1 — 394,696 F1 — 48,566 Other 5,311 10,669 7,075,758 6,311,744 See credit risk policy in Note 29.2.2 |
Trade and other receivables, ne
Trade and other receivables, net | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables, net | |
Trade and other receivables, net | 7. Trade and other receivables, net 2019 2018 Current Customers Foreign 2,759,993 2,404,531 Domestic 2,015,517 1,512,821 Fuel price stabilization fund(1) 256,303 3,828,691 Accounts receivable from employees 95,693 78,459 Industrial services 47,691 154,152 Related parties (Note 30) 27,449 23,480 Other 497,688 192,109 5,700,334 8,194,243 Non–current Accounts receivable from employees 508,588 470,609 Related parties (Note 30) 93,657 117,824 Domestic customers 52,819 — Other 131,732 167,141 786,796 755,574 (1) The book value of trade and other receivables approximates their fair value. The changes in the allowance for doubtful accounts for the year ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Opening balance 268,654 170,016 144,329 Additions, net 14,158 107,725 35,229 Accounts receivable write–off and uses (21) (9,087) (9,542) Closing balance 282,791 268,654 170,016 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, net | |
Inventories, net | 8. Inventories, net 2019 2018 Crude oil 1,965,022 1,958,572 Fuels and petrochemicals 1,876,247 1,524,548 Materials for the production of goods 1,816,830 1,617,287 5,658,099 5,100,407 Crude oil, fuel and petrochemicals inventories are adjusted to the lowest between the cost and the net realizable value, as a result of fluctuations in international crude oil prices. The amount recorded for this in 2019 was COP$9,759 (2018 - COP$30,252). The following are the changes of the allowances for losses for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Opening balance (86,938) (194,507) (265,435) (Reversals) additions, net (44,191) 115,778 (9,134) Foreign currency translation 371 (9,717) 4,266 Uses (768) 1,508 75,796 Closing balance (131,526) (86,938) (194,507) |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2019 | |
Other financial assets | |
Other financial assets | 9 . Other financial assets 2019 2018 Assets measured at fair value through profit or loss Investment Portfolio – Local currency 1,630,149 3,389,869 Investment Portfolio – Foreign currency 3,340,908 4,754,369 4,971,057 8,144,238 Assets measured at amortized cost 3,367 3,577 Hedging instruments 4,868 — 4,979,292 8,147,815 Current 1,624,018 5,321,098 Non–current 3,355,274 2,826,717 4,979,292 8,147,815 The average return of the investment portfolio in Colombian pesos and U.S. dollars were approximately 5.4% (2018 – 5.4%) and approximately 3.6% (2018 – 2.1%), respectively. Changes in fair value are recognized in financial results (Note 28). 9.1 Restrictions As of December 31, 2019 and 2018, there were no investments with restricted use. 9.2 Maturity 2019 2018 Up to 1 year 1,624,018 5,321,098 1 – 2 years 983,571 1,847,241 2 – 5 years 1,791,549 823,425 > 5 years 580,154 156,051 4,979,292 8,147,815 9.3 Fair value The following is the balance of other financial assets by fair value hierarchy level as of December 31, 2019 and 2018: 2019 2018 Level 1 472,547 372,636 Level 2 4,503,378 7,771,602 4,975,925 8,144,238 There were no transfers between hierarchy levels for the years ended December 31, 2019 and 2018. The securities comprising Group’s portfolio are valued on a daily basis according to the instructions issued by the Financial Superintendence of Colombia. To this end, the information provided by authorized entities is used, which includes data from active markets. For cases in which market data is not available, other directly or indirectly observable data is used. For U.S. dollar–denominated investments, fair value is based on information released by Bloomberg, while for investments denominated in Colombian pesos, fair value is provided by Precia, an entity authorized by the Financial Superintendence of Colombia to provide this service. Within the investment valuation hierarchy process, other relevant aspects are taken into account, such as the issuer’s rating, investment rating and the risk analysis of the issuer performed by the Ecopetrol Business Group. 9.4 Credit rating The following table reflects the credit quality of the issuers of other financial assets measured at fair value through profit or loss: 2019 2018 AAA 2,707,019 3,105,894 A+ 712,934 161,160 AA 477,423 15,430 F1+ 350,325 353,175 AA- 186,325 455,584 A 186,222 80,334 BBB 159,968 — AA+ 155,012 193,747 BRC1+ — 611,905 BBB+ — 18,731 A1 18,168 3,148,043 Other 17,661 235 4,971,057 8,144,238 See credit risk policy in Note 29.2.2. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Taxes | 10. Taxes 10.1 Current tax assets and liabilities 2019 2018 Current tax assets Other taxes(1) 714,197 211,558 Income tax(2) 190,605 765,399 Credit tax balance(3) 614,005 54,350 1,518,807 1,031,307 Current tax liabilities Income tax(2) 1,967,353 1,065,688 Tax of industry and commerce 195,776 174,207 National tax and surcharge on gasoline 145,569 141,408 Carbon tax 54,586 48,520 Value added tax 33,098 168,185 Other taxes(4) 174,397 153,292 2,570,779 1,751,300 Non-current tax liabilities (5) 70,543 — (1) It includes the potential tax discount for VAT incurred in the acquisition of real productive fixed assets, in accordance with article 83 of Law 1943 of 2018 – Tax reform, and territorial tax advances. (2) It mainly corresponds to the 2019 income tax provision, net of self-withholdings, balances in favor (refunds), advances tax payments filed in the statement of the immediately preceding year. (3) VAT balance in favor, among others. (4) It includes royalties, transport tax, among others. (5) The advance payment mechanism of “works for taxes” is regulated by article 238 of Law 1819 of 2016 - Tax reform, which established it as a form of payment in respect of income tax payable for the years 2017 and 2018. In compliance therewith, in May 2018 and 2019, the Group’s companies recognized an asset and a liability for the value of the projects designated for each fiscal year. 10.2 Income tax The Constitutional Court judged Law 1943 of 2018 (Tax reform) to be unconstitutional and established that this decision would take effect as of January 1, 2020. However, the this law must be followed for the fiscal year 2019. Below is indicated the tax effects applicable in Colombia for 2019: - The income tax rate applicable to national companies, foreign companies with permanent establishments and foreign entities will be 33%. - The income tax rate for the 2018 tax year was 33% with a surcharge of 4% applicable on net income exceeding COP$800 million. - The income tax for tax free trade zone users will be 20%. The tax rate of companies located in a free trade zone with a legal stability agreement is 15% during term of the said agreement. - The presumptive income rate will decrease from 3.5% to 1.5% from 2018. Tax losses accumulated until December 31, 2016 that have not been compensated, may be carried forward in accordance to the formula provided in the article 290 of Law 1819/2016. - For fiscal year 2019, the Ecopetrol Business Group had subsidiaries that were subject to a 33% income tax rate, subsidiaries in free trade zones that were subject to a 15% or 20% income tax rate depending upon whether or not they complied with the CEJ rules and other subsidiaries that were subject to statutory income tax rates in the countries in which they were incorporated. - Depreciation and amortization methods and annual percentages are limited to those established in the tax rule and depends on the type of asset. For example, machinery and equipment depreciate at 10%, infrastructure (including pipelines) at 2.22% and vehicles and computers at 20%, among others. Additionally, oil investments can be amortized using the units-of-production method. - The cost of acquisition of exploration rights, geology and geophysics (G&G), exploratory drilling, etc., is capitalized for tax purposes until the technical and commercial feasibility of extracting the resource is achieved. - Tax losses may be offset against ordinary net income obtained in the following twelve taxable years. - In accordance with Article 290 of Law 1819 of 2016, any excess between estimated income reported and CREE that has not yet been offset, may be offset in accordance with the formula provided for this purpose in said article and subject to the term established in Article 189 of the Tax Code. In 2019, the National Government issued Law 2010, which modified certain substantive aspects of the Tax law. (See more detail in Note 10.2.4. Tax reform). Statute of limitations on review of tax returns By general rule, the statute of limitations for the income tax return is three (3)years from the deadline to timely file the return as of the date of expiration or as of the filing date, when these have been filed extemporaneously. Returns filed by taxpayers that have made transactions subject to the transfer pricing regulations have a statute of limitations of six years. For tax returns in which tax losses are either originated or carried forward, the statute of limitations will be 12 years counted as of their filing dates. Income tax expense 2019 2018 2017 Current income tax 7,117,040 7,539,093 5,108,549 Deferred income tax (2,365,108) 783,136 472,772 Adjustments to prior years’ current and deferred tax (33,519) (63,744) 218,947 Income tax expenses 4,718,413 8,258,485 5,800,268 Reconciliation of the income tax expenses The reconciliation between the income tax expenses and the tax determined based on the statutory tax rate applicable to the Ecopetrol Business Group in Colombia is as follows: 2019 2018 * 2017 * Net income before income tax 19,723,568 20,613,875 13,769,662 Statutory rate 33 % 37 % 40 % Income tax at statutory rate 6,508,777 7,627,134 5,507,865 ETR reconciliation items: Non–deductible expenses 295,550 379,633 271,414 Rate differential adjustment 132,888 172,352 186,588 Impairment of non–financial assets 57,646 (128,461) (175,750) Increase in shareholding in Invercolsa (2,943) - - Non–taxable income (524,658) (119,963) (107,881) Prior years’ taxes (33,520) (63,744) 218,947 Foreign currency translation and exchange difference (54,318) 751,210 (186,787) Tax discounts and tax credit (110,857) — — Ecopetrol U.S.A. deferred tax (1,550,152) — — Effect of tax reform — (359,676) — Non–deductible wealth tax — — 85,872 Income tax calculated 4,718,413 8,258,485 5,800,268 Current 7,127,492 7,416,038 5,076,692 Deferred (2,409,079) 842,447 723,576 4,718,413 8,258,485 5,800,268 *Information from the years 2018 and 2017 were reclassified for purposes of comparability with 2019. (1) In 2019, two companies, Ecopetrol USA Inc. and Ecopetrol Permian, were created in the United States for the development of the unconventional hydrocarbons business. US tax regulations business reorganizations (IRC Section 368 (a) (1) (F)) makes it possible to offset tax losses occurring in previous years with future income tax returns. As of December 2018, Ecopetrol America Inc generated tax losses of USD $2,067 million and in 2019 it estimates these will increase to USD$107 million. Because the results of Ecopetrol America LLC and Ecopetrol Permian LLC will be consolidated into Ecopetrol USA Inc.’s financial statements, it will be responsible for the payment of taxes in the United States. IAS 12 establishes when a Company has strong evidence that will allow it to offset for deferred tax losses, it is possible to establish a deferred tax asset. The forecasts as of 2020 in the United States with the entry into operation of Ecopetrol Permian, allow for the reasonable expectation that taxable profits required to recover the losses of previous years will be generated; therefore, the recognition of the deferred tax asset is feasible. The effective tax rate for the year ended December 31, 2019 was 23.9% (2018 - 40.1%). The decrease from the previous year is mainly due to: a) the effect of the deferred tax assets not recognized of Ecopetrol USA and Permian, b) a reduction of the nominal tax rate by 4 bps, (33% in 2019 as compared to 37% in 2018), c) the use of the 50% tax discount in the industry and commerce tax, d) the appreciation of Ecopetrol’s increased interest in Invercolsa, and, e) the application of the Tax reform for estimating the deferred tax balances; among others. Deferred income tax 2019 2018 Deferred tax assets 6,809,347 3,879,427 Deferred tax liabilities (1,328,831) (1,337,943) Net deferred income tax 5,480,516 2,541,484 The detail of deferred tax assets and liabilities is as follows: 2019 2018 Deferred tax assets (liabilities) Loss carryforwards (1) 2,849,087 1,002,062 Provisions (2) 2,404,032 1,994,762 Employee benefits (3) 1,875,872 1,161,860 Accounts payable 1,631,706 1,193,098 Accounts receivable 139,410 79,591 Excess presumptive income 64,249 (37,638) Right-of-use assets (33,592) — Investments and hedging (45,844) (143,717) Goodwill (4) (363,968) (404,394) Property plant and equipment and Natural and environmental resources (5) (3,040,436) (2,304,140) 5,480,516 2,541,484 (1) In 2019, a deferred tax asset for loss carryforwards were recognized in the following companies: Ecopetrol USA Inc for COP$1,497,966, Refinería de Cartagena for COP$1,052,848 and Bioenergy for COP$64,343 and the excess of presumptive income over net ordinary income of Refinería de Cartagena and Bioenergy for COP$228,569 and COP$5,361 respectively. (2) Corresponds to non-deductible accruals, mainly the provision for asset retirement obligation (ARO). (3) Actuarial calculations for health, retirement pensions, education, pension bonds and other benefits to long–term employees. (4) According to Colombian tax law, goodwill is amortizable, while under IFRS it is not amortized but such goodwill is subject to impairment tests and any difference results in a deferred tax liability. (5) For fiscal purposes, natural and environmental resources and property, plant and equipment have a useful life and a methodology for calculating depreciation and amortization different from those determined under international accounting standards. This item includes the amount of tax for occasional gains of 10% to the land. The main variation corresponds to the decrease in the income tax rate from 33% to 30%. Deferred tax details are as follows: PPE and Natural Loss carry Accounts resources Provisions Employee benefits forwards payable As of December 31, 2017 (1,006,299) 1,840,988 1,373,561 611,766 208,618 Profit or loss (1,297,841) 153,774 (178,160) 390,296 984,480 OCI — — (33,541) — — As of December 31, 2018 (2,304,140) 1,994,762 1,161,860 1,002,062 1,193,098 Profit or loss (736,296) 409,270 (57,343) 1,847,025 438,608 OCI — — 771,355 — — As of December 31, 2019 (3,040,436) 2,404,032 1,875,872 2,849,087 1,631,706 Accounts Right-of-use receivable Goodwill assets Others Total As of December 31, 2017 94,864 (408,932) — (31,685) 2,682,881 Profit or loss (15,273) 4,538 — (884,261) (842,447) OCI — — — 734,591 701,050 As of December 31. 2018 79,591 (404,394) — (181,355) 2,541,484 Profit or loss 59,819 40,426 (33,592) 441,162 2,409,079 OCI — — — (143,397) 627,958 Increase in Invercolsa shareholding — — — (98,005) (98,005) As of December 31, 2019 139,410 (363,968) (33,592) 18,405 5,480,516 The Ecopetrol Business Group offsets deferred taxes assets and liabilities only if it has a legally enforceable right to offset current tax liabilities and assets; and, to the extent they relate to income taxes in the same tax jurisdiction and the same tax authority. Deferred tax assets recognized Deferred tax assets recognized in the consolidated financial statements as of December 31, 2019 and 2018 amounted to COP$6,809,347 and COP$3,879,427, respectively and is mainly comprised of the items included in "Detail of deferred tax assets and liabilities". Deferred tax assets for tax loss carryforwards and excesses of presumptive income amount to COP$2,849,087 as of December 31, 2019 and is mainly comprised of: · Tax losses carryforwards that do not expire corresponding to Refinería de Cartagena, Bioenergy and Ecopetrol USA amount to COP$6,385,989 and correspond to deferred taxes assets of COP$1,052,848, COP $64,343 and COP$182,977, respectively. · Tax losses carryforwards that expire in 20 years from the year in which they were generated corresponding to Ecopetrol USA amounting to COP$6,144,400 (USD$1,904 million) and correspond to deferred tax assets of COP$1,288,249. Additionally, as of December 31, 2019 the excess of presumptive income amounted to COP $1,332,854 that generates a deferred tax assets of COP $228,569 in Refinería de Cartagena, COP $5,361 in Bioenergy and COP $22,590 in Ecopetrol USA. As of December 31, 2018, deferred tax assets have been recognized for an amount of COP$1,002,063 related to excesses of presumptive income and the accumulated tax losses of Refinería de Cartagena amount to COP$948,671 and Bioenergy Zona Franca S.A.S. amount to COP$53,392, as management expects these amounts will be realized in future periods. The Ecopetrol Business Group recognizes deferred tax assets based on tax projections and the elimination of presumptive income from the year 2021, as contemplated in Law 2010/2019. Refinería de Cartagena, Bioenergy, Ecopetrol Costa Afuera (“ECAS”), Ecopetrol USA, Permian and Andean Chemicals Ltd (“Andean”) have accumulated tax losses for a net amount of COP $12,402,061 as of December 2019 and COP $4,292,418 as of December 2018. In accordance with the tax rules regulation applicable until December 31, 2016, excess presumptive income and minimum base excesses generated before 2017 in income and supplementary taxes and in income tax for equity equality - (CREE, as its acronym in Spanish) respectively, may be compensated with the ordinary taxable income in the following five years, using for this purpose, the formula established in number 6, of article 290 of law 1819/ of 2016. The tax loss carryforwards of Ecopetrol USA generated between 2008 and 2017, expire in 20 years from the year in which they were generated. The tax loss carryforwards generated starting January 1, 2018 have no expiration date and its use is limited to 80% of taxable income. Deferred tax assets not recognized Deferred tax assets related to the tax loss carryforwards generated by the subsidiaries Bioenergy S.A. Ecopetrol Costa Afuera and Andean Chemicals Ltd in the amount of COP $105,592, and excess of presumptive income of Bioenergy SA, Ecopetrol Costa Afuera, Hocol Petroleum Company, Andean in the amount of COP $74,481, were not recognized, as Management believes it is not likely that these deferred tax assets will be recoverable in the short term. If the Ecopetrol Business Group had recognized this deferred tax asset, the profit for the year ending December 31, 2019 would have increased by COP$180,073. The movements of deferred income tax for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Opening balance 2,541,484 2,682,881 2,608,311 Deferred tax recognized in profit or loss 2,409,079 (842,447) (723,576) Increase due to business combination (Invercolsa) (98,005) — — Deferred tax recognized in other comprehensive income(a) 627,958 701,050 798,146 Closing balance 5,480,516 2,541,484 2,682,881 (a) The following is the detail of the income tax recorded in other comprehensive income: December 31. 2019 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) 2,571,184 (771,355) 1,799,829 Cash flow hedging for future crude oil exports (Note 29.1.2) (356,339) 118,008 (238,331) Hedge of a net investment in a foreign operation (Note 29.1.3) 87,524 (26,257) 61,267 Hedge with derivative instruments (69,220) 22,769 (46,451) Other — 28,877 28,877 2,233,149 (627,958) 1,605,191 December 31. 2018 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) (29,249) 33,539 4,290 Cash flow hedging for future crude oil exports (Note 29.1.2) 797,658 (264,284) 533,374 Hedge of a net investment in a foreign operation (Note 29.1.3) 1,382,278 (410,324) 971,954 Hedge with derivative instruments 77,872 (25,698) 52,174 Other 925 (34,283) (33,358) 2,229,484 (701,050) 1,528,434 December 31. 2017 Pre-tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) (762,469) 1,548,043 Cash flow hedging for future crude oil exports (Note 29.1.2) (82,622) 84,836 Hedge of a net investment in a foreign operation (Note 29.1.3) (86,563) 28,566 (57,997) Hedge with derivative instruments (53,385) 17,617 (35,768) Other 6,649 762 7,411 (798,146) 1,546,525 Deferred tax assets (liabilities) not recognized As of December 31, 2019, deferred tax assets are not recognized on the difference between the accounting and tax basis associated with investments in subsidiaries and joint ventures of Ecopetrol (Base: COP$507,161 - Tax: COP$50,716), as the Ecopetrol Business Group does not have any intention of selling any of these investments in the foreseeable future. Income tax provisions and contingent liabilities Income tax returns for the 2011, 2012, 2014, 2015, 2016, 2017 and 2018 tax years and the CREE for the 2014, 2015, and 2016 tax years of the Group’s companies are subject to acceptance and review by the tax authorities. The management of the Group's companies considers whether the amounts accounted for as liabilities for taxes payable are sufficient and supported by current regulations, doctrine and jurisprudence to meet any claim that may be established with respect to these years. The Company's strategy is to avoid making fiscal decisions resulting in aggressive or risky positions that may call into question its tax returns. Uncertain tax positions - IFRIC 23 The Ecopetrol Business Group’s strategy is to avoid making aggressive tax decisions that may cause questioning of its tax returns, in order to minimize the risk of possible challenge by the tax authorities. Regarding uncertain positions where it has been determined that there may be a possible controversy with the tax authority that could result in an income tax increase, a success rate above 75% has been established, which has been calculated based on current regulations and official interpretations. In accordance with the aforementioned standard, the Ecopetrol Group considers that uncertain tax positions included in its determination of income tax payable will not affect results if the success rate is above 75%. Notwithstanding, the Ecopetrol Business Group will continue to monitor new regulations and doctrine issued by the tax authority and other entities. 10.2.1. Dividend taxes Dividends related to profits generated from the year ended December 31, 2017; dividends will be subject to withholding at a rate of 7.5% ( 5% in 2018). Further, if the earnings against which the dividends are distributed were not subject to corporate tax, these dividends are taxable by the income tax applicable during the distribution period (for 2019 the rate is 33%). In this scenario, the 7.5% tax on dividends will be applicable to the distributed amount, once it is reduced by the 33% (35% in 2018) income tax rate. The non-taxed dividends that the Company will receive will not be subject to withholding tax due to the express provision of the regulation that establishes the dividends that are distributed within the business groups duly registered with the Chamber of Commerce and decentralized entities; they will not be subject to the retention at the source for this concept. There are no effects on income tax related to dividend payments made by the Company to its shareholders during 2019 and 2018. 10.2.2. Transfer prices According to the Colombian tax law, income taxpayers who enter into transactions with related parties or related parties located in foreign jurisdictions and in free trade zones or with residents located in jurisdictions considered tax havens, are obliged to determine their ordinary and extraordinary income for purposes of the income and supplementary tax, its costs and deductions, considering for these operations the arm’s length principle. Ecopetrol submitted its transfer pricing informative return for the 2018 taxable year and its corresponding supporting documentation, as well as the country-by-country report and the master file for the year 2018, in accordance with current tax law. For fiscal year 2019, related party transactions in foreign jurisdictions, as well as the business conditions under which said operations were carried out and the general structure did not vary significantly with respect to the previous year. For this reason, it is possible to infer that these transactions were carried out in accordance with the arm’s length principle. It is estimated that there will be no need for adjustments derived from the analysis of transfer prices for 2019, which imply changes in the income provision of the taxable year 2019. 10.2.3. Value added tax (VAT) Law 1943/2018 established that VAT paid on the import, creation, construction or acquisition of real productive fixed assets may be treated as a tax credit for income tax purposes. This VAT cannot be assumed simultaneously as a cost or expense in the income tax nor will it be discounted from the sales tax. 10.2.4. Tax reform The Government issued the Law 2010/2019, which makes numerous changes to the Colombian tax rules. The Tax Reform reduces the corporate income tax (CIT) rate from 33% in 2019 to 32% for 2020, 31% for 2021 and 30% for 2022 and onwards. The presumptive income tax rate (i.e., an alternative tax based on a percentage of the net equity of the last year) is reduced from 1.5% to 0.5% in 2020 and 0% for 2021 and onwards. The thin capitalization rule ratio is modified from 3:1 (which includes all debt that generates interest with local and foreign entities, related or unrelated) to a 2:1 ratio that only considers debt transactions involving related local and foreign parties (including back-to-back transactions involving foreign third parties). Tax on dividends As of January 1, 2020, the Tax Reform establishes a 7.5% dividend tax on distributions between Colombian companies. The tax will be charged only on the first distribution of dividends between Colombian entities and may be credited against the dividend tax due once the ultimate Colombian company makes a distribution to its shareholders (nonresident shareholders (entities or individuals) or to Colombian individual residents). The dividend tax on local distributions does not apply if the Colombian companies are part of a registered economic group, or the distribution is to a Colombian entity qualifying for the new Colombian holding company (CHC) regime. Normalization tax The Tax Reform establishes a tax amnesty to “normalize” (i) unreported assets; or (ii) nonexistent liabilities that were included on a tax return. The amnesty will apply only for 2020 (September 25, 2020 is the due date for filing the normalization tax). The applicable tax rate is 15% of the value of the unreported assets or nonexistent liabilities. Value added tax Law 2010 of 2019 established that VAT paid on the import, training, construction or acquisition of real productive fixed assets may be deducted from taxable income. This VAT cannot be reported simultaneously as a cost and expense in the income tax return nor will it be discounted from the sales tax. Concerning VAT, changes have been made to the list of goods and services excluded from VAT as set forth in Articles 424, 426 and 476 of the Tax Code, adding Article 437 to the Tax Code, with regard to guidelines on compliance with formal duties concerning VAT by service providers abroad, and it has been noted that VAT withholding may be up to 50% of the tax amount, subject to regulation by the National Government. The VAT rate remains at 19%. Tax procedures With regards to procedure, changes have been made: (i) declarations for withholding at source which, that being inefficient, will be enforceable, (ii) electronic notification of administrative actions; (iii) payment of the entire amount covered by a statement of objections to avoid delinquent interest at the current rate plus two points; and (iv) elimination of the extension of enforcement to three (3) additional years to offset tax losses, and the period for taxpayers who must comply with the transfer pricing regime is reduced to five (5) years. Additionally, an audit benefit was included for fiscal years 2020 to 2021. Under this benefit, private settlement by taxpayers of income tax and supplements that increase net income tax by a minimum of at least 30%, or 20% over the net income tax of the immediately preceding year, shall be considered firm for six (6) or twelve (12) months, respectively after the date of presentation if not notified of a deadline for correction or special requirement, or a special deadline or provisional settlement, provided that the return is filed timely and the payment is made within the established deadlines. The above benefit does not apply to: (i) taxpayers who enjoy tax benefits due to their location in a specified geographic region; (ii) if it is demonstrated that declared withholdings at source are non-existent; (iii) if the net income tax is less than 71 UVT (COP$2,528.097 for fiscal year 2020). The deadline stipulated in this law does not extend to declarations of withholdings at source nor to the sales tax, which shall be established by the general regulation. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2019 | |
Other assets | |
Other assets | 11. Other assets 2019 2018 Current Partners in joint operations(1) 921,983 519,460 Advanced payments to contractors and suppliers 360,781 221,767 Prepaid expenses 272,007 191,168 Trust funds (2) 144,798 — Related parties (Note 30) 57,016 19,214 Other assets 22,393 68,819 1,778,978 1,020,428 Non–current Abandonment and pension funds(3) 445,457 392,084 Employee benefits 220,998 213,645 Trust funds(2) 171,008 147,471 Advanced payments and deposits 56,027 61,556 Judicial deposits and attachments 40,317 43,137 Other assets 8,674 2,837 942,481 860,730 (1) Corresponds to the net amount of cash calls and cutbacks generated in relation to the operations carried out with partners through Exploration and Production (E&P) contracts, Technical Evaluations (TEA) contracts and agreements entered in to with the National Hydrocarbons Agency (ANH), as well as through association contracts and other types of contracts. (2) Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2017 and 2018, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. (3) Corresponds to Ecopetrol’s share in trusts established to support costs of abandonment of wells and dismantling of facilities, as well as the payment of future retirement pensions in some association contracts. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business combinations | |
Business combinations | 12. Business combinations On November 29, 2019, Ecopetrol obtain an additional interest of 8.53% in Invercolsa (See Note 2.2 Basis of consolidation) obtaining control of Invercolsa and resulting in a total ownership interest of 51.88%. Upon obtaining control of Invercolsa, the Ecopetrol Business Group accounted for the transaction as a business combination and started consolidating Invercolsa (including its subsidiaries and associated companies) on the date control was obtained. The previously held interest in Invercolsa, which was accounted for under the equity method, was remeasured at fair value on such the date. The acquisition of controlling interest did not require the payment of any consideration and was recorded using the acquisition method of accounting. The effect of the changes in the Ecopetrol Business Group ownership interest in Invercolsa is summarized as follow: (In COP$ millions) 2019 Increase in the ownership interest in Invercolsa at fair value 217,974 (+) Fair value of previously held interest on the date of acquisition of controlling interest 1,107,969 (=) Total fair value of investment in Invercolsa 1,325,943 (-) Carrying amount of previously held interest in Invercolsa (277,019) Gain on acquisition acquisition of control of Invercolsa (Note 27) 1,048,924 The increase in the ownership interest in Invercolsa resulted in a gain recorded in profit or loss since no consideration was paid for such additional interest. Revenue and profits included in the consolidated profit or loss statement upon consolidation of Invercolsa were COP$72,712 and COP$18,198 respectively. If the acquisition had occurred on January 1, 2019, management estimates that the consolidated revenue and net profit attributable to owners of the parent would have increased by COP$459,286 and COP$134,464, respectively. Identifiable assets acquired and liabilities assumed The table below summarizes the amounts recognized for the assets acquired and the liabilities assumed at the date of acquisition. Amount Item Note COP$ Cash and cash equivalent 20,530 Current accounts receivable 195,225 Inventories 19,576 Current tax assets 10,704 Other assets 2,810 Investments in associates (1) 1,824,552 Trade accounts and other accounts receivables 52,820 Property, plant and equipment 14 1,338,947 Deferred tax assets 9,623 Other assets 807 Current loans and borrowings (137,683) Trade accounts and other accounts payable (58,423) Current provisions for employee benefits (7,003) Current tax liabilities (23,597) Provisions and contingencies (8,576) Other liabilities (13,650) Non – Current loans and borrowings (186,923) Deferred tax liabilities (107,629) Total net assets (2) 2,932,110 (1) Associate COP$ Gases del Caribe S.A. E.S.P. 1,527,911 Gas Natural del Oriente S.A. E.S.P. 166,685 Gases de la Guajira S.A. E.S.P. 68,608 Extrucol S.A. 28,501 E2 Energía Eficiente S.A. E.S.P. 32,847 1,824,552 (2) The fair values of property, plant and equipment, intangible assets and deferred tax have been provisionally determined and may be adjusted in accordance with measurement period included in IFRS 3 - Business combinations. |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2019 | |
Investments in associates and joint ventures | |
Investments in associates and joint ventures | 13. Investments in associates and joint ventures The details on the participations, economic activity, address, area of operations and financial information of the investments in joint ventures and associates can be found in Exhibit 1. 13.1 Composition and movements 2019 2018 Investment in joint ventures Equion Energy Limited (1) 1,515,067 1,364,933 Offshore International Group 709,871 727,194 Ecodiesel Colombia S.A. 46,095 41,304 2,271,033 2,133,431 Less impairment: Equion Energy Limited (322,388) (187,636) Offshore International Group (530,330) (346,121) 1,418,315 1,599,674 Investments in associates Gases del Caribe S.A. E.S.P. 1,527,911 — Gas Natural del Oriente S.A. E.S.P. 166,685 — Gases de la Guajira S.A. E.S.P. 68,608 — Extrucol S.A. 28,501 — E2 Energía Eficiente S.A. E.S.P. 32,847 — Invercolsa S.A. (2) — 243,294 Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. 11,070 11,212 Sociedad Portuaria Olefinas y Derivados 2,205 1,368 1,837,827 255,874 Less impairment: Serviport S.A. (11,070) (11,212) 1,826,757 244,662 3,245,072 1,844,336 (1) Equion Energía Limited: On December 14, 2007, Ecopetrol informed Equion of its decision not to extend the Santiago de las Atalayas, Tauramena, Recetor, Río Chitamena and Piedemonte association contracts, confirming their expiration dates on July 1, 2010, July 3, 2016, May 30, 2017, January 31, 2019 and February 29, 2020, respectively. (2) Invercolsa S.A. became a subsidiary as of November 29, 2019 (See Note 12), thus the direct investments of Invercolsa in Gases del Caribe S.A. E.S.P., Gas Natural del Oriente S.A. E.S.P., Gases de la Guajira S.A. E.S.P., Extrucol S.A., E2 Energía Eficiente S.A. E.S.P., became direct investments of the Group as of the consolidation. Equion Energía Limited and Ecopetrol fulfilled the Piedemonte association contract, as well as the delivery and receipt of the operations that are covered under the same. This process established five stages: i) analysis and start-up, ii) planning, iii) execution, iv) delivery and receipt and v) closing. As of December 31, 2019, the project was in the delivery and receipt stage. During the first months of 2020, the next steps have been followed: reach the final agreements, deliver the operations and formalize the contract termination act, which was signed on February 29, 2020 and where the agreements, indemnities, closing of issues, list of pending and inventory of information delivery were included. The following is the movement of investments in associates and joint ventures: For the year ended December 31, 2019: Associates Joint ventures Total Opening balance 244,662 1,599,674 1,844,336 Effects of equity method through: Profit or loss 109,538 257,366 366,904 Other comprehensive income (174,991) 4,531 (170,460) Dividends declared (75,674) (4,192) (79,866) Impairment reversal (loss) (Note 17) 142 (318,962) (318,820) Foreign currency translation 1,723,080 (120,102) 1,602,978 Closing balance 1,826,757 1,418,315 3,245,072 For the year ended December 31, 2018: Associates Joint ventures Total Opening balance 225,178 1,105,282 1,330,460 Effects of equity method through: Profit or loss 105,908 59,928 165,836 Other comprehensive income 1,731 135,831 137,562 Dividends declared (86,847) (3,503) (90,350) Impairment (Note 17) (1,308) 302,136 300,828 Closing balance 244,662 1,599,674 1,844,336 For the year ended December 31, 2017: Associates Joint ventures Total Opening balance 249,537 1,303,157 1,552,694 Effects of equity method through: Profit or loss 46,669 46,869 93,538 Other comprehensive income — (14,752) (14,752) Dividends declared (61,124) (224,837) (285,961) Impairment (Note 17) (9,904) (5,155) (15,059) Closing balance 225,178 1,105,282 1,330,460 13.2 Additional information about associates and joint ventures The following is the breakdown of assets, liabilities and results of the two main investments in associates and joint ventures, Equion Energy Limited and the Offshore International Group, as of December 31, 2019 and 2018: 2019 2018 Offshore Offshore Equion Energy International Equion Energy International Limited Group Limited Group Statement of financial position Current assets 2,530,453 284,591 2,083,614 354,959 Non–current assets 95,384 1,481,680 484,336 1,523,549 Total assets 2,625,837 1,766,271 2,567,950 1,878,508 Current liabilities 315,002 310,561 550,933 221,606 Non–current liabilities 76,768 718,863 77,331 885,410 Total liabilities 391,770 1,029,424 628,264 1,107,016 Equity 2,234,067 736,847 1,939,686 771,492 Other complementary information Cash and cash equivalents 188,820 48,752 185,762 96,592 Current financial liabilities — — 3,176 95,633 Non–current financial liabilities — — — 137,708 2019 2018 2017 Equion Offshore Equion Offshore Equion Offshore Energy International Energy International Energy International Limited Group Limited Group Limited Group Statement of profit or loss Sales revenue 1,285,891 529,167 1,490,177 653,054 1,213,692 393,210 Costs (671,179) (690,484) (755,656) (585,192) (793,999) (508,461) Administrative expenses and others (624) (64,115) 29,136 (353,010) 12,188 (103,340) Financial (expenses) income (3,660) (31,288) (3,659) (21,227) 2,373 (20,264) Income tax (214,048) 208,473 (338,487) (16,594) (180,546) 60,575 Financial year results 396,380 (48,247) 421,511 (322,969) 253,708 (178,280) Other comprehensive results 1,102,757 — 1,095,090 — 913,728 — Other complementary information Dividends paid to the Ecopetrol Business Group — — — — 217,075 — Depreciation and amortization 404,482 226,654 511,615 243,601 557,970 232,953 This is a reconciliation of equity of the significant investments and the carrying amount of investments as of December 31: 2019 2018 Equion Offshore Equion Offshore Energy International Energy International Limited Group Limited Group Equity of the joint venture 2,234,067 736,847 1,939,686 771,492 % of Ecopetrol’s ownership 51 % 50 % 51 % 50 % Ecopetrol’s ownership 1,139,374 368,424 989,240 385,746 Additional value of the investment 375,693 341,447 375,693 341,448 Impairment (322,388) (530,330) (187,636) (346,121) Carrying amount of the investment 1,192,679 179,541 1,177,297 381,073 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment | |
Property, plant and equipment | 14. Property, plant and equipment Pipelines, Plant and networks and Work in equipment lines progress(1) Buildings Lands Other Total Cost Balance as of December 31, 2018 46,474,369 34,349,283 4,624,703 7,852,278 3,984,576 2,845,802 100,131,011 Additions / capitalizations 804,570 765,994 2,097,378 243,039 20,098 81,580 4,012,659 Increase by business combinations (Note 12) 123,436 1,118,178 44,876 9,062 22,924 20,471 1,338,947 Increase in abandonment costs 148,764 102,402 — 1,248 — 4,337 256,751 Capitalized financial interests (2) 77,627 32,630 12,831 15,800 1,033 2,389 142,310 Exchange differences capitalized 4,208 1,769 696 857 56 130 7,716 Disposals (500,876) (165,936) (78,399) (24,050) (354) (71,309) (840,924) Foreign currency translation 244,666 84,357 2,691 10,757 12,869 6,369 361,709 Transfers 618,707 81,970 (445,122) 48,954 13,336 (229,537) 88,308 Balance as of December 31, 2019 47,995,471 36,370,647 6,259,654 8,157,945 4,054,538 2,660,232 105,498,487 Accumulated depreciation and impairment losses Balance as of December 31, 2018 (17,985,416) (14,777,790) (497,441) (3,122,523) (34,302) (913,556) (37,331,028) Depreciation expense (2,001,116) (1,634,783) — (326,512) — (122,153) (4,084,564) Reversal (loss) of an impairment (Note 17) 519,835 (113,860) (626,878) (87,338) (35,533) (82,837) (426,611) Disposals 481,384 116,769 — 17,807 — 91,541 707,501 Foreign currency translation (103,365) (36,341) — (3,656) — (3,323) (146,685) Transfers/ reclassifications 53,036 (189,105) 9,953 65,968 (10,847) 68,717 (2,278) Balance as of December 31, 2019 (19,035,642) (16,635,110) (1,114,366) (3,456,254) (80,682) (961,611) (41,283,665) Net balance as of December 31, 2018 28,488,953 19,571,493 4,127,262 4,729,755 3,950,274 1,932,246 62,799,983 Net balance as of December 31, 2019 28,959,829 19,735,537 5,145,288 4,701,691 3,973,856 1,698,621 64,214,822 (1) The balance of work in progress as of December 31, 2019 include mainly: Modernization of the Barranca and Cartagena refineries, Castilla facilities and works in the Colombian Petroleum Institute (ICP, by its acronym in Spanish). (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 19 - Loans and borrowings. Guarantees The Esperanza 1 and 2 farms were pledged as a guarantee for the loan obtained by Bioenergy S.A.S. for the financing of the project (see Note 19.5 – Guarantees and covenants). In accordance with the leasing contract between Bioenergy Zona Franca S.A. and Bancolombia for the construction of the industrial plant, it was established that the guarantee is the same plant. Pipelines, Plant and networks and Work in equipment lines progress(1) Buildings Lands Other Total Cost Balance as of December 31, 2017 42,561,894 32,000,049 3,866,318 7,618,586 3,839,355 2,806,696 92,692,898 Additions/capitalizations 1,196,520 944,797 993,817 147,005 14,909 5,881 3,302,929 Increase in abandonment costs 85,580 209,028 — — — — 294,608 Capitalized financial interests (2) 48,351 34,399 14,853 14,350 6,703 5,316 123,972 Exchange differences capitalized 4,107 2,922 1,262 1,219 569 451 10,530 Disposals (135,468) (112,171) (14,723) (11,997) (9,763) (56,734) (340,856) Foreign currency translation 2,324,744 849,868 32,585 100,091 124,903 55,983 3,488,174 Transfers (3) 388,641 420,391 (269,409) (16,976) 7,900 28,209 558,756 Balance as of December 31, 2018 46,474,369 34,349,283 4,624,703 7,852,278 3,984,576 2,845,802 100,131,011 Accumulated depreciation and impairment losses Balance as of December 31, 2017 (14,779,973) (12,461,626) (553,420) (2,668,562) (39,522) (785,421) (31,288,524) Depreciation expense (2,008,348) (1,465,429) — (347,510) — (123,792) (3,945,079) (Loss) reversal of an impairment (Nota 17) (752,534) (311,080) 55,979 (64,279) 5,220 (16,591) (1,083,285) Disposals 116,225 84,217 — 8,996 — 40,957 250,395 Foreign currency translation (677,901) (313,311) — (27,782) — (23,804) (1,042,798) Transfers (3) 117,115 (310,561) — (23,386) — (4,905) (221,737) Balance as of December 31, 2018 (17,985,416) (14,777,790) (497,441) (3,122,523) (34,302) (913,556) (37,331,028) Net balance as of December 31, 2017 27,781,921 19,538,423 3,312,898 4,950,024 3,799,833 2,021,275 61,404,374 Net balance as of December 31, 2018 28,488,953 19,571,493 4,127,262 4,729,755 3,950,274 1,932,246 62,799,983 (1) The balance of work in progress as of December 31, 2018, mainly includes the works executed in production by facilities of the Castilla field, facilities in Cupiagua, air injection pilot facilities in the Chichimene field and secondary recovery of Yarigui, and in refining by the modernization project of Barrancabermeja. (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 19 - Loans and financing. (3) Transfers corresponds mainly to: i) recognition of financial leasing contracts, ii) transfers from natural resources and the environment. Guarantees The Esperanza 1 and 2 farms were pledged as guarantee for the loan obtained by Bioenergy S.A.S. for the financing of the project (see Note 19.5 – Guarantees and covenants). |
Natural and environmental resou
Natural and environmental resources | 12 Months Ended |
Dec. 31, 2019 | |
Natural and environmental resources | |
Natural and environmental resources | 15. Natural and environmental resources Asset retirement Exploration and Oil investments cost evaluation Total Cost Balance as of December 31, 2018 53,936,041 2,919,146 4,806,000 61,661,187 Additions/capitalizations (1) 5,144,295 166,431 4,487,467 9,798,193 Increase (decrease) in abandonment costs 5,703 1,965,309 (38,835) 1,932,177 Disposals (84,052) (9,253) (142,127) (235,432) Withdrawal of exploratory assets and dry wells (2) — — (340,271) (340,271) Capitalized financial interests (3) 94,995 — 10,834 105,829 Exchange differences capitalized 5,150 — 587 5,737 Foreign currency translation 68,793 (3,004) (112,917) (47,128) Transfers 651,641 (1,745) (308,019) 341,877 Balance as of December 31, 2019 59,822,566 5,036,884 8,362,719 73,222,169 Accumulated amortization and impairment losses Balance as of December 31, 2018 (36,806,667) (1,779,070) — (38,585,737) Depletion expense (3,836,479) (383,360) — (4,219,839) Impairment loss (Note 17) (1,017,061) — — (1,017,061) Disposals 83,667 8,511 — 92,178 Foreign currency translation (61,862) (2,256) — (64,118) Transfers (354,695) (99) — (354,794) Balance as of December 31, 2019 (41,993,097) (2,156,274) — (44,149,371) Net balance as of December 31, 2018 17,129,374 1,140,076 4,806,000 23,075,450 Net balance as of December 31, 2019 17,829,469 2,880,610 8,362,719 29,072,798 (1) The main capitalizations correspond to the development of assets in the Permian basin. (2) Includes dry wells: 1) Ecopetrol: Tibirita, Provenza 1, La Cira 7000 and Ávila 1; 2) Ecopetrol America LLC: Warrior and Molerusa and 3) Hocol: Mamey West and Venganza Oeste. (3) Borrowing costs are capitalized at the weighted average rate of borrowing costs. See Note 19 - Loans and borrowings. Asset retirement Exploration and Oil investments cost evaluation(1) Total Cost Balance as of December 31, 2017 50,183,858 2,215,263 4,508,808 56,907,929 Additions/capitalizations 3,579,982 (27,839) 1,499,685 5,051,828 Acquisition of interests in joint operations (2) (12,065) — — (12,065) Increase in abandonment costs — 733,609 34,063 767,672 Disposals (79) (2,080) (87,953) (90,112) Dry wells (3) (1,563) — (897,361) (898,924) Capitalized financial interests (4) 70,186 — 6,675 76,861 Exchange differences capitalized 5,961 — 567 6,528 Foreign currency translation 773,678 24,574 75,203 873,455 Transfers (663,917) (24,381) (333,687) (1,021,985) Balance as of December 31, 2018 53,936,041 2,919,146 4,806,000 61,661,187 Accumulated amortization and impairment losses Balance as of December 31, 2017 (34,014,963) (1,584,701) — (35,599,664) Depletion expense (3,471,803) (196,286) — (3,668,089) Reversal (losses) of an impairment (Nota 17) 414,208 (106) — 414,102 Disposals 79 — — 79 Foreign currency translation (563,229) (19,080) — (582,309) Transfers 829,041 21,103 — 850,144 Balance as of December 31, 2018 (36,806,667) (1,779,070) — (38,585,737) Net balance as of December 31, 2017 16,168,895 630,562 4,508,808 21,308,265 Net balance as of December 31, 2018 17,129,374 1,140,076 4,806,000 23,075,450 (1) The balance of oil investments in progress includes mainly investments made in the Purple Angel, Tayrona and unconventional hydrocarbons projects. In the developing fields, the most representative correspond to Castilla, Chichimene pilot and CPO09 re sanction. (2) Adjustment in the acquisition value of the participation of MCX Exploration USA LLC (see note 30.3). (3) Includes dry wells: 1) Ecopetrol America Inc: Leon 2) Hocol: Payero, Bonifacio, Pegaso-1 and Ocelote. (4) Borrowing costs are capitalized at the weighted average rate of borrowing costs. See Note 19 - Loans and financing. Accounting for suspended exploratory wells The following table shows the classification by age, from the completion date, of the exploratory wells that are suspended as of December 31, 2019, 2018 and 2017: 2019 2018 2017 Between 1 and 3 years(a) 361,700 496,871 600,767 Between 3 and 5 years(b) 132,021 375,371 791,261 More than 5 years(c) 441,389 273,764 250,219 Total suspended exploratory wells 935,110 1,146,006 1,642,247 Number of projects exceeding 1 year 30 24 24 Wells under 1 year of suspension — 9,511 2,480 (a) As of December 2019, suspended exploratory wells correspond to Ecopetrol: Caronte, Purple Angel and Gorgon. As of December 2018, suspended exploratory wells correspond to Ecopetrol: Purple Angel, Caronte and discovery wells of Ecopetrol America Inc: Warrior 1. As of December 31, 2017, suspended exploratory wells correspond mainly to discovery wells of Ecopetrol America Inc: Leon 2 and Warrior 1, which were under evaluation. (b) For 2019, the balance corresponds mainly to wells of Ecopetrol S.A.: Luna-1 and Gala 1K and discovery wells of Ecopetrol America Inc: Warrior 1. For 2018, the balance corresponds mainly to wells of Ecopetrol S.A.: Orca1, Tiribita 1A and Tiribita 3, which are under evaluation. (c) Correspond mainly to i) Ecopetrol S.A.: Orca 1, under evaluation; and ii) Offshore International Group, temporarily abandoned for future production plans. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets | |
Intangible assets | 16. Intangible assets The following is the movement of intangibles and their amortization and impairment for the years ended December 31, 2019 and 2018: Licenses and Other software intangibles (1) Total Cost Balance as of December 31, 2018 1,015,720 197,283 1,213,003 Acquisitions 48,064 120,225 168,289 Disposals (114,187) (1,041) (115,228) Foreign currency translation 3,477 (3,946) (469) Exchange differences capitalized — (14) (14) Transfers 41,525 (27,260) 14,265 Balance as of December 31, 2019 994,599 285,247 1,279,846 Accumulated amortization Balance as of December 31, 2018 (712,329) (89,927) (802,256) Amortization of the period (88,044) (14,982) (103,026) Reversal of impairment loss 53 2 55 Disposals 114,143 1,041 115,184 Foreign currency translation (2,333) (33) (2,366) Transfers/ reclassifications (3,707) (632) (4,339) Balance as of December 31, 2019 (692,217) (104,531) (796,748) Net balance as of December 31, 2018 303,391 107,356 410,747 Net balance as of December 31, 2019 302,382 180,716 483,098 Useful life <5 years <7 years Licenses and Other software intangibles (1) Total Cost Balance as of December 31, 2017 960,556 168,552 1,129,108 Acquisitions 69,442 36,227 105,669 Disposals (46,007) (5,643) (51,650) Foreign currency translation 25,339 2,955 28,294 Transfers 6,390 (4,808) 1,582 Balance as of December 31, 2018 1,015,720 197,283 1,213,003 Accumulated amortization Balance as of December 31, 2017 (665,415) (83,467) (748,882) Amortization of the period (75,818) (15,864) (91,682) Disposals 46,004 5,546 51,550 Foreign currency translation (20,501) (184) (20,685) Transfers 3,401 4,042 7,443 Balance as of December 31, 2018 (712,329) (89,927) (802,256) Net balance as of December 31, 2017 295,141 85,085 380,226 Net balance as of December 31, 2018 303,391 107,356 410,747 Useful life <5 years <7 years (1) Corresponds mainly to easements. |
Impairment of non-current asset
Impairment of non-current assets | 12 Months Ended |
Dec. 31, 2019 | |
Impairment of non-current assets | |
Impairment of non-current assets | 17. Impairment of non-current assets As mentioned in Note 4.12, each year the Ecopetrol Business Group assesses whether there is an indication that an asset or cash–generating unit may be impaired or if impairment losses recognized in previous periods should be reversed (except for goodwill impairment losses). The impairment of non–financial assets includes property, plant and equipment and natural resources, investments in companies, goodwill and other non–current assets. The Ecopetrol Business Group is exposed to future risks derived mainly from variations in: (i) the estimate of future oil prices, (ii) refining margins and profitability, (iii) cost profile, (iv) investments and maintenance expenses, (v) amounts of recoverable reserves, (vi) market and country risk assessments reflected in the discount rate and (vii) changes in domestic and international regulations, among others. Any changes in the above estimates used to calculate the recoverable amount of a non–current assets can have a material impact on the recognition impairment losses or reversals (other than goodwill impairment losses)in the profit or loss. Highly sensitive significant estimates affecting each business segments, among others include: (i) in the exploration and production segment, variations of recoverable hydrocarbon estimates, changes in projected realization prices and the discount rate; (ii) in the refining segment, changes in finished products and crude oil prices, the discount rate, refining margins, changes in environmental regulations, cost structure and the level of capital expenditures; and (iii) in the transport and logistics segment, changes in regulated tariffs and transported volumes. Based on the impairment tests conducted by the Ecopetrol Business Group, the following are the impairment (losses) or reversals for the years ended on December 31, 2019, 2018 and 2017: Impairment (loss) reversal of impairment by segment 2019 2018 2017 Exploration and Production (1,982,044) 785,940 183,718 Refining and Petrochemicals 452,163 (984,704) 1,067,965 Transport and Logistics (232,556) (169,870) 59,455 (1,762,437) (368,634) 1,311,138 Recognized in: Property, plant and equipment (Note 14) (426,611) (1,083,285) 977,919 Natural resources (Note 15) (1,017,061) 414,102 376,934 Investment in joint ventures and associates (Note 13) (318,820) 300,828 (15,059) Other non–current assets 55 (279) (28,656) (1,762,437) (368,634) 1,311,138 17.1 Exploration and production The impairment (loss) reversal of assets of the Exploration and Production segment for the years ended December 31 of 2019, 2018 and 2017 is as follows: 2019 2018 2017 Oilfields (1,663,082) 483,803 188,873 Investment in joint ventures (Note 13) (318,962) 302,136 (5,155) Other — 1 — (1,982,044) 785,940 183,718 17.1.1 Oilfields In 2019, as a result of the current hydrocarbons sector's economic context, the behavior of the market variables, Ecopetrol's crude oil basket price discounts as compared to the ICE Brent crude price, available technical and operational information, there was an impairment loss in the oilfields that operate in Colombia mainly Tibú, Casabe, Provincia, Underriver, La Hocha y Andalucía and the oilfield operated abroad K2. In 2018, based on new market variables, incorporation of new reserves, Ecopetrol’s crude oil basket price discounts as compared to the ICE Brent crude price, available technical and operational information, there was a partial reversal of an impairment recognized in previous years for the oil fields that operate in Colombia Casabe, Provincia, Underriver, Tisquirama and Orito and in fields operated abroad Gunflint and K2, and an impairment mainly in Tibú and Dina Norte fields. In 2017, based on new market variables, incorporation of new reserves, Ecopetrol’s crude oil basket price discounts as compared to the ICE Brent crude price, available technical and operational information, there was a partial reversal of an impairment recognized in previous years for the oil fields that operate in Colombia CPO09, Casabe and Oripaya and in fields operated abroad Gunflint Dalmatian and K2, and an impairment in the Tibú, Underriver, Provincia and Orito fields, mainly. The following is the breakdown of oilfields impairment losses or reversals for the years ended December 31, 2019, 2018 and 2017: 2019 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 3,842,819 6,047,345 74,577 Loss 4,992,462 3,322,284 (1,673,258) Fields operated abroad Reversal 200,910 539,785 4,391 Loss — — (68,792) (1,663,082) 2018 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 19,156,326 50,462,080 689,665 Loss 764,808 405,421 (359,387) Fields operated abroad Reversal 1,810,618 2,719,086 157,709 Loss 184,375 180,191 (4,184) 483,803 2017 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Loss 2,172,747 1,588,207 (584,540) Reversal 13,229,212 23,906,828 298,210 Fields operated abroad Reversal 748,510 1,324,010 475,203 188,873 The grouping of assets to determine the CGUs is consistent as compared to the prior periods. The assumptions used to determine the recoverable amount include the following: – – – – 17.1.2 Investments in joint ventures Investments in joint ventures in the Exploration and Production segment are recorded using the equity method of accounting. Ecopetrol evaluates if there is any objective evidence that indicate that the fair value of such investments has deteriorated in the period, especially those for which goodwill has been recorded. As a result, Ecopetrol recognized an (impairment loss) or reversal of impairment on the carrying value as of December 31, as follows: 2019 2018 2017 Equion Energy Limited (134,753) 108,791 (42,744) Offshore International Group (184,209) 193,345 37,589 (318,962) 302,136 (5,155) The significant assumptions used to determine the recoverable amount of these investments are consistent with those described in the previous section, except for the use of a discount rate in real terms in 2019 for Offshore International Group of 8.50% (2018–8.92% and 2017 – 8.61%). In 2019, an impairment loss for both. Offshore International Group and Equion Energy Limited was recorded, due to current market variables, decreasing international crude oil prices, conservative position over projects and increasing costs. In 2018, the market showed an improvement in the crude oil and gas production forecast. Operational performance and technical evolution have contributed to strengthening future cash flows that, in turn, contributed to the reversal of the impairment charged recognized in previous years for Offshore International Group and Equion Energy. In 2017, because of new market variables, new reserves, price differentials against reference indicators and available technical and operational information, there was a reversal of an impairment recognized in previous years for Offshore International Group and Equion Energy. 17.2 Refining and Petrochemical The Cash Generating Units with an (expense for) reversal of impairment in the Refining and Petrochemical Segment for the years ended December 31, 2019, 2018 and 2017 include: 2019 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 22,292,788 23,204,385 911,597 Bioenergy 575,331 340,991 (234,340) Refinería de Barrancabermeja (projects) 901,517 676,423 (225,094) 452,163 2018 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 23,411,058 22,640,761 (770,297) Bioenergy 774,343 560,882 (213,461) Other 946 — (946) (984,704) 2017 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 20,578,412 22,012,710 1,434,298 Refinería de Barrancabermeja (projects) 1,172,773 898,786 (273,987) Bioenergy 757,741 665,395 (92,346) 1,067,965 The grouping of assets to determine the CGUs is consistent with prior periods. 17.2.1 Refinería de Cartagena The recoverable amount of the Refinería de Cartagena was calculated based on its fair value less costs of disposal, which is higher than its value in continued use. The fair value less costs of disposal of the Refinería de Cartagena was determined based on cash flows after taxes that are derived from business plans approved by the Ecopetrol Business Group’s management, which are developed based on market prices provided by a third-party expert, which considers long–term macroeconomic variables and fundamental supply and demand assumptions for crude oil and refined products. The fair value hierarchy is 3. The significant assumptions to determine the recoverable amount included: (i) a gross refining margin determined by crude oil feedstock and products price outlook provided by an independent third-party expert; (ii) an actual discount rate of 6.23% which include a premium risk of 0.59% (2018–6.48%), determined under WACC methodology; (iii) current conditions or benefits, or similar, as an industrial user of goods and services of the free trade zone and during the validity of the license; (iv) level of costs and long–term operating expenses in line with international refinery standards of similar configuration and conversion capacity; (v) refinery throughput and production; and (vi) level of continued investment. It is important to mention that the refining business is highly sensitive to the volatility of the margins and the macroeconomic variables implicit in the determination of the discount rate, therefore, any change in these assumptions could potentially result in significant variations in the determination of impairment losses or reversal amounts. The reversal of impairment recorded for 2019, is mainly related to macroeconomic assumptions changes which decreased the discount rate used to value the assets; this is explained by the decreasing risk and the Company's cost of the debt. Together, operational management and financial results allowed the support of operational improvements included in the forecast that compensate in some measure the effects related to the impact that the MARPOL regulation will have on the margins' forecast of refined products and the crude oil basket price discounts. The results of 2019 were impacted by a higher knowledge of the Refinery capabilities and efficient operational management. The impairment recorded for 2018 is explained by: i) an adjustment in market expectations in relation to the impact that the implementation of the MARPOL regulation will have on margins of refined products, ii) the differential of light and heavy crudes that serve as raw material; and iii) fundamental macroeconomic changes that increased the discount rate used for the valuation of Reficar’s assets, mainly associated with the increase in the risk-free rate and higher market risk premiums. Improvements in operational and commercial inputs associated to the refinery optimization as well as the tax effects of the “Tax reform” (tax reform) partially offset the effects of the macroeconomic variables. In 2017, we recorded a partial reversal of the impairment recorded in previous periods primarily as a result of: (a) an improved outlook in refining margins due to the ratification of the implementation of the International Convention for the Prevention of Pollution from Ships (Marpol) starting in 2020; (b) a lower discount rate resulting from the application of WACC methodology; and (c) operational and financial optimizations identified as part of the stabilization of the refinery. 17.2.2 Bioenergy The recoverable amount of Bioenergy was calculated based on the fair value less the costs of disposal level, which is greater than the value in use and corresponds to the future cash flows discounted after taxes on profit. The fair value hierarchy is 3. The significant assumptions used to determine the recoverable amount included: (a) forecast of ethanol prices based on projections made by Group specialists and (b) a 6.03% discount rate in real terms (2018 – 6.97%) determined under the WACC methodology. In 2019, we recorded an impairment loss of COP$234,340, due to changes in the operative variables, changes in the projection of the operational cash flows and the need for higher resources, mainly by the results of the renovation of older reeds. In 2018, impairment is presented due to: i) a lower prospect of short-term ethanol prices, associated with imports from abroad in an environment of global over-supply of ethanol, ii) the updating of agricultural variables in the short term, iii) an increase in the discount rate used for the valuation in line with fundamentals of the market. These impacts were partially offset by the updating of operating variables associated with the stabilization and tax effects of the “ Tax reform ”. In 2017, we recorded an impairment loss mainly due to updating the dates of the start of operations of the project, the stabilization process of the industrial plant and the changes in the operational variables and ethanol prices. 17.2.3 Refinería de Barrancabermeja During 2019, a loss of COP$225,094 was recorded, primarily related to engineered works for the integral development of the Refinería de Barrancabermeja Modernization Project, mainly due to the advance in the technical analysis of options to the eventual improvement of the conversion of the Refinery. Once the project is reactive, Ecopetrol will evaluate whether it could revers any impairment loss recorded in the previous years. During 2018, the Refinería de Barrancabermeja Modernization Project, which is currently suspended, was evaluated and there were no indications that implied the recognition of additional impairment. During 2017, an impairment loss of COP$273,987 was recognized on the Refinería de Barrancabermeja, mainly related to the write off of certain management and financial capitalized balances associated with the suspension of the modernization project of the Refinery. This suspension is in response to capital discipline criteria implemented to ensure the growth and financial sustainability of Ecopetrol S.A. and the Ecopetrol Business Group in the adverse context that the hydrocarbons sector experienced in previous years. This project is being assessed within the Ecopetrol Business Group’s strategic plan therefore any impairment loss recognized in previous years may be subject to reversal. 17.3 Transport and Logistics The recoverable amount of these assets was determined based on its fair value with costs of disposal, which corresponds to discounted cash flows based on the hydrocarbon production curves and refined products transport curves. The fair value hierarchy is 3. The assumptions used in the model to determine the recoverable value included: i) the tariffs regulated by the Ministry of Mines and Energy and the Energy and Gas Regulation Commission - CREG, ii) the actual discount rate used in the valuation was 4.88% (2018 - 5.60%) and iii) transport volume projections based on the end of year results for 2019 and the long-term volumetric transport program from 2020 onwards. In 2019, we recorded an impairment loss of COP$232,556, mainly related to the cash-generating unit of the South COP$106,983, by Puerto de Tumaco and the TransAndino Pipeline (OTA), which means an impairment loss of 100% of the book value; and the cash-generating unit of the North COP$125,140; both include the right-of-use assets. This impairment loss was generated mainly by decreased volume transport to determine the income forecast and the lower efficiency costs. In 2018, the main impairment recorded was COP$167,917, corresponding to the systems of the Southern Cash Generating Unit (CGU), composed of the Tumaco Port and the TransAndino Pipeline (OTA) and its afferent pipelines, the Mansoyá - Orito Pipeline (OMO), San Miguel - Orito (OSO), and Churuyaco- Orito (OCHO). This value was generated mainly by a decrease in the volume projections for the southern systems, and an increase in the need for maintenance capex to reduce the operational risk of the transport systems. In 2017, there was a reversal of an impairment for the Transportation and Logistics segment for COP$59,455, mainly in Oleoducto del Sur, which includes, among others, the Trans Andino Pipeline. The reversal was due to the inclusion of the Port of Tumaco in that generating unit. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill | |
Goodwill | 18. Goodwill 2019 2018 Oleoducto Central S.A. 683,496 683,496 Hocol Petroleum Ltd. 537,598 537,598 Andean Chemical Ltd 127,812 127,812 Esenttia S.A. 108,137 108,137 1,457,043 1,457,043 Less impairment Hocol Petroleum Ltd. (297,121) (297,121) 1,159,922 1,159,922 As of December 31, 2019 and 2018, the Ecopetrol Business Group assessed the recoverability of the carrying value of goodwill generated in the acquisition of subsidiaries. The recoverable amount was determined based on the realization value less costs of disposal using the present value of future cash flows for each of the companies acquired with goodwill. The source of information used the financial projections of each company derived from the business plans approved by management, which were developed based on long-term macroeconomic factors such as price curves and margins and fundamental assumptions of supply and demand. As a result of the analysis, the Ecopetrol Business Group did not recognize any goodwill impairment. |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Loans and borrowings | |
Loans and borrowings | 19. Loans and borrowings Exhibit 2 details the main conditions of the most significant loans of the Business Group. 19.1 Composition of loans and borrowings The balances of the loans and financing, which are recorded at amortized cost, as of December 31, 2019 and 2018: Weighted average effective interest rate as of December 31 2019 2018 2019 2018 Local currency Bonds 8.7 % 8.0 % 1,567,598 1,568,034 Syndicated loan 8.0 % 7.9 % 1,115,874 1,439,590 Lease liabilities (1) 7.2 % — 1,039,303 591,153 Commercial loan 8.3 % 7.6 % 737,032 449,998 4,459,807 4,048,775 Foreign currency Bonds 5.9 % 5.7 % 25,832,740 25,599,996 Commercial loan 7.1 % 4.4 % 6,586,538 7,352,002 Loans from related parties (Note 30) — — 1,108,403 855,135 Lease liabilities (1) 6.2 % — 251,651 206,737 33,779,332 34,013,870 38,239,139 38,062,645 Current 5,012,173 4,019,927 Non–current 33,226,966 34,042,718 38,239,139 38,062,645 (1) Corresponds mainly to present value of the payments to be made during the term of the operative lease contracts of pipelines, tanks, property and vehicles, recognized by the implementation of IFRS 16. (see Note 5.1). 19.2 Maturity of loans and borrowings The following are the maturities of loans and borrowing as of December 31, 2019: Up to 1 Year (1) 1 – 5 years 5-10 years > 10 years Total Local currency Bonds 571,969 403,996 358,976 232,657 1,567,598 Syndicated loan 361,545 754,329 — — 1,115,874 Financial leasing 179,448 559,337 235,791 64,727 1,039,303 Other 218,375 343,049 121,679 53,929 737,032 1,331,337 2,060,711 716,446 351,313 4,459,807 Foreign currency Bonds 1,386,032 13,873,755 5,574,713 4,998,240 25,832,740 Commercial loans 1,129,117 4,163,624 1,253,446 40,351 6,586,538 Loans from related parties 1,108,403 — — — 1,108,403 Financial leasing 57,284 175,962 18,405 — 251,651 3,680,836 18,213,341 6,846,564 5,038,591 33,779,332 5,012,173 20,274,052 7,563,010 5,389,904 38,239,139 The following are the maturities of loans and borrowing as of December 31, 2018: Up to 1 year (1) 1 – 5 years 5–10 years > 10 years Total Local currency Bonds 116,693 842,514 362,446 246,381 1,568,034 Syndicated loan 406,582 1,033,008 — — 1,439,590 Commercial loans and other 120,069 491,781 270,920 158,381 1,041,151 643,344 2,367,303 633,366 404,762 4,048,775 Foreign currency Bonds 1,374,390 10,605,708 8,664,732 4,955,166 25,599,996 Commercial loans – Refinería de Cartagena 1,116,370 4,061,541 2,174,091 — 7,352,002 Other 885,823 136,574 39,475 — 1,061,872 3,376,583 14,803,823 10,878,298 4,955,166 34,013,870 4,019,927 17,171,126 11,511,664 5,359,928 38,062,645 (1) Includes short–term credit and the current portion of long–term debt, as applicable. 19.3 Breakdown by type of interest rate and currency The following is the breakdown of loans and borrowing by type of interest rate as of December 31, 2019 and 2018: 2019 2018 Local currency Fixed rate 598,802 252,224 Floating rate 3,861,005 3,796,551 4,459,807 4,048,775 Foreign currency Fixed rate 31,087,439 31,432,667 Floating rate 2,691,893 2,581,203 33,779,332 34,013,870 38,239,139 38,062,645 The interest on the bonds in national currency is indexed to the CPI (Consumer Price Index) and bank loans and variable rate leasing in Colombian pesos are indexed to the DTF (Fixed Term Deposits) and IBR (Banking Reference Indicator), plus a differential. Interest on loans in foreign currency is calculated based on the LIBOR rate plus a spread and the interests of the other types of debt are at a fixed rate. 19.4 Loans designated as hedging instrument As of December 31, 2019, Ecopetrol S.A. designated USD$7,331 million (2018 – USD$6,500 million) of foreign currency debt as a hedging instrument, of which USD$6,031 million is used to hedge the net investment in foreign operations with the US dollar as their functional currency, and USD$1,300 million is used to hedge the cash flows of future crude oil exports. See Note 29 – Risk management . 19.5 Guarantees and covenants Financing obtained directly by Ecopetrol S.A. in capital markets has no guarantees granted or financial covenant restrictions. The following is a summary of certain restrictions contained in certain other loan instruments of Ecopetrol Business Group. As of Dec 31, 2019 the covenants, loans and payments have been fulfilled. - The loan entered into by Oleoducto de los Llanos is guaranteed with the economic rights of the ship–or–pay transportation agreements with Frontera Energy Corp and also includes certain restrictions regarding capital contributions and asset disposal. - The syndicated loan entered into by Oleoducto Bicentenario requires that this subsidiary maintain an established relationship of leverage and solvency and cash flow / service to the debt. - The loan entered into by Bioenergy with Bancolombia is guaranteed with the La Esperanza 1 and 2 farms of COP$6,343. 19.6 Waiver As for December 31, 2019, another waiver was granted to Ecopetrol's subsidiaries: - Bancolombia granted a waiver to the lease agreements 120158 and 148090 of Bioenergy Zona Franca S.A.S. until June 2020 according to the need to manage short-term liquidity of the company. 19.7 Fair value of loans The fair value of loans and borrowings is COP$43,261,792 and COP$38,305,674 as of December 31, 2019 and 2018, respectively. For fair value measurement, local currency bonds were valued using Precia reference prices, while bonds in U.S. dollars were valued using Bloomberg. With regard to the other financial obligations for which there is no market benchmark, a discount to present value technique was used. These rates incorporate market risk through some benchmarks (Libor, FTD) and the Ecopetrol Business Group’s credit risk (spread). 19.8 Movement of net financial debt The following is the movement of net financial debt as of December 31, 2019, 2018 and 2017: Cash and Other financial Loans and Net financial equivalents assets borrowings debt Balance as of December 31, 2017 7,945,885 6,533,725 (43,547,835) (29,068,225) Cash flow (2,040,386) 843,612 11,363,077 10,166,303 Exchange difference: Recognized in profit or loss 406,245 920,609 (816,840) 510,014 Recognized in other comprehensive income — — (2,165,569) (2,165,569) Financial cost registered to projects — — (217,891) (217,891) Financial income (expense) recognized in profit or loss — 92,906 (2,399,414) (2,306,508) Foreign currency translation — (245,958) (203,446) (449,404) Other movements that do not generate cash flow 2,921 (74,727) (71,806) Balance as of December 31, 2018 6,311,744 8,147,815 (38,062,645) (23,603,086) Cash flow 505,466 (3,117,549) 3,303,303 691,220 Exchange difference: Recognized in profit or loss 258,548 182,396 (151,518) 289,426 Recognized in other comprehensive income — — (53,911) (53,911) Financial cost registered to projects — — (261,592) (261,592) Financial income (expense) recognized in profit or loss — (18,551) (1,894,490) (1,913,041) Foreign currency translation — (204,441) (14,627) (219,068) Other movements that do not generate cash flow — (10,378) (1,103,659) (1,114,037) Balance as of December 31, 2019 7,075,758 4,979,292 (38,239,139) (26,184,089) |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables | |
Trade and other payables | 20 . Trade and other payables 2019 2018 Suppliers 8,115,015 6,878,510 Partners’ advances 925,761 874,010 Withholding tax 673,204 246,867 Related parties (Note 30) 187,616 116,418 Dividends payable 157,181 84,657 Insurance and reinsurance 136,041 211,883 Agreements in transport contracts (1) 71,239 210,196 Deposits received from third parties 44,826 49,158 Various creditors 402,808 304,613 10,713,691 8,976,312 Current 10,689,246 8,945,790 Non–current 24,445 30,522 10,713,691 8,976,312 (1) Corresponds to the value of debt from agreements in transport contracts of oil pipelines and poliducts, impacted by volumetric adjustments, compensation for quality and other inventory management agreements. The carrying amount of trade accounts and other accounts payable approximates their fair value due to their short–term nature. |
Provisions for employees' benef
Provisions for employees' benefits | 12 Months Ended |
Dec. 31, 2019 | |
Provisions for employees' benefits | |
Provisions for employees' benefits | 21. Provisions for employees’ benefits 2019 2018 Post–employment benefits Healthcare 6,908,799 5,507,784 Pension 2,853,718 1,452,322 Education 458,441 479,945 Bonds 352,917 331,064 Other plans 98,729 82,576 Termination benefits – Voluntary retirement plan 124,186 137,859 10,796,790 7,991,550 Social benefits and salaries 587,596 521,802 Other employee benefits 96,678 93,199 11,481,064 8,606,551 Current 1,929,087 1,816,882 Non–current 9,551,977 6,789,669 11,481,064 8,606,551 21.1 Post–employment benefits liability (asset) The following table shows the movement in liabilities and assets, net of post-employment benefits and termination benefits, as of December 31, 2019 and 2018: Pension and bonds (1) Other Total 2019 2018 2019 2018 2019 2018 Liabilities for employee benefits Opening balance 14,131,943 14,147,464 6,212,118 6,105,432 20,344,061 20,252,896 Current service cost — — 76,478 77,373 76,478 77,373 Past service cost — — — 50,489 — 50,489 Interest expense 920,622 888,583 418,553 377,923 1,339,175 1,266,506 Actuarial (losses) gains 1,755,300 (56,655) 1,273,409 (27,651) 3,028,709 (84,306) Benefits paid (891,393) (847,449) (387,387) (371,448) (1,278,780) (1,218,897) Closing balance 15,916,472 14,131,943 7,593,171 6,212,118 23,509,643 20,344,061 Plan assets Opening balance 12,348,557 12,471,163 3,954 3,245 12,352,511 12,474,408 Return on assets 801,065 780,494 217 170 801,282 780,664 Contributions to funds — — 83,071 21,971 83,071 21,971 Benefits paid (891,393) (847,449) (84,243) (21,526) (975,636) (868,975) Actuarial (losses) gains 451,609 (55,651) 16 94 451,625 (55,557) Closing balance 12,709,838 12,348,557 3,015 3,954 12,712,853 12,352,511 Net post–employment benefits liability 3,206,634 1,783,386 7,590,156 6,208,164 10,796,790 7,991,550 (1) There is no cost for the pension and pension plans service, due to the fact that the beneficiaries were retired as of July 31, 2010. The following table shows the movement in profit and loss and in other comprehensive income as of December 31, 2019, 2018 and 2017: 2019 2018 2017 Recognized in profit or loss Interest expense. net 537,893 485,842 373,522 Current service cost 76,478 77,373 52,164 Past service cost — 50,489 — Remedies 10,213 503 13,889 624,584 614,207 439,575 Recognized in other comprehensive income Pension and pension bonds (1,303,693) 1,003 (1,312,195) Healthcare (1,268,379) (17,356) (794,535) Education and severance 922 45,509 (203,779) Termination benefits – Voluntary retirement plan (34) 93 (3) (2,571,184) 29,249 (2,310,512) Deferred tax 771,355 (33,539) 762,469 (1,799,829) (4,290) (1,548,043) 21.2 Plan assets Plan assets are resources held by pension trusts for payment of pension obligations. Payments for health and education post–employment benefits is Ecopetrol’s responsibility. The destination of trust resources and its yields cannot be changed or returned to the Ecopetrol Business Group until all pension obligations have been fulfilled. The following is the composition of the plan assets of pension and pension bonds by type of investment as of December 31, 2019 and 2018: 2019 2018 Bonds issued by the national government 4,301,961 4,307,972 Bonds of private entities 3,122,630 2,910,071 Other local currency 1,899,787 2,219,634 Other public bonds 1,082,815 1,014,663 Other foreign currency 870,859 691,658 Variable yield 823,977 653,828 Bonds of foreign entities 610,824 554,685 12,712,853 12,352,511 26.6% of plan assets are classified as level 1 in the fair value hierarchy where prices for the assets are directly observable on actively traded markets, and 73.4% are classified as level 2 (47.4% and 52.6% for 2018, respectively). The fair value of level 2 plan assets is calculated using prices quoted in the assets’ market. The Ecopetrol Business Group obtains these prices through reliable financial data providers recognized in Colombia or abroad depending on the investment. For the securities issued in local currency, the fair value of plan assets is calculated using information published by Precia, a price supplier authorized by the Financial Superintendence of Colombia. According to its methodology, prices are calculated based on market information on the valuation date or estimated from historical inputs according to the criteria established for the calculation of each of the prices. The average price is calculated based on the most representative market of the transactions carried out through electronic platforms approved and supervised by the regulator. On the other hand, the estimated price is calculated for investments that do not reflect enough information to estimate an average market price, replicating the quoted prices for similar assets or prices obtained through quotes from brokers. This estimated price is also given by Precia as a result of the application of robust methodologies approved by the financial regulator and widely used by the financial sector. The following table reflects the credit ratings of the issuers and counterparties in assets held by the autonomous pension funds: 2019 2018 AAA 5,138,279 4,683,190 Nation 4,448,221 4,364,188 AA+ 837,009 860,905 BBB- 455,201 426,743 BBB 319,514 193,579 BAA3 219,830 310,788 SP1+ 84,933 — A-1+ 78,156 — BRC1+ 68,313 89,211 F1+ 56,728 249,361 BBB+ 22,113 86,040 A3 17,267 17,075 AA- 16,067 60,382 BAA1 15,538 21,395 AA 6,679 28,367 A 11,841 62,754 Other credit ratings 30,129 55,768 Not available ratings 887,035 842,765 12,712,853 12,352,511 See credit risk policy in Note 29.2. 21.3 Actuarial assumptions The following are the actuarial assumptions used in determining the present value of defined employee benefit obligations used for the actuarial calculations as of December 31, 2019 and 2018: 2019 Pension Bonds Health Education Other benefits (1) Discount rate 5.75 % 5.25 % 6.00 % 5.50 % 4.83 % Salary growth rate N/A N/A N/A N/A 5.50% / 4.70 Expected inflation rate 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Pension growth rate 3.00 % N/A N/A N/A N/A Cost trend Short–term rate N/A N/A 7.00 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A 2018 Pension Bonds Health Education Other benefits (1) Discount rate 6.75 % 6.50 % 7.00 % 6.75 % 5.87 % Salary growth rate N/A N/A N/A N/A 5.10% / 4.70 Expected inflation rate 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Pension growth rate 3.00 % N/A N/A N/A N/A Cost trend Short–term rate N/A N/A 7.00 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A N/A: Not applicable for this benefit. (1) Weighted average discount rate. The cost trend is the projected increase for the initial year, which includes the expected inflation rate. The mortality table used for the calculations was that of ‘Valid Annuitant’ for men and women based on the experience gained for the period 2005–2008 of the Colombian Social Security Institute. 21.4 Maturity of benefit obligation The cash flows required for payment of post–employment obligations are the following: Period Pension and bonds Other benefits Total 2020 949,034 377,313 1,326,347 2021 967,734 384,233 1,351,967 2022 1,000,730 391,324 1,392,054 2023 1,000,770 401,058 1,401,828 2024 1,038,858 404,691 1,443,549 2025 and thereafter 5,551,125 2,081,228 7,632,353 21.5 Sensitivity analysis The following sensitivity analysis shows the effect of such possible changes on the obligation for defined benefits, while keeping the other assumptions constant, as of December 31, 2019: Pension Bonds Health Education Other benefits Discount rate –50 basis points 15,765,778 1,098,700 7,464,162 478,697 231,732 +50 basis points 14,032,277 1,022,732 6,418,743 440,209 220,426 Inflation rate –50 basis points 14,045,125 1,021,771 N/A N/A 125,653 +50 basis points 15,744,316 1,099,381 N/A N/A 128,775 Salary growth rate –50 basis points N/A N/A N/A N/A 94,266 +50 basis points N/A N/A N/A N/A 103,434 Cost trend –50 basis points N/A N/A 6,425,329 439,471 N/A +50 basis points N/A N/A 7,452,021 478,793 N/A 21.6 Voluntary retirement plan In October 2017, the Ecopetrol's Board of Directors approved a new employee retirement plan that included four categories of retirements from January 2020 until December 2023: compliance of the work cycle (pension), Retirement Plan A (rent), Retirement Plan B (Bonus) and improved compensation. As for December 31, 2019, the Ecopetrol Business Group has not recognize a provision related to this plan, since it will be understood as an obligation at the time the Company offers the plan and each employee voluntarily accepts their retirement by taking advantage of any of the mentioned categories. In August 2016, the Ecopetrol Business Group offered a voluntary retirement plan to 200 employees who met certain criteria. As of December 31, 2019, 132 employees were part of the plan, with a corresponding obligation of COP$124,186 (2018 – COP$137,859. This plan includes benefits such as monthly income, education and health benefits until the date on which the employee is granted their retirement pension. |
Accrued liabilities and provisi
Accrued liabilities and provisions | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities and provisions | |
Accrued liabilities and provisions | 22. Accrued liabilities and provisions Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2018 6,719,275 127,945 906,792 7,754,012 Increase in abandonment costs 2,188,928 — — 2,188,928 Additions 112,486 58,913 90,854 262,253 Uses (410,191) (45,342) (59,755) (515,288) Financial costs 226,803 — 3 226,806 Foreign currency translation (5,240) 79 1,211 (3,950) Transfers 3,359 (4,166) 6,334 5,527 Balance as of December 31, 2019 8,835,420 137,429 945,439 9,918,288 Current 589,411 28,662 171,224 789,297 Non-current 8,246,009 108,767 774,215 9,128,991 8,835,420 137,429 945,439 9,918,288 Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2017 5,527,324 182,966 827,159 6,537,449 Increase in abandonment costs 1,062,280 — — 1,062,280 Additions 71,015 61,851 174,780 307,646 Uses (182,130) (114,647) (100,215) (396,992) Financial costs 186,518 — — 186,518 Foreign currency translation 54,610 (2,368) 10,983 63,225 Transfers (342) 143 (5,915) (6,114) Balance as of December 31, 2018 6,719,275 127,945 906,792 7,754,012 Current 549,678 88,623 176,108 814,409 Non–current 6,169,597 39,322 730,684 6,939,603 6,719,275 127,945 906,792 7,754,012 Asset Environmental retirement contingencies and obligation Litigation others Total Balance as of December 31, 2016 5,064,660 209,932 643,278 5,917,870 Increase in abandonment costs 39,634 — — 39,634 Additions (reversals) 110,587 (19,185) 106,532 197,934 Uses (66,469) (7,742) (19,613) (93,824) Financial costs 379,891 — (367) 379,524 Foreign currency translation (979) (39) 718 (300) Transfers (1) — — 96,611 96,611 Balance as of December 31, 2017 5,527,324 182,966 827,159 6,537,449 Current 199,824 159,881 199,123 558,828 Non-current 5,327,500 23,085 628,036 5,978,621 5,527,324 182,966 827,159 6,537,449 (1) 22.1 Asset retirement obligation The estimated liability for asset retirement obligation costs corresponds to the future obligation that the Ecopetrol Business Group to restore environmental conditions to a level similar to that existing before the start of projects or activities, as described in Note 3.5 – Abandonment and dismantling costs of fields and other facilities. As these relate to long–term obligations, this liability is estimated by projecting the expected future payments and discounting at present value with a rate indexed to the Ecopetrol Business Group’s financial obligations, taking into account the temporariness and risks of this obligation. The discount rates used in the estimate of the obligation as of December 31, 2019 were: Exploration and Production 3.01% (2018 – 3.54)%, Transportation and Logistics 2.61% (2018 - 3.69)% and Refining and Petrochemicals 3.94% (2018- 3.84 )%. 22.2 Litigation The following is a summary of the main legal proceedings recognized in the consolidated statement of financial position, where the expectation of loss is probable and could imply an outflow of resources as of December 31, 2019 and 2018: Proceedings 2019 2018 Provision to execute contracts 93,992 93,992 Controversy for breach of contract with firms Consulting Group and Industrial Consulting SAS. with the Refinería de Cartagena and payment was made in 2019 — 15,541 22.3 Environmental contingencies and others These correspond to contingencies for environmental incidents and obligations related to environmental compensation and mandatory investment of 1% for the use of, exploitation of or effect on natural resources imposed by national, regional and local environmental authorities. Mandatory investment of 1% is based on the use of water taken directly from natural sources in accordance with the provisions of Law 99 of 1993, Article 43, Decree 1900 of 2006, Decree 2099 of 2017 and 075 and 1120 of 2018 and article 321 of Law 1955 of 2019 in relation to the projects that Ecopetrol develops in Colombia. The Colombian Government through the Ministry of Environment and Sustainable Development, issued in December 2016 and in January 2017 the Decrees 2099 and 075, which modify the Single Regulatory Decree of the environment and sustainable development sector, Decree 1076 of 2015, related to the mandatory investment for the use of water taken directly from natural sources. In 2017, the main changes established by these decrees were related to the areas and lines of investment and the basis for settlement of the obligations. Similarly, June 30, 2018 was declared the maximum date to modify investment plans that were underway. On June 30, 2017, Ecopetrol filed with the National Environmental Licensing Authority (ANLA) certain investment plans to meet the 1% mandatory investment based on the new decrees, relative to investment lines, maintaining the settlement base of Decree 1900. As of December 31, 2018, the provision for the 1% mandatory investment for the use of water was estimated based on the parameters established in Decree 1076 of 2015. The Ecopetrol Business Group is in the process of analyzing the impact of the applicability of the changes set out in the aforementioned decrees. As of December 31, 2019, the Ecopetrol Business Group achieved a new certification of a settlement base and the acceptance of the percentage of the investment values' update of 1% in compliance with article 321 of Law 1955 of 2019 generating a lower provision of this obligation. 22.4 Oleoducto Bicentenario de Colombia S.A.S. During July 2018, the carriers Frontera Energy Colombia Corp. (“Frontera”), Canacol Energy Colombia S.A.S. (“Canacol”) and Vetra Exploración y Producción Colombia S.A.S. (“Vetra” and, together with Frontera and Canacol, the “Carriers”) sent letters to Oleoducto Bicentenario de Colombia S.A.S. (“Bicentenario”) alleging the early termination rights under the Ship-or-Pay Transport Agreements entered by each of them and Bicentenario in 2012 (the “Transport Agreements”). In accordance with the foregoing, the carriers have ceased to fulfill their obligations under said Transport Agreements. Bicentenario has rejected the terms of the letters, noting that there was no option for early termination and reiterating to the Carriers that the Transport Agreements are current and therefore the Carriers must fulfill their obligations under the Transport Agreements in a timely fashion. Under Bicentenario’s understanding that the Transport Agreements remain current and that the Carriers are in violation of their obligations under such agreements, Bicentenario declared the Carriers delinquent because of their failure to pay the tariff under the aforementioned agreements. Consequently, Bicentenario executed the standby letters of credit posted as guarantee for the Transport Agreements. Having exhausted the direct settlement stages with each carrier, Bicentenario withdrew the initially filed claims and filed arbitration claims against each of them as follows: (i) on November 12, 2019, Bicentenario filed a claim against Frontera under cover of the arbitration agreement contained in the Transport Agreement; (ii) on December 10, 2019, Bicentenario filed a claim against Vetra under the arbitration agreement contained in the Transport Agreement; and (iii) on December 26, 2019, Bicentenario filed a claim against Canacol under the arbitration agreement contained in the Transport Agreement. On December 3, 2019, Bicentenario also filed an arbitration claim against Frontera, Pacific OBC, Corp., Pacific OBC 1, Corp., Pacific OBC 4, Corp., Canacol and Vetra under the Acuerdo Marco de Inversión before the Center for Arbitration and Conciliation of the Bogotá Chamber of Commerce. The four arbitration proceedings are ongoing. Simultaneously, Bicentenario will continue to exercise its rights under the terms of the Transportation Agreements and its related agreements, to guarantee compliance and claim any compensation, indemnity or restitution arising from the alleged early termination of said agreements, together with other breaches. Cenit Transporte y Logística de Hidrocarburos S.A.S. Ship or pay transport agreements: The clauses in the agreements signed with Frontera Energy Group with respect to the Caño Limón Coveñas Pipeline, and in particular clause 13.3 establish that, in the event of the suspension of services for reasons not attributable to any of the parties, for a period over 180 continuous calendar days, either party may request the early termination of the agreement. Based on this, on July 12, 2018, CENIT received a communication from Frontera Energy Group, whereby the latter expressed its decision to exercise the provision set forth in clause 13.3 for each of the Transport Agreements signed with respect to the Caño Limón - Coveñas Pipeline, requesting their early termination. In relation to the foregoing, CENIT issued communication CEN-PRE-3451-2018-E dated July 17, 2018 whereby it stated that the grounds to exercise clause 13.3 of the agreements in question have not occurred; therefore, Frontera Energy Group cannot exercise its contractual right to early termination. Included in that same communication, CENIT stated its intention to continue billing and charging the transportation services established in the aforementioned agreements, considering that they are still valid, therefore Frontera must comply with the obligations assumed therein. In 2019, CENIT evaluated the revenue recognition principle in accordance with the criteria contained in IFRS 15, determining that it is not possible to recognize the income associated with this agreement in the amount of COP$163,852, notwithstanding the aforementioned, the contractual rights and obligations remain and therefore the controversy with the Frontera Energy Group continues. As of December 31, 2019, the amounts owed by the Frontera Energy Group in relation to the case described above amount to COP$334,582. 22.5 Legal proceedings not recognized The following is a summary of the main contingent liabilities that have not been recognized in the statement of financial position as, according to the evaluations made by internal and external advisors of the Ecopetrol Business Group, the expectation of loss is not probable as of December 31, 2019 and 2018: 2019 2018 Number of Number of Type of process processes Proceedings processes Proceedings Constitutional action 14 1,092,228 13 1,075,965 Ordinary administrative 160 780,150 149 701,080 Ordinary labor 593 49,055 652 76,744 Ordinary civil 52 16,269 54 15,875 Arbitration 0 0 1 10,608 Special labor 13 720 14 1,056 Penal 1 595 1 0 Executive administrative 1 28 2 40 Guardianship 112 10 105 0 Executive civil 1 0 2 1,281 947 1,939,055 993 1,882,649 22.6 Details of contingent assets The following is a breakdown of the Ecopetrol Business Group’s principal contingent assets, where the associated contingent gain is likely, but not certain: 2019 2018 Number of Number of Type of process processes Proceedings processes Proceedings Ordinary administrative 35 373,555 47 229,935 Ordinary civil 75 86,363 40 12,101 Arbitration 1 67,232 1 261,754 Penal 156 60,177 189 58,481 Executive civil 61 4,912 65 3,569 Executive administrative 11 4,028 15 4,286 Ordinary labor 50 3,295 51 6,086 Special labor 57 307 59 320 Guardianship 4 — 6 — 450 599,869 473 576,532 Refinería de Cartagena S.A.S On March 8, 2016, Reficar filed a Request for Arbitration before the International Chamber of Commerce (the “ICC”), against Chicago Bridge & Iron Company N.V., CB&I (UK) Limited, and CBI Colombiana S.A. (jointly “CB&I”) concerning a dispute related to the Engineering, Procurement, and Construction Agreements entered into by and between Reficar and CB&I for the expansion of the Cartagena Refinery in Cartagena, Colombia. Reficar is the Claimant in the ICC arbitration and seeks no less than USD$2 billion in damages plus lost profits. On May 25, 2016, CB&I filed its Answer to the Request for Arbitration and Counterclaim for approximately USD $106 million and COP$324,052 million. On June 27, 2016, Reficar filed its reply to CB&I’s counterclaim denying and disputing the declarations and relief requested by CB&I. On April 28, 2017, CB&I submitted its Statement of Counterclaim increasing its claims to approximately USD$116 million and COP$387,558 million. On March 16, 2018, CB&I submitted its Exhaustive Statement of Counterclaim further increasing its claims to approximately USD$129 million and COP$432,303 million (including in each case interest), and also filed its Exhaustive Statement of Defense to Reficar’s claims. On this same date, Reficar filed its Exhaustive Statement of Claim seeking, among others, USD$ 139 million for provisionally paid invoices under the Memorandum of Agreement(“MOA”) and Project Invoicing Procedure (“PIP”) Agreements and the EPC Contract. On June 28, 2019, CB&I submitted its Reply to the Non-Exhaustive Statement of Defence to Counterclaim increasing its claims to approximately USD$137 million and COP$503,241 million (including in each case interest, respectively). On this same date, Reficar filed its Reply to CB&I’s Non-Exhaustive Statement of Defense and its Exhaustive Statement of Defense to CB&I’s counterclaim, updating its claim for provisionally paid invoices under the MOA and PIP Agreements and the EPC Contract to approximately USD$137 million. In January 2020, McDermott International Inc., CB&I’s parent company, filed for bankruptcy and announced that it would initiate a reorganization plan pursuant to Chapter 11 of the United States Bankruptcy Law. In response to this situation, Reficar has implemented actions to protect its interests and is advised by a group of experts with whom it will continue to analyze other available measures under these new circumstances. The oral hearing was scheduled to begin in April 2020, but the arbitration was stayed, as described below. After the hearing, the Tribunal will analyze the parties’ arguments to render its final decision on Reficar’s and CB&I’s claims. Until the Tribunal renders its final decision, the outcome of this arbitration is unknown. On January 21, 2020, Comet II B.V., the successor in interest to Chicago Bridge & Iron Company N.V., commenced a bankruptcy case under title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. Upon the bankruptcy filing, an automatic stay of the commencement or continuation of any action or proceeding, or the enforcement of any judgment or award, against Comet II B.V. became effective, staying the arbitration against Comet II B.V. On January 23, 2020, Comet II B.V. obtained an order from the Bankruptcy Court permitting it to, in its discretion, modify the automatic stay to permit it to proceed with litigation or other contested matters. On March 14, 2020, the Bankruptcy Court entered an order confirming a plan of reorganization, and the order provides for the stay against the arbitration to end upon the earlier of the effective date of the plan and August 30, 2020. In respect of the arbitration involving Reficar, the confirmation order provides that the proper forum for adjudication of the merits of the arbitration is the International Chamber of Commerce tribunal, the arbitration claims will not be subject to estimation in the Bankruptcy Court, and the stay will not be violated if the parties discuss logistical items with the International Chamber of Commerce tribunal or each other. The order reserves all rights and arguments of the parties related to the arbitration schedule, hearing location, and arbitration logistics and also recognizes that, without waiving any arguments, including but not limited to the Debtors’ objections to alternative hearing locations and long gap(s) between hearing dates, lifting the stay on August 30, 2020 provides sufficient time to commence hearings on or after December 7, 2020. 22.7 Investigations of control entities Reficar Investigations Reficar is a wholly owned subsidiary of Ecopetrol. According to Colombian regulations, Ecopetrol’s and Reficar’s employees are considered public servants, and as such can be held liable for negligent use or management of public resources. In this context, given that Ecopetrol is majority owned by the Colombian Government and Reficar is a wholly owned subsidiary of Ecopetrol, Ecopetrol and Reficar administer public resources. As a result, Ecopetrol and Reficar employees are generally subject to the control and supervision of the following control entities, among others: The Office of the Comptroller General ( Contraloría General de la República ) oversees the adequate use of public resources and has the authority to investigate public employees or private sector employees that use or manage public resources. The Attorney General’s Office ( Procuraduría General de la Nación ) supervises compliance with applicable law by public employees and private sector employees that carry out public functions. The Attorney General’s Office investigates and disciplines individuals for compliance failures. The Prosecutor’s Office ( Fiscalía General de la Nación ) investigates potential crimes and prosecutes alleged crimes before the court in judicial proceedings. The following are the most significant investigations and proceedings carried out by the aforementioned state entities: 1. The Office of the Comptroller General’s investigations and proceedings 1.1 Because of the modifications of the schedule and budget related to Reficar’s expansion and modernization project (the Project), the Office of the Comptroller General initiated a special audit investigation of the Project in 2016 and delivered a final report to Reficar on December 5, 2016. The report detailed 36 findings most of which were related to increased costs compared to budget for services, labor and materials. As required, on January 18, 2017, Reficar submitted an action plan addressing the 36 findings in the following areas: (i) contract management, (ii) supervision of engineering standards contracted with third parties, and (iii) documentation of the control, reporting and monitoring mechanisms of subcontracts. 1.2 As a result of the findings described above, on March 10, 2017, the Office of the Comptroller General opened actions for financial responsibility ( proceso de responsabilidad fiscal ) against 36 individuals and the six companies involved in the Project, including former members of Ecopetrol’s Board of Directors, former members of Reficar’s Board of Directors, former employees of Ecopetrol, and former employees of Reficar, as well as Chicago Bridge & Iron Company N.V., CBI - Chicago Bridge & Iron company (CB&I) Americas Ltd., Chicago Bridge & Iron Company CB&I UK Limited, CBI Colombiana S.A., Foster Wheeler USA Corporation and Process Consultants Inc. These actions were initiated based on the Office of the Comptroller General’s theory that lower than expected profitability at Reficar could have been caused by (i) modifications to the schedule and, (ii) the increase of the budget for the Project. On June 5, 2018, the Office of the Comptroller General split the initial proceeding in two. The first one is related to the increase of the Project’s budget and the second one is related to the modifications in the Project’s schedule. Regarding the first proceeding, on June 5, 2018, the Office of the Comptroller General issued charges for financial responsibility ( proceso de responsabilidad fiscal ) against (i) 15 individuals, which include former members of Reficar’s Board of Directors, a current employee of Ecopetrol, and former employees of Reficar, as well as against (ii) Chicago Bridge & Iron Company N.V., CBI - Chicago Bridge & Iron company (CB&I) Americas Ltd., Chicago Bridge & Iron Company CB&I UK Limited, CBI Colombiana S.A., Foster Wheeler USA Corporation and Process Consultants Inc, and the following insurance companies, Compañía Aseguradora de Fianzas S.A, Coaseguro Confianza S.A., Liberty Seguros S.A., CHUBB de Colombia Compañía de Seguros S.A., Seguros Colpatria S.A. and Mapfre Seguros Generales de Colombia S.A., as third parties with joint liability. As for the other 21 individuals initially investigated in 2017, the Office of the Comptroller General closed the investigations. Therefore, as of the date of the consolidated financial statements, no current or former member of Ecopetrol’s Board of Directors was charged in the first proceeding related to the increase in the Project’s budget. As of the date of the consolidated financial statements, no charges have been issued in the second proceeding related to the modifications in the Project’s schedule. While the content and status of the proceedings remains confidential, we can report that Reficar and several of its employees have cooperated with and provided the information required by the department of the Office of the Comptroller General in charge of leading the proceedings. As of the date of the consolidated financial statements, both Ecopetrol and Reficar have no liability under these proceedings. 1.3 In January 2017, the Office of the Comptroller General initiated a special audit in Reficar and delivered a final report to Reficar on July 12, 2017. In this report the Office of the Comptroller General concluded that, in their opinion, Reficar’s 2016 Financial Statements do not reasonably represent, in all important aspects, the entity’s financial position as of December 31, 2016. On February 2, 2018, the Legal Accounts Commission of the National House of Representatives of the Republic of Colombia informed Reficar that the House of Representatives decided, through Resolution No. 2713 on December 3, 2017, that it would not close the General Budget and Treasury Account and the National Balance Sheet for the 2016 fiscal year, since the 2016 Financial Statements of several state entities, among them Reficar, had received a negative opinion from the Office of the Comptroller General. Pursuant to Resolution No. 2713, Colombian control entities were ordered to initiate the corresponding disciplinary, fiscal and/or criminal investigations. 1.4 In December 2017, the Office of the Comptroller General initiated a special audit in Reficar and submitted a final report to Reficar on May 18, 2018. In this report the Office of the Comptroller General concluded that, in their opinion, Reficar’s 2017 Financial Statements do not reasonably represent, in all important aspects, the entity’s financial position as of December 31, 2017. On February 6, 2019, the Legal Accounts Commission of the National House of Representatives of the Republic of Colombia informed Reficar that the House of Representatives decided, through Resolution No. 3135 on December 18, 2018, that it would not close the General Budget and Treasury Account and the National Balance Sheet for the 2017 fiscal year, since the 2017 Financial Statements of several state entities, among them Reficar, had received a negative opinion from the Office of the Comptroller General. Pursuant to Resolution No. 3135, Colombian control entities were ordered to initiate the corresponding disciplinary, fiscal and/or criminal investigations. 1.5 On January 2019, the Office of the Comptroller General initiated a financial audit in Reficar and delivered a final report to Reficar on May 20, 2019. On November 26, 2019, the Legal Accounts Commission of the National House of Representatives of the Republic of Colombia informed Reficar that the House of Representatives had decided, through Resolution No. 2898, that it would not close the General Budget and Treasury Account and the National Balance Sheet for the 2018 fiscal year, since the 2018 Financial Statements of several state entities, among them Reficar, had received a negative opinion from the Office of the Comptroller General. Pursuant to Resolution No. 2898, Colombian control entities were ordered to initiate the corresponding disciplinary, fiscal and/or criminal investigations. 1.6 On January 2020, the Office of the Comptroller General initiated a financial audit in Reficar. The final report is expected to be delivered to Reficar in May 2020. In respect of the special audits mentioned in sections 1.3, 1.4, 1.5 and 1.6 above, as of the date of the consolidated financial statements, Reficar has no knowledge of any procedural actions carried out by any of the Colombian control entities regarding the disciplinary, fiscal and/or criminal investigations ordered by Resolution No. 2713, Resolution No. 3135 or Resolution No. 2898. Reficar’s external auditors issued an unqualified opinion on Reficar’s financial position as of December 31, 2016, 2017, 2018 and 2019. As of the date of the consolidated financial statements, such auditors have not informed Reficar that there has been any change to their opinion. As of the date of the consolidated financial statements, to the best of Ecopetrol’s knowledge, the financial statements continue to fairly represent the financial and operational condition of the Company in all material aspects and its internal controls remain effective. As of the date of the consolidated financial statements, the current Boards of Directors of Ecopetrol and Reficar are not part of the Comptroller General proceedings. 2. The Attorney General’s Office investigations: Reficar has been officially informed that the Attorney General’s Office currently has four ongoing investigations related to the Project. Regarding one of these four investigations, on September 12, 2017, the Attorney General’s Office issued a list of charges against certain former members of Reficar’s Board of Directors, as well as certain former officers of Reficar. The charges were related to the failure to fulfill some of their duties as administrators and/or for acting “ultra vires” in the exercise of their functions against: (i) Javier Genaro Gutiérrez (Ecopetrol CEO, 2007‑2015); (ii) Felipe Laverde (Reficar General Counsel, 2009‑March 2017); (iii) Pedro Rosales (Ecopetrol Downstream Executive Vice President, 2008‑2015); (iv) Diana Constanza Calixto (Ecopetrol Head of the Corporate Finance Unit, 2009‑2014); (v) Orlando José Cabrales (Reficar CEO, 2009-2012) and (vi) Reyes Reinoso Yanes (Reficar CEO, 2012‑2016). The Attorney General’s Office closed the case against the rest of the members of Reficar’s Board of Directors and the rest of the former officers of Reficar. On January 17, 2020 the Attorney General's Office issued its judgment against Reyes Reinoso Yanes for acting "ultra vires" in the exercise of his functions promoting a special billing procedure without the due diligence required to protect Reficar's resources. As for the other four individuals initially investigated, they were acquitted of the charges. The specific content and status of the remaining three ongoing investigations remains confidential. As of the date of the consolidated financial statements, the current Boards of Directors of Ecopetrol and Reficar are not part of the Attorney General's Office proceedings. 3. The Prosecutor’s Office investigations: The Prosecutor’s Office has been conducting the following legal proceedings: 3.1 Between July 25 and August 2, 2017, the Prosecutor’s Office indicted the following individuals with charges, the majority of which are related to offenses against the public administration and illegal interest in the execution of agreements: (i) Orlando José Cabrales Martínez (Reficar CEO, 2009‑2012); (ii) Reyes Reinoso Yanes (Reficar CEO, 2012‑2016); (iii) Felipe Laverde Concha (Reficar General Counsel, 2009‑March 2017); (iv) Pedro Alfonso Rosales Navarro (Ecopetrol Downstream Executive Vice President, 2008‑2015); (v) Masoud Deidehban (CBI Executive Project Director); (vi) Phillip Asherman (CBI CEO) and (vii) Carlos Lloreda (Reficar’s statutory auditor from 2013‑2015.) The arraignment hearing began on May 30, 2018, and concluded on August 22, 2018. The Prosecutor’s Office has already made public the factual basis for such charges, which is based on the theory that: (i) executing a cost reimbursable engineering, procurement and construction contract (EPC) and not a lump sum agreement favored CBI interests, and (ii) executing special invoicing procedures (MOA –Memorandum of Agreement and PIP –Project Invoicing Procedure) with CBI allowed the payments of unreasonable amounts not duly verified by the Joint Venture Foster Wheeler USA Corporation and Process Consultant Inc (FPJVC). The defense attorneys have not yet had an opportunity to present their case against such facts in a court of law. On May 9, 2017, Ecopetrol’s Audit and Risk Committee retained a U.S.-based outside law firm to commence a third-party investigation into the matters set forth in the Prosecutor’s Office announcement. The results were presented in December 2017 to Ecopetrol’s Audit and Risk Committee. This investigation concluded that to date there has been no evidence of possible unlawful acts that affect Ecopetrol’s internal control over the financial reporting of the Company, on the allegations made by the Prosecutor’s Office. 3.2 On October 22 and 23, 2018, the Prosecutor’s Office indicted the following individuals with charges related to improper management and obtaining false public documents: Javier Genaro Gutiérrez Pemberthy (Ecopetrol CEO, 2007‑2015), Reyes Reinoso Yánez (Reficar CEO, 2012‑2016), Pedro Alfonso Rosales Navarro (Ecopetrol Downstream Executive Vice President, 2008‑2015), and Diana Constanza Calixto Hernández (Ecopetrol Head of the Corporate Finance Unit, 2009‑2014). The arraignment hearing took place on August 5, 2019. The Prosecutor's Office made public the factual basis of the charges, which is based on the theory that the indicted directors hid necessary information from Ecopetrol's Board of Directors before the approval of amendment No. 3 of the EPC contract. The defense attorneys have not yet had an opportunity to present their case against such facts in a court of law. On January 27, 2020, during the indictment hearing, Ecopetrol and Reficar were recognized as victims. 3.3 On March 18, 2019, the Prosecutor’s Office indicted the following individuals with charges related to entering into agreements without compliance with legal requirements: Orlando José Cabrales Martínez (Reficar CEO, 2009-2012) and Felipe Castilla (Reficar CEO, 2009). The arraignment hearing took place on January 27, 2020. The Prosecutor's Office has already made public the factual basis of the charges, which is based on the theory that hiring FPJVC as the PMC of the project through a sole source process violated the objective selection principle. Ecopetrol and Reficar have cooperated closely and extensively with the control entities in furthering their investigations and will continue to monitor the status and development of these investigations. As of the date of the consolidated financial statements, the current Boards of Directors of Ecopetrol and Reficar and their employees are not part of the Prosecutor's Office proceedings. None of the legal proceedings described in this paragraph are related with bribery charges. As of the date of the consolidated financial statements, Ecopetrol and Reficar have no knowledge of any legal proceeding in the United States regarding the project. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Equity | 23. Equity The main components of equity are detailed below: 23.1 Subscribed and paid–in capital Ecopetrol’s authorized capital amounts to COP$36,540,000, and is comprised of 60,000,000,000 ordinary shares, of which 41,116,694,690 are outstanding, and 11.51% (4,731,906,273 shares) are held privately and 88.49% (36,384,788,417 shares) are held by the Colombian Government. The value of the reserve shares amounts to COP$11,499,933 comprised of 18,883,305,310 shares. As of December 31, 2019 and 2018, subscribed and paid–in capital amounts to COP$25,040,067. There are no potentially dilutive shares. 23.2 Additional paid–in capital Additional paid–in capital mainly corresponds to: (i) share premium from the Ecopetrol Business Group’s capitalization in 2007, for COP$4,457,997, (ii) share premium from the sale of shares awarded in the second capitalization, which took place in September 2011, of COP$2,118,468, iii) a COP$31,377 share premium from the placement of shares on the secondary market, arising from the calling of guarantees from debtors in arrears, according to the provisions of Article 397 of the Code of Commerce, and (iv) additional paid–in capital receivables for COP$(143). 23.3 Equity reserves The following is the composition of the Ecopetrol Business Group’s reserves as of December 31, 2019 and 2018: 2019 2018 Legal reserve 3,243,832 2,088,192 Fiscal and statutory reserves 509,082 509,081 Occasional reserves (1) 31,744 2,541,622 3,784,658 5,138,895 The movement of equity reserves is the following for the years ended December 31, 2019 and 2018: 2019 2018 Opening balance 5,138,895 2,177,869 Release of reserves (3,050,703) (751,718) Allocation to reserves 5,355,852 3,712,744 Dividends declared (3,659,386) — Closing balance 3,784,658 5,138,895 23.4 Retained earnings and dividends The Ecopetrol Business Group distributes dividends based on its separate annual financial statements, prepared under International Financial Reporting Standards accepted in Colombia (NCIF, by its acronym in Spanish). The Ordinary General Shareholders’ Meeting, held on March 29, 2019, approved the profit distribution for 2018 and set the distribution of dividends at COP$9,251,256. In addition, the Extraordinary General Shareholders' Meeting, held on December 16, 2019 approved the change of the occasional reserve destination authorized on March 29, 2019; therefore, the Ecopetrol Business Group distributed as an extraordinary dividend COP$3,659,386. A total of 100% of dividends was paid during 2019. The Ordinary General Shareholders’ Meeting, held on March 23, 2018, approved the profit distribution for 2017 and set the distribution of dividends at COP$3,659,386. Dividends paid in 2018 attributable to the shareholders of Ecopetrol S.A. amounted to COP$3,659,373 (2017 - COP$945,661) and those of the non-controlling interest to COP$768,328 (2017 – COP$558,986). 23.5 Other comprehensive income attributable to owners of parent The following is the composition of the other comprehensive income attributable to the shareholders of the parent, Ecopetrol S.A., net of tax: 2019 2018 2017 Foreign currency translation 10,265,398 10,235,891 7,706,623 Cash flow hedge with derivative instruments 3,689 (30,962) 6,942 Cash flow hedges for future exports (135,748) (374,079) 159,295 Actuarial gain on defined benefit plans (2,357,210) (557,381) (553,091) Hedge of a net investment in a foreign operation (1,130,583) (1,069,316) (97,362) Others 1,114 176,608 176,608 6,646,660 8,380,761 7,399,015 23.6 Earnings per share 2019 2018 2017 Profit attributable to Ecopetrol’s shareholders 13,744,011 11,381,386 7,178,539 Weighted average number of outstanding shares 41,116,694,690 41,116,694,690 41,116,694,690 Net basic earnings per share (Colombian pesos) COP$ 334.3 COP$ COP$ 174.6 |
Sales revenue from contracts wi
Sales revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2019 | |
Sales revenue from contracts with customers | |
Sales revenue from contracts with customers | 24 . Sales revenue from contracts with customers 2019 2018 2017 National sales Mid–distillates 13,541,756 11,586,192 9,590,326 Gasoline and turbo fuels 9,373,030 7,952,852 6,990,187 Transport services 3,829,102 3,531,404 3,589,553 Natural gas 2,305,543 1,885,846 1,815,754 Plastic and rubber 760,301 822,367 833,982 Asphalts 544,200 335,426 275,803 LPG and propane 372,916 574,639 509,619 Crude oil 356,857 550,479 909,871 Services 309,353 239,410 283,799 Aromatics 228,552 282,545 217,418 Polyethylene 190,133 270,887 167,348 Other income gas contracts (1) 102,845 156,031 188,195 Fuel oil 97,907 509,482 354,058 Other products 507,336 489,507 280,226 32,519,831 29,187,067 26,006,139 Recognition of price differential (2) 1,785,277 3,835,533 2,229,953 34,305,108 33,022,600 28,236,092 Foreign sales Crude oil 28,523,596 26,898,737 21,479,063 Diesel 4,391,798 3,050,839 1,213,740 Fuel oil 1,870,929 2,053,594 1,982,408 Plastic and rubber 1,200,668 1,268,582 1,169,101 Gasoline and turbo fuels 1,085,392 1,782,194 1,223,994 Natural gas 27,255 27,899 32,303 LPG and propane 13,591 20,212 15,631 Cash flow hedge for future exports – Reclassification to profit or loss (Note 29.1.2) (386,773) 128,404 160,772 Other products 456,948 350,811 441,124 37,183,404 35,581,272 27,718,136 71,488,512 68,603,872 55,954,228 (1) Corresponds to income on the share of gas sales profits, under the agreement signed between Ecopetrol and Chevron in 2004, for the extension of the joint venture contract for the exploitation of gas in La Guajira. (2) Corresponds to the application of Decree 180522 of March 29, 2010, and other standards that modify and add (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of ordinary motor gasoline and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative). See Note 4.16 – Sales revenue recognition from contracts with customers. Sales by geographic areas 2019 % 2018 % 2017 % Colombia 34,305,108 48.0 % 33,022,600 48.1 % 28,236,092 50.5 % United States 17,371,173 24.3 % 14,765,674 21.5 % 12,532,932 22.4 % Asia 13,529,151 18.9 % 12,271,225 17.9 % 6,136,796 11.0 % Central America and the Caribbean 3,472,665 4.9 % 4,449,033 6.6 % 6,070,565 10.8 % South America and others 1,502,815 2.1 % 2,968,038 4.3 % 1,947,226 3.5 % Europe 1,307,600 1.8 % 1,127,302 1.6 % 1,030,617 1.8 % 71,488,512 100 % 68,603,872 100 % 55,954,228 100 % Concentration of customers During 2019, Organización Terpel S.A. represented 16.0% of sales revenue for the period (2018 – 14.0% and 2017 – 14.3%); no other customer represented more than 10% of total sales. There is no risk of the Ecopetrol Business Group’s financial situation being affected by a potential loss of the client. The commercial relationship with this customer is for the sale of refined products and transportation services. |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2019 | |
Cost of sales | |
Cost of sales | 25. Cost of sales 2019 2018 2017 Variable costs Imported products (1) 12,639,710 11,809,529 11,637,419 Depreciation amortization and depletion 5,523,306 5,064,518 5,765,186 Purchases of crude in association and concession 5,466,496 3,820,746 2,240,704 Purchases of hydrocarbons – ANH (2) 5,437,177 5,667,567 4,338,576 Process materials 1,016,617 968,884 889,122 Electric energy 829,543 662,297 561,424 Hydrocarbon transport services 821,654 696,964 665,714 Taxes and economic rights 788,924 441,207 449,959 Purchases of other products and gas 584,507 632,509 488,056 Services contracted in associations 267,778 260,207 195,689 Others (3) (676,269) (186,087) (663,916) 32,699,443 29,838,341 26,567,933 Fixed costs Depreciation and amortization 2,781,446 2,555,176 2,366,849 Maintenance 2,497,002 2,260,984 2,038,970 Labor costs 2,316,567 2,105,803 1,815,213 Services contracted 1,841,009 1,796,354 1,414,056 Services contracted in associations 1,211,510 1,040,221 1,008,336 Materials and operating supplies 574,678 565,601 468,205 Taxes and contributions 516,933 393,690 343,505 Hydrocarbon transport services 268,572 261,237 333,671 General costs 265,200 366,972 551,587 12,272,917 11,346,038 10,340,392 44,972,360 41,184,379 36,908,325 (1) Imported products correspond mainly to diesel fuel and diluent to facilitate the transport of heavy crude oil. (2) Corresponds to purchases of crude oil by Ecopetrol from the National Hydrocarbons Agency (ANH, by its acronym in Spanish) derived from national production, both of the Ecopetrol Business Group’s direct operations and of third parties. (3) Corresponds mainly to: i) the capitalization of the inventory, product of the costing and valuation process, ii) the valuation at Net Realizable Value, and iii) the loans of inventories by transport. |
Administrative, operations and
Administrative, operations and project expenses | 12 Months Ended |
Dec. 31, 2019 | |
Administrative, operations and project expenses | |
Administrative, operations and project expenses | 26. Administrative, operations and project expenses 2019 2018 2017 Administrative expenses General expenses 1,140,975 911,645 723,341 Labor expenses 759,324 662,258 624,424 Taxes 48,753 39,117 362,963 Depreciation and amortization 202,547 40,838 53,796 2,151,599 1,653,858 1,764,524 Operations and project expenses Exploration costs 763,452 1,387,379 1,341,940 Taxes 483,330 433,506 324,223 Commissions, fees, freights and services 558,370 466,862 471,657 Labor expenses 402,531 316,386 310,947 Fee for regulatory entities 94,785 98,794 63,470 Depreciation and amortization 75,484 44,318 95,516 Maintenance 56,333 50,846 122,273 Others 197,469 105,041 196,039 2,631,754 2,903,132 2,926,065 |
Other operating income (expense
Other operating income (expenses), net | 12 Months Ended |
Dec. 31, 2019 | |
Other operating income (expenses), net | |
Other operating income (expenses), net | 27. Other operating income (expenses), net 2019 2018 2017 Gain (loss) on acquisition of participations and interests (1) 1,048,924 (12,065) 451,095 (Loss) profit on sale of assets (148,021) (93,601) 40,227 Expense for legal provisions (98,020) (68,398) (72,408) Impairment loss of short–term assets (90,441) (105,692) (68,800) Expense for gas pipeline availability BOMT contracts (2) — — (72,318) Other income 344,354 244,301 227,607 1,056,796 (35,455) 505,403 (1) For 2019, this corresponds mainly to gains related to the business combination of Invercolsa S.A. (see Note 12) (2) Corresponds to the services rendered in connection with the BOMT contracts for the construction, operation, maintenance and transfer of gas pipelines with Transgas. This contract terminated in August 2017. |
Financial result, net
Financial result, net | 12 Months Ended |
Dec. 31, 2019 | |
Financial result, net | |
Financial result, net | 28. Financial result, net 2019 2018 2017 Finance income Results from financial assets and others 975,245 745,571 739,148 Yields and interests 481,674 383,624 405,562 Dividends (1) 117,260 — — Gain on sale of equity instruments — 368 13,236 Other financial income 49,157 — 1,410 1,623,336 1,129,563 1,159,356 Finance expenses Interest (2) (1,894,490) (2,399,414) (2,385,994) Financial cost of other liabilities (3) (757,509) (668,782) (753,047) Results from financial assets and others (638,767) (381,445) (481,308) Other financial expenses (43,703) (62,520) (40,252) (3,334,469) (3,512,161) (3,660,601) Foreign exchange gain (loss), net 40,639 372,223 5,514 Financial result, net (1,670,494) (2,010,375) (2,495,731) (1) In 2007, Arrendadora Financiera Internacional Bolivariana (AFIB) and Ecopetrol S.A. signed an agreement to constitute a trust fund, in which Invercolsa deposited dividends corresponding to 8.53% of the participation in dispute, regarding the shares acquired by Fernando Londoño. In 2019, as a result of the sentence of the Supreme Court of Justice, Ecopetrol received the amount of dividends that were in that trust. See Note 12 -Business combinations. (2) As of December 31, 2019, borrowing costs for the financing of developing natural resources and property, plant and equipment of COP$248,139 (2018 – COP$200,833 and 2017 – COP$191,651) were capitalized. (3) Includes the financial expense of the asset retirement obligations and the liabilities for post–employment benefits. |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2019 | |
Risk management | |
Risk management | 29. Risk management 29.1 Exchange rate risk The Ecopetrol Business Group operates mainly in Colombia and makes sales in the local and international markets, for that reason, it is exposed to exchange rate risk, which arises from various foreign currency exposures due to commercial transactions, assets and liabilities denominated in foreign currency. The impact of exchange rate fluctuations, especially the Colombian peso/U.S. dollar exchange rate, has been material in previous years. The U.S. dollar/Colombian peso exchange rate has fluctuated over the last few years. As of December 31, 2019, the Colombian peso appreciated 0.8%. The closing rates were COP$3,277.14, COP$3,249.75 and COP$2,984.00 for 2019, 2018 and 2017, respectively. When the Colombian peso appreciates in relation to the U.S. dollar, export sales revenue decreases when converted to Colombian pesos; by contrast, imported goods, operating costs and interest on foreign debt denominated in U.S. dollars become less expensive. Conversely, when the Colombian peso depreciates, export revenues increase in conversion to Colombian pesos, and servicing of the external debt and imports become more expensive. The following table sets out the carrying amount for financial assets and liabilities with exchange exposure denominated as of December 31, 2019 and 2018: (in USD$Million) 2019 2018 Cash and cash equivalents 114 514 Other financial assets 1,468 2,138 Trade receivables and payables, net 81 (202) Loans and borrowings (9,429) (9,689) Other assets and liabilities, net 64 63 Net liability position (7,702) (7,176) Of the total net liability position, USD$(7,769) million correspond to net liabilities in dollars with exchange exposure of companies with the Colombian peso as its functional currency and a net amount of USD$67 million corresponds to monetary assets and liabilities with exchange exposure of companies whose functional currency is different from Colombian peso; for both cases valuation is recognized in profit or loss. The balance of loans and borrowings includes non-derivative hedging instruments of Ecopetrol of USD$(7,331), for which valuation is recognized in other comprehensive income, within the equity. The exchange difference valuation of the rest of net assets (USD$438 million) is recognized in profit and loss. 29.1.1 Sensitivity analysis for exchange rate risk The Ecopetrol Business Group’s risk management strategy involves the use of non-derivative financial instruments related to cash flow hedges for future exports and hedges of a net investment in a foreign operation in order to minimize exposure to currency rate risk, which is detailed below. The following is the effect of a change of 1% and 5% in the exchange rate of the Colombian peso as compared with the U.S. dollar, on the balance of financial assets and liabilities denominated in foreign currency as of December 31, 2019: Scenario / Variation in Effect on income Effect on other the exchange rate before taxes (+/–) comprehensive income (+/–) 1 % (12,158) (240,247) 5 % (60,791) (1,201,236) The sensitivity analysis only includes financial assets and liabilities in foreign currency at the closing date. 29.1.2 Cash flow hedge for future exports Ecopetrol is exposed to foreign exchange risk given that a significant percentage of its income from crude oil exports is denominated in U.S. dollars. In recent years, the Ecopetrol Business Group has acquired long–term debt for investment activities in the same currency in which it expects to receive the cash flows of its export sales revenues. This situation creates a natural hedge relationship due to the fact that the risks generated by the foreign exchange difference of export sales revenues when booked in Ecopetrol’s functional currency (Colombian pesos) are naturally hedged with the foreign exchange variances of the long–term debt, in line with the Ecopetrol Business Group’s risk management strategy. In order to present on financial statements the effect of the natural hedge between exports and debt, and considering that the exchange rate risk materializes when the exports are made, on October 1, 2015, the Board of Directors designated the amount of USD$5,440 million of Ecopetrol’s foreign currency debt as a hedge instrument of future revenue from crude oil exports, for the period 2015–2023 in accordance with IFRS 9 – Financial instruments. The following is the movement of foreign currency debt designated as a non–derivative hedging instrument for the years ended December 31, 2019 and 2018: (USD$Million) 2019 2018 Hedging instrument at the beginning of the period 1,300 3,332 Reassignment of hedging instruments 5,551 3,366 Realization of exports (5,551) (3,366) Capital payments(1) — (2,032) Hedging instrument at the end of the period 1,300 1,300 (1) On December 27, 2018, Ecopetrol S.A. paid in advance the entire 10‑year international bond issued in 2009, whose nominal value was USD$1,500 million. Equally, on June 30, 2017, Ecopetrol prepaid the entire outstanding balance of the international syndicated loan whose nominal value was USD$1,925 million and original maturity date was February 2020. The following is the movement of accumulated foreign currency gains and losses in respect of the cash flow hedge recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Opening balance (374,079) 159,295 244,131 Exchange difference (35,607) (704,871) (15,933) Reclassification to profit or loss 386,773 (128,404) (160,772) Ineffectiveness 5,173 35,617 9,247 Deferred income tax (118,008) 264,284 82,622 Closing balance (135,748) (374,079) 159,295 The expected reclassification of the cumulative exchange difference from other comprehensive income to the profit or loss is as follows: Before Year taxes Taxes After taxes 2020 (50,986) 16,316 (34,670) 2021 (53,249) 16,507 (36,742) 2022 (53,249) 15,975 (37,274) 2023 (38,669) 11,607 (27,062) (196,153) 60,405 (135,748) 29.1.3 Hedge of a net investment in a foreign operation The Board of Directors approved the application of net investment hedge accounting from June 8, 2016. The measure is intended to reduce the volatility of non–operating income due to exchange rate variations. The net investment hedge will be applied on a portion of the Ecopetrol Business Group’s investments in foreign operations, in this case on investments in subsidiaries which have the U.S. dollar as their functional currency, using a portion of the Ecopetrol Business Group’s U.S. dollar denominated debt as the hedging instrument. Ecopetrol S.A. has designated its net investments in Ocensa, Ecopetrol America Inc., Hocol Petroleum Ltd. (HPL) and Reficar as the hedged items. The amount of USD$5,200 million of the Ecopetrol Business Group’s U.S. dollar debt was designated as the hedge instrument. In November 2019, a new hedge designation of USD$930 million was made according to the net investment in Ecopetrol Permian LLC. The value of the hedge instrument as of December 2019 was USD$831 million. The following is the movement of accumulated foreign currency gains and losses in respect of the net investment hedge recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Opening balance 1,069,316 97,362 155,359 Exchange difference 87,524 1,381,900 (86,892) Ineffectiveness — 378 329 Deferred income tax (26,257) (410,324) 28,566 Closing balance 1,130,583 1,069,316 97,362 29.1.4 Hedging with financial derivatives to minimize foreign exchange risk The Ecopetrol Business Group carries out non–delivery forward operations in order to mitigate the volatility of the exchange rate in requirements of cash flow for operations of its subsidiary, Ocensa, whose functional currency is the US dollar. The forward hedging instruments are used to enable setting sales prices in U.S. dollars, mitigating the foreign exchange variation given Ocensa’s obligations related to operational cost and tax payments that are payable in Colombian pesos. The accounting policy applicable to this operation is described in the Note 4.1.5.1. As of December 31, 2019, there are forward contracts with a net short position for USD$378 million (2018 – USD$332 million) with maturities between January and December 2020. The variation and/or compensation of full hedging operations for the payment of taxes is recorded in the statement of comprehensive income, affecting the income tax expense on the initial measurement and the exchange result for subsequent measurements. The variation of the hedging operations related to costs and expenses are recorded as other comprehensive income, in case they are effective; once the result of the compensation is settled, it is recorded as less and/or greater value of the hedged expense amount. The impact on profit and loss for the settlement of these hedges corresponds to a loss of COP$60,740 (2018 – COP$80,636 of profit) and the amount recognized in the other comprehensive income was a profit of COP$43,141 (2018 COP$52,174 of loss). 29.1.5 Commodity price risk Ecopetrol’s business is significantly impacted by international prices for crude oil and refined products. The prices for these products are volatile, and drastic changes could adversely affect the Ecopetrol Business Group business prospects and results of operations. A large proportion of Ecopetrol’s sales revenues come from sales of crude oil, natural gas and refined products. These products are indexed to international reference prices such as the Brent index. Consequently, fluctuations in those international indexes have a direct effect on the financial conditions and the Group’s results of operations. Prices of crude oil, natural gas and refined products have historically fluctuated as a result of a variety of factors including, among others, competition within the oil and natural gas industry; changes in international prices of natural gas and refined products; long-term changes in the demand for crude oil, natural gas and refined products; regulatory changes; changes in the cost of capital; adverse economic conditions; transactions in derivative financial instruments related to oil and gas and development or availability of alternative fuels. The Ecopetrol Business Group has a policy approved by the Board of Directors that allows it to use derivative financial instruments in the organized over-the-counter (OTC) market to cover itself from the risk of price fluctuations of crude oil and refined products associated with physical transactions. The Ecopetrol Business Group has established appropriate processes to handle risk, which include constant monitoring of physical and financial markets to identify risks in order to subsequently prepare and execute hedging strategies. Ecopetrol does not regularly use derivative instruments to hedge risk exposures related to sales or purchases. The impact of the settlement of the price hedges was not material during the year 2019. Hedging instruments were made to mitigate the risk related to differences between price indexes and the benchmark of the Ecopetrol Business Group's international trade strategy on exports of crude and imports of products. During the year 2019, price hedges were settled with a profit of COP$1,602 and as of December 31, 2019 an open position is maintained in favor of the Ecopetrol Business Group for COP$4,868. 29.2 Credit risk Credit risk is the risk that the Ecopetrol Business Group may suffer financial losses as a consequence of default of: (a) payments by its clients for the sale of crude oil, gas, products or services; (b) financial institutions in which it keeps investments, or (c) by counterparties with which it has contracted financial instruments. 29.2.1 Credit risk related to customers In the selling process of crude oil, gas, refined products and petrochemicals, and transport services, the Ecopetrol Business Group may be exposed to credit risk in the event that customers fail to fulfill their payment obligations. The Ecopetrol Business Group’s risk management strategy has designed mechanisms and procedures that aim to minimize such events, thus safeguarding the Ecopetrol Business Group’s cash flow. The Ecopetrol Business Group performs a continuous analysis of the financial strength of its counterparties, by classifying them according to their risk level and financial guarantees in the event of a default of payments. Similarly, the Ecopetrol Business Group continuously monitors national and international market conditions for early alerts of major changes that may have an impact on the timely payment of obligations from customers of the Ecopetrol Business Group. For the receivables that are considered exposed to credit risk, Ecopetrol Business Group make individual analysis of each customer’s situation to determine the value of impairment to recognize in financial statements. The Ecopetrol Business Group performs administrative and legal actions required to recover amounts past due and charges interest from customers that fail to comply with payment policies. Ecopetrol does not have a significant concentration of credit risk. An aging analysis of the accounts receivable portfolio in arrears, but not impaired, as of December 31, 2019 and 2018 is as follows: 2019 2018 Less than 3 months overdue 243,893 157,608 Between 3 and 6 months overdue 136,700 41,263 More than 6 months overdue 267,525 93,657 648,118 292,528 29.2.2 Credit risk in financial assets Following the promulgation of Decree 1525 of 2008, which provides general rules on investments for public entities, Ecopetrol’s management established guidelines for its investment portfolios. These guidelines determine that investments in Ecopetrol’s U.S. dollar portfolios are generally limited to investments of cash excess in fixed–income securities issued by entities rated A or higher in the long term and A1/P1/F1 or higher in the short term (international scale) by Standard & Poor’s Ratings Services, Moody’s Investors Service or Fitch Ratings. In addition, Ecopetrol S.A. may also invest in securities issued or guaranteed by the United States of America or Colombia governments, without regard to the ratings assigned to such securities. In Ecopetrol’s Colombian Peso portfolio, it must invest the cash excess in fixed–income securities of issuers rated AAA in the long term, and F1+/BRC1+ in the short term (local scale) by Fitch Ratings Colombia or BRC Standard & Poor’s. In order to diversify the risk in the Colombian Peso portfolio, Ecopetrol does not invest more than 10% of the cash excess in one specific issuer. In the case of the U.S. dollar portfolio, Ecopetrol does not invest more than 5% of the cash excess in one specific issuer in the short term (up to one year), or 1% in the long term. The credit rating of issuers and counterparties in transactions involving financial instruments is disclosed in Note 6 – Cash and cash equivalents, Note 9 – Other financial assets and Note 21 – Provisions for employees’ benefits. 29.3 Interest rate risk Interest rate risk arises from Ecopetrol’s exposure to changes in interest rates because the Ecopetrol Business Group has investments in fixed and floating–rate instruments and has issued floating rate debt linked to LIBOR, DTF and CPI interest rates. Thus, interest rate volatility may affect the fair value and cash flows of the Ecopetrol Business Group’s investments and the financial expense of floating rate loans and financing. As of December 31, 2019, 17% (2018, 17% and 2017, 19%) of the Ecopetrol Business Group’s indebtedness is linked to floating interest rates. As a result, if market interest rates rise, financing expenses will increase, which could have an adverse effect on the results of operations. Ecopetrol controls the exposure to interest rate risk by establishing limits to the portfolio duration, Value at Risk – VAR and tracking error. Autonomous equities linked to Ecopetrol’s pension obligations are also exposed to changes in interest rate, as they include fixed and floating rate instruments that are recognized according to the mark to market. Colombian regulation for pension funds, as stipulated in the Decree 941 of 2002 and Decree 1861 of 2012, indicates that they have to follow the same regime as the regular obligatory pension funds in their moderate portfolio. The following table provides information about the sensitivity of the Ecopetrol Business Group’s results and other comprehensive income for the next 12 months to variations in interest rate of 100 basis points: Effect on Other Effect on profit or loss (+/–) Comprehensive Income (+/–) Financial Financial Assets Liabilities Plan Assets +100 basis points (16,320) 32,276 (590,991) –100 basis points 16,278 (32,345) 629,633 A sensitivity analysis of discount rates on pension plan assets and liabilities is disclosed in Note 21 – Provisions for employees’ benefits. 29.4 Liquidity risk The ability to access credit and capital markets to obtain resources for the investment plan execution for the Business Group may be limited due to adverse changes in market conditions. A global financial crisis could worsen risk perception in emerging markets. Events that could affect the political and regional environment of Colombia may make it difficult for our subsidiaries to access the capital markets. These conditions, together with potential significant losses in the financial services sector and changes in credit risk assessments, may make it difficult to obtain resources on favorable terms. As a result, the Ecopetrol Business Group may be forced to review the conditions of the investment plan (as necessary), or access financial markets under unfavorable terms, thereby negatively affecting the Ecopetrol Business Group’s results of operations and financial results. Liquidity risk is managed in accordance with the Ecopetrol Business Group’s policies aimed at ensuring that enough cash flows to comply with the Ecopetrol Business Group’s financial commitments within the established dates and with no additional costs. The main method for the measurement and monitoring of liquidity is cash flow forecasting. The following is a summary of the maturity of financial liabilities as of December 31, 2019. The amounts disclosed in the table are the contractual undiscounted cash flows. The payments in foreign currency were restated taking a constant exchange rate of COP$3,277.14 per U.S. dollar: Up to 1 year 1–5 years 5–10 years > 10 years Total Loans (payment of principal and interest) 3,680,187 19,206,790 15,022,371 19,480,277 57,389,625 Trade and other payables 10,689,246 26,621 — — 10,715,867 Total 14,369,433 19,233,411 15,022,371 19,480,277 68,105,492 29.5 Capital management The main objective of the capital management of the Ecopetrol Business Group is to ensure a financial structure that optimizes the cost of capital, maximizes the rate of return to its shareholders and allows access to financial markets at a competitive cost to cover financial needs that support an investment grade credit rating profile. The following is the leverage ratio as of December 31, 2019 and 2018: 2019 2018 Loans and borrowings (Note 19) 38,239,139 38,062,645 Cash and cash equivalents (Note 6) (7,075,758) (6,311,744) Other financial assets (Note 9) (4,979,292) (8,147,815) Net financial debt 26,184,089 23,603,086 Equity (Note 23) 58,231,628 57,107,780 Leverage(1) 31.02 % 29.24 % (1) Leverage = Net financial debt / (Net financial debt + Equity) The movement of the net financial debt is detailed in Note 19.9. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2019 | |
Related parties | |
Related parties | 30. Related parties Balances with associates and joint ventures as of December 31, 2019 and 2018 are as follows: Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energy Limited(2) 25,333 — 57,016 153,501 1,108,403 794 Ecodiesel Colombia S.A. 2,116 — — 29,447 — 1 Offshore International Group Inc.(1) — 93,657 — — — — Associates Serviport S.A. — — — 4,668 — — Balance as of December 31, 2019 27,449 93,657 57,016 187,616 1,108,403 795 Current 27,449 — 57,016 187,616 1,108,403 795 Non–current — 93,657 — — — — 27,449 93,657 57,016 187,616 1,108,403 795 (Note 7) (Note 7) (Note 11) (Note 20) (Note 19) Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energy Limited 22,958 — 19,214 87,079 855,135 67 Ecodiesel Colombia S.A. 522 — — 23,857 — 1 Offshore International Group Inc.(1) — 117,824 — — — — Associates Serviport S.A. — — — 5,482 — — Balance as of December 31, 2018 23,480 117,824 19,214 116,418 855,135 68 Current 23,480 — 19,214 116,418 855,135 68 Non–current — 117,824 — — — — 23,480 117,824 19,214 116,418 855,135 68 (Note 7) (Note 7) (Note 11) (Note 20) (Note 19) Loans with related parties: (1) Loan granted by Ecopetrol S.A. to Savia Perú S.A. (subsidiary of Offshore International Group) for USD$57 million in 2016, with an interest rate of 4.99% payable semiannually from 2017 and maturing in 2021. The balance in nominal value of this loan as of December 31, 2019 is USD$28 million (2018 - USD$35 million). On December 11, 2019, Ecopetrol S.A. and the Korea National Oil Corporation ("KNOC") awarded to Savia a modification to the credit conditions. That modification is related to the payments of the principal to expire on December 16, 2019 (USD$7 million), June 15, 2020 (USD$7 million) and December 15, 2020 (USD$7 million), for the debtor to cancel this amount on February 19, 2021, at which time the final payment will be made for USD$28 million. (2) The interest rate of the loan with Capital AG corresponds to 2.37%. The amounts outstanding are not guaranteed and will be settled in cash. No expense has been recognized in the current period or in previous periods with respect to uncollectible or doubtful accounts related to the amounts owed by related parties. The main transactions with related parties for years ended December 31, 2019, 2018 and 2017 are detailed as follows: 2019 2018 2017 Sales and Purchases Sales and Purchases Sales and Purchases services and others services and others services and others Joint Ventures Equion Energy Limited 317,382 569,105 67,002 846,284 425,881 598,636 Ecodiesel Colombia S.A 8,614 280,649 6,860 267,498 6,583 259,269 Offshore International Group 3,245 — 2,386 — 15,188 — 329,241 849,754 76,248 1,113,782 447,652 857,905 30.1 Directors and key management personnel In accordance with the approval given by the shareholders’ meeting in 2012, compensation paid to directors for attending the meetings of the Board of Directors and/or committees increased from four to six minimum legal monthly salaries in force, or approximately to COP$4,969,000 for 2019, from COP$4,687,000 for 2018 and COP$4,426,000 for 2017. For non-face-to-face sessions, 50% of the quota for face-to-face meetings is set. The members of the Board of Directors do not have any kind of variable remuneration. The amount paid in 2019 for compensation to members of the Board of Directors amounted to COP$1,847 (2018 - COP$2,152 and 2017 - COP$1,877). The total compensation paid to Directors as of December 31, 2019, amounted to COP$22,632 (2018 - COP$21,580 and 2017 - COP$20,669). Directors are not eligible to receive pension and retirement benefits. The total amount reserved as of December 31, 2019, to provide pension and retirement benefits to the eligible executive officers amounted to COP$18,740 (2018 - COP$5,491 and 2017 - COP$5,401). As of December 31, 2019, key management officers owned less than 1% of the outstanding shares of Ecopetrol S.A. as follows: Key management personnel % Shares Felipe Bayón <1% outstanding shares Jaime Caballero <1% outstanding shares Orlando Díaz <1% outstanding shares Jorge Calvache <1% outstanding shares Maria Consuelo Barrera <1% outstanding shares Rafael Espinosa Rozo <1% outstanding shares 30.2 Post–employment benefit plans The administration and management of resources for payment of Ecopetrol’s pension obligations are managed by autonomous pension funds (PAPs, by its acronym in Spanish) which serve as guarantee and payment sources. In 2008, Ecopetrol S.A. received the authorization to partially commute the value corresponding to monthly payments, bonds and quotas, transferring said obligations and the money that support them to autonomous patrimonies of a pension nature, in accordance with the requirements of Decree 1833 of 2016. Since November 2016, the entities that manage the resources are: Fiduciaria Bancolombia, Fiduciaria de Occidente and Consorcio Ecopetrol PACC (formed by Fiduciaria La Previsora, Fiduciaria Bancoldex, Fiduagraria and Fiduciaria Central). These trust companies will manage the pension resources for a period of five years (2016-2021) and as compensation they receive remuneration with fixed and variable components, the latter are settled on the gross yields of the portfolios and charged to the resources managed. 30.3 Government related parties The Colombian Government controls Ecopetrol with a stock ownership of 88.49%. The most significant transactions with governmental entities are comprised as follows: (a) Purchase of oil from the National Hydrocarbons Agency – ANH By nature of the business, the Ecopetrol Business Group has a direct relationship with ANH, an entity which operates under the rules of the Ministry of Mines and Energy, whose objective is to manage the oil and gas reserves and resources owned by the Colombian Nation. Ecopetrol purchases the crude oil that the ANH receives from producers in Colombia at the prices set in accordance with a jointly established formula, which reflects the export sale prices (crude oils and products), adjusted for API gravity quality, sulfur content, transportation rates from the wellhead to the ports of Coveñas and Tumaco, refining process cost and a commercialization rate. This contract was extended to April 30, 2020. From December 2013 the Ecopetrol Business Group commercialized, on behalf of the ANH, the natural gas received by the latter in kind from producers. Since January 2014, ANH has received royalties in cash for the production of natural gas. The purchase value of oil and gas from ANH is detailed in Note 25 - Cost of sales. Additionally Ecopetrol, like other oil and gas companies, takes part in “rounds” for the allocation of exploration blocks in Colombia without implying special treatment for Ecopetrol on count of it being an entity whose majority shareholder is the Colombian Government. (b) Price differential The National Government regulates the prices related to regular gasoline and diesel. In that way, the price will vary a maximum of 3% monthly establishing price stability for the final customer. This price called Producer Income does not necessarily reflect the opportunity cost of fuels. For that reason, it is necessary to recognize that price difference to the refiner/importer. In this sense, the National Government, through the Fund of Fuel Price Stabilization, grants the price differences to the refiner/importer in cases where the cost of opportunity is higher than the Producer Income, or charges the refiner/import the difference when the Producer Incomer is higher than the opportunity cost. This scheme ensures that the Company always receives the opportunity cost of these fuels that it sells in the country to the wholesale distributor. The value of this differential is detailed in Note 24 – Sales revenue from contracts with customers. (c) National Tax and Customs Direction Ecopetrol, just like any other company in Colombia, has tax obligations that it must comply with and does not have any other kind of association or commercial relationship with the National Tax and Customs Direction of Colombia. For more information, see Note 10 - Taxes. (d) Comptroller General of the Republic Ecopetrol, just like any other state entity in Colombia, is obliged to comply with the requirements set out by the Comptroller General of the Republic and make an annual payment to this entity on account of a maintenance fee. Ecopetrol does not have any other kind of association or commercial relationship with this entity. |
Joint operations
Joint operations | 12 Months Ended |
Dec. 31, 2019 | |
Joint operations | |
Joint operations | 31. Joint operations The Ecopetrol Business Group carries out exploration and production operations through Exploration and Production (E&P) Contracts, Technical Evaluation (TEA) Contracts and Agreements signed with the National Hydrocarbons Agency or ANH, as well as through Partnership Contracts and other types of contracts. The main joint operations in 2019 are as follows: 31.1 Contracts in which Ecopetrol is not the operator % Geographic area of Partners Contract Type Participation operations Occidental Andina LLC Chipirón Production 30–40 % Colombia Cosecha % Cravo Norte % Rondón % Chevron Petroleum Group Guajira Production % Colombia Mansarovar Energy Colombia Ltd Nare Production % Colombia Meta Petroleum Corp Quifa Production % Colombia Equion Energy Limited Piedemonte Production % Colombia Perenco Colombia Limited Casanare Production % Colombia Corocora % Estero % Garcero % Orocúe % Petrobras, Repsol & Statoil Tayrona Exploration % North Caribbean Offshore Shell Deep Rydberg/Aleatico Exploration % Gulf of Mexico Noble Energy Gunflint Production % Gulf of Mexico Murphy Oil Dalmatian Production % Gulf of Mexico Anadarko K2 Production % Gulf of Mexico Shell - Parmer Palmer Exploration % Gulf of Mexico OXY (Anadarko) Warrior Exploration % Gulf of Mexico HESS ESOXX Exploration % Gulf of Mexico PEMEX Exploracion Y Produccion Bloque 8 Exploration % Gulf of Mexico PETRONAS PC Carigali Mexico Operations, S.A. de C.V. Bloque 6 Exploration % Gulf of Mexico Occidental Petroleum Company Rodeo Midland Basin Production % Texas U.S. - Midland Basin Equion Energia Limited Niscota Production % Colombia CNOOC - British Petroleum Pau Brasil Exploration % Brazil Shell / Chevron Saturno Exploration % Brazil Chevron CE-M-715_R11 Exploration % Brazil Lewis SSJN1 Exploration % Colombia Interoil Colombia Mana Production % Colombia Interoil Colombia Ambrosia Production % Colombia Interoil Colombia Rio Opia Production % Colombia Canacol Rancho Hermoso Otras formaciones Production % Colombia Vetra La Punta Santo Domingo Production % Colombia Geopark Llanos 86 Exploration % Colombia Geopark Llanos 87 Exploration % Colombia Geopark Llanos 104 Exploration % Colombia 31.2 Contracts in which Ecopetrol is the operator % Geographic area of Partners Contract Type Participation operations ExxonMobil Exploration Colombia VMM29 Exploration % Colombia CR2 C62 Talisman Colombia Oil CPO9 Exploration % Colombia ONGC Videsh Limited Colombia Branch RC9 Exploration % Colombia CPVEN Sucursal Colombia VMM32 Exploration % Colombia Shell Exploration and Production CR4 Exploration % Colombia SK Innovation Co Ltd. San Jacinto Exploration % Colombia Repsol Exploración Colombia S.A. Catleya Exploration % Colombia Emerald Energy PLC Suc. Colombia Cardon Exploration % Colombia Talismán Colombia oil and gas Ltd. CPO9 – Akacias Production % Colombia Parex Resourses Colombia Ltd. ORC401 CRC-2004-01 Exploration % Colombia Occidental Andina LLC La Cira Infantas Exploration % Teca % Colombia Ramshorn International Limited Guariquies I Production % Colombia Equion Energy Limited Cusiana Production % Colombia Planta de Gas Perenco Oil And Gas San Jacinto Rio Paez Production % Colombia Cepsa Colombia Total Colombie Mundo Nuevo Exploration % Colombia Talisman Oil & Gas ONGC Videsh Limited Block RC–9 Contract– Exploration % Gulf of Mexico 31.3 Relevant operations during the period During 2019 and 2018, the following significant events occurred in respect of joint operations contracts: (a) Strategic alliance with Occidental Petroleum Corp. In July 2019, Ecopetrol S.A. and Occidental Petroleum Corp. (OXY) entered into a Joint Operation contract in order to execute a joint plan for the development of unconventional drilling in the Permian Basin in the US state of Texas. OXY holds a 51% interest in the joint operation, while Ecopetrol holds the remaining 49%. This interest was acquired by means of a 50% advance payment at the close of the transaction on November 13, 2019 with the remaining 50% as a deferred investment to be paid over time in the activities included in the development plan. The total payment by Ecopetrol will amount to USD$1,500 million. To enable the operation, two companies were established: Ecopetrol USA Inc. and Ecopetrol Permian LLC. (b) Acquisition 30% Sul de Gato do Mato discovery On October 21, 2019, Ecopetrol S.A. announced that it had signed an agreement for USD$105 million with Shell Brasil Petróleo Ltda through its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda., to acquire 30% of the interests, rights and obligations in two areas corresponding to the BM-S-54 Concession Agreement and the Sul de Gato do Mato shared production agreement, located offshore in Brazil's pre-salt Santos basin, where a hydrocarbons deposit known as " Gato do Mato " was discovered. Shell will reduce its stake from 80% to 50% with this agreement and will continue as an operator, while the French company Total will retain the remaining 20%. The agreement signed by Ecopetrol Óleo e Gás do Brasil Ltda. and Shell Brasil Petróleo Ltda. is undergoing the respective approval process before Brazil's Ministry of Mines and Energy, and its National Agency of Petroleum, Natural Gas and Biofuels. (c) Agreement for the acquisition of 10% in Saturn Block In December 2018, the Group entered into an agreement with Shell and Chevron, for a 10% stake in the Saturn block, located in the central region of the Santos basin, which was assigned to Shell and Chevron on September 28, 2018 in the Fifth Pre-Salt Round conducted by the National Petroleum, Natural Gas and Biofuels Agency of Brazil (ANP). On July 17, 2019, the Ministry of Mines and Energy of Brazil authorized the transfer of 10% of the Saturn block for USD$85 million, located in the Santos basin, to Ecopetrol Óleo e Gás do Brasil, a percentage of which Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda. were equal holders. In the new shareholding structure, Ecopetrol retains 10% of the interests of the block, while Shell (the operator) and Chevron each retain 45% of the total. (d) Stake in Guajira Association On November 22, 2019, Hocol signed an agreement with Chevron Petroleum Company to acquire its share in the Chuchupa and Ballena fields located in the department of La Guajira. These fields are operated by Chevron through the Guajira Association Agreement (57% Ecopetrol and 43% Chevron). Under the terms of the agreement, Hocol will acquire Chevron’s share (43%), and will assume the position of operator. This transaction is subject to approval by the Superintendence of Industry and Commerce (SIC), and has no impact on the accounting figures as of December 31, 2019. |
Information by segments
Information by segments | 12 Months Ended |
Dec. 31, 2019 | |
Information by segments | |
Information by segments | 32. Information by segments A description of the Ecopetrol Business Group’s business segments is in Note 4.19 - Information by business segment. 32.1 Statement of profit or loss The following segment information is reported based on the information used by the Board of Directors as the top body to make strategic and operational decisions of these business segments. The performance of the segments are based primarily on an analysis of income, costs, expenses and results for the period generated by each segment which are regularly monitored. The information disclosed in each segment is presented net of transactions between the Ecopetrol Business Group companies. Below are the consolidated statements of profit or loss by segment for the years ended December 31, 2019, 2018 and 2017: For the year ended on December 31 2019 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 31,295,118 36,393,470 3,799,924 — 71,488,512 Inter–segment sales 21,372,872 2,377,336 9,270,812 (33,021,020) — Total sales revenue 52,667,990 38,770,806 13,070,736 (33,021,020) 71,488,512 Fixed costs (9,587,961) (3,523,948) (3,039,452) 3,878,443 (12,272,918) Variable costs (26,785,904) (34,332,271) (698,742) 29,117,475 (32,699,442) Cost of sales (36,373,865) (37,856,219) (3,738,194) 32,995,918 (44,972,360) Gross profit 16,294,125 914,587 9,332,542 (25,102) 26,516,152 Administrative expenses (1,284,560) (496,155) (372,942) 2,058 (5,488,994) Operation and project expenses (1,475,710) (743,378) (434,904) 22,238 (2,631,754) Impairment of non–current assets (1,982,044) 452,163 (232,556) — (1,762,437) Other operating income and expenses net 49,673 1,014,988 74,607 (82,472) 1,056,796 Operating income (expenses) 11,601,484 1,142,205 8,366,747 (83,278) 21,027,158 Financial result net Financial income 1,440,440 229,297 273,613 (320,014) 1,623,336 Financial expenses (2,311,133) (996,790) (306,878) 280,332 (3,334,469) Foreign exchange gain (loss) net 287,286 (179,936) (66,711) — 40,639 (583,407) (947,429) (99,976) (39,682) (1,670,494) Share of profits of associates and joint ventures 227,401 17,091 138 122,274 366,904 Income before tax 11,245,478 211,867 8,266,909 (686) 19,723,568 Income tax (1,925,798) (83,504) (2,709,111) — (4,718,413) Net profit (loss) for the period 9,319,680 128,363 5,557,798 (686) 15,005,155 Profit (loss) attributable to: Group owners of parent 9,382,129 117,708 4,244,860 (686) 13,744,011 Non–controlling interest (62,449) 10,655 1,312,938 — 1,261,144 9,319,680 128,363 5,557,798 (686) 15,005,155 Supplementary information Depreciation depletion and amortization 5,892,822 1,398,948 1,291,013 — 8,582,783 For the year ended on December 31, 2018 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 30,112,900 34,947,948 3,543,024 — 68,603,872 Inter–segment sales 20,259,864 2,063,425 7,811,143 (30,134,432) — Total sales revenue 50,372,764 37,011,373 11,354,167 (30,134,432) 68,603,872 Fixed costs (8,871,709) (3,204,791) (2,805,516) 3,535,979 (11,346,037) Variable costs (23,367,475) (32,453,962) (596,571) 26,579,666 (29,838,342) Cost of sales (32,239,184) (35,658,753) (3,402,087) 30,115,645 (41,184,379) Gross profit 18,133,580 1,352,620 7,952,080 (18,787) 27,419,493 Administrative expenses (889,293) (443,880) (320,498) (187) (4,961,079) Operation and project expenses (1,993,054) (668,177) (263,104) 21,203 (2,903,132) Impairment of non–current assets 785,940 (984,704) (169,870) — (368,634) Other operating income and expenses, net (137,836) (13,652) 118,905 (2,872) (35,455) Operating income (expenses) 15,899,337 (757,793) 7,317,513 (643) 22,458,414 Financial result, net Financial income 1,099,893 147,689 110,898 (228,917) 1,129,563 Financial expenses (2,038,312) (1,295,528) (407,589) 229,268 (3,512,161) Foreign exchange gain (loss), net 868,479 (517,410) 21,154 — 372,223 (69,940) (1,665,249) (275,537) 351 (2,010,375) Share of profits of associates and joint ventures 135,265 27,730 2,841 — 165,836 Income before tax 15,964,662 (2,395,312) 7,044,817 (292) 20,613,875 Income tax (6,096,591) 420,224 (2,582,118) — (8,258,485) Net profit (loss) for the period 9,868,071 (1,975,088) 4,462,699 (292) 12,355,390 Profit (loss) attributable to: Group owners of parent 9,930,519 (1,973,075) 3,424,234 (292) 11,381,386 Non–controlling interest (62,448) (2,013) 1,038,465 — 974,004 9,868,071 (1,975,088) 4,462,699 (292) 12,355,390 Supplementary information Depreciation, depletion and amortization 5,248,364 1,307,216 1,149,270 — 7,704,850 For the year ended on December 31, 2017 Exploration and Refining and Transport Production Petrochemicals and Logistics Eliminations Total Third–party sales 25,004,320 27,343,359 3,606,549 — 55,954,228 Inter–segment sales 11,490,614 1,300,657 6,991,515 (19,782,786) — Total sales revenue 36,494,934 28,644,016 10,598,064 (19,782,786) 55,954,228 Fixed costs (8,055,925) (2,886,745) (2,637,604) 3,239,880 (10,340,394) Variable costs (18,254,159) (23,968,650) (634,231) 16,289,109 (26,567,931) Cost of sales (26,310,084) (26,855,395) (3,271,835) 19,528,989 (36,908,325) Gross profit 10,184,850 1,788,621 7,326,229 (253,797) 19,045,903 Administrative expenses (781,386) (516,501) (466,669) 32 (2,874,048) Operation and project expenses (2,070,916) (965,457) (142,847) 253,155 (2,926,065) Impairment of non–current assets 183,718 1,067,965 59,455 — 1,311,138 Other operating income and expenses, net 545,218 (11,694) (28,121) — 505,403 Operating income (expenses) 8,061,484 1,362,934 6,748,047 (610) 16,171,855 Financial result, net Financial income 1,062,393 164,006 106,659 (173,702) 1,159,356 Financial expenses (2,288,576) (1,110,874) (434,664) 173,513 (3,660,601) Foreign exchange gain (loss), net (101,030) 163,992 (57,448) — 5,514 (1,327,213) (782,876) (385,453) (189) (2,495,731) Share of profits of associates and joint ventures 120,786 15,245 (42,493) — 93,538 Income before tax 6,855,057 595,303 6,320,101 (799) 13,769,662 Income tax (3,034,556) (238,625) (2,527,087) — (5,800,268) Net profit (loss) for the period 3,820,501 356,678 3,793,014 (799) 7,969,394 Profit (loss) attributable to: Group owners of parent 3,820,501 358,859 2,999,978 (799) 7,178,539 Non–controlling interest — (2,181) 793,036 — 790,855 3,820,501 356,678 3,793,014 (799) 7,969,394 Supplementary information Depreciation, depletion and amortization 5,981,294 1,188,871 1,111,182 — 8,281,347 32.2 Sales by product The sales by product for each segment are detailed below for the years ended December 31, 2019, 2018 and 2017: For the year ended on December 31, 2019 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid-distillates — 13,573,007 — (31,251) 13,541,756 Gasoline and turbo fuel — 11,269,797 — (1,896,767) 9,373,030 Transport service 57,316 51,812 12,853,762 (9,133,788) 3,829,102 Natural gas 2,909,770 49,420 — (653,647) 2,305,543 Plastic and rubber — 760,301 — — 760,301 Asphalts 24,690 519,510 — — 544,200 LPG and propane 179,541 193,375 — — 372,916 Crude 21,056,104 — — (20,699,247) 356,857 Services 169,062 232,407 216,920 (309,036) 309,353 Aromatics — 228,552 — — 228,552 Polyethylene — 190,133 — — 190,133 Other income gas contracts 102,845 — — — 102,845 Fuel oil 1,464 96,443 — — 97,907 Other products 25,215 779,407 — (297,286) 507,336 24,526,007 27,944,164 13,070,682 (33,021,022) 32,519,831 Recognition of price differential — 1,785,277 — — 1,785,277 24,526,007 29,729,441 13,070,682 (33,021,022) 34,305,108 Foreign sales Crude 28,461,601 61,995 — — 28,523,596 Diesel — 4,391,798 — — 4,391,798 Fuel oil — 1,870,929 — — 1,870,929 Plastic and rubber — 1,200,668 — — 1,200,668 Gasoline and turbo fuels — 1,085,392 — — 1,085,392 Natural gas 27,255 — — — 27,255 LPG and propane 13,591 — — — 13,591 Cash flow hedge for future exports – reclassification to profit or loss (386,773) — — — (386,773) Other products 26,309 430,584 55 — 456,948 28,141,983 9,041,366 55 — 37,183,404 52,667,990 38,770,807 13,070,737 (33,021,022) 71,488,512 For the year ended on December 31, 2018 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid–distillates 725 11,662,476 — (77,009) 11,586,192 Gasoline and turbo fuel — 9,690,113 — (1,737,261) 7,952,852 Transport service 37,279 36,321 11,089,012 (7,631,208) 3,531,404 Natural gas 2,535,658 — — (649,812) 1,885,846 Plastic and rubber — 822,367 — — 822,367 Crude 20,142,527 — — (19,592,048) 550,479 LPG and propane 245,875 329,569 — (805) 574,639 Fuel oil 20,391 489,091 — — 509,482 Asphats 26,406 309,020 — — 335,426 Aromatics — 282,545 — — 282,545 Polyethylene — 270,887 — — 270,887 Services 103,522 190,612 265,059 (319,783) 239,410 Other income gas contracts 156,031 — — — 156,031 Other products 11,484 604,530 — (126,507) 489,507 23,279,898 24,687,531 11,354,071 (30,134,433) 29,187,067 Recognition of price differential — 3,835,533 — — 3,835,533 23,279,898 28,523,064 11,354,071 (30,134,433) 33,022,600 Foreign sales Crude 26,898,737 — — — 26,898,737 Diesel — 3,050,839 — — 3,050,839 Fuel oil — 2,053,594 — — 2,053,594 Gasoline and turbo fuels — 1,782,194 — — 1,782,194 Plastic and rubber — 1,268,582 — — 1,268,582 Natural gas 27,899 — — — 27,899 LPG and propane 20,212 — — — 20,212 Cash flow hedge for future exports – Reclassification to profit or loss 128,404 — — — 128,404 Other products 17,614 333,101 96 — 350,811 27,092,866 8,488,310 96 — 35,581,272 50,372,764 37,011,374 11,354,167 (30,134,433) 68,603,872 For the year ended on December 31, 2017 Exploration and Refining and Transport Production Petrochemicals and Logistics Eliminations Total Local sales Mid–distillates 1,334 9,588,992 — — 9,590,326 Gasoline and turbo fuel — 8,052,289 — (1,062,102) 6,990,187 Transport service 41,157 41,998 10,277,921 (6,771,523) 3,589,553 Natural gas 2,540,233 4 — (724,483) 1,815,754 Plastic and rubber — 833,982 — — 833,982 Crude 11,668,529 — — (10,758,658) 909,871 LPG and propane 199,796 309,823 — — 509,619 Fuel oil 14,758 339,300 — — 354,058 Asphats 34,834 240,969 — — 275,803 Aromatics — 217,418 — — 217,418 Polyethylene — 167,348 — — 167,348 Services 140,227 179,912 319,776 (356,116) 283,799 Other income gas contracts 188,195 — — — 188,195 Other products 11,107 379,023 — (109,904) 280,226 14,840,170 20,351,058 10,597,697 (19,782,786) 26,006,139 Recognition of price differential — 2,229,953 — — 2,229,953 14,840,170 22,581,011 10,597,697 (19,782,786) 28,236,092 Foreign sales Crude 21,426,666 52,397 — — 21,479,063 Diesel — 1,213,740 — — 1,213,740 Fuel oil — 1,982,408 — — 1,982,408 Gasoline and turbo fuels — 1,223,994 — — 1,223,994 Plastic and rubber — 1,169,101 — — 1,169,101 Natural gas 32,303 — — — 32,303 LPG and propane 15,631 — — — 15,631 Cash flow hedge for future exports – Reclassification to profit or loss 160,772 — — — 160,772 Other products 19,392 421,365 367 — 441,124 21,654,764 6,063,005 367 — 27,718,136 36,494,934 28,644,016 10,598,064 (19,782,786) 55,954,228 32.3 Capital expenditures by segments The following are the investments amounts made by each segment for the years ended December 31, 2019, 2018 and 2017: Exploration Refining and Transport and 2019 and Production Petrochemicals Logistics Total Property, plant and equipment 2,151,194 497,512 1,363,953 4,012,659 Natural and environmental resources 9,798,193 — — 9,798,193 Intangibles 25,775 20,569 121,945 168,289 11,975,162 518,081 1,485,898 13,979,141 Exploration Refining and Transport and 2018 and Production Petrochemicals Logistics Total Property, plant and equipment 2,071,604 702,247 529,078 3,302,929 Natural and environmental resources 5,051,828 — — 5,051,828 Intangibles 56,755 20,203 28,711 105,669 7,180,187 722,450 557,789 8,460,426 Exploration Refining and Transport and 2017 and Production Petrochemicals Logistics Total Property, plant and equipment 927,282 606,749 829,252 2,363,283 Natural and environmental resources 3,568,355 — — 3,568,355 Intangibles 154,155 4,941 16,772 175,868 4,649,792 611,690 846,024 6,107,506 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent events | |
Subsequent events | 33. Subsequent events - On January 31, 2020, the General Shareholders' Meeting of Bioenergy SAS and on January 27, 2020, the sole shareholder of Bioenergy Zona Franca SAS, approved that those companies will submit a reorganization request under Law 1116 of 2006. This process intends to preserve the viability of the companies and normalize their business and credit relations, through operational and administrative restructuring, as well as their assets and liabilities. On March 10, 2020, the Superintendence of Companies issued a resolution admitting Bioenergy to the reorganization process regulated by the aforementioned law. This decision is a result of: 1) the accumulated accounting losses of the companies, 2) the increase in the level of indebtedness compared to the initial planned capital structure, and 3) the fact that the plant failed in working at its maximum capacity due to the low productivity of the cane generated by its own crops and by third parties. - On February 7, 2020, Ecopetrol reported that an agreement with Shell was signed, through its subsidiary Shell EP Offshore Ventures Limited (“Shell”). According to the agreement, Shell will acquire a 50% interest in the Fuerte Sur, Purple Angel and COL-5 blocks. They are located in deep waters of the Colombian Caribbean, where a new gas province was discovered considering the wells Kronos (2015), Purple Angel and Gorgon (2017). Following the commercial agreement, Shell will assume the operation of the blocks, and drilling activities of a delimiter well will be executed at the end of 2021. The activities to be performed, once the company gets respective approvals of the authorities, include a production test. - On February 21, 2020, the Ministry of Finance and Public Credit authorized Ecopetrol S.A. to arrange for issuance and placement of bonds in the international capital market in an amount up to two billion dollars (USD $2 billion). This authorization, along the other available funding sources of the Company, allows Ecopetrol to strengthen its liquidity position in case of unexpected fluctuations in crude prices, to finance potential growth opportunities, to optimize the current debt portfolio and/or to reduce the refinancing risk. - Public health problems, such as epidemics, pandemics, and other contagious diseases can affect the operations and financial statements of the Ecopetrol Business Group. In December 2019, a new class of coronavirus called COVID-19 appeared in China; it has spread worldwide including in Colombia and the United States, during the first quarter of 2020. The outbreaks have already been identified worldwide, and it has forced several governments, including Colombia, to decree mandatory isolation. In addition, during the last few weeks, global and regional economic and political developments in the Organization of the Petroleum Exporting Countries (OPEC) and the willingness and ability of the OPEC and its members to set production levels have impacted the international reference prices. Extended periods of low prices for crude oil, refined products can have a material adverse impact on the Group’s results of operations. Among other things, the upstream and downstream earnings, cash flows, dividends, refining margins, operational and capital expenditures, and exploratory expenditure programs could be negatively affected, as could its production. The fluctuations presented in the reference prices added to the COVID-19 outbreaks are leading to a decrease in economic activity, including oil, gas and refined products demand, and therefore these could affect negatively the Group's results of operations and financials. The effects and duration of this situation will depend on future developments, which are highly uncertain and cannot be predicted at this time. |
Supplemental information on oil
Supplemental information on oil and gas producing activities (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental information on oil and gas producing activities (unaudited) | |
Supplemental information on oil and gas producing activities (unaudited) | 34. Supplemental information on oil and gas producing activities (unaudited) The information in this note is referred to as “unaudited” as a means of clarifying that it is not covered by the audit opinion of the independent registered public accounting firm that has audited and reported on the “Consolidated Financial Statements.” In accordance with the requirements of the United States Securities and Exchange Commission (SEC), Rule 4–10(a) of Regulation S–X, Release 33–8879, Accounting Standards Codification 932 and the ASU– 2010–03 “Oil and Gas reserve Estimation and Disclosures” rule, this section provides supplemental information on oil and gas exploration and producing activities of the Ecopetrol Business Group. The information included in sections (1) to (3) provides historical cost information pertaining to costs incurred in exploration, property acquisitions and development, capitalized costs and results of operations. The information included in sections (4) and (5) presents information on Ecopetrol’s estimated net proved reserve quantities, standardized measure of estimated discounted future net cash flows related to proved reserves and changes in estimated discounted future net cash flows. The following information corresponds to Ecopetrol’s oil and gas producing activities as of December 31 2019, 2018 and 2017, and includes information related to the Ecopetrol Business Group’s consolidated subsidiaries, as well as its investments the joint ventures Equion Energía Limited and Offshore International Group. The oil and gas exploration and production activities of these two joint ventures are immaterial, as such the corresponding information has not been disclosed separately. Under the SEC final rule optional disclosure of possible and probable reserves is allowed but, the Ecopetrol Business Group opted not to do so. Ecopetrol estimated its reserves without considering non–traditional resources. 34.1 Capitalized costs relating to oil and gas exploration and production activities 2019 2018 2017 Natural and environmental properties 60,261,025 53,752,436 48,129,595 Wells, equipment and facilities – property, plant and equipment 30,150,268 29,416,081 30,405,565 Exploration and production projects 8,801,630 8,463,584 6,632,812 Accumulated depreciation, depletion and amortization (60,346,094) (55,689,222) (51,791,897) Net capitalized cost 38,866,829 35,942,879 33,376,075 It includes information of the Exploration and Production segment subsidiaries and joint ventures. In accordance with IAS 37, costs capitalized to natural and environmental properties include provisions for asset retirement obligations of COP$2,260,113, COP$1,076,116 and COP$598,125 during 2019, 2018 and 2017, respectively. 34.2 Costs incurred in oil and gas exploration and developed activities Costs incurred are summarized below and include both amounts expensed and capitalized in the corresponding period. 2019 2018 2017 Acquisition of proved properties(1) 2,668,960 — 591,875 Acquisition of unproved properties(2) 261,231 81,295 164,180 Exploration costs 640,556 1,197,946 1,095,588 Development costs 8,084,283 6,346,276 3,599,385 11,655,030 7,625,517 5,451,028 (1) In July 2019, Ecopetrol S.A. and Occidental Petroleum Corp. (OXY) entered into a Joint Operation contract in order to execute a joint plan for the development of unconventional drilling in the Permian Basin in the state of Texas (USA). On December 2017, Ecopetrol América Inc. acquired an 11.6% interest in the K2 oil field in the Gulf of Mexico from MCX, increasing its share from 9.2% to 20.8%. (2) On July 17, 2019, the Ministry of Mines and Energy of Brazil authorized the transfer of 10% of the Saturn block for USD$85 million, located in the Santos basin, to Ecopetrol Óleo e Gás do Brasil, this percentage of which Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda. were equal holders. In the new shareholding structure, Ecopetrol retains 10% of the interests of the block, while Shell (operator) and Chevron each retain 45% of the total. As of December 2017, the investments were mainly made by Ecopetrol América Inc. in offshore exploration projects of the Warrior and Rydberg wells. 34.3 Results of operations for oil and gas exploration and production activities The Ecopetrol Business Group’s results of operations from oil and gas exploration and production activities for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Net revenues Sales 42,070,018 39,633,866 29,823,565 Transfers 11,564,358 11,794,014 7,518,216 53,634,376 51,427,880 37,341,781 Production costs(1) 9,336,387 8,337,413 6,535,794 Depreciation, depletion and amortization(2) 6,049,543 5,591,774 6,349,382 Other production costs(3) 21,550,907 18,918,275 14,066,593 Exploration expenses(4) 763,562 1,387,463 1,342,952 Other expenses(5) 4,163,241 1,036,983 882,743 41,863,640 35,271,908 29,177,464 Income before income tax expense 11,770,736 16,155,972 8,164,317 Income tax expense (2,107,363) (6,303,251) (3,678,955) Results of operations for exploration and production activities 9,663,373 9,852,721 4,485,362 (1) Production costs are lifting costs incurred to operate and maintain productive wells and related equipment and facilities including costs such as operating labor, materials, supplies, and fuel consumed in operations and the costs of operating natural gas liquids plants. In addition, they include expenses related to the asset retirement obligations that were recognized during 2019, 2018 and 2017 of COP$198,394, COP$187,340 and COP$380,810, respectively. (2) In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2019, 2018 and 2017 in depreciation, depletion and amortization, were COP$272,147, COP$180,193 and COP$179,601, respectively. (3) Corresponds to transportation costs and naphtha that are not part of the Ecopetrol Business Group’s lifting cost. (4) Exploration expenses include the costs of geological and geophysical activities, as well as the non–productive exploratory wells. (5) Corresponds to administration, marketing expenses and impairment. During 2019, 2018 and 2017, the Ecopetrol Business Group transferred approximately 21.6%, 22.9% and 20.1%, respectively, of its crude oil and gas production; (percentages based on the value sales in Colombian pesos) to intercompany business units. Those transfers were 51.5%, 51.8% and 48.4%, respectively, of crude oil and gas production volume (including Reficar). The intercompany transfers were realized at market prices. 34.4 Reserve information The Ecopetrol Business Group follows international standards for estimating, classifying and reporting reserves framed under SEC definitions. Corporate Reserve Management of Ecopetrol, Upstream Management and the Vice-Presidency of Development and Production, present the reserves balance to the Board of Directors for approval. The reserves were estimated at a level of 99% by specialized firms: DeGolyer and MacNaughton, Ryder Scott Company, Gaffney Cline & Associates, Sproule International Limited and Netherland, Sewell & Associates, Inc. According to these certifications the reserves report complies with the content and guidelines set forth in Rule 4–10 of Regulation S–X issued by the United States SEC. The following information relates to the net proven reserves owned by the Ecopetrol Business Group in 2019, 2018 and 2017, and corresponds to the official reserves statements prepared by the Ecopetrol Business Group: 2019 2018 2017 Oil Gas Total Oil Gas Total Oil Gas Total (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) Proved reserves: Opening balance (1) 1,200 3,002 1,727 1,088 3,254 1,659 1,033 3,218 1,598 Revisions of previous estimates(2) 74 51 83 121 (4) 121 124 294 175 Improved recovery 94 3 94 128 4 129 72 4 73 Purchases 142 126 164 — — — 3 2 4 Extensions and discoveries 66 2 67 54 18 57 44 — 43 Production (193) (278) (242) (191) (270) (239) (188) (264) (234) Closing balance 1,383 2,906 1,893 1,200 3,002 1,727 1,088 3,254 1,659 Proved developed reserves: Opening balance 883 2,882 1,389 818 3,158 1,372 779 3,131 1,329 Closing balance 898 2,662 1,365 883 2,882 1,389 818 3,158 1,372 Proved undeveloped reserves: Opening balance 317 119 338 270 96 287 254 87 269 Closing balance 486 244 529 317 119 338 270 96 287 (1) The values for 2019 were not rounded for presentation purposes. (2) Represents changes in previous proved reserves, upward or downward, resulting from new information (except for an increase in a proved area), usually obtained from development drilling and production history or result from changes in economic factors. For additional information about the changes in Proved Reserves and the process for estimating reserves, see section 3.1 – Oil and Gas Reserves. 34.5 Standardized measure of discounted future net cash flows relating to proved oil and gas quantities and changes therein The standardized measure of discounted future net cash flows related to the above proved crude oil and natural gas reserves is calculated in accordance with the requirements of ASU 2010–03. Estimated future cash inflows from production under SEC requirements are computed by applying unweighted arithmetic average of the first–day–of–the–month for oil and gas price to year–end quantities of estimated net proved reserves, with cost factors based on those at the end of each year, currently enacted tax rates and a 10% annual discount factor. In our view, the information so calculated does not provide a reliable measure of future cash flows from proved reserves, nor does it permit a realistic comparison to be made of one entity with another because the assumptions used cannot reflect the varying circumstances within each entity. In addition, a substantial but unknown proportion of future real cash flows from oil and gas production activities is expected to derive from reserves which have already been discovered, but which cannot yet be regarded as proved. 2019 2018 2017 Future cash inflows 279,722,107 275,046,421 182,114,282 Future costs Production (93,589,960) (90,176,326) (70,159,534) Development (32,734,702) (21,945,453) (14,860,992) Income taxes (37,077,231) (41,102,015) (23,660,328) Future net cash flow 116,320,214 121,822,627 73,433,428 10% discount factor (36,934,889) (35,518,187) (22,216,583) Standardized measure of discounted net cash flows 79,385,325 86,304,440 51,216,845 The following are the principal sources of change in the standardized measure of discounted net cash flows in 2019, 2018 and 2017: 2019 2018 2017 Net change in sales and transfer prices and in production cost (lifting) related to future production 2,411,040 79,632,263 26,918,170 Changes in estimated future development costs (12,627,361) (13,141,340) (1,978,913) Sales and transfer of oil and gas produced, net of production costs (44,297,989) (43,090,467) (30,805,987) Net change due to extensions, discoveries and improved recovery (1) 7,061,712 8,496,249 3,226,852 Net change due to purchase and sales of minerals in place 213,539 — 211,777 Net change due to revisions in quantity estimates 6,756,418 10,163,131 9,090,882 Previously estimated development costs incurred during the period 23,200,357 12,505,421 3,482,570 Accretion of discount 11,542,289 6,771,897 4,416,512 Timing and other (1) (4,993,389) (13,633,228) 8,991,981 Net change in income taxes 3,814,269 (12,616,331) (6,462,611) Aggregate change in the standardized measure of discounted future net cash flows for the year (6,919,115) 35,087,595 17,091,233 (1) For comparative purposes, figures as of December 2017 were reclassified. |
Exhibit 1. Consolidated subsidi
Exhibit 1. Consolidated subsidiaries, associates and joint ventures | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of consolidated subsidiaries, associates and joint ventures | |
Disclosure of interests in subsidiaries, associates and joint ventures [text block] | Exhibit 1 – Consolidated subsidiaries, associates and joint ventures Consolidated subsidiary companies (1/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Refinería de Cartagena S.A.S. U.S. dollar 100 % Refining of hydrocarbons, commercialization and distribution of products Colombia Colombia 17,260,342 63,700 26,738,049 9,477,707 Cenit Transporte y Logística S.A.S. Colombian peso 100 % Storage and transport by pipelines of hydrocarbons Colombia Colombia 15,289,423 4,322,501 17,470,013 2,180,590 Oleoducto Central S. A. - Ocensa U.S. dollar 72.65 % Transportation by crude oil pipelines Colombia Colombia 3,718,707 2,697,990 7,172,245 3,453,538 Ecopetrol Global Energy S.L.U U.S. dollar 100 % Investment vehicle Spain Spain 7,889,271 1,256,639 7,892,018 2,747 Hocol Petroleum Limited U.S. dollar 100 % Investment vehicle Bermuda Bermuda 3,008,263 378,889 3,008,416 153 Ecopetrol América LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 2,529,782 (64,032) 3,067,856 538,074 Hocol S.A. U.S. dollar 100 % Exploration, exploitation and production of hydrocarbons Cayman Islands Colombia 2,000,248 366,311 3,293,912 1,293,664 Esenttia S.A. U.S. dollar 100 % Production and commercialization of polypropylene resin Colombia Colombia 1,652,851 197,639 2,100,014 447,163 Ecopetrol Capital AG U.S. dollar 100 % Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. Switzerland Switzerland 1,630,044 124,098 6,885,838 5,255,794 Andean Chemicals Ltd. U.S. dollar 100 % Investment vehicle Bermuda Bermuda 1,158,661 (190,135) 1,159,558 897 Oleoducto Bicentenario de Colombia S.A.S. Colombian peso 55.97 % Transportation by crude oil pipelines Colombia Colombia 1,569,418 575,910 3,792,998 2,223,580 Oleoducto de los Llanos Orientales S. A. - ODL Colombian peso 65 % Transportation by crude oil pipelines Panama Colombia 1,079,130 485,516 1,654,772 575,642 Inversiones de Gases de Colombia S.A. Invercolsa S.A. (1) Colombian peso 51.88 % Holding with investments in natural gas and LPG transportation and distribution companies in Colombia Colombia Colombia 817,849 18,198 1,361,333 543,484 Consolidated subsidiaries (2/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Black Gold Re Ltd. U.S. dollar 100 % Reinsurer for companies of the Ecopetrol Business Group Bermuda Bermuda 751,916 54,547 888,577 136,661 Oleoducto de Colombia S.A. – ODC Colombian peso 73 % Transportation by crude oil pipelines Colombia Colombia 422,898 329,775 663,666 240,768 Bioenergy S.A.S Colombian peso 99.61 % Production of biofuels Colombia Colombia 46,756 (270,376) 219,686 172,930 Esenttia Masterbatch Ltda Colombian peso 100 % Manufacture of polypropylene compounds and masterbatches Colombia Colombia 263,152 113,587 347,308 84,156 Ecopetrol Oleo é Gas do Brasil Ltda. Brazilian real 100 % Exploration and exploitation of hydrocarbons Brazil Brazil 728,744 (140,819) 757,348 28,604 Bioenergy Zona Franca S.A.S. Colombian peso 99.61 % Production of biofuels Colombia Colombia (89,565) (236,088) 358,751 448,316 Ecopetrol del Perú S.A. U.S. dollar 100 % Exploration and exploitation of hydrocarbons Peru Peru 50,311 (2,025) 52,351 2,040 ECP Hidrocarburos de México S.A. de C.V. U.S. dollar 100 % Offshore exploration Mexico Mexico 38,144 (73,303) 70,854 32,710 Ecopetrol Costa Afuera S.A.S. Colombian peso 100 % Offshore exploration Colombia Colombia 12,208 (3,760) 32,130 19,922 Esenttia Resinas del Perú SAC U.S. dollar 100 % Commercialization polypropylene resins and masterbatches Peru Peru 4,830 101 28,831 24,001 Ecopetrol Energía S.A.S E.S.P. Colombian peso 100 % Energy supply service Colombia Colombia 7,405 3,990 106,773 99,368 Ecopetrol Germany Gmbh (2) U.S. dollar 100 % Exploration and exploitation of hydrocarbons Germany Angola 2,283 (12) 2,283 — Ecopetrol USA Inc. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 7,070,295 1,483,597 7,070,295 — Ecopetrol Permian LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 3,043,138 (4,768) 3,044,851 1,713 Topili Servicios Administrativos S de RL de CV Mexican peso 100 % Specialized management services Mexico Mexico 46 (4) 49 3 Kalixpan Servicios Técnicos S de RL de CV Mexican peso 100 % Specialized services related to oil and gas industry Mexico Mexico (3) (3) 1 4 (1) Values according to consolidated financial statements of the company. The result in profit (loss) corresponds to one month of operation. Assets and liabilities values as of December 2019. (2) Company in liquidation process. Associated companies and joint ventures Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Associates Serviport S.A. (1) Colombian peso 49 % Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements Colombia Colombia 22,593 1,164 59,044 36,451 Sociedad Portuaria Olefinas y Derivados S.A. (1) Colombian peso 50 % Construction, use, maintenance and administration of port facilities, ports, private docks Colombia Colombia 3,816 646 6,753 2,937 Joint ventures Equion Energía Limited U.S. dollar 51 % Exploration, exploitation and production of hydrocarbons United Kingdom Colombia 2,234,067 396,380 2,625,837 391,770 Offshore International Group Inc. U.S. dollar 50 % Exploration, exploitation and production of hydrocarbons United States Peru 736,847 (48,247) 1,766,271 1,029,424 Ecodiesel Colombia S.A. (2) Colombian peso 50 % Production, commercialization and distribution of biofuels and oleochemicals Colombia Colombia 92,191 17,964 147,087 54,896 (1) Information available as of September 30, 2019. The investment is 100% impaired as of December 31, 2019. (2) Information available as of November 30, 2019. |
Exhibit 2. Conditions of the mo
Exhibit 2. Conditions of the most significant loans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of conditions of the most significant loans [Abstract] | |
Disclosure of significant loans [text block] | Exhibit 2 – Conditions of the most significant loans Outstanding Outstanding balance balance Interest Amortization Payment of Type of credit Company Issue date Expiry date Currency Disbursement Dec 31, 2019 Dec 31, 2018 rate plan interest dec-10 dec-20 COP 479,900 479,900 479,900 Floating Bullet Half-yearly dec-10 dec-40 COP 284,300 284,300 284,300 Floating Bullet Half-yearly Bonds, domestic Ecopetrol S.A. aug-13 aug-23 COP 168,600 168,600 168,600 Floating Bullet Half-yearly Currency aug -13 aug-28 COP 347,500 347,500 347,500 Floating Bullet Half-yearly aug -13 aug-43 COP 262,950 262,950 262,950 Floating Bullet Half-yearly Local currency Oleoducto Bicentenario S.A.S jul-12 jul-24 COP 2,100,000 1,021,890 1,191,050 Floating Quarterly Quarterly syndicated loan ODL Finance S.A. aug -13 aug-20 COP 800,000 312,608 224,000 Floating Quarterly Quarterly Commercial loan Bioenergy abr-11 dec-31 COP 505,723 530,733 444,157 Floating Monthly Monthly sep-13 sep-23 USD 1,300 1,300 1,300 Fixed Bullet Half-yearly sep-13 sep-43 USD 850 850 850 Fixed Bullet Half-yearly Bonds, foreign Ecopetrol S.A. may-14 may-45 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly currency sep-14 may-25 USD 1,200 1,200 1,200 Fixed Bullet Half-yearly jun-15 jun-26 USD 1,500 1,500 1,500 Fixed Bullet Half-yearly jun-16 sep-23 USD 500 500 500 Fixed Bullet Half-yearly Oleoducto Central S.A. may-14 may-21 USD 500 506 500 Fixed Bullet Half-yearly International dec-17 dec-27 USD 2,001 1,530 1,742 Fixed Half-yearly Half-yearly commercial credits - dec-17 dec-27 USD 76 58 66 Floating Half-yearly Half-yearly Refinería de Ecopetrol S.A. dec-17 dec-27 USD 73 56 63 Fixed Half-yearly Half-yearly Cartagena dec-17 dec-27 USD 159 121 138 Floating Half-yearly Half-yearly dec-17 dec-25 USD 359 288 321 Floating Half-yearly Half-yearly |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Financial instruments | 4.1 Financial instruments A financial instrument is any contract that creates a financial asset for one entity and a financial liability or equity instrument for another entity. The classification of financial instruments depends on the nature and purpose for which the financial assets or liabilities were acquired and is determined at the time of initial recognition. Financial assets and financial liabilities are initially measured at their fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Loans and trade receivables, other receivables and financial assets held–to–maturity are measured subsequently measured at amortized cost using the effective interest method. Equity investments available for sale that do not have a market quotation price and for which fair value cannot be reliably measured are measured at cost less any impairment identified at the end of each reporting period. Measurements at fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in the principal market of the asset or liability or in the absence of a principal market in the most advantageous market. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset for its most profitable use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate for the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are classified within the following scale, based on the lowest level input that is significant to the fair value measurement as a whole, as follows: · Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities. The fair value of the Ecopetrol Business Group’s marketable securities with a quoted market price is based on Level 1 inputs. · Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observed. Level 2 inputs include prices of similar assets, prices obtained through quotations made by stockbrokers, and prices that can be substantially corroborated with other observable data with the same contractual terms. For derivative contracts for which a quoted market price is not available, fair value estimates are generally determined using models and other valuation methods, the key inputs for which include future prices, volatility estimates, price correlation, counterparty credit risk and market liquidity, as appropriate. For other assets and liabilities, fair value estimations are generally based on the net present value of expected future cash. · Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The Ecopetrol Business Group does not use Level–3 inputs for the measurement of financial assets and liabilities. The Ecopetrol Business Group may use Level–3 inputs for the calculation the recoverable amount of certain non–financial assets for the purpose of impairment testing. Effective interest rate method The effective interest rate method is a method of calculating the amortized cost of a financial instrument and accounting of income or financial cost over the relevant period. The effective interest rate is the discount rate that exactly discounts estimated future cash receipts or payments (including all fees, transaction costs and other premiums or discounts) through the expected life of the financial instrument (or, when appropriate, at a shorter period), to the net carrying amount on initial recognition. Impairment The Ecopetrol Business Group evaluates if there is objective evidence that a financial asset or group of financial assets are impaired. Financial assets are evaluated for the impairment indicators at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated future cash flows of the asset have been affected. For financial assets measured at amortized cost, the amount of the impairment loss recognized is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. |
Cash and cash equivalents | 4.1.1 Cash and cash equivalents Cash and cash equivalents include cash on hand, financial investments that are highly liquid, bank deposits and special funds with original maturity dates of ninety days or less which are subject to an insignificant risk of changes in value. |
Financial assets | 4.1.2 Financial assets The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Ecopetrol Business Group has applied the practical expedient, the Ecopetrol Business Group initially measures a financial asset at its fair value plus, and, in the case of a financial asset not at fair value through profit or loss, at transaction costs. Trade receivables that do not contain a significant financing component or for which the Ecopetrol Business Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. The Ecopetrol Business Group classifies its financial assets in the following categories: a) Financial assets measured at fair value through profit or loss Financial assets are held for trading and financial assets designated at the time of the initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired to be sold or repurchased in the short term. They are recognized at their fair value and losses or profits arising at the time of re–measurement are recognized in the statement of profit or loss. b) Financial assets measured at fair value with changes in other comprehensive income These are equity instruments of other non–controlled and non–strategic companies not allowing for any type of control or significant influence thereon and where the Ecopetrol Business Group’s management does not intend to negotiate with them in the short term. These investments are recorded at their fair value and unrealized gains or losses are recognized in other comprehensive income. c) Financial assets at amortized cost This category is the most relevant to the Group. The Group's financial assets at amortized cost includes trade receivables, other receivables, loans to associates, and loans to employees. Loans and receivables are non–derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables, including trade and other receivables, are measured initially at fair value and then at amortized cost using the effective interest rate method, less impairment. Loans to employees are initially recorded using the present value of the future cash flows, discounted at the current market rate for similar loans. If the interest rate is less than the current market rate, fair value will be less than the amount of the loan. This difference is recorded as a benefit to employees. The Group measures financial assets at amortized cost if both of the following conditions are met: § The asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows § The contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. De–recognition of financial assets The Ecopetrol Business Group derecognizes a financial asset only upon the expiration of the contractual rights to the cash flows of the asset or, when it has transferred its rights to receive such cash flows or has assumed the obligation to pay the cash flows received in full without material delay to a third party and (a) it has transferred substantially all the risks and benefits inherent in the ownership of the financial asset or (b) it has neither transferred nor retained substantially all the risks and benefits of the asset, but has transferred control of the asset. When the Ecopetrol Business Group does neither transfer nor retain substantially all the risks and benefits of the asset or transfer control of the asset, the Ecopetrol Business Group continues to recognize the transferred asset, to the extent of its continuing participation, and it also recognizes the associated liability. |
Financial liabilities | 4.1.3 Financial liabilities Financial liabilities correspond to the financing obtained by the Ecopetrol Business Group through bank credit facilities and bonds, accounts payable to suppliers and creditors. Bonds and bank credit facilities (this is the category most relevant to the Group) are initially recognized at their fair value, net of directly attributable transactions cost. After initial recognition, interest–bearing credit facilities and bonds are subsequently measured at amortized cost, using the effective interest rate (EIR) method. The effective interest method amortization is included as a financial expense in the statement of profit or loss. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss. Accounts payable to suppliers and creditors are short–term financial liabilities recorded at nominal value, since it does not significantly differ from fair value. Derecognition A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. When an existing financial liability has been replaced by another from the same lender, under substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de–recognition of the original liability and recognized as a new liability. The difference between the respective carrying amounts is recognized in the statement of profit or loss. |
Derivative financial instruments and hedging activities | 4.1.4 Derivative financial instruments and hedging activities Financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Changes in the fair value of derivatives are recognized as gains or losses in the statement of profit or loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedge item affects profit or loss. Changes in fair value of derivative contracts, which do not qualify or are not designated as hedges, including forward contracts for the purchase and sale of commodities under negotiation for physical delivery or receipt of the commodity are recorded in profit or loss. Derivatives embedded in the host contract are accounted for as separate derivatives at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. |
Hedging operations | 4.1.5 Hedging operations For purposes of hedge accounting, hedges are classified as: § Cash flow hedges: hedges of the exposure to variability in cash flows attributable to a particular risk associated with all, or a component of, a recognized asset or liability or a highly probable forecast transaction, and that could affect profit or loss. § Hedges of net investments in foreign operations. § Fair value hedges: hedges of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or a component of any such item, that is attributable to a particular risk and that could affect profit or loss. At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine whether they have been highly effective throughout the financial reporting periods for which they were designated. |
Cash flow hedge | 4.1.5.1 Cash flow hedge The effective portion of the gain or loss on the hedging instrument is recognized in Other Comprehensive Income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked or when the hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in other comprehensive income remains separately in equity until the forecast transaction occurs is recognized in the consolidated statement of profit or loss. When it is no longer expected that the initially hedged transaction will occur. Ecopetrol designates long–term loans as hedging instruments for its exposure to the exchange risk in future oil exports. See Note 28 for further information. |
Hedge of net investment in a foreign operation | 4.1.5.2 Hedge of net investment in a foreign operation Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net investment, are accounted for in a way similar to cash flow hedges. Gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized as OCI while any gains or losses relating to the ineffective portion are recognized in the statement of profit or loss. On the disposal of a foreign operation, the cumulative value of any such gains or losses recorded in equity is transferred to the statement of profit or loss. Ecopetrol allocates long–term loans as hedging instruments for its exposure to foreign exchange risk on its investment in subsidiaries whose functional currency is the U.S. dollar. See Note 28 for further information. |
Fair value hedge | 4.1.5.3 Fair value hedge The gain or loss on the hedging instrument shall be recognized in profit or loss or other comprehensive income, if the hedging instrument hedges an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income. The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be recognized in profit or loss. If the hedged item is a financial asset (or a component thereof) that is measured at fair value through other comprehensive income, the hedging gain or loss on the hedged item shall be recognized in profit or loss. However, if the hedged item is an equity instrument for which an entity has elected to present changes in fair value in other comprehensive income, those amounts shall remain in other comprehensive income. |
Inventories | 4.2 Inventories Inventories are stated at the lower of cost and net realizable value. Inventories mainly comprise crude oil, fuels and petrochemicals and consumable inventories (spares and supplies). The cost of crude oil is the production costs, including transportation costs. The cost required to bring a pipeline into working order, is treated as part of the related pipeline. The cost of other inventories is determined based on the weighted average cost method, which includes acquisition costs (deducting commercial discounts, rebates and other similar items), transformation, and other costs incurred to bring inventory to their current location and condition, such as transportation costs. Consumable inventories (spares and supplies) are recognized as inventory and then charged to expense, maintenance or project to the extent that such items are consumed. Ecopetrol estimates the net realizable value of inventories at the end of the period. When the circumstances that previously caused inventories to be written down below cost no longer exist, or when there is clear evidence of an increase in the net realizable value because of a change in economic circumstances, the amount of the write–down is reversed. The reversal cannot be greater than the amount of the original write–down, so that the new carrying amount will always be the lower of the cost and the revised net realizable value. |
Related parties | 4.3 Related parties Related parties are considered those in which one party has the ability to control, or has joint control of the other, or exercises significant influence over the other party in making financial or operational decisions, or is a member of key management personnel (or close relative of a member). The Ecopetrol Business Group considers related parties to be associates, joint ventures, key management executives, entities managing resources for payment of employee post–employment benefit plans and Colombian government entities for the purposes of certain relevant transactions, such as the purchase of hydrocarbons and the fuel price stabilization fund (see Note 30 – Related parties). |
Investments in associates | 4.3.1 Investments in associates An associate is an entity over which the Ecopetrol Business Group has significant influence but not control. Significant influence is the power to participate in the financial and operational policy decisions of the investee, but it is not control or joint control over those policies. Generally, these entities are those in which the Ecopetrol Business Group holds an equity interest with voting rights of 20% to 50%. See Exhibit I – Consolidated companies, associates and joint ventures for further details . Investments in associates are accounted for using the equity method. Under this method, the investment in an associate is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Ecopetrol Business Group’s share of net assets of the associate since the acquisition date. Goodwill related to the associate is included in the carrying amount of the investment and it is not tested for impairment separately. The Ecopetrol Business Group’s share of the results of operations of the associate is recognized in the consolidated statement of profit or loss. Any change in other comprehensive income is recognized in other comprehensive income of the Ecopetrol Business Group. After application of the equity method, the Ecopetrol Business Group determines if it is necessary to recognize an impairment on its investment in its associate. The Ecopetrol Business Group determines whether there is objective evidence that the investment is impaired. If there is such evidence, the amount of the impairment is calculated as the difference between the recoverable amount and its carrying value, and then the impairment is recognized in the consolidated statement of profit or loss. When necessary, the Ecopetrol Business Group makes adjustments to the accounting policies of associates to ensure consistency with the policies adopted by the Ecopetrol Business Group. Additionally, the equity method of these companies is measured on their most recent financial statements. |
Joint ventures | 4.3.2 Joint ventures A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control exists only when decisions about the relevant activities require unanimous consent of the parties sharing such control. The accounting treatment for the recognition of joint ventures is the same as investments in associates. |
Joint operations | 4.4 Joint operations A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. Joint operation contracts are entered into between Ecopetrol and third parties to share risk, secure capital, maximize operating efficiency and optimize the recovery of reserves. In these joint operations, one party is designated as the operator to execute the operations and report to partners according to their participating interests. Likewise, each party takes its share of the produced hydrocarbons (crude oil or gas), according to their share in production. When Ecopetrol participates as a non–operator partner, it records the assets, liabilities, sales revenues, cost of sales and expenses based on the operator’s report. When Ecopetrol is the direct operator of joint venture contracts, it records its percentage of assets, liabilities, sales revenues, costs and expenses, based on the participation of each partner in the items corresponding to assets, liabilities, sales revenues, costs and expenses. When the Ecopetrol Business Group acquires or increases its participation in a joint operation in which the activity constitutes a business combination, such transaction is recorded applying the acquisition method in accordance with IFRS 3 – Business combination. The acquisition cost is the sum of the consideration transferred, which corresponds to the fair value, on the date of acquisition of the assets transferred and the liabilities incurred. Any transaction cost related to the acquisition or increased share in the joint operation that constitutes a business combination is recognized in the consolidated statement of profit or loss. The excess of the sum of the consideration transferred and the amount paid in the operation is recognized as goodwill. If the result is in an excess value of the net assets acquired over the amount paid in the operation, the difference is recognized as income in the consolidated statement of profit or loss on the date of recognition of the transaction. |
Non-current assets held for sale | 4.5 Non–current assets held for sale Non–current assets are classified as held for sale if their carrying values will be recovered principally through a sale transaction rather than through continued use. Non–current assets are classified as held for sale only when the sale is highly probable within one year from the classification date and the asset (or group of assets) is available for immediate sale in its present condition. These assets are measured at the lower of their carrying amount and fair value less related costs of disposal. |
Property, plant and equipment | 4.6 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Tangible components related to natural and environmental resources are part of property, plant and equipment. The initial cost of an assets comprises its purchase price or construction cost, including import duties and non–refundable purchase taxes, any costs directly attributable to bringing the asset into operation, costs of employee benefits arising directly from the construction or acquisition, borrowing costs incurred that are attributable to the acquisition and construction of qualifying assets and the initial estimate of the costs of dismantling and abandonment of the item. Spare parts and servicing equipment are recorded as inventories and recognized as an expense as they are used. Major spare parts and stand–by equipment that the entity expects to use during more than one period are recognized as property, plant and equipment. Any gain or loss arising from the disposal of a property, plant and equipment is recognized in profit or loss of the period. Subsequent disbursements Subsequent disbursements correspond to all payments to be made on existing assets in order to increase or extend the initial expected useful life, increase productivity or productive efficiency, allow for significant reduction of operating costs, increase the level of reserves in exploration or production areas or replace a part or component of an asset that is considered critical for the operation. The costs of repair, conservation and maintenance of a day to day nature are expensed as incurred. However, disbursements related to major maintenance are capitalized. Depreciation Property, plant and equipment is depreciated using the straight–line method, except for those associated with exploration and production activities which are depreciated using the units–of–production method. Technical useful lives are updated annually considering factors such as: additions or improvements (due to parts replacement or critical components for the asset’s operation), technological advances, obsolescence and other factors; the effect of this change is recognized from the period in which it was executed. Depreciation of an asset starts when it is ready to be used. Useful lives are determined based on the period over which an asset is expected to be available for use, physical exhaustion, technical or commercial obsolescence and legal limits or restrictions over the use of the asset. The estimated useful life of assets fluctuates in the following ranges: Plant and equipment 11 – 60 years Pipelines, networks and lines 11 – 50 years Buildings 11 – 50 years Other 6 – 40 years Land is recorded separately from buildings and facilities and it is not subject to depreciation. Depreciation methods and useful lives are reviewed annually and adjusted if appropriate. |
Natural and environmental resources | 4.7 Natural and environmental resources Recognition and measurement Ecopetrol uses the successful efforts method to account for exploration and production of crude oil and gas activities, following the provisions of IFRS 6 – Exploration for the evaluation of mineral resources. Exploration costs Acquisition and exploration costs are recorded as exploration and evaluation assets until the determination of whether the exploration drilling is successful or not; if determined to be unsuccessful, all costs incurred are recognized as expenses in the consolidated statement of profit or loss. Exploration costs are those incurred with the objective of identifying areas that are considered to have prospects of containing oil and gas reserves, including geological and geophysical, seismic costs, viability, and others, which are recognized as expenses when incurred. Furthermore, disbursements associated with the drilling of exploratory wells and those related to stratigraphic wells of an exploratory nature are charged as assets until it is determined if they are commercially viable; otherwise, they are expensed in the consolidated statement of profit or loss as dry wells expense. Other expenditures are recognized as expenses when incurred. An exploration and evaluation asset is no longer classified as such when the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Exploration and evaluation assets are reclassified to the natural and environmental resources account after being assessed for impairment. All capitalized costs are subjected to technical and commercial revisions at least once a year to confirm the evaluation and exploration efforts continue on the fields; otherwise, these costs are written off through to profit or loss. Exploration costs are net of the revenues obtained from the sale of crude oil during the extensive testing period, net of cost of sales, since they are considered necessary to complete the asset. Development costs Development costs correspond to those costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering and storing. When a project is approved for development, the corresponding capitalized acquisition and exploration costs are classified as natural and environmental resources and costs subsequent to the exploration phase are capitalized as development costs of the properties that contain such natural resources. All development costs are capitalized, including drilling costs of unsuccessful development wells. Production costs Production costs are those incurred to operate and maintain productive wells, and are part of the corresponding equipment and facilities. Production activity includes extraction of oil and gas to the surface, its gathering, treatment and processing as well as storage in the field. Production costs are expenses recorded in the consolidated statement of profit or loss as incurred unless they add oil and gas reserves, in which case they are capitalized. Production and support equipment is recognized at cost and is part of property, plant and equipment subject to depreciation. Capitalized costs also include decommissioning, dismantling, retiring and restoration costs, as well as the estimated cost of future environmental obligations. The estimation includes plugging and abandonment costs, facility dismantling and environmental recovery of areas and wells. Changes arising in new abandonment liability estimations and environmental remediation are capitalized in the carrying amount of the related asset. Depletion Depletion of natural and environmental resources is determined using the unit–of–production method per field, using proved developed reserves as a base, except in limited exceptional cases that require greater judgment by Management to determine a better amortization factor of future economic benefits over the useful life of the asset. Depreciation rates are reviewed annually, based on reserves reports and the impact of any changes is recognized prospectively in the financial statements. Reserves are independently estimated by internationally recognized external consultants and approved by Ecopetrol’s Board of Directors. Proved reserves consist of the estimated quantities of crude oil and natural gas demonstrated with reasonable certainty by geological and engineering data to be recoverable in future years from known reserves under existing economic and operating conditions, that is, at the prices and costs that apply at the date of the estimation. Impairment Assets associated to exploration, evaluation and production are subject to review for possible impairment in their carrying amount. See Notes 3.2 — Asset impairment (reversal) and 4.12 — Impairment of non–financial assets . |
Capitalization of borrowing costs | 4.8 Capitalization of borrowing costs Borrowing costs related to the acquisition, construction or production of a qualifying asset that requires a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset when it is probable that future economic benefits associated with the item will flow to the Ecopetrol Business Group and costs can be measured reliably. Other borrowing costs are recognized as finance costs. Projects that have been suspended but that the Ecopetrol Business Group intends to continue to pursue their development in the future, are not considered qualifying assets for the purpose of capitalization of borrowing costs. |
Intangible assets | 4.9 Intangible assets Intangible assets with a defined useful life, are stated at cost less accumulated amortization and any impairment loss. Intangible assets are amortized under the straight–line method, over their estimated useful lives. The estimated useful lives and amortization method are revised at the end of each reporting period; any change in estimates is recognized on a prospective basis. The disbursements in relation to research activities are expensed as incurred. |
Goodwill | 4.10 Goodwill Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non–controlling interest and any previous interest held over the net identifiable assets acquired and liabilities assumed). After initial recognition goodwill is measured at cost less any accumulated impairment loss. Goodwill is not amortized but tested for impairment annually. |
Leases | 4.11 Leases As of January 1, 2019, the Group applied IFRS 16 - Leases. See Note 5.1. |
Impairment of non-current assets | 4.12 Impairment of non–current assets In order to evaluate if any tangible or intangible assets are impaired, Ecopetrol compares its carrying amount with its recoverable amount at the end of each reporting period or earlier, if there is any indicator that an asset may be impaired. For purposes of impairment testing, assets are grouped into cash generating units (CGU), provided that those assets individually considered do not generate cash inflows that, to a greater extent, are independent from those generated by other assets or CGUs. The grouping of assets in different CGUs requires the exercise of professional judgment and the consideration, among other parameters, of the business segments. In this sense, in the Exploration and Production segment, each CGU corresponds to each one of the different contractual areas commonly called “fields”; by exception, in those cases where the cash inflows generated by several fields are interdependent from each other, those fields are grouped into a single CGU. In the case of the Refining and Petrochemicals, each CGUs corresponds to each one of the refineries and companies in this segment of the Ecopetrol Business Group and for the Transportation segment; each pipeline system is considered an independent CGU. The recoverable amount of an asset is the higher amount of the fair value less costs of disposal or its value in use. If the recoverable amount of an asset (or of a CGU) is lower than its net carrying amount, such amount (or that of the CGU) is reduced to its recoverable amount, recognizing an impairment loss in profit or loss. Fair value less costs of disposal is usually higher than the value in use for the asset’s in the production segment due to some significant restrictions in the estimation of future cash flows, such as: a) future capital expenses that improve the CGU performance, which could result in expected increase of net cash flows, and b) items before taxes that reflect specific business risks, resulting in a higher discount rate. Fair value less costs of disposal is determined as the sum of the future discounted cash flows adjusted to the estimated risk. The estimations of expected future cash flows used in the assessment of impairment of the assets include estimates of futures commodity prices, supply and demand estimations, and the margins of the products. Fair value less costs of disposal, as described above, is compared to valuation multiples and quoted prices of shares in companies comparable to Ecopetrol, in order to determine if it is reasonable. When an impairment loss is recorded, future amortization expenses are calculated on the basis of the adjusted recoverable amount. Impairment losses may be recovered only if the reversal is related to a change in estimations used after impairment loss was recognized. These recoveries do not exceed the carrying amount of the assets net of depreciation or amortization that would have been determined if such impairment had not been recognized. The carrying amount of non–current assets reclassified as assets held–for–sale is compared to its fair value less costs of disposal. No other provision for depreciation, depletion or amortization is recorded if the fair value less costs of sale is lower than the carrying amount. |
Provisions and contingent liabilities | 4.13 Provisions and contingent liabilities Provisions are recognized when the Ecopetrol Business Group has a current obligation (legal or constructive) as a result of a past event, it is probable that Ecopetrol will be required to settle the obligation, and a reliable estimation can be made of the amount of the obligation. Where applicable, they are recorded at present value, using a rate reflecting the risk specific to the liability. Future environmental decommissioning costs related to current or future operations, are accounted for as expenses or assets, as the case may be. Expenditures related to past operations that do not contribute to the obtaining of current or future benefits, are expensed as incurred. The recognition of these provisions coincides with the identification of an obligation related to environmental remediation and Ecopetrol uses available information to determine a reasonable estimation of the related cost. Provisions for which a negative outcome is assessed as possible are not recognized but are disclosed in the explanatory notes; including those for which the amount cannot be estimated. If there is an expectation that the provision will be reimbursed, either in whole or in part, for example by virtue of an insurance contract, the amounts expected to be reimbursed are recognized as a separate asset only when such reimbursement is almost certain. If the effect of the time value of money is significant, the provisions are discounted using the current market rate before taxes reflecting, as applicable, the liability specific risks. When recognizing the discount, the increase of the provision resulting from time elapsed is recognized as financial cost in the profit or loss statement. Asset retirement obligation Liabilities associated with the retirement of assets are recognized when there are current obligations, either legal or constructive, related to the abandonment and dismantling of wells, facilities, pipelines, buildings and equipment. The obligation is usually recorded when the assets are installed or when the surface or the environment are altered at the operating sites. These liabilities are calculated using the discounted cash flow method, using a pre–tax rate reflecting current market conditions similar liabilities and considering the economic limits of the field or the useful life of the respective asset. When it is not possible to determine a reliable estimation in the period in which the obligation originates, a provision is recognized when there is enough information available to make the best estimation. The carrying amount of the provision is reviewed and adjusted annually considering changes in the assumptions used for its estimation, using a rate that reflects the risk specific to the liability. Any change in the present value of the estimated expenditure is reflected as an adjustment to the provision and the corresponding property, plant and equipment and natural and environmental resources. When a decrease in the asset retirement obligation related to a producing asset exceeds the carrying amount of the asset, the excess is recognized in the consolidated statement of profit or loss. The increase in the provision due to the passage of time is recognized in results for the period as a financial expense. |
Income tax and other taxes | 4.14 Income tax and other taxes Income tax expense is comprised of income tax payable for the period and the effect of deferred taxes in each period. Current income taxes are recognized in income except when they relate to items recognized in other comprehensive income, in which case the corresponding tax effect is also recognized in other comprehensive income. Income tax assets and liabilities are presented separately in the consolidated statement of financial position, except where there is a right of setoff within fiscal jurisdictions and an intention to settle such balances on a net basis. Income tax is paid by each legal entity and not on a consolidated basis. |
Current income tax | 4.14.1 Current income tax The Ecopetrol Business Group determines the provision for income tax based on the highest amount between taxable income and presumptive income (the minimum estimated amount of taxable profit on which the law expects to quantify and collect income taxes). Taxable income differs from profit before tax as reported in the consolidated statement of profit or loss, because of: items of income or expense that are taxable or deductible in other periods, special taxable deductions, tax losses and income and line items measured that, according to applicable tax laws in each jurisdiction, are considered nontaxable or nondeductible. |
Deferred income tax | 4.14.2 Deferred income tax Deferred tax is provided using the liability method for temporary differences between the carrying amounts of existing assets and liabilities in the consolidated financial statements and their respective tax bases. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences and for all accumulated tax losses, if there is a reasonable expectation that the Ecopetrol Business Group will generate future tax profits against which they will be used. Deferred taxes on assets and liabilities are calculated based on the tax rates that are expected to apply during the years in which temporary differences between the carrying amounts and tax bases are expected to be reversed. The carrying amount of a deferred tax asset is subject to review at the end of each reporting period, and it is reduced to the extent it is no longer probable that the corresponding legal entity will generate enough future taxable profit to realize such deferred tax asset. In the statement of financial position, deferred tax assets are reflected net and as an offset against deferred tax liabilities, depending on the overall tax position in a particular jurisdiction and on the same taxable entity. Deferred taxes are not recognized when they arise in the initial recognition of an asset or liability in a transaction (except in a business combination) and at the time of the transaction, do not affect the accounting or tax profit, or in respect of the taxes on the possible future distribution of accumulated profits of subsidiaries or investments accounted for by the equity method, if at the time of the distribution it may be controlled by Ecopetrol and it is probable that the retained earnings will be reinvested by the Ecopetrol Business Group companies and, therefore, will not be distributed to the Group. |
Other taxes | 4.14.3 Other taxes The Ecopetrol Business Group recognizes in profit or loss the costs and expenses related to other taxes than the income tax, such as the wealth tax, which is determined based on the tax equity, the industry and commerce tax on income obtained in the municipalities for performance of commercial, industrial and service activities, and the transport tax on volumes loaded in the transport systems. Taxes are calculated in accordance with current tax regulations. For more details, see Note 10. |
Employee benefits | 4.15 Employee benefits Salaries and benefits for Ecopetrol’s employees are governed by the Colombian Collective Labor (Agreement 01 of 1977), and, by the Colombian Substantive Labor Code. In addition to the benefits determined by labour laws, employees are entitled to fringe benefits which are subject to the place of work, type of work, length of service, and basic salary. An annual interest of 12% is recognized on accumulated severance amounts for each employee, and the payment of compensation is provided for when special circumstances arise resulting in the non–voluntary termination of the contract, without justified cause, and in periods other than the probationary period. Ecopetrol belonged to the special pension regime under which pension liabilities are Ecopetrol’s responsibility and not pension fund’s responsibility. However, Law 797 of January 29, 2003 and Legislative Act 001 of 2005 determined that Ecopetrol will no longer belong to the said regime and that from that point on employees would be part of the General Pension Regime. Consequently, pension obligations related to employees pensioned until July 31, 2010 are still Ecopetrol’s responsibility. Employees are entitled to such pension bonus if they worked with Ecopetrol prior to January 29, 2003, but whose labor agreement expired without renewal before that date. All labor benefits of employees who joined Ecopetrol before 1990 are Ecopetrol’s responsibility, without the involvement of any social security entity or institution. Service cost for the employee and his/her relatives registered with Ecopetrol is determined by means of a mortality table, prepared based on facts occurring during the year. For employees who joined Ecopetrol after the Act 50 of 1990 went in effect, Ecopetrol makes periodic contributions for severance payments, pensions and labor risks to the respective funds. In 2008, Ecopetrol partially settled the value corresponding to monthly pension payments from its pension liabilities, transferring such liabilities and their underlying amounts to autonomous pension funds (PAP, for its acronym in Spanish). The funds transferred, and returns on those funds, cannot be redirected, nor can they be returned to the Ecopetrol Business Group, until all of the pension obligations have been fulfilled. The settled obligation covers allowances and pension bonds payments, with health and education remaining Ecopetrol’s responsibility. Employee benefits are divided into four groups comprised as follows: a) Short–term employee benefits and post–employment defined benefits: Benefits to employees in the short term mainly correspond to those which payment will be made in the term of twelve months following the closing of the period in which the employees have rendered their services. These mainly include salaries, severance payments, vacation, bonuses and other benefits. Post–employment benefits of defined contributions plans correspond to the periodic payments for severance, pensions and labor risk payments that the Ecopetrol Business Group makes to the respective funds that assume these obligations in their entirety. The above benefits are recognized as an expense with an associated liability after deducting any already paid amounts. b) Post–employment defined benefit plans: In the defined benefits plan, the Ecopetrol Business Group provides the benefits agreed to current and former employees and assumes the actuarial and investment risks. The following benefits are classified as long–term defined benefit plans recognized in the financial statements according to the calculations of an independent actuary: · Pensions · Pension bonds · Health · Educational plan · Retroactive severances Liabilities recognized in the statement of financial position with respect to these benefit plans are determined based on the present value of the defined benefit obligation at the date of the statement of financial position less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected credit unit method, which takes into account employees’ years of service and, for pensions, average or final pensionable remuneration. This obligation is discounted at its present value using interest rates of high–quality government bonds denominated in the currency in which the benefits will be paid and of a duration consistent with the plan obligations. These actuarial calculations involve several assumptions that could differ from the events that will effectively take place in the future. Said assumptions include the determination of a discount rate, future salary increases, mortality rates and future pension increases. Because of the complexity of the calculation, the underlying assumptions and long–term nature of these plans, the obligations for defined benefits are extremely sensitive to changes in assumptions. All key assumptions are revised at the end of the reported period. In determining the appropriate discount rate, in absence of a broad high quality bond market, Management considers interest rates corresponding to the class B TES bonds issued by the Colombian Government as its best reference, at an appropriate discount rate with maturities extrapolated in line with the term expected for each benefit plan. The mortality rate is based on the particular country’s rate, the latest version of which is the RV08 mortality table published in resolution 1555 of October 2010. The future salary and pension increases are linked to the country’s future inflation rates. Note 20 – Provisions for employee benefits provides further details on key assumptions used. The amounts recognized in the consolidated statement of profit or loss related to employees defined benefit plans are comprised mainly by service cost and the net financial expense. Service cost includes mainly the increase in present value of the benefit obligation during the period (current service cost) and the amount resulting from a new benefit plan. Plan amendments corresponds to changes in benefits and are usually recognized when all legal and regulatory approvals have been obtained and the effects have been conveyed to the employees involved. The net financial expense is calculated using the net liability for defined benefits as compared with the yield curve of the discount rate at the beginning of each year for each plan. The net defined benefit obligation or asset resulting from actuarial profits and losses, the asset ceiling effect and the asset profitability, excluding the value of recognized in the consolidated statement of profit or loss, are recognized in other comprehensive income. When the plan assets exceed the gross obligation, the recognized asset is limited to the lower of the surplus in the defined benefits plan and the ceiling of assets determined using a discount rate based on Colombian Government bonds. (a) Others long-term benefits Others long–term benefits include the five–year term bonus which also considered in the actuarial calculation. This benefit is a cash bond that accumulates annually and is paid every five years to employees. The Ecopetrol Business Group recognizes in the consolidated statement of profit or loss the service cost, the net financial cost and the adjustment to the obligation of the defined benefit plan. (b) Termination benefits Termination benefits are recognized only when a detailed plan exists and there is no possibility to withdraw the offer. The Ecopetrol Business Group recognizes a liability and an expense for termination benefits at the earliest date between the date when the offer of such benefits cannot be withdrawn and the date when the restructuring costs are recognized. |
Revenue from contracts with customers | 4.16 Revenue from contracts with customers The Ecopetrol Business Group’s business is based on three principal sources of revenue from customer contracts: 1) sales of crude oil and natural gas, 2) services associated with the transport of hydrocarbons, and 3) sales of refined products, petrochemicals and biofuels. Revenue from customer contracts is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration that the Ecopetrol Business Group expects to receive in exchange for those goods or services. Sales of crude oil and natural gas Revenue from sales of crude oil and natural gas is recognized upon transfer of control to the buyer. This generally occurs when the product is physically transferred into a vessel, pipe or by another delivery method, thus fulfilling the Ecopetrol Group's performance obligations to its customers. For some natural gas supply contracts with a replacement period, a distinction is made between quantities of gas consumed and not consumed in order to recognize the respective revenue or liability relating to quantities that will be requested in the future. Once the customer claims such natural gas, the revenue is recognized. Services associated with hydrocarbons transport Revenue from transport services is recognized when the service is provided to the customer and there are no contractual conditions that prevent recognition of the revenue. Ecopetrol Business Group companies are principal in providing these services. Ship/ Take-or-Pay contracts for the sale of refined products, storage and transport specify minimum quantities of products or services for which a customer will pay, even if the latter does not receive them or use them (“deficient quantities”). Although the Ecopetrol Business Group expects customers to recover all deficient quantities to which they are contractually entitled, any load revenue received related to temporary shortfalls that will be offset in a future period will be deferred and that amount recognized as revenue in the event any of the following scenarios occurs: a) The customer exercises its right to deficient volumes or services, or b) The possibility is remote that the customer will exercise its right to deficient volumes or services. Refined products and biofuels In the case of refined products, petrochemicals and biofuels, such as fuel oil, asphalt, polyethylene, LPG and propane and gasoline, etc., revenue is recognized when the products are shipped and delivered by the refinery; subsequently, they are adjusted for price changes, in the case of products with regulated prices. In other cases the, Ecopetrol Business Group recognizes revenue when the performance obligation is satisfied, giving rise to the certain, probable and quantifiable right to demand payment. Under current local regulation, Ecopetrol sells regular gasoline and ACPM in Colombia at a regulated price. In accordance with Decree 1068 of 2015, the Ministry of Mines and Energy semiannually calculates and settles Ecopetrol’s net position to be stabilized for each fuel by the Fuel Price Stabilization Fund (FEPC, for its acronym in Spanish). The net position corresponds to the sum of the spreads throughout the period, the result of which is the amount in pesos owed to the Company and charged to the resources of the FEPC. The differential corresponds to the product between the volume reported by the Company at the time of sale and the difference between the parity price and the reference price, the parity price being that which corresponds to the daily prices of motor and diesel gasoline observed during the month, expressed in pesos, referenced to the Gulf of the United States market, calculated by applying Resolution 18 0522 of 2010, and the reference price is the Producer Income defined by the Ministry of Mines and Energy for these purposes. Therefore, this differential constitutes a greater or lesser value of sales revenue for Ecopetrol. According to the risk profiles, the Ecopetrol Business Group manages advance payment systems for some of its customer contracts. Significant financing component Generally payments received from customers are short term. Using the practical expedient in IFRS 15, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and the customer’s payment for that good or service to be one year or less. Variable considerations Upon fulfillment of the obligations set forth in agreements with customers, via delivery of the product or provision of the service, variable components of the transaction price may exist, such as the exchange rate for crude exports or international price fluctuations. In these cases, the Ecopetrol Business Group will make its best estimate of the transaction price that reflects the goods and services transferred to customers. Agreements signed with customers do not include variable considerations such as rebates, refunds or discounts. Non-cash considerations Agreements signed in the Ecopetrol Business Group does not consider non-cash transactions. Customer advances These correspond to contractual obligations in which the Ecopetrol Business Group receives advances from customers. These advances by customers form part of the policies and risk assessment defined by the Business Group. |
Costs and expenses | 4.17 Costs and expenses Costs and expenses are presented according to their nature; they are detailed in the related disclosures in cost of sales, and administrative, operating, projects and other associated expenses. |
Finance income (expenses) | 4.18 Finance income (expenses) Finance income and expenses include mainly: a) borrowings costs on loans and financing, except for those that are capitalized on qualifying asset, b) gains and losses on changes in fair value of financial instruments measured at fair value through profit or loss, c) currency exchange differences of financial assets and liabilities, except for debt instruments designated as hedging instruments, d) interest expenses as a result of discounting long–term liabilities (abandonment costs and pension liabilities), e) dividends derived from equity instruments measured at fair value with changes in other comprehensive income. |
Information by business segment | 4.19 Information by business segment Ecopetrol presents the information related to its business segments in its consolidated financial statements in accordance with paragraph 4 of IFRS 8 – Operation segments. The operations of the Ecopetrol Business Group are performed through three business segments: 1) Exploration and Production, 2) Transport and Logistics and 3) Refining, Petrochemical and Biofuels. Segments are determined based on management objectives and corporate strategic plans, considering that these businesses: (a) are engaged in different commercial activities, which generate sales revenue and incur costs and expenses; (b) the operational results are revised regularly by the Ecopetrol Business Group’s Governance that makes operational decisions to allocate resources to the various segments and assess their performance; and (c) there is differentiated financial information available. Internal transfers represent sales to inter–company segments and are recorded and presented at market prices. a) Exploration and production : This segment includes activities related to the exploration and production of oil and gas. Revenues are derived from sales of oil and natural gas at market prices to other segments and to third parties (domestic and foreign distributors). Costs include costs incurred in production. Expenses include all exploration costs that are not capitalized. b) Transport and logistics : This segment includes sales revenue and costs associated with the transport and distribution of hydrocarbons and derivative products in operation. c) Refining, petrochemicals and biofuels : This segment mainly includes activities performed at the Barrancabermeja and Cartagena refineries, where crude oil from production fields is refined or processed. Revenues are derived from the sale of products to other segments and to domestic and foreign customers and include refined and petrochemical products at market prices and some fuels at regulated price. This segment also includes industrial service sales to customers. See information by segments in Note 32. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting policies | |
Schedule of depreciation and amortisation expense | Plant and equipment 11 – 60 years Pipelines, networks and lines 11 – 50 years Buildings 11 – 50 years Other 6 – 40 years |
New standards and regulatory _2
New standards and regulatory changes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New standards and regulatory changes | |
Summary of book values of the right-of-use assets, the lease liabilities and the movements for the period | The book values of the right-of-use assets, the lease liabilities and the movements for the period are detailed below: Right-of-use assets Lands and Plant and Right-of- Lease buildings equipment Vehicles use assets Sublease liabilities Balance as of December 31, 2018 (1) — — — — — 797,889 IFRS 16 adoption (January 1, 2019) 236,519 78,412 145,704 460,635 29,610 490,245 Additions 26,252 123,341 74,900 224,493 — 224,493 Amortization of the period (44,254) (50,944) (80,156) (175,354) — — Impairment loss — (53,488) — (53,488) — — Disposals (4) (57) — (61) — (50) Finance cost — — — — 3,302 76,139 Repayment of borrowings — — — — (3,476) (300,326) Exchange difference — — — — — 2,564 Balance as of December 31, 2019 218,513 97,264 140,448 456,225 29,436 1,290,954 (1) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
IFRS Statement [Line Items] | |
Schedule of Cash and cash equivalents | 2019 2018 Banks 5,813,306 4,511,078 Short–term investments 1,262,105 1,799,597 Cash 347 1,069 7,075,758 6,311,744 |
Credit quality of issuers of investments [Member] | |
IFRS Statement [Line Items] | |
Schedule of other financial assets measured at fair value through profit or loss | The following table reflects the credit quality of issuers of investments included in cash and cash equivalents: Rating 2019 2018 AAA 3,851,656 3,092,236 A-1 1,244,462 512,757 BRC1+ 673,342 470,623 BBB 569,514 1,305,037 F1+ 244,547 222,454 AA 229,473 107,520 A 167,404 — A-2 89,996 147,186 BB 43 — Baa2 10 — A1 — 394,696 F1 — 48,566 Other 5,311 10,669 7,075,758 6,311,744 |
Trade and other receivables, _2
Trade and other receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables, net | |
Schedule of trade and other receivables, net | 2019 2018 Current Customers Foreign 2,759,993 2,404,531 Domestic 2,015,517 1,512,821 Fuel price stabilization fund(1) 256,303 3,828,691 Accounts receivable from employees 95,693 78,459 Industrial services 47,691 154,152 Related parties (Note 30) 27,449 23,480 Other 497,688 192,109 5,700,334 8,194,243 Non–current Accounts receivable from employees 508,588 470,609 Related parties (Note 30) 93,657 117,824 Domestic customers 52,819 — Other 131,732 167,141 786,796 755,574 (1) |
Schedule of changes in the allowance for doubtful accounts | The changes in the allowance for doubtful accounts for the year ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Opening balance 268,654 170,016 144,329 Additions, net 14,158 107,725 35,229 Accounts receivable write–off and uses (21) (9,087) (9,542) Closing balance 282,791 268,654 170,016 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories, net | |
Schedule of inventories, net | 2019 2018 Crude oil 1,965,022 1,958,572 Fuels and petrochemicals 1,876,247 1,524,548 Materials for the production of goods 1,816,830 1,617,287 5,658,099 5,100,407 |
Schedule of changes of the allowances for losses | 2019 2018 2017 Opening balance (86,938) (194,507) (265,435) (Reversals) additions, net (44,191) 115,778 (9,134) Foreign currency translation 371 (9,717) 4,266 Uses (768) 1,508 75,796 Closing balance (131,526) (86,938) (194,507) |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other financial assets [Line Items] | |
Schedule of other financial assets | 2019 2018 Assets measured at fair value through profit or loss Investment Portfolio – Local currency 1,630,149 3,389,869 Investment Portfolio – Foreign currency 3,340,908 4,754,369 4,971,057 8,144,238 Assets measured at amortized cost 3,367 3,577 Hedging instruments 4,868 — 4,979,292 8,147,815 Current 1,624,018 5,321,098 Non–current 3,355,274 2,826,717 4,979,292 8,147,815 |
Schedule of maturities of other financial assets | 2019 2018 Up to 1 year 1,624,018 5,321,098 1 – 2 years 983,571 1,847,241 2 – 5 years 1,791,549 823,425 > 5 years 580,154 156,051 4,979,292 8,147,815 |
Schedule of fair value hierarchy level | The following is the balance of other financial assets by fair value hierarchy level as of December 31, 2019 and 2018: 2019 2018 Level 1 472,547 372,636 Level 2 4,503,378 7,771,602 4,975,925 8,144,238 |
Other financial assets [Member] | |
Other financial assets [Line Items] | |
Schedule of other financial assets measured at fair value through profit or loss | The following table reflects the credit quality of the issuers of other financial assets measured at fair value through profit or loss: 2019 2018 AAA 2,707,019 3,105,894 A+ 712,934 161,160 AA 477,423 15,430 F1+ 350,325 353,175 AA- 186,325 455,584 A 186,222 80,334 BBB 159,968 — AA+ 155,012 193,747 BRC1+ — 611,905 BBB+ — 18,731 A1 18,168 3,148,043 Other 17,661 235 4,971,057 8,144,238 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Schedule of current tax assets and tax liabilities and movementos of deferred income tax | 2019 2018 Current tax assets Other taxes(1) 714,197 211,558 Income tax(2) 190,605 765,399 Credit tax balance(3) 614,005 54,350 1,518,807 1,031,307 Current tax liabilities Income tax(2) 1,967,353 1,065,688 Tax of industry and commerce 195,776 174,207 National tax and surcharge on gasoline 145,569 141,408 Carbon tax 54,586 48,520 Value added tax 33,098 168,185 Other taxes(4) 174,397 153,292 2,570,779 1,751,300 Non-current tax liabilities (5) 70,543 — (1) It includes the potential tax discount for VAT incurred in the acquisition of real productive fixed assets, in accordance with article 83 of Law 1943 of 2018 – Tax reform, and territorial tax advances. (2) It mainly corresponds to the 2019 income tax provision, net of self-withholdings, balances in favor (refunds), advances tax payments filed in the statement of the immediately preceding year. (3) VAT balance in favor, among others. (4) It includes royalties, transport tax, among others. (5) The advance payment mechanism of “works for taxes” is regulated by article 238 of Law 1819 of 2016 - Tax reform, which established it as a form of payment in respect of income tax payable for the years 2017 and 2018. In compliance therewith, in May 2018 and 2019, the Group’s companies recognized an asset and a liability for the value of the projects designated for each fiscal year. |
Schedule of income tax recognized in profit or loss | 2019 2018 2017 Current income tax 7,117,040 7,539,093 5,108,549 Deferred income tax (2,365,108) 783,136 472,772 Adjustments to prior years’ current and deferred tax (33,519) (63,744) 218,947 Income tax expenses 4,718,413 8,258,485 5,800,268 |
Schedule of statutory tax rate applicable | The reconciliation between the income tax expenses and the tax determined based on the statutory tax rate applicable to the Ecopetrol Business Group in Colombia is as follows: 2019 2018 * 2017 * Net income before income tax 19,723,568 20,613,875 13,769,662 Statutory rate 33 % 37 % 40 % Income tax at statutory rate 6,508,777 7,627,134 5,507,865 ETR reconciliation items: Non–deductible expenses 295,550 379,633 271,414 Rate differential adjustment 132,888 172,352 186,588 Impairment of non–financial assets 57,646 (128,461) (175,750) Increase in shareholding in Invercolsa (2,943) - - Non–taxable income (524,658) (119,963) (107,881) Prior years’ taxes (33,520) (63,744) 218,947 Foreign currency translation and exchange difference (54,318) 751,210 (186,787) Tax discounts and tax credit (110,857) — — Ecopetrol U.S.A. deferred tax (1,550,152) — — Effect of tax reform — (359,676) — Non–deductible wealth tax — — 85,872 Income tax calculated 4,718,413 8,258,485 5,800,268 Current 7,127,492 7,416,038 5,076,692 Deferred (2,409,079) 842,447 723,576 4,718,413 8,258,485 5,800,268 |
Schedule of deferred tax | 2019 2018 Deferred tax assets 6,809,347 3,879,427 Deferred tax liabilities (1,328,831) (1,337,943) Net deferred income tax 5,480,516 2,541,484 |
Schedule of deferred income tax assets and liabilities | The detail of deferred tax assets and liabilities is as follows: 2019 2018 Deferred tax assets (liabilities) Loss carryforwards (1) 2,849,087 1,002,062 Provisions (2) 2,404,032 1,994,762 Employee benefits (3) 1,875,872 1,161,860 Accounts payable 1,631,706 1,193,098 Accounts receivable 139,410 79,591 Excess presumptive income 64,249 (37,638) Right-of-use assets (33,592) — Investments and hedging (45,844) (143,717) Goodwill (4) (363,968) (404,394) Property plant and equipment and Natural and environmental resources (5) (3,040,436) (2,304,140) 5,480,516 2,541,484 (1) In 2019, a deferred tax asset for loss carryforwards were recognized in the following companies: Ecopetrol USA Inc for COP$1,497,966, Refinería de Cartagena for COP$1,052,848 and Bioenergy for COP$64,343 and the excess of presumptive income over net ordinary income of Refinería de Cartagena and Bioenergy for COP$228,569 and COP$5,361 respectively. (2) Corresponds to non-deductible accruals, mainly the provision for asset retirement obligation (ARO). (3) Actuarial calculations for health, retirement pensions, education, pension bonds and other benefits to long–term employees. (4) According to Colombian tax law, goodwill is amortizable, while under IFRS it is not amortized but such goodwill is subject to impairment tests and any difference results in a deferred tax liability. For fiscal purposes, natural and environmental resources and property, plant and equipment have a useful life and a methodology for calculating depreciation and amortization different from those determined under international accounting standards. This item includes the amount of tax for occasional gains of 10% to the land. The main variation corresponds to the decrease in the income tax rate from 33% to 30%. |
Schedule of deferred tax | Deferred tax details are as follows: PPE and Natural Loss carry Accounts resources Provisions Employee benefits forwards payable As of December 31, 2017 (1,006,299) 1,840,988 1,373,561 611,766 208,618 Profit or loss (1,297,841) 153,774 (178,160) 390,296 984,480 OCI — — (33,541) — — As of December 31, 2018 (2,304,140) 1,994,762 1,161,860 1,002,062 1,193,098 Profit or loss (736,296) 409,270 (57,343) 1,847,025 438,608 OCI — — 771,355 — — As of December 31, 2019 (3,040,436) 2,404,032 1,875,872 2,849,087 1,631,706 Accounts Right-of-use receivable Goodwill assets Others Total As of December 31, 2017 94,864 (408,932) — (31,685) 2,682,881 Profit or loss (15,273) 4,538 — (884,261) (842,447) OCI — — — 734,591 701,050 As of December 31. 2018 79,591 (404,394) — (181,355) 2,541,484 Profit or loss 59,819 40,426 (33,592) 441,162 2,409,079 OCI — — — (143,397) 627,958 Increase in Invercolsa shareholding — — — (98,005) (98,005) As of December 31, 2019 139,410 (363,968) (33,592) 18,405 5,480,516 |
Schedule of movements of deferred income tax | The movements of deferred income tax for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Opening balance 2,541,484 2,682,881 2,608,311 Deferred tax recognized in profit or loss 2,409,079 (842,447) (723,576) Increase due to business combination (Invercolsa) (98,005) — — Deferred tax recognized in other comprehensive income(a) 627,958 701,050 798,146 Closing balance 5,480,516 2,541,484 2,682,881 |
Schedule of income tax recorded in other comprehensive income | December 31. 2019 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) 2,571,184 (771,355) 1,799,829 Cash flow hedging for future crude oil exports (Note 29.1.2) (356,339) 118,008 (238,331) Hedge of a net investment in a foreign operation (Note 29.1.3) 87,524 (26,257) 61,267 Hedge with derivative instruments (69,220) 22,769 (46,451) Other — 28,877 28,877 2,233,149 (627,958) 1,605,191 December 31. 2018 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) (29,249) 33,539 4,290 Cash flow hedging for future crude oil exports (Note 29.1.2) 797,658 (264,284) 533,374 Hedge of a net investment in a foreign operation (Note 29.1.3) 1,382,278 (410,324) 971,954 Hedge with derivative instruments 77,872 (25,698) 52,174 Other 925 (34,283) (33,358) 2,229,484 (701,050) 1,528,434 December 31. 2017 Pre-tax Deferred tax After tax Actuarial valuation gains (losses) (Note 21.1) (762,469) 1,548,043 Cash flow hedging for future crude oil exports (Note 29.1.2) (82,622) 84,836 Hedge of a net investment in a foreign operation (Note 29.1.3) (86,563) 28,566 (57,997) Hedge with derivative instruments (53,385) 17,617 (35,768) Other 6,649 762 7,411 (798,146) 1,546,525 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other assets | |
Schedule of other assets | 11. Other assets 2019 2018 Current Partners in joint operations(1) 921,983 519,460 Advanced payments to contractors and suppliers 360,781 221,767 Prepaid expenses 272,007 191,168 Trust funds (2) 144,798 — Related parties (Note 30) 57,016 19,214 Other assets 22,393 68,819 1,778,978 1,020,428 Non–current Abandonment and pension funds(3) 445,457 392,084 Employee benefits 220,998 213,645 Trust funds(2) 171,008 147,471 Advanced payments and deposits 56,027 61,556 Judicial deposits and attachments 40,317 43,137 Other assets 8,674 2,837 942,481 860,730 (1) Corresponds to the net amount of cash calls and cutbacks generated in relation to the operations carried out with partners through Exploration and Production (E&P) contracts, Technical Evaluations (TEA) contracts and agreements entered in to with the National Hydrocarbons Agency (ANH), as well as through association contracts and other types of contracts. (2) Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2017 and 2018, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. (3) Corresponds to Ecopetrol’s share in trusts established to support costs of abandonment of wells and dismantling of facilities, as well as the payment of future retirement pensions in some association contracts. |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business combinations | |
Summary of effect of changes in the Group's shareholding | The effect of the changes in the Ecopetrol Business Group ownership interest in Invercolsa is summarized as follow: (In COP$ millions) 2019 Increase in the ownership interest in Invercolsa at fair value 217,974 (+) Fair value of previously held interest on the date of acquisition of controlling interest 1,107,969 (=) Total fair value of investment in Invercolsa 1,325,943 (-) Carrying amount of previously held interest in Invercolsa (277,019) Gain on acquisition acquisition of control of Invercolsa (Note 27) 1,048,924 |
Summary of the amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | The table below summarizes the amounts recognized for the assets acquired and the liabilities assumed at the date of acquisition. Amount Item Note COP$ Cash and cash equivalent 20,530 Current accounts receivable 195,225 Inventories 19,576 Current tax assets 10,704 Other assets 2,810 Investments in associates (1) 1,824,552 Trade accounts and other accounts receivables 52,820 Property, plant and equipment 14 1,338,947 Deferred tax assets 9,623 Other assets 807 Current loans and borrowings (137,683) Trade accounts and other accounts payable (58,423) Current provisions for employee benefits (7,003) Current tax liabilities (23,597) Provisions and contingencies (8,576) Other liabilities (13,650) Non – Current loans and borrowings (186,923) Deferred tax liabilities (107,629) Total net assets (2) 2,932,110 (1) |
Summary of investments in associates measured at fair value on the date of acquisition | Associate COP$ Gases del Caribe S.A. E.S.P. 1,527,911 Gas Natural del Oriente S.A. E.S.P. 166,685 Gases de la Guajira S.A. E.S.P. 68,608 Extrucol S.A. 28,501 E2 Energía Eficiente S.A. E.S.P. 32,847 1,824,552 (2) |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments in associates and joint ventures | |
Schedule of investment entities | 2019 2018 Investment in joint ventures Equion Energy Limited (1) 1,515,067 1,364,933 Offshore International Group 709,871 727,194 Ecodiesel Colombia S.A. 46,095 41,304 2,271,033 2,133,431 Less impairment: Equion Energy Limited (322,388) (187,636) Offshore International Group (530,330) (346,121) 1,418,315 1,599,674 Investments in associates Gases del Caribe S.A. E.S.P. 1,527,911 — Gas Natural del Oriente S.A. E.S.P. 166,685 — Gases de la Guajira S.A. E.S.P. 68,608 — Extrucol S.A. 28,501 — E2 Energía Eficiente S.A. E.S.P. 32,847 — Invercolsa S.A. (2) — 243,294 Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. 11,070 11,212 Sociedad Portuaria Olefinas y Derivados 2,205 1,368 1,837,827 255,874 Less impairment: Serviport S.A. (11,070) (11,212) 1,826,757 244,662 3,245,072 1,844,336 (1) Equion Energía Limited: On December 14, 2007, Ecopetrol informed Equion of its decision not to extend the Santiago de las Atalayas, Tauramena, Recetor, Río Chitamena and Piedemonte association contracts, confirming their expiration dates on July 1, 2010, July 3, 2016, May 30, 2017, January 31, 2019 and February 29, 2020, respectively. (2) Invercolsa S.A. became a subsidiary as of November 29, 2019 (See Note 12), thus the direct investments of Invercolsa in Gases del Caribe S.A. E.S.P., Gas Natural del Oriente S.A. E.S.P., Gases de la Guajira S.A. E.S.P., Extrucol S.A., E2 Energía Eficiente S.A. E.S.P., became direct investments of the Group as of the consolidation. |
Schedule of movement of investments in associates and joint ventures | The following is the movement of investments in associates and joint ventures: For the year ended December 31, 2019: Associates Joint ventures Total Opening balance 244,662 1,599,674 1,844,336 Effects of equity method through: Profit or loss 109,538 257,366 366,904 Other comprehensive income (174,991) 4,531 (170,460) Dividends declared (75,674) (4,192) (79,866) Impairment reversal (loss) (Note 17) 142 (318,962) (318,820) Foreign currency translation 1,723,080 (120,102) 1,602,978 Closing balance 1,826,757 1,418,315 3,245,072 For the year ended December 31, 2018: Associates Joint ventures Total Opening balance 225,178 1,105,282 1,330,460 Effects of equity method through: Profit or loss 105,908 59,928 165,836 Other comprehensive income 1,731 135,831 137,562 Dividends declared (86,847) (3,503) (90,350) Impairment (Note 17) (1,308) 302,136 300,828 Closing balance 244,662 1,599,674 1,844,336 For the year ended December 31, 2017: Associates Joint ventures Total Opening balance 249,537 1,303,157 1,552,694 Effects of equity method through: Profit or loss 46,669 46,869 93,538 Other comprehensive income — (14,752) (14,752) Dividends declared (61,124) (224,837) (285,961) Impairment (Note 17) (9,904) (5,155) (15,059) Closing balance 225,178 1,105,282 1,330,460 |
Schedule of breakdown of assets, liabilities and results of two investements | The following is the breakdown of assets, liabilities and results of the two main investments in associates and joint ventures, Equion Energy Limited and the Offshore International Group, as of December 31, 2019 and 2018: 2019 2018 Offshore Offshore Equion Energy International Equion Energy International Limited Group Limited Group Statement of financial position Current assets 2,530,453 284,591 2,083,614 354,959 Non–current assets 95,384 1,481,680 484,336 1,523,549 Total assets 2,625,837 1,766,271 2,567,950 1,878,508 Current liabilities 315,002 310,561 550,933 221,606 Non–current liabilities 76,768 718,863 77,331 885,410 Total liabilities 391,770 1,029,424 628,264 1,107,016 Equity 2,234,067 736,847 1,939,686 771,492 Other complementary information Cash and cash equivalents 188,820 48,752 185,762 96,592 Current financial liabilities — — 3,176 95,633 Non–current financial liabilities — — — 137,708 2019 2018 2017 Equion Offshore Equion Offshore Equion Offshore Energy International Energy International Energy International Limited Group Limited Group Limited Group Statement of profit or loss Sales revenue 1,285,891 529,167 1,490,177 653,054 1,213,692 393,210 Costs (671,179) (690,484) (755,656) (585,192) (793,999) (508,461) Administrative expenses and others (624) (64,115) 29,136 (353,010) 12,188 (103,340) Financial (expenses) income (3,660) (31,288) (3,659) (21,227) 2,373 (20,264) Income tax (214,048) 208,473 (338,487) (16,594) (180,546) 60,575 Financial year results 396,380 (48,247) 421,511 (322,969) 253,708 (178,280) Other comprehensive results 1,102,757 — 1,095,090 — 913,728 — Other complementary information Dividends paid to the Ecopetrol Business Group — — — — 217,075 — Depreciation and amortization 404,482 226,654 511,615 243,601 557,970 232,953 |
Schedule of reconciliation of equity of the significant investments and carrying amount of investments | This is a reconciliation of equity of the significant investments and the carrying amount of investments as of December 31: 2019 2018 Equion Offshore Equion Offshore Energy International Energy International Limited Group Limited Group Equity of the joint venture 2,234,067 736,847 1,939,686 771,492 % of Ecopetrol’s ownership 51 % 50 % 51 % 50 % Ecopetrol’s ownership 1,139,374 368,424 989,240 385,746 Additional value of the investment 375,693 341,447 375,693 341,448 Impairment (322,388) (530,330) (187,636) (346,121) Carrying amount of the investment 1,192,679 179,541 1,177,297 381,073 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment | |
Schedule of plant and equipment and depreciation and impairment | Pipelines, Plant and networks and Work in equipment lines progress(1) Buildings Lands Other Total Cost Balance as of December 31, 2018 46,474,369 34,349,283 4,624,703 7,852,278 3,984,576 2,845,802 100,131,011 Additions / capitalizations 804,570 765,994 2,097,378 243,039 20,098 81,580 4,012,659 Increase by business combinations (Note 12) 123,436 1,118,178 44,876 9,062 22,924 20,471 1,338,947 Increase in abandonment costs 148,764 102,402 — 1,248 — 4,337 256,751 Capitalized financial interests (2) 77,627 32,630 12,831 15,800 1,033 2,389 142,310 Exchange differences capitalized 4,208 1,769 696 857 56 130 7,716 Disposals (500,876) (165,936) (78,399) (24,050) (354) (71,309) (840,924) Foreign currency translation 244,666 84,357 2,691 10,757 12,869 6,369 361,709 Transfers 618,707 81,970 (445,122) 48,954 13,336 (229,537) 88,308 Balance as of December 31, 2019 47,995,471 36,370,647 6,259,654 8,157,945 4,054,538 2,660,232 105,498,487 Accumulated depreciation and impairment losses Balance as of December 31, 2018 (17,985,416) (14,777,790) (497,441) (3,122,523) (34,302) (913,556) (37,331,028) Depreciation expense (2,001,116) (1,634,783) — (326,512) — (122,153) (4,084,564) Reversal (loss) of an impairment (Note 17) 519,835 (113,860) (626,878) (87,338) (35,533) (82,837) (426,611) Disposals 481,384 116,769 — 17,807 — 91,541 707,501 Foreign currency translation (103,365) (36,341) — (3,656) — (3,323) (146,685) Transfers/ reclassifications 53,036 (189,105) 9,953 65,968 (10,847) 68,717 (2,278) Balance as of December 31, 2019 (19,035,642) (16,635,110) (1,114,366) (3,456,254) (80,682) (961,611) (41,283,665) Net balance as of December 31, 2018 28,488,953 19,571,493 4,127,262 4,729,755 3,950,274 1,932,246 62,799,983 Net balance as of December 31, 2019 28,959,829 19,735,537 5,145,288 4,701,691 3,973,856 1,698,621 64,214,822 (1) The balance of work in progress as of December 31, 2019 include mainly: Modernization of the Barranca and Cartagena refineries, Castilla facilities and works in the Colombian Petroleum Institute (ICP, by its acronym in Spanish). (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 19 - Loans and borrowings. Guarantees The Esperanza 1 and 2 farms were pledged as a guarantee for the loan obtained by Bioenergy S.A.S. for the financing of the project (see Note 19.5 – Guarantees and covenants). In accordance with the leasing contract between Bioenergy Zona Franca S.A. and Bancolombia for the construction of the industrial plant, it was established that the guarantee is the same plant. Pipelines, Plant and networks and Work in equipment lines progress(1) Buildings Lands Other Total Cost Balance as of December 31, 2017 42,561,894 32,000,049 3,866,318 7,618,586 3,839,355 2,806,696 92,692,898 Additions/capitalizations 1,196,520 944,797 993,817 147,005 14,909 5,881 3,302,929 Increase in abandonment costs 85,580 209,028 — — — — 294,608 Capitalized financial interests (2) 48,351 34,399 14,853 14,350 6,703 5,316 123,972 Exchange differences capitalized 4,107 2,922 1,262 1,219 569 451 10,530 Disposals (135,468) (112,171) (14,723) (11,997) (9,763) (56,734) (340,856) Foreign currency translation 2,324,744 849,868 32,585 100,091 124,903 55,983 3,488,174 Transfers (3) 388,641 420,391 (269,409) (16,976) 7,900 28,209 558,756 Balance as of December 31, 2018 46,474,369 34,349,283 4,624,703 7,852,278 3,984,576 2,845,802 100,131,011 Accumulated depreciation and impairment losses Balance as of December 31, 2017 (14,779,973) (12,461,626) (553,420) (2,668,562) (39,522) (785,421) (31,288,524) Depreciation expense (2,008,348) (1,465,429) — (347,510) — (123,792) (3,945,079) (Loss) reversal of an impairment (Nota 17) (752,534) (311,080) 55,979 (64,279) 5,220 (16,591) (1,083,285) Disposals 116,225 84,217 — 8,996 — 40,957 250,395 Foreign currency translation (677,901) (313,311) — (27,782) — (23,804) (1,042,798) Transfers (3) 117,115 (310,561) — (23,386) — (4,905) (221,737) Balance as of December 31, 2018 (17,985,416) (14,777,790) (497,441) (3,122,523) (34,302) (913,556) (37,331,028) Net balance as of December 31, 2017 27,781,921 19,538,423 3,312,898 4,950,024 3,799,833 2,021,275 61,404,374 Net balance as of December 31, 2018 28,488,953 19,571,493 4,127,262 4,729,755 3,950,274 1,932,246 62,799,983 (1) The balance of work in progress as of December 31, 2018, mainly includes the works executed in production by facilities of the Castilla field, facilities in Cupiagua, air injection pilot facilities in the Chichimene field and secondary recovery of Yarigui, and in refining by the modernization project of Barrancabermeja. (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 19 - Loans and financing. (3) Transfers corresponds mainly to: i) recognition of financial leasing contracts, ii) transfers from natural resources and the environment. |
Natural and environmental res_2
Natural and environmental resources (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Natural and environmental resources | |
Schedule of detailed information about natural and environmental | Asset retirement Exploration and Oil investments cost evaluation Total Cost Balance as of December 31, 2018 53,936,041 2,919,146 4,806,000 61,661,187 Additions/capitalizations (1) 5,144,295 166,431 4,487,467 9,798,193 Increase (decrease) in abandonment costs 5,703 1,965,309 (38,835) 1,932,177 Disposals (84,052) (9,253) (142,127) (235,432) Withdrawal of exploratory assets and dry wells (2) — — (340,271) (340,271) Capitalized financial interests (3) 94,995 — 10,834 105,829 Exchange differences capitalized 5,150 — 587 5,737 Foreign currency translation 68,793 (3,004) (112,917) (47,128) Transfers 651,641 (1,745) (308,019) 341,877 Balance as of December 31, 2019 59,822,566 5,036,884 8,362,719 73,222,169 Accumulated amortization and impairment losses Balance as of December 31, 2018 (36,806,667) (1,779,070) — (38,585,737) Depletion expense (3,836,479) (383,360) — (4,219,839) Impairment loss (Note 17) (1,017,061) — — (1,017,061) Disposals 83,667 8,511 — 92,178 Foreign currency translation (61,862) (2,256) — (64,118) Transfers (354,695) (99) — (354,794) Balance as of December 31, 2019 (41,993,097) (2,156,274) — (44,149,371) Net balance as of December 31, 2018 17,129,374 1,140,076 4,806,000 23,075,450 Net balance as of December 31, 2019 17,829,469 2,880,610 8,362,719 29,072,798 (1) The main capitalizations correspond to the development of assets in the Permian basin. (2) Includes dry wells: 1) Ecopetrol: Tibirita, Provenza 1, La Cira 7000 and Ávila 1; 2) Ecopetrol America LLC: Warrior and Molerusa and 3) Hocol: Mamey West and Venganza Oeste. (3) Borrowing costs are capitalized at the weighted average rate of borrowing costs. See Note 19 - Loans and borrowings. Asset retirement Exploration and Oil investments cost evaluation(1) Total Cost Balance as of December 31, 2017 50,183,858 2,215,263 4,508,808 56,907,929 Additions/capitalizations 3,579,982 (27,839) 1,499,685 5,051,828 Acquisition of interests in joint operations (2) (12,065) — — (12,065) Increase in abandonment costs — 733,609 34,063 767,672 Disposals (79) (2,080) (87,953) (90,112) Dry wells (3) (1,563) — (897,361) (898,924) Capitalized financial interests (4) 70,186 — 6,675 76,861 Exchange differences capitalized 5,961 — 567 6,528 Foreign currency translation 773,678 24,574 75,203 873,455 Transfers (663,917) (24,381) (333,687) (1,021,985) Balance as of December 31, 2018 53,936,041 2,919,146 4,806,000 61,661,187 Accumulated amortization and impairment losses Balance as of December 31, 2017 (34,014,963) (1,584,701) — (35,599,664) Depletion expense (3,471,803) (196,286) — (3,668,089) Reversal (losses) of an impairment (Nota 17) 414,208 (106) — 414,102 Disposals 79 — — 79 Foreign currency translation (563,229) (19,080) — (582,309) Transfers 829,041 21,103 — 850,144 Balance as of December 31, 2018 (36,806,667) (1,779,070) — (38,585,737) Net balance as of December 31, 2017 16,168,895 630,562 4,508,808 21,308,265 Net balance as of December 31, 2018 17,129,374 1,140,076 4,806,000 23,075,450 (1) The balance of oil investments in progress includes mainly investments made in the Purple Angel, Tayrona and unconventional hydrocarbons projects. In the developing fields, the most representative correspond to Castilla, Chichimene pilot and CPO09 re sanction. (2) Adjustment in the acquisition value of the participation of MCX Exploration USA LLC (see note 30.3). (3) Includes dry wells: 1) Ecopetrol America Inc: Leon 2) Hocol: Payero, Bonifacio, Pegaso-1 and Ocelote. (4) Borrowing costs are capitalized at the weighted average rate of borrowing costs. See Note 19 - Loans and financing. |
Schedule ofdetailed information about classification by age from completion date of suspended exploaratory wells | 2019 2018 2017 Between 1 and 3 years(a) 361,700 496,871 600,767 Between 3 and 5 years(b) 132,021 375,371 791,261 More than 5 years(c) 441,389 273,764 250,219 Total suspended exploratory wells 935,110 1,146,006 1,642,247 Number of projects exceeding 1 year 30 24 24 Wells under 1 year of suspension — 9,511 2,480 (a) As of December 2019, suspended exploratory wells correspond to Ecopetrol: Caronte, Purple Angel and Gorgon. As of December 2018, suspended exploratory wells correspond to Ecopetrol: Purple Angel, Caronte and discovery wells of Ecopetrol America Inc: Warrior 1. As of December 31, 2017, suspended exploratory wells correspond mainly to discovery wells of Ecopetrol America Inc: Leon 2 and Warrior 1, which were under evaluation. (b) For 2019, the balance corresponds mainly to wells of Ecopetrol S.A.: Luna-1 and Gala 1K and discovery wells of Ecopetrol America Inc: Warrior 1. For 2018, the balance corresponds mainly to wells of Ecopetrol S.A.: Orca1, Tiribita 1A and Tiribita 3, which are under evaluation. (c) Correspond mainly to i) Ecopetrol S.A.: Orca 1, under evaluation; and ii) Offshore International Group, temporarily abandoned for future production plans. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible assets | |
Schedule of intangibles and their amortization and impairment | The following is the movement of intangibles and their amortization and impairment for the years ended December 31, 2019 and 2018: Licenses and Other software intangibles (1) Total Cost Balance as of December 31, 2018 1,015,720 197,283 1,213,003 Acquisitions 48,064 120,225 168,289 Disposals (114,187) (1,041) (115,228) Foreign currency translation 3,477 (3,946) (469) Exchange differences capitalized — (14) (14) Transfers 41,525 (27,260) 14,265 Balance as of December 31, 2019 994,599 285,247 1,279,846 Accumulated amortization Balance as of December 31, 2018 (712,329) (89,927) (802,256) Amortization of the period (88,044) (14,982) (103,026) Reversal of impairment loss 53 2 55 Disposals 114,143 1,041 115,184 Foreign currency translation (2,333) (33) (2,366) Transfers/ reclassifications (3,707) (632) (4,339) Balance as of December 31, 2019 (692,217) (104,531) (796,748) Net balance as of December 31, 2018 303,391 107,356 410,747 Net balance as of December 31, 2019 302,382 180,716 483,098 Useful life <5 years <7 years Licenses and Other software intangibles (1) Total Cost Balance as of December 31, 2017 960,556 168,552 1,129,108 Acquisitions 69,442 36,227 105,669 Disposals (46,007) (5,643) (51,650) Foreign currency translation 25,339 2,955 28,294 Transfers 6,390 (4,808) 1,582 Balance as of December 31, 2018 1,015,720 197,283 1,213,003 Accumulated amortization Balance as of December 31, 2017 (665,415) (83,467) (748,882) Amortization of the period (75,818) (15,864) (91,682) Disposals 46,004 5,546 51,550 Foreign currency translation (20,501) (184) (20,685) Transfers 3,401 4,042 7,443 Balance as of December 31, 2018 (712,329) (89,927) (802,256) Net balance as of December 31, 2017 295,141 85,085 380,226 Net balance as of December 31, 2018 303,391 107,356 410,747 Useful life <5 years <7 years (1) Corresponds mainly to easements. |
Impairment of non-current ass_2
Impairment of non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairment of non-current assets [Line Items] | |
Schedule of impairment (losses) or reversals | Based on the impairment tests conducted by the Ecopetrol Business Group, the following are the impairment (losses) or reversals for the years ended on December 31, 2019, 2018 and 2017: Impairment (loss) reversal of impairment by segment 2019 2018 2017 Exploration and Production (1,982,044) 785,940 183,718 Refining and Petrochemicals 452,163 (984,704) 1,067,965 Transport and Logistics (232,556) (169,870) 59,455 (1,762,437) (368,634) 1,311,138 Recognized in: Property, plant and equipment (Note 14) (426,611) (1,083,285) 977,919 Natural resources (Note 15) (1,017,061) 414,102 376,934 Investment in joint ventures and associates (Note 13) (318,820) 300,828 (15,059) Other non–current assets 55 (279) (28,656) (1,762,437) (368,634) 1,311,138 |
Schedule of Refining and Petrochemical Segment | The Cash Generating Units with an (expense for) reversal of impairment in the Refining and Petrochemical Segment for the years ended December 31, 2019, 2018 and 2017 include: 2019 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 22,292,788 23,204,385 911,597 Bioenergy 575,331 340,991 (234,340) Refinería de Barrancabermeja (projects) 901,517 676,423 (225,094) 452,163 2018 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 23,411,058 22,640,761 (770,297) Bioenergy 774,343 560,882 (213,461) Other 946 — (946) (984,704) 2017 Carrying Recoverable (Impairment loss) Cash–generating units amount amount reversal Refinería de Cartagena 20,578,412 22,012,710 1,434,298 Refinería de Barrancabermeja (projects) 1,172,773 898,786 (273,987) Bioenergy 757,741 665,395 (92,346) 1,067,965 |
Schedule of breakdown of oilfields impairment losses or reversals | The following is the breakdown of oilfields impairment losses or reversals for the years ended December 31, 2019, 2018 and 2017: 2019 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 3,842,819 6,047,345 74,577 Loss 4,992,462 3,322,284 (1,673,258) Fields operated abroad Reversal 200,910 539,785 4,391 Loss — — (68,792) (1,663,082) 2018 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 19,156,326 50,462,080 689,665 Loss 764,808 405,421 (359,387) Fields operated abroad Reversal 1,810,618 2,719,086 157,709 Loss 184,375 180,191 (4,184) 483,803 2017 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Loss 2,172,747 1,588,207 (584,540) Reversal 13,229,212 23,906,828 298,210 Fields operated abroad Reversal 748,510 1,324,010 475,203 188,873 |
Investment in joint ventures (Note 13) [Member] | |
Impairment of non-current assets [Line Items] | |
Schedule of breakdown of oilfields impairment losses or reversals | As a result, Ecopetrol recognized an (impairment loss) or reversal of impairment on the carrying value as of December 31, as follows: 2019 2018 2017 Equion Energy Limited (134,753) 108,791 (42,744) Offshore International Group (184,209) 193,345 37,589 (318,962) 302,136 (5,155) |
Exploration and Production [Member] | |
Impairment of non-current assets [Line Items] | |
Schedule of breakdown of oilfields impairment losses or reversals | The impairment (loss) reversal of assets of the Exploration and Production segment for the years ended December 31 of 2019, 2018 and 2017 is as follows: 2019 2018 2017 Oilfields (1,663,082) 483,803 188,873 Investment in joint ventures (Note 13) (318,962) 302,136 (5,155) Other — 1 — (1,982,044) 785,940 183,718 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill | |
Schedule of goodwill in acquisitions of subsidiaries | 2019 2018 Oleoducto Central S.A. 683,496 683,496 Hocol Petroleum Ltd. 537,598 537,598 Andean Chemical Ltd 127,812 127,812 Esenttia S.A. 108,137 108,137 1,457,043 1,457,043 Less impairment Hocol Petroleum Ltd. (297,121) (297,121) 1,159,922 1,159,922 |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of loans and borrowings | |
Schedule of Composition of loans and borrowings | 19.1 Composition of loans and borrowings The balances of the loans and financing, which are recorded at amortized cost, as of December 31, 2019 and 2018: Weighted average effective interest rate as of December 31 2019 2018 2019 2018 Local currency Bonds 8.7 % 8.0 % 1,567,598 1,568,034 Syndicated loan 8.0 % 7.9 % 1,115,874 1,439,590 Lease liabilities (1) 7.2 % — 1,039,303 591,153 Commercial loan 8.3 % 7.6 % 737,032 449,998 4,459,807 4,048,775 Foreign currency Bonds 5.9 % 5.7 % 25,832,740 25,599,996 Commercial loan 7.1 % 4.4 % 6,586,538 7,352,002 Loans from related parties (Note 30) — — 1,108,403 855,135 Lease liabilities (1) 6.2 % — 251,651 206,737 33,779,332 34,013,870 38,239,139 38,062,645 Current 5,012,173 4,019,927 Non–current 33,226,966 34,042,718 38,239,139 38,062,645 (1) Corresponds mainly to present value of the payments to be made during the term of the operative lease contracts of pipelines, tanks, property and vehicles, recognized by the implementation of IFRS 16. (see Note 5.1). |
Schedule of Maturity of loans and borrowings | 19.2 Maturity of loans and borrowings The following are the maturities of loans and borrowing as of December 31, 2019: Up to 1 Year (1) 1 – 5 years 5-10 years > 10 years Total Local currency Bonds 571,969 403,996 358,976 232,657 1,567,598 Syndicated loan 361,545 754,329 — — 1,115,874 Financial leasing 179,448 559,337 235,791 64,727 1,039,303 Other 218,375 343,049 121,679 53,929 737,032 1,331,337 2,060,711 716,446 351,313 4,459,807 Foreign currency Bonds 1,386,032 13,873,755 5,574,713 4,998,240 25,832,740 Commercial loans 1,129,117 4,163,624 1,253,446 40,351 6,586,538 Loans from related parties 1,108,403 — — — 1,108,403 Financial leasing 57,284 175,962 18,405 — 251,651 3,680,836 18,213,341 6,846,564 5,038,591 33,779,332 5,012,173 20,274,052 7,563,010 5,389,904 38,239,139 The following are the maturities of loans and borrowing as of December 31, 2018: Up to 1 year (1) 1 – 5 years 5–10 years > 10 years Total Local currency Bonds 116,693 842,514 362,446 246,381 1,568,034 Syndicated loan 406,582 1,033,008 — — 1,439,590 Commercial loans and other 120,069 491,781 270,920 158,381 1,041,151 643,344 2,367,303 633,366 404,762 4,048,775 Foreign currency Bonds 1,374,390 10,605,708 8,664,732 4,955,166 25,599,996 Commercial loans – Refinería de Cartagena 1,116,370 4,061,541 2,174,091 — 7,352,002 Other 885,823 136,574 39,475 — 1,061,872 3,376,583 14,803,823 10,878,298 4,955,166 34,013,870 4,019,927 17,171,126 11,511,664 5,359,928 38,062,645 (1) Includes short–term credit and the current portion of long–term debt, as applicable. |
Schedule of Breakdown by type of interest rate and currency | 19.3 Breakdown by type of interest rate and currency The following is the breakdown of loans and borrowing by type of interest rate as of December 31, 2019 and 2018: 2019 2018 Local currency Fixed rate 598,802 252,224 Floating rate 3,861,005 3,796,551 4,459,807 4,048,775 Foreign currency Fixed rate 31,087,439 31,432,667 Floating rate 2,691,893 2,581,203 33,779,332 34,013,870 38,239,139 38,062,645 |
Schedule of Movement of net financial debt | 19.8 Movement of net financial debt The following is the movement of net financial debt as of December 31, 2019, 2018 and 2017: Cash and Other financial Loans and Net financial equivalents assets borrowings debt Balance as of December 31, 2017 7,945,885 6,533,725 (43,547,835) (29,068,225) Cash flow (2,040,386) 843,612 11,363,077 10,166,303 Exchange difference: Recognized in profit or loss 406,245 920,609 (816,840) 510,014 Recognized in other comprehensive income — — (2,165,569) (2,165,569) Financial cost registered to projects — — (217,891) (217,891) Financial income (expense) recognized in profit or loss — 92,906 (2,399,414) (2,306,508) Foreign currency translation — (245,958) (203,446) (449,404) Other movements that do not generate cash flow 2,921 (74,727) (71,806) Balance as of December 31, 2018 6,311,744 8,147,815 (38,062,645) (23,603,086) Cash flow 505,466 (3,117,549) 3,303,303 691,220 Exchange difference: Recognized in profit or loss 258,548 182,396 (151,518) 289,426 Recognized in other comprehensive income — — (53,911) (53,911) Financial cost registered to projects — — (261,592) (261,592) Financial income (expense) recognized in profit or loss — (18,551) (1,894,490) (1,913,041) Foreign currency translation — (204,441) (14,627) (219,068) Other movements that do not generate cash flow — (10,378) (1,103,659) (1,114,037) Balance as of December 31, 2019 7,075,758 4,979,292 (38,239,139) (26,184,089) |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other payables | |
Schedule of trade and other payables | 2019 2018 Suppliers 8,115,015 6,878,510 Partners’ advances 925,761 874,010 Withholding tax 673,204 246,867 Related parties (Note 30) 187,616 116,418 Dividends payable 157,181 84,657 Insurance and reinsurance 136,041 211,883 Agreements in transport contracts (1) 71,239 210,196 Deposits received from third parties 44,826 49,158 Various creditors 402,808 304,613 10,713,691 8,976,312 Current 10,689,246 8,945,790 Non–current 24,445 30,522 10,713,691 8,976,312 (1) Corresponds to the value of debt from agreements in transport contracts of oil pipelines and poliducts, impacted by volumetric adjustments, compensation for quality and other inventory management agreements. |
Provisions for employees' ben_2
Provisions for employees' benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions for employees' benefits | |
Schedule of provision balances for employee benefits | 2019 2018 Post–employment benefits Healthcare 6,908,799 5,507,784 Pension 2,853,718 1,452,322 Education 458,441 479,945 Bonds 352,917 331,064 Other plans 98,729 82,576 Termination benefits – Voluntary retirement plan 124,186 137,859 10,796,790 7,991,550 Social benefits and salaries 587,596 521,802 Other employee benefits 96,678 93,199 11,481,064 8,606,551 Current 1,929,087 1,816,882 Non–current 9,551,977 6,789,669 11,481,064 8,606,551 |
Schedule of net defined benefit liability (asset) | The following table shows the movement in liabilities and assets, net of post-employment benefits and termination benefits, as of December 31, 2019 and 2018: Pension and bonds (1) Other Total 2019 2018 2019 2018 2019 2018 Liabilities for employee benefits Opening balance 14,131,943 14,147,464 6,212,118 6,105,432 20,344,061 20,252,896 Current service cost — — 76,478 77,373 76,478 77,373 Past service cost — — — 50,489 — 50,489 Interest expense 920,622 888,583 418,553 377,923 1,339,175 1,266,506 Actuarial (losses) gains 1,755,300 (56,655) 1,273,409 (27,651) 3,028,709 (84,306) Benefits paid (891,393) (847,449) (387,387) (371,448) (1,278,780) (1,218,897) Closing balance 15,916,472 14,131,943 7,593,171 6,212,118 23,509,643 20,344,061 Plan assets Opening balance 12,348,557 12,471,163 3,954 3,245 12,352,511 12,474,408 Return on assets 801,065 780,494 217 170 801,282 780,664 Contributions to funds — — 83,071 21,971 83,071 21,971 Benefits paid (891,393) (847,449) (84,243) (21,526) (975,636) (868,975) Actuarial (losses) gains 451,609 (55,651) 16 94 451,625 (55,557) Closing balance 12,709,838 12,348,557 3,015 3,954 12,712,853 12,352,511 Net post–employment benefits liability 3,206,634 1,783,386 7,590,156 6,208,164 10,796,790 7,991,550 (1) There is no cost for the pension and pension plans service, due to the fact that the beneficiaries were retired as of July 31, 2010. |
Schedule of movement of defined benefits plans recognized in results and other comprehensive income | The following table shows the movement in profit and loss and in other comprehensive income as of December 31, 2019, 2018 and 2017: 2019 2018 2017 Recognized in profit or loss Interest expense. net 537,893 485,842 373,522 Current service cost 76,478 77,373 52,164 Past service cost — 50,489 — Remedies 10,213 503 13,889 624,584 614,207 439,575 Recognized in other comprehensive income Pension and pension bonds (1,303,693) 1,003 (1,312,195) Healthcare (1,268,379) (17,356) (794,535) Education and severance 922 45,509 (203,779) Termination benefits – Voluntary retirement plan (34) 93 (3) (2,571,184) 29,249 (2,310,512) Deferred tax 771,355 (33,539) 762,469 (1,799,829) (4,290) (1,548,043) |
Schedule of fair value of plan assets | The following is the composition of the plan assets of pension and pension bonds by type of investment as of December 31, 2019 and 2018: 2019 2018 Bonds issued by the national government 4,301,961 4,307,972 Bonds of private entities 3,122,630 2,910,071 Other local currency 1,899,787 2,219,634 Other public bonds 1,082,815 1,014,663 Other foreign currency 870,859 691,658 Variable yield 823,977 653,828 Bonds of foreign entities 610,824 554,685 12,712,853 12,352,511 |
Schedule of fair value hierarchy of plan assets | The following table reflects the credit ratings of the issuers and counterparties in assets held by the autonomous pension funds: 2019 2018 AAA 5,138,279 4,683,190 Nation 4,448,221 4,364,188 AA+ 837,009 860,905 BBB- 455,201 426,743 BBB 319,514 193,579 BAA3 219,830 310,788 SP1+ 84,933 — A-1+ 78,156 — BRC1+ 68,313 89,211 F1+ 56,728 249,361 BBB+ 22,113 86,040 A3 17,267 17,075 AA- 16,067 60,382 BAA1 15,538 21,395 AA 6,679 28,367 A 11,841 62,754 Other credit ratings 30,129 55,768 Not available ratings 887,035 842,765 12,712,853 12,352,511 |
Schedule of analysis of present value of defined benefit obligation that distinguishes nature, characteristics and risks | The following are the actuarial assumptions used in determining the present value of defined employee benefit obligations used for the actuarial calculations as of December 31, 2019 and 2018: 2019 Pension Bonds Health Education Other benefits (1) Discount rate 5.75 % 5.25 % 6.00 % 5.50 % 4.83 % Salary growth rate N/A N/A N/A N/A 5.50% / 4.70 Expected inflation rate 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Pension growth rate 3.00 % N/A N/A N/A N/A Cost trend Short–term rate N/A N/A 7.00 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A 2018 Pension Bonds Health Education Other benefits (1) Discount rate 6.75 % 6.50 % 7.00 % 6.75 % 5.87 % Salary growth rate N/A N/A N/A N/A 5.10% / 4.70 Expected inflation rate 3.00 % 3.00 % 3.00 % 3.00 % 3.00 % Pension growth rate 3.00 % N/A N/A N/A N/A Cost trend Short–term rate N/A N/A 7.00 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A N/A: Not applicable for this benefit. (1) Weighted average discount rate. |
Schedule of maturity profile of defined benefit obligation | The cash flows required for payment of post–employment obligations are the following: Period Pension and bonds Other benefits Total 2020 949,034 377,313 1,326,347 2021 967,734 384,233 1,351,967 2022 1,000,730 391,324 1,392,054 2023 1,000,770 401,058 1,401,828 2024 1,038,858 404,691 1,443,549 2025 and thereafter 5,551,125 2,081,228 7,632,353 |
Schedule of sensitivity analysis for actuarial assumptions | The following sensitivity analysis shows the effect of such possible changes on the obligation for defined benefits, while keeping the other assumptions constant, as of December 31, 2019: Pension Bonds Health Education Other benefits Discount rate –50 basis points 15,765,778 1,098,700 7,464,162 478,697 231,732 +50 basis points 14,032,277 1,022,732 6,418,743 440,209 220,426 Inflation rate –50 basis points 14,045,125 1,021,771 N/A N/A 125,653 +50 basis points 15,744,316 1,099,381 N/A N/A 128,775 Salary growth rate –50 basis points N/A N/A N/A N/A 94,266 +50 basis points N/A N/A N/A N/A 103,434 Cost trend –50 basis points N/A N/A 6,425,329 439,471 N/A +50 basis points N/A N/A 7,452,021 478,793 N/A |
Accrued liabilities and provi_2
Accrued liabilities and provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued liabilities and provisions | |
Schedule of accrued liabilities and provisions | Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2018 6,719,275 127,945 906,792 7,754,012 Increase in abandonment costs 2,188,928 — — 2,188,928 Additions 112,486 58,913 90,854 262,253 Uses (410,191) (45,342) (59,755) (515,288) Financial costs 226,803 — 3 226,806 Foreign currency translation (5,240) 79 1,211 (3,950) Transfers 3,359 (4,166) 6,334 5,527 Balance as of December 31, 2019 8,835,420 137,429 945,439 9,918,288 Current 589,411 28,662 171,224 789,297 Non-current 8,246,009 108,767 774,215 9,128,991 8,835,420 137,429 945,439 9,918,288 Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2017 5,527,324 182,966 827,159 6,537,449 Increase in abandonment costs 1,062,280 — — 1,062,280 Additions 71,015 61,851 174,780 307,646 Uses (182,130) (114,647) (100,215) (396,992) Financial costs 186,518 — — 186,518 Foreign currency translation 54,610 (2,368) 10,983 63,225 Transfers (342) 143 (5,915) (6,114) Balance as of December 31, 2018 6,719,275 127,945 906,792 7,754,012 Current 549,678 88,623 176,108 814,409 Non–current 6,169,597 39,322 730,684 6,939,603 6,719,275 127,945 906,792 7,754,012 Asset Environmental retirement contingencies and obligation Litigation others Total Balance as of December 31, 2016 5,064,660 209,932 643,278 5,917,870 Increase in abandonment costs 39,634 — — 39,634 Additions (reversals) 110,587 (19,185) 106,532 197,934 Uses (66,469) (7,742) (19,613) (93,824) Financial costs 379,891 — (367) 379,524 Foreign currency translation (979) (39) 718 (300) Transfers (1) — — 96,611 96,611 Balance as of December 31, 2017 5,527,324 182,966 827,159 6,537,449 Current 199,824 159,881 199,123 558,828 Non-current 5,327,500 23,085 628,036 5,978,621 5,527,324 182,966 827,159 6,537,449 (1) |
Schedule of contingent liabilities | The following is a summary of the main legal proceedings recognized in the consolidated statement of financial position, where the expectation of loss is probable and could imply an outflow of resources as of December 31, 2019 and 2018: Proceedings 2019 2018 Provision to execute contracts 93,992 93,992 Controversy for breach of contract with firms Consulting Group and Industrial Consulting SAS. with the Refinería de Cartagena and payment was made in 2019 — 15,541 |
Schedule of unrecorded contingent liabilities | The following is a summary of the main contingent liabilities that have not been recognized in the statement of financial position as, according to the evaluations made by internal and external advisors of the Ecopetrol Business Group, the expectation of loss is not probable as of December 31, 2019 and 2018: 2019 2018 Number of Number of Type of process processes Proceedings processes Proceedings Constitutional action 14 1,092,228 13 1,075,965 Ordinary administrative 160 780,150 149 701,080 Ordinary labor 593 49,055 652 76,744 Ordinary civil 52 16,269 54 15,875 Arbitration 0 0 1 10,608 Special labor 13 720 14 1,056 Penal 1 595 1 0 Executive administrative 1 28 2 40 Guardianship 112 10 105 0 Executive civil 1 0 2 1,281 947 1,939,055 993 1,882,649 |
Schedule of contingent assets | The following is a breakdown of the Ecopetrol Business Group’s principal contingent assets, where the associated contingent gain is likely, but not certain: 2019 2018 Number of Number of Type of process processes Proceedings processes Proceedings Ordinary administrative 35 373,555 47 229,935 Ordinary civil 75 86,363 40 12,101 Arbitration 1 67,232 1 261,754 Penal 156 60,177 189 58,481 Executive civil 61 4,912 65 3,569 Executive administrative 11 4,028 15 4,286 Ordinary labor 50 3,295 51 6,086 Special labor 57 307 59 320 Guardianship 4 — 6 — 450 599,869 473 576,532 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Schedule of composition of the ecopetrol business group's reserves | The following is the composition of the Ecopetrol Business Group’s reserves as of December 31, 2019 and 2018: 2019 2018 Legal reserve 3,243,832 2,088,192 Fiscal and statutory reserves 509,082 509,081 Occasional reserves (1) 31,744 2,541,622 3,784,658 5,138,895 |
Schedule of balance of movement of equity reserves | The movement of equity reserves is the following for the years ended December 31, 2019 and 2018: 2019 2018 Opening balance 5,138,895 2,177,869 Release of reserves (3,050,703) (751,718) Allocation to reserves 5,355,852 3,712,744 Dividends declared (3,659,386) — Closing balance 3,784,658 5,138,895 |
Schedule of composition of the other comprehensive income attributable to the shareholders | The following is the composition of the other comprehensive income attributable to the shareholders of the parent, Ecopetrol S.A., net of tax: 2019 2018 2017 Foreign currency translation 10,265,398 10,235,891 7,706,623 Cash flow hedge with derivative instruments 3,689 (30,962) 6,942 Cash flow hedges for future exports (135,748) (374,079) 159,295 Actuarial gain on defined benefit plans (2,357,210) (557,381) (553,091) Hedge of a net investment in a foreign operation (1,130,583) (1,069,316) (97,362) Others 1,114 176,608 176,608 6,646,660 8,380,761 7,399,015 |
Schedule of earnings per share | 2019 2018 2017 Profit attributable to Ecopetrol’s shareholders 13,744,011 11,381,386 7,178,539 Weighted average number of outstanding shares 41,116,694,690 41,116,694,690 41,116,694,690 Net basic earnings per share (Colombian pesos) COP$ 334.3 COP$ COP$ 174.6 |
Sales revenue from contracts _2
Sales revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Sales revenue from contracts with customers | |
Schedule of detailed information of sales revenue from contracts with customers | 2019 2018 2017 National sales Mid–distillates 13,541,756 11,586,192 9,590,326 Gasoline and turbo fuels 9,373,030 7,952,852 6,990,187 Transport services 3,829,102 3,531,404 3,589,553 Natural gas 2,305,543 1,885,846 1,815,754 Plastic and rubber 760,301 822,367 833,982 Asphalts 544,200 335,426 275,803 LPG and propane 372,916 574,639 509,619 Crude oil 356,857 550,479 909,871 Services 309,353 239,410 283,799 Aromatics 228,552 282,545 217,418 Polyethylene 190,133 270,887 167,348 Other income gas contracts (1) 102,845 156,031 188,195 Fuel oil 97,907 509,482 354,058 Other products 507,336 489,507 280,226 32,519,831 29,187,067 26,006,139 Recognition of price differential (2) 1,785,277 3,835,533 2,229,953 34,305,108 33,022,600 28,236,092 Foreign sales Crude oil 28,523,596 26,898,737 21,479,063 Diesel 4,391,798 3,050,839 1,213,740 Fuel oil 1,870,929 2,053,594 1,982,408 Plastic and rubber 1,200,668 1,268,582 1,169,101 Gasoline and turbo fuels 1,085,392 1,782,194 1,223,994 Natural gas 27,255 27,899 32,303 LPG and propane 13,591 20,212 15,631 Cash flow hedge for future exports – Reclassification to profit or loss (Note 29.1.2) (386,773) 128,404 160,772 Other products 456,948 350,811 441,124 37,183,404 35,581,272 27,718,136 71,488,512 68,603,872 55,954,228 (1) Corresponds to income on the share of gas sales profits, under the agreement signed between Ecopetrol and Chevron in 2004, for the extension of the joint venture contract for the exploitation of gas in La Guajira. (2) Corresponds to the application of Decree 180522 of March 29, 2010, and other standards that modify and add (Decree 1880 of 2014 and Decree 1068 of 2015), which establishes the procedure to recognize the subsidy for refiners and importers of ordinary motor gasoline and ACPM, and the methodology for calculating the net position (value generated between the parity price and the regulated price, which can be positive or negative). See Note 4.16 – Sales revenue recognition from contracts with customers. |
Schedule of sales by geographic areas | 2019 % 2018 % 2017 % Colombia 34,305,108 48.0 % 33,022,600 48.1 % 28,236,092 50.5 % United States 17,371,173 24.3 % 14,765,674 21.5 % 12,532,932 22.4 % Asia 13,529,151 18.9 % 12,271,225 17.9 % 6,136,796 11.0 % Central America and the Caribbean 3,472,665 4.9 % 4,449,033 6.6 % 6,070,565 10.8 % South America and others 1,502,815 2.1 % 2,968,038 4.3 % 1,947,226 3.5 % Europe 1,307,600 1.8 % 1,127,302 1.6 % 1,030,617 1.8 % 71,488,512 100 % 68,603,872 100 % 55,954,228 100 % |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cost of sales | |
Schedule of cost of sales of non current assets | 2019 2018 2017 Variable costs Imported products (1) 12,639,710 11,809,529 11,637,419 Depreciation amortization and depletion 5,523,306 5,064,518 5,765,186 Purchases of crude in association and concession 5,466,496 3,820,746 2,240,704 Purchases of hydrocarbons – ANH (2) 5,437,177 5,667,567 4,338,576 Process materials 1,016,617 968,884 889,122 Electric energy 829,543 662,297 561,424 Hydrocarbon transport services 821,654 696,964 665,714 Taxes and economic rights 788,924 441,207 449,959 Purchases of other products and gas 584,507 632,509 488,056 Services contracted in associations 267,778 260,207 195,689 Others (3) (676,269) (186,087) (663,916) 32,699,443 29,838,341 26,567,933 Fixed costs Depreciation and amortization 2,781,446 2,555,176 2,366,849 Maintenance 2,497,002 2,260,984 2,038,970 Labor costs 2,316,567 2,105,803 1,815,213 Services contracted 1,841,009 1,796,354 1,414,056 Services contracted in associations 1,211,510 1,040,221 1,008,336 Materials and operating supplies 574,678 565,601 468,205 Taxes and contributions 516,933 393,690 343,505 Hydrocarbon transport services 268,572 261,237 333,671 General costs 265,200 366,972 551,587 12,272,917 11,346,038 10,340,392 44,972,360 41,184,379 36,908,325 (1) Imported products correspond mainly to diesel fuel and diluent to facilitate the transport of heavy crude oil. |
Administrative, operations an_2
Administrative, operations and project expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Administrative, operations and project expenses | |
Schedule of administrative, operations and project expenses | 2019 2018 2017 Administrative expenses General expenses 1,140,975 911,645 723,341 Labor expenses 759,324 662,258 624,424 Taxes 48,753 39,117 362,963 Depreciation and amortization 202,547 40,838 53,796 2,151,599 1,653,858 1,764,524 Operations and project expenses Exploration costs 763,452 1,387,379 1,341,940 Taxes 483,330 433,506 324,223 Commissions, fees, freights and services 558,370 466,862 471,657 Labor expenses 402,531 316,386 310,947 Fee for regulatory entities 94,785 98,794 63,470 Depreciation and amortization 75,484 44,318 95,516 Maintenance 56,333 50,846 122,273 Others 197,469 105,041 196,039 2,631,754 2,903,132 2,926,065 |
Other operating income (expen_2
Other operating income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other operating income (expenses), net | |
Schedule of other operating income (expenses), net | 2019 2018 2017 Gain (loss) on acquisition of participations and interests (1) 1,048,924 (12,065) 451,095 (Loss) profit on sale of assets (148,021) (93,601) 40,227 Expense for legal provisions (98,020) (68,398) (72,408) Impairment loss of short–term assets (90,441) (105,692) (68,800) Expense for gas pipeline availability BOMT contracts (2) — — (72,318) Other income 344,354 244,301 227,607 1,056,796 (35,455) 505,403 (1) For 2019, this corresponds mainly to gains related to the business combination of Invercolsa S.A. (see Note 12) (2) Corresponds to the services rendered in connection with the BOMT contracts for the construction, operation, maintenance and transfer of gas pipelines with Transgas. This contract terminated in August 2017. |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Schedule of The Carrying Values For Financial Assets And Liabilities Denominated In Foreign Currencies | The following table sets out the carrying amount for financial assets and liabilities with exchange exposure denominated as of December 31, 2019 and 2018: (in USD$Million) 2019 2018 Cash and cash equivalents 114 514 Other financial assets 1,468 2,138 Trade receivables and payables, net 81 (202) Loans and borrowings (9,429) (9,689) Other assets and liabilities, net 64 63 Net liability position (7,702) (7,176) |
Schedule of Sensitivity analysis for types of market risk | The following is the effect of a change of 1% and 5% in the exchange rate of the Colombian peso as compared with the U.S. dollar, on the balance of financial assets and liabilities denominated in foreign currency as of December 31, 2019: Scenario / Variation in Effect on income Effect on other the exchange rate before taxes (+/–) comprehensive income (+/–) 1 % (12,158) (240,247) 5 % (60,791) (1,201,236) |
Schedule of hedging instruments | The following is the movement of foreign currency debt designated as a non–derivative hedging instrument for the years ended December 31, 2019 and 2018: (USD$Million) 2019 2018 Hedging instrument at the beginning of the period 1,300 3,332 Reassignment of hedging instruments 5,551 3,366 Realization of exports (5,551) (3,366) Capital payments(1) — (2,032) Hedging instrument at the end of the period 1,300 1,300 (1) On December 27, 2018, Ecopetrol S.A. paid in advance the entire 10‑year international bond issued in 2009, whose nominal value was USD$1,500 million. Equally, on June 30, 2017, Ecopetrol prepaid the entire outstanding balance of the international syndicated loan whose nominal value was USD$1,925 million and original maturity date was February 2020. |
Schedule of movement of other comprehensive income by item explanatory | The following is the movement of accumulated foreign currency gains and losses in respect of the cash flow hedge recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Opening balance (374,079) 159,295 244,131 Exchange difference (35,607) (704,871) (15,933) Reclassification to profit or loss 386,773 (128,404) (160,772) Ineffectiveness 5,173 35,617 9,247 Deferred income tax (118,008) 264,284 82,622 Closing balance (135,748) (374,079) 159,295 |
Schedule of expected reclassification of exchange differences accumulated in other comprehensive income to profit or loss | The expected reclassification of the cumulative exchange difference from other comprehensive income to the profit or loss is as follows: Before Year taxes Taxes After taxes 2020 (50,986) 16,316 (34,670) 2021 (53,249) 16,507 (36,742) 2022 (53,249) 15,975 (37,274) 2023 (38,669) 11,607 (27,062) (196,153) 60,405 (135,748) |
Schedule of Analysis of age of financial assets that are past due but not impaired | Ecopetrol does not have a significant concentration of credit risk. An aging analysis of the accounts receivable portfolio in arrears, but not impaired, as of December 31, 2019 and 2018 is as follows: 2019 2018 Less than 3 months overdue 243,893 157,608 Between 3 and 6 months overdue 136,700 41,263 More than 6 months overdue 267,525 93,657 648,118 292,528 |
Schedule of financial instruments by type of interest rate | The following table provides information about the sensitivity of the Ecopetrol Business Group’s results and other comprehensive income for the next 12 months to variations in interest rate of 100 basis points: Effect on Other Effect on profit or loss (+/–) Comprehensive Income (+/–) Financial Financial Assets Liabilities Plan Assets +100 basis points (16,320) 32,276 (590,991) –100 basis points 16,278 (32,345) 629,633 |
Schedule of how entity manages liquidity risk | The following is a summary of the maturity of financial liabilities as of December 31, 2019. The amounts disclosed in the table are the contractual undiscounted cash flows. The payments in foreign currency were restated taking a constant exchange rate of COP$3,277.14 per U.S. dollar: Up to 1 year 1–5 years 5–10 years > 10 years Total Loans (payment of principal and interest) 3,680,187 19,206,790 15,022,371 19,480,277 57,389,625 Trade and other payables 10,689,246 26,621 — — 10,715,867 Total 14,369,433 19,233,411 15,022,371 19,480,277 68,105,492 |
Schedule of leverage ratio | The following is the leverage ratio as of December 31, 2019 and 2018: 2019 2018 Loans and borrowings (Note 19) 38,239,139 38,062,645 Cash and cash equivalents (Note 6) (7,075,758) (6,311,744) Other financial assets (Note 9) (4,979,292) (8,147,815) Net financial debt 26,184,089 23,603,086 Equity (Note 23) 58,231,628 57,107,780 Leverage(1) 31.02 % 29.24 % (1) Leverage = Net financial debt / (Net financial debt + Equity) |
Hedge of a net investment in a foreign operation (Note 29.1.3) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Schedule of hedging instruments | The following is the movement of accumulated foreign currency gains and losses in respect of the net investment hedge recognized in other comprehensive income for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Opening balance 1,069,316 97,362 155,359 Exchange difference 87,524 1,381,900 (86,892) Ineffectiveness — 378 329 Deferred income tax (26,257) (410,324) 28,566 Closing balance 1,130,583 1,069,316 97,362 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related parties | |
Schedule of associates and joint ventures | Balances with associates and joint ventures as of December 31, 2019 and 2018 are as follows: Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energy Limited(2) 25,333 — 57,016 153,501 1,108,403 794 Ecodiesel Colombia S.A. 2,116 — — 29,447 — 1 Offshore International Group Inc.(1) — 93,657 — — — — Associates Serviport S.A. — — — 4,668 — — Balance as of December 31, 2019 27,449 93,657 57,016 187,616 1,108,403 795 Current 27,449 — 57,016 187,616 1,108,403 795 Non–current — 93,657 — — — — 27,449 93,657 57,016 187,616 1,108,403 795 (Note 7) (Note 7) (Note 11) (Note 20) (Note 19) Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energy Limited 22,958 — 19,214 87,079 855,135 67 Ecodiesel Colombia S.A. 522 — — 23,857 — 1 Offshore International Group Inc.(1) — 117,824 — — — — Associates Serviport S.A. — — — 5,482 — — Balance as of December 31, 2018 23,480 117,824 19,214 116,418 855,135 68 Current 23,480 — 19,214 116,418 855,135 68 Non–current — 117,824 — — — — 23,480 117,824 19,214 116,418 855,135 68 (Note 7) (Note 7) (Note 11) (Note 20) (Note 19) Loans with related parties: (1) Loan granted by Ecopetrol S.A. to Savia Perú S.A. (subsidiary of Offshore International Group) for USD$57 million in 2016, with an interest rate of 4.99% payable semiannually from 2017 and maturing in 2021. The balance in nominal value of this loan as of December 31, 2019 is USD$28 million (2018 - USD$35 million). On December 11, 2019, Ecopetrol S.A. and the Korea National Oil Corporation ("KNOC") awarded to Savia a modification to the credit conditions. That modification is related to the payments of the principal to expire on December 16, 2019 (USD$7 million), June 15, 2020 (USD$7 million) and December 15, 2020 (USD$7 million), for the debtor to cancel this amount on February 19, 2021, at which time the final payment will be made for USD$28 million. (2) The interest rate of the loan with Capital AG corresponds to 2.37%. |
Schedule of transactions between related parties | The main transactions with related parties for years ended December 31, 2019, 2018 and 2017 are detailed as follows: 2019 2018 2017 Sales and Purchases Sales and Purchases Sales and Purchases services and others services and others services and others Joint Ventures Equion Energy Limited 317,382 569,105 67,002 846,284 425,881 598,636 Ecodiesel Colombia S.A 8,614 280,649 6,860 267,498 6,583 259,269 Offshore International Group 3,245 — 2,386 — 15,188 — 329,241 849,754 76,248 1,113,782 447,652 857,905 |
Schedule of key management personnel | As of December 31, 2019, key management officers owned less than 1% of the outstanding shares of Ecopetrol S.A. as follows: Key management personnel % Shares Felipe Bayón <1% outstanding shares Jaime Caballero <1% outstanding shares Orlando Díaz <1% outstanding shares Jorge Calvache <1% outstanding shares Maria Consuelo Barrera <1% outstanding shares Rafael Espinosa Rozo <1% outstanding shares |
Joint operations (Tables)
Joint operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Schedule of interests in joint arrangements | 31.1 Contracts in which Ecopetrol is not the operator % Geographic area of Partners Contract Type Participation operations Occidental Andina LLC Chipirón Production 30–40 % Colombia Cosecha % Cravo Norte % Rondón % Chevron Petroleum Group Guajira Production % Colombia Mansarovar Energy Colombia Ltd Nare Production % Colombia Meta Petroleum Corp Quifa Production % Colombia Equion Energy Limited Piedemonte Production % Colombia Perenco Colombia Limited Casanare Production % Colombia Corocora % Estero % Garcero % Orocúe % Petrobras, Repsol & Statoil Tayrona Exploration % North Caribbean Offshore Shell Deep Rydberg/Aleatico Exploration % Gulf of Mexico Noble Energy Gunflint Production % Gulf of Mexico Murphy Oil Dalmatian Production % Gulf of Mexico Anadarko K2 Production % Gulf of Mexico Shell - Parmer Palmer Exploration % Gulf of Mexico OXY (Anadarko) Warrior Exploration % Gulf of Mexico HESS ESOXX Exploration % Gulf of Mexico PEMEX Exploracion Y Produccion Bloque 8 Exploration % Gulf of Mexico PETRONAS PC Carigali Mexico Operations, S.A. de C.V. Bloque 6 Exploration % Gulf of Mexico Occidental Petroleum Company Rodeo Midland Basin Production % Texas U.S. - Midland Basin Equion Energia Limited Niscota Production % Colombia CNOOC - British Petroleum Pau Brasil Exploration % Brazil Shell / Chevron Saturno Exploration % Brazil Chevron CE-M-715_R11 Exploration % Brazil Lewis SSJN1 Exploration % Colombia Interoil Colombia Mana Production % Colombia Interoil Colombia Ambrosia Production % Colombia Interoil Colombia Rio Opia Production % Colombia Canacol Rancho Hermoso Otras formaciones Production % Colombia Vetra La Punta Santo Domingo Production % Colombia Geopark Llanos 86 Exploration % Colombia Geopark Llanos 87 Exploration % Colombia Geopark Llanos 104 Exploration % Colombia |
Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Schedule of interests in joint arrangements | 31.2 Contracts in which Ecopetrol is the operator % Geographic area of Partners Contract Type Participation operations ExxonMobil Exploration Colombia VMM29 Exploration % Colombia CR2 C62 Talisman Colombia Oil CPO9 Exploration % Colombia ONGC Videsh Limited Colombia Branch RC9 Exploration % Colombia CPVEN Sucursal Colombia VMM32 Exploration % Colombia Shell Exploration and Production CR4 Exploration % Colombia SK Innovation Co Ltd. San Jacinto Exploration % Colombia Repsol Exploración Colombia S.A. Catleya Exploration % Colombia Emerald Energy PLC Suc. Colombia Cardon Exploration % Colombia Talismán Colombia oil and gas Ltd. CPO9 – Akacias Production % Colombia Parex Resourses Colombia Ltd. ORC401 CRC-2004-01 Exploration % Colombia Occidental Andina LLC La Cira Infantas Exploration % Teca % Colombia Ramshorn International Limited Guariquies I Production % Colombia Equion Energy Limited Cusiana Production % Colombia Planta de Gas Perenco Oil And Gas San Jacinto Rio Paez Production % Colombia Cepsa Colombia Total Colombie Mundo Nuevo Exploration % Colombia Talisman Oil & Gas ONGC Videsh Limited Block RC–9 Contract– Exploration % Gulf of Mexico |
Information by segments (Tables
Information by segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Information by segments | |
Schedule of operating segments | Below are the consolidated statements of profit or loss by segment for the years ended December 31, 2019, 2018 and 2017: For the year ended on December 31 2019 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 31,295,118 36,393,470 3,799,924 — 71,488,512 Inter–segment sales 21,372,872 2,377,336 9,270,812 (33,021,020) — Total sales revenue 52,667,990 38,770,806 13,070,736 (33,021,020) 71,488,512 Fixed costs (9,587,961) (3,523,948) (3,039,452) 3,878,443 (12,272,918) Variable costs (26,785,904) (34,332,271) (698,742) 29,117,475 (32,699,442) Cost of sales (36,373,865) (37,856,219) (3,738,194) 32,995,918 (44,972,360) Gross profit 16,294,125 914,587 9,332,542 (25,102) 26,516,152 Administrative expenses (1,284,560) (496,155) (372,942) 2,058 (5,488,994) Operation and project expenses (1,475,710) (743,378) (434,904) 22,238 (2,631,754) Impairment of non–current assets (1,982,044) 452,163 (232,556) — (1,762,437) Other operating income and expenses net 49,673 1,014,988 74,607 (82,472) 1,056,796 Operating income (expenses) 11,601,484 1,142,205 8,366,747 (83,278) 21,027,158 Financial result net Financial income 1,440,440 229,297 273,613 (320,014) 1,623,336 Financial expenses (2,311,133) (996,790) (306,878) 280,332 (3,334,469) Foreign exchange gain (loss) net 287,286 (179,936) (66,711) — 40,639 (583,407) (947,429) (99,976) (39,682) (1,670,494) Share of profits of associates and joint ventures 227,401 17,091 138 122,274 366,904 Income before tax 11,245,478 211,867 8,266,909 (686) 19,723,568 Income tax (1,925,798) (83,504) (2,709,111) — (4,718,413) Net profit (loss) for the period 9,319,680 128,363 5,557,798 (686) 15,005,155 Profit (loss) attributable to: Group owners of parent 9,382,129 117,708 4,244,860 (686) 13,744,011 Non–controlling interest (62,449) 10,655 1,312,938 — 1,261,144 9,319,680 128,363 5,557,798 (686) 15,005,155 Supplementary information Depreciation depletion and amortization 5,892,822 1,398,948 1,291,013 — 8,582,783 For the year ended on December 31, 2018 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 30,112,900 34,947,948 3,543,024 — 68,603,872 Inter–segment sales 20,259,864 2,063,425 7,811,143 (30,134,432) — Total sales revenue 50,372,764 37,011,373 11,354,167 (30,134,432) 68,603,872 Fixed costs (8,871,709) (3,204,791) (2,805,516) 3,535,979 (11,346,037) Variable costs (23,367,475) (32,453,962) (596,571) 26,579,666 (29,838,342) Cost of sales (32,239,184) (35,658,753) (3,402,087) 30,115,645 (41,184,379) Gross profit 18,133,580 1,352,620 7,952,080 (18,787) 27,419,493 Administrative expenses (889,293) (443,880) (320,498) (187) (4,961,079) Operation and project expenses (1,993,054) (668,177) (263,104) 21,203 (2,903,132) Impairment of non–current assets 785,940 (984,704) (169,870) — (368,634) Other operating income and expenses, net (137,836) (13,652) 118,905 (2,872) (35,455) Operating income (expenses) 15,899,337 (757,793) 7,317,513 (643) 22,458,414 Financial result, net Financial income 1,099,893 147,689 110,898 (228,917) 1,129,563 Financial expenses (2,038,312) (1,295,528) (407,589) 229,268 (3,512,161) Foreign exchange gain (loss), net 868,479 (517,410) 21,154 — 372,223 (69,940) (1,665,249) (275,537) 351 (2,010,375) Share of profits of associates and joint ventures 135,265 27,730 2,841 — 165,836 Income before tax 15,964,662 (2,395,312) 7,044,817 (292) 20,613,875 Income tax (6,096,591) 420,224 (2,582,118) — (8,258,485) Net profit (loss) for the period 9,868,071 (1,975,088) 4,462,699 (292) 12,355,390 Profit (loss) attributable to: Group owners of parent 9,930,519 (1,973,075) 3,424,234 (292) 11,381,386 Non–controlling interest (62,448) (2,013) 1,038,465 — 974,004 9,868,071 (1,975,088) 4,462,699 (292) 12,355,390 Supplementary information Depreciation, depletion and amortization 5,248,364 1,307,216 1,149,270 — 7,704,850 For the year ended on December 31, 2017 Exploration and Refining and Transport Production Petrochemicals and Logistics Eliminations Total Third–party sales 25,004,320 27,343,359 3,606,549 — 55,954,228 Inter–segment sales 11,490,614 1,300,657 6,991,515 (19,782,786) — Total sales revenue 36,494,934 28,644,016 10,598,064 (19,782,786) 55,954,228 Fixed costs (8,055,925) (2,886,745) (2,637,604) 3,239,880 (10,340,394) Variable costs (18,254,159) (23,968,650) (634,231) 16,289,109 (26,567,931) Cost of sales (26,310,084) (26,855,395) (3,271,835) 19,528,989 (36,908,325) Gross profit 10,184,850 1,788,621 7,326,229 (253,797) 19,045,903 Administrative expenses (781,386) (516,501) (466,669) 32 (2,874,048) Operation and project expenses (2,070,916) (965,457) (142,847) 253,155 (2,926,065) Impairment of non–current assets 183,718 1,067,965 59,455 — 1,311,138 Other operating income and expenses, net 545,218 (11,694) (28,121) — 505,403 Operating income (expenses) 8,061,484 1,362,934 6,748,047 (610) 16,171,855 Financial result, net Financial income 1,062,393 164,006 106,659 (173,702) 1,159,356 Financial expenses (2,288,576) (1,110,874) (434,664) 173,513 (3,660,601) Foreign exchange gain (loss), net (101,030) 163,992 (57,448) — 5,514 (1,327,213) (782,876) (385,453) (189) (2,495,731) Share of profits of associates and joint ventures 120,786 15,245 (42,493) — 93,538 Income before tax 6,855,057 595,303 6,320,101 (799) 13,769,662 Income tax (3,034,556) (238,625) (2,527,087) — (5,800,268) Net profit (loss) for the period 3,820,501 356,678 3,793,014 (799) 7,969,394 Profit (loss) attributable to: Group owners of parent 3,820,501 358,859 2,999,978 (799) 7,178,539 Non–controlling interest — (2,181) 793,036 — 790,855 3,820,501 356,678 3,793,014 (799) 7,969,394 Supplementary information Depreciation, depletion and amortization 5,981,294 1,188,871 1,111,182 — 8,281,347 |
Schedule of products and services | The sales by product for each segment are detailed below for the years ended December 31, 2019, 2018 and 2017: For the year ended on December 31, 2019 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid-distillates — 13,573,007 — (31,251) 13,541,756 Gasoline and turbo fuel — 11,269,797 — (1,896,767) 9,373,030 Transport service 57,316 51,812 12,853,762 (9,133,788) 3,829,102 Natural gas 2,909,770 49,420 — (653,647) 2,305,543 Plastic and rubber — 760,301 — — 760,301 Asphalts 24,690 519,510 — — 544,200 LPG and propane 179,541 193,375 — — 372,916 Crude 21,056,104 — — (20,699,247) 356,857 Services 169,062 232,407 216,920 (309,036) 309,353 Aromatics — 228,552 — — 228,552 Polyethylene — 190,133 — — 190,133 Other income gas contracts 102,845 — — — 102,845 Fuel oil 1,464 96,443 — — 97,907 Other products 25,215 779,407 — (297,286) 507,336 24,526,007 27,944,164 13,070,682 (33,021,022) 32,519,831 Recognition of price differential — 1,785,277 — — 1,785,277 24,526,007 29,729,441 13,070,682 (33,021,022) 34,305,108 Foreign sales Crude 28,461,601 61,995 — — 28,523,596 Diesel — 4,391,798 — — 4,391,798 Fuel oil — 1,870,929 — — 1,870,929 Plastic and rubber — 1,200,668 — — 1,200,668 Gasoline and turbo fuels — 1,085,392 — — 1,085,392 Natural gas 27,255 — — — 27,255 LPG and propane 13,591 — — — 13,591 Cash flow hedge for future exports – reclassification to profit or loss (386,773) — — — (386,773) Other products 26,309 430,584 55 — 456,948 28,141,983 9,041,366 55 — 37,183,404 52,667,990 38,770,807 13,070,737 (33,021,022) 71,488,512 For the year ended on December 31, 2018 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid–distillates 725 11,662,476 — (77,009) 11,586,192 Gasoline and turbo fuel — 9,690,113 — (1,737,261) 7,952,852 Transport service 37,279 36,321 11,089,012 (7,631,208) 3,531,404 Natural gas 2,535,658 — — (649,812) 1,885,846 Plastic and rubber — 822,367 — — 822,367 Crude 20,142,527 — — (19,592,048) 550,479 LPG and propane 245,875 329,569 — (805) 574,639 Fuel oil 20,391 489,091 — — 509,482 Asphats 26,406 309,020 — — 335,426 Aromatics — 282,545 — — 282,545 Polyethylene — 270,887 — — 270,887 Services 103,522 190,612 265,059 (319,783) 239,410 Other income gas contracts 156,031 — — — 156,031 Other products 11,484 604,530 — (126,507) 489,507 23,279,898 24,687,531 11,354,071 (30,134,433) 29,187,067 Recognition of price differential — 3,835,533 — — 3,835,533 23,279,898 28,523,064 11,354,071 (30,134,433) 33,022,600 Foreign sales Crude 26,898,737 — — — 26,898,737 Diesel — 3,050,839 — — 3,050,839 Fuel oil — 2,053,594 — — 2,053,594 Gasoline and turbo fuels — 1,782,194 — — 1,782,194 Plastic and rubber — 1,268,582 — — 1,268,582 Natural gas 27,899 — — — 27,899 LPG and propane 20,212 — — — 20,212 Cash flow hedge for future exports – Reclassification to profit or loss 128,404 — — — 128,404 Other products 17,614 333,101 96 — 350,811 27,092,866 8,488,310 96 — 35,581,272 50,372,764 37,011,374 11,354,167 (30,134,433) 68,603,872 For the year ended on December 31, 2017 Exploration and Refining and Transport Production Petrochemicals and Logistics Eliminations Total Local sales Mid–distillates 1,334 9,588,992 — — 9,590,326 Gasoline and turbo fuel — 8,052,289 — (1,062,102) 6,990,187 Transport service 41,157 41,998 10,277,921 (6,771,523) 3,589,553 Natural gas 2,540,233 4 — (724,483) 1,815,754 Plastic and rubber — 833,982 — — 833,982 Crude 11,668,529 — — (10,758,658) 909,871 LPG and propane 199,796 309,823 — — 509,619 Fuel oil 14,758 339,300 — — 354,058 Asphats 34,834 240,969 — — 275,803 Aromatics — 217,418 — — 217,418 Polyethylene — 167,348 — — 167,348 Services 140,227 179,912 319,776 (356,116) 283,799 Other income gas contracts 188,195 — — — 188,195 Other products 11,107 379,023 — (109,904) 280,226 14,840,170 20,351,058 10,597,697 (19,782,786) 26,006,139 Recognition of price differential — 2,229,953 — — 2,229,953 14,840,170 22,581,011 10,597,697 (19,782,786) 28,236,092 Foreign sales Crude 21,426,666 52,397 — — 21,479,063 Diesel — 1,213,740 — — 1,213,740 Fuel oil — 1,982,408 — — 1,982,408 Gasoline and turbo fuels — 1,223,994 — — 1,223,994 Plastic and rubber — 1,169,101 — — 1,169,101 Natural gas 32,303 — — — 32,303 LPG and propane 15,631 — — — 15,631 Cash flow hedge for future exports – Reclassification to profit or loss 160,772 — — — 160,772 Other products 19,392 421,365 367 — 441,124 21,654,764 6,063,005 367 — 27,718,136 36,494,934 28,644,016 10,598,064 (19,782,786) 55,954,228 |
Schedule of detailed information about investment property segment wise | The following are the investments amounts made by each segment for the years ended December 31, 2019, 2018 and 2017: Exploration Refining and Transport and 2019 and Production Petrochemicals Logistics Total Property, plant and equipment 2,151,194 497,512 1,363,953 4,012,659 Natural and environmental resources 9,798,193 — — 9,798,193 Intangibles 25,775 20,569 121,945 168,289 11,975,162 518,081 1,485,898 13,979,141 Exploration Refining and Transport and 2018 and Production Petrochemicals Logistics Total Property, plant and equipment 2,071,604 702,247 529,078 3,302,929 Natural and environmental resources 5,051,828 — — 5,051,828 Intangibles 56,755 20,203 28,711 105,669 7,180,187 722,450 557,789 8,460,426 Exploration Refining and Transport and 2017 and Production Petrochemicals Logistics Total Property, plant and equipment 927,282 606,749 829,252 2,363,283 Natural and environmental resources 3,568,355 — — 3,568,355 Intangibles 154,155 4,941 16,772 175,868 4,649,792 611,690 846,024 6,107,506 |
Supplemental information on o_2
Supplemental information on oil and gas producing activities (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental information on oil and gas producing activities (unaudited) | |
Schedule of capitalized costs relating to oil and gas producing activities | 34.1 Capitalized costs relating to oil and gas exploration and production activities 2019 2018 2017 Natural and environmental properties 60,261,025 53,752,436 48,129,595 Wells, equipment and facilities – property, plant and equipment 30,150,268 29,416,081 30,405,565 Exploration and production projects 8,801,630 8,463,584 6,632,812 Accumulated depreciation, depletion and amortization (60,346,094) (55,689,222) (51,791,897) Net capitalized cost 38,866,829 35,942,879 33,376,075 |
Schedule of costs Incurred in oil and gas property acquisition, exploration, and development activities | 34.2 Costs incurred in oil and gas exploration and developed activities Costs incurred are summarized below and include both amounts expensed and capitalized in the corresponding period. 2019 2018 2017 Acquisition of proved properties(1) 2,668,960 — 591,875 Acquisition of unproved properties(2) 261,231 81,295 164,180 Exploration costs 640,556 1,197,946 1,095,588 Development costs 8,084,283 6,346,276 3,599,385 11,655,030 7,625,517 5,451,028 (1) In July 2019, Ecopetrol S.A. and Occidental Petroleum Corp. (OXY) entered into a Joint Operation contract in order to execute a joint plan for the development of unconventional drilling in the Permian Basin in the state of Texas (USA). On December 2017, Ecopetrol América Inc. acquired an 11.6% interest in the K2 oil field in the Gulf of Mexico from MCX, increasing its share from 9.2% to 20.8%. (2) On July 17, 2019, the Ministry of Mines and Energy of Brazil authorized the transfer of 10% of the Saturn block for USD$85 million, located in the Santos basin, to Ecopetrol Óleo e Gás do Brasil, this percentage of which Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda. were equal holders. In the new shareholding structure, Ecopetrol retains 10% of the interests of the block, while Shell (operator) and Chevron each retain 45% of the total. As of December 2017, the investments were mainly made by Ecopetrol América Inc. in offshore exploration projects of the Warrior and Rydberg wells. |
Schedule of results of operations for oil and gas exploration and production activities | 34.3 Results of operations for oil and gas exploration and production activities The Ecopetrol Business Group’s results of operations from oil and gas exploration and production activities for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Net revenues Sales 42,070,018 39,633,866 29,823,565 Transfers 11,564,358 11,794,014 7,518,216 53,634,376 51,427,880 37,341,781 Production costs(1) 9,336,387 8,337,413 6,535,794 Depreciation, depletion and amortization(2) 6,049,543 5,591,774 6,349,382 Other production costs(3) 21,550,907 18,918,275 14,066,593 Exploration expenses(4) 763,562 1,387,463 1,342,952 Other expenses(5) 4,163,241 1,036,983 882,743 41,863,640 35,271,908 29,177,464 Income before income tax expense 11,770,736 16,155,972 8,164,317 Income tax expense (2,107,363) (6,303,251) (3,678,955) Results of operations for exploration and production activities 9,663,373 9,852,721 4,485,362 (1) Production costs are lifting costs incurred to operate and maintain productive wells and related equipment and facilities including costs such as operating labor, materials, supplies, and fuel consumed in operations and the costs of operating natural gas liquids plants. In addition, they include expenses related to the asset retirement obligations that were recognized during 2019, 2018 and 2017 of COP$198,394, COP$187,340 and COP$380,810, respectively. (2) In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2019, 2018 and 2017 in depreciation, depletion and amortization, were COP$272,147, COP$180,193 and COP$179,601, respectively. (3) Corresponds to transportation costs and naphtha that are not part of the Ecopetrol Business Group’s lifting cost. (4) Exploration expenses include the costs of geological and geophysical activities, as well as the non–productive exploratory wells. (5) Corresponds to administration, marketing expenses and impairment. |
Schedule of proved developed and undeveloped oil and gas reserve quantities | 2019 2018 2017 Oil Gas Total Oil Gas Total Oil Gas Total (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) Proved reserves: Opening balance (1) 1,200 3,002 1,727 1,088 3,254 1,659 1,033 3,218 1,598 Revisions of previous estimates(2) 74 51 83 121 (4) 121 124 294 175 Improved recovery 94 3 94 128 4 129 72 4 73 Purchases 142 126 164 — — — 3 2 4 Extensions and discoveries 66 2 67 54 18 57 44 — 43 Production (193) (278) (242) (191) (270) (239) (188) (264) (234) Closing balance 1,383 2,906 1,893 1,200 3,002 1,727 1,088 3,254 1,659 Proved developed reserves: Opening balance 883 2,882 1,389 818 3,158 1,372 779 3,131 1,329 Closing balance 898 2,662 1,365 883 2,882 1,389 818 3,158 1,372 Proved undeveloped reserves: Opening balance 317 119 338 270 96 287 254 87 269 Closing balance 486 244 529 317 119 338 270 96 287 (1) The values for 2019 were not rounded for presentation purposes. (2) Represents changes in previous proved reserves, upward or downward, resulting from new information (except for an increase in a proved area), usually obtained from development drilling and production history or result from changes in economic factors. |
Schedule of standardized measure of discounted future cash flows relating to proved crude oil and gas eserves | The standardized measure of discounted future net cash flows related to the above proved crude oil and natural gas reserves is calculated in accordance with the requirements of ASU 2010–03. Estimated future cash inflows from production under SEC requirements are computed by applying unweighted arithmetic average of the first–day–of–the–month for oil and gas price to year–end quantities of estimated net proved reserves, with cost factors based on those at the end of each year, currently enacted tax rates and a 10% annual discount factor. In our view, the information so calculated does not provide a reliable measure of future cash flows from proved reserves, nor does it permit a realistic comparison to be made of one entity with another because the assumptions used cannot reflect the varying circumstances within each entity. In addition, a substantial but unknown proportion of future real cash flows from oil and gas production activities is expected to derive from reserves which have already been discovered, but which cannot yet be regarded as proved. 2019 2018 2017 Future cash inflows 279,722,107 275,046,421 182,114,282 Future costs Production (93,589,960) (90,176,326) (70,159,534) Development (32,734,702) (21,945,453) (14,860,992) Income taxes (37,077,231) (41,102,015) (23,660,328) Future net cash flow 116,320,214 121,822,627 73,433,428 10% discount factor (36,934,889) (35,518,187) (22,216,583) Standardized measure of discounted net cash flows 79,385,325 86,304,440 51,216,845 |
Exhibit 1. Consolidated subsi_2
Exhibit 1. Consolidated subsidiaries, associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of consolidated subsidiaries, associates and joint ventures | |
Disclosure of interests in subsidiaries | Consolidated subsidiary companies (1/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Refinería de Cartagena S.A.S. U.S. dollar 100 % Refining of hydrocarbons, commercialization and distribution of products Colombia Colombia 17,260,342 63,700 26,738,049 9,477,707 Cenit Transporte y Logística S.A.S. Colombian peso 100 % Storage and transport by pipelines of hydrocarbons Colombia Colombia 15,289,423 4,322,501 17,470,013 2,180,590 Oleoducto Central S. A. - Ocensa U.S. dollar 72.65 % Transportation by crude oil pipelines Colombia Colombia 3,718,707 2,697,990 7,172,245 3,453,538 Ecopetrol Global Energy S.L.U U.S. dollar 100 % Investment vehicle Spain Spain 7,889,271 1,256,639 7,892,018 2,747 Hocol Petroleum Limited U.S. dollar 100 % Investment vehicle Bermuda Bermuda 3,008,263 378,889 3,008,416 153 Ecopetrol América LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 2,529,782 (64,032) 3,067,856 538,074 Hocol S.A. U.S. dollar 100 % Exploration, exploitation and production of hydrocarbons Cayman Islands Colombia 2,000,248 366,311 3,293,912 1,293,664 Esenttia S.A. U.S. dollar 100 % Production and commercialization of polypropylene resin Colombia Colombia 1,652,851 197,639 2,100,014 447,163 Ecopetrol Capital AG U.S. dollar 100 % Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. Switzerland Switzerland 1,630,044 124,098 6,885,838 5,255,794 Andean Chemicals Ltd. U.S. dollar 100 % Investment vehicle Bermuda Bermuda 1,158,661 (190,135) 1,159,558 897 Oleoducto Bicentenario de Colombia S.A.S. Colombian peso 55.97 % Transportation by crude oil pipelines Colombia Colombia 1,569,418 575,910 3,792,998 2,223,580 Oleoducto de los Llanos Orientales S. A. - ODL Colombian peso 65 % Transportation by crude oil pipelines Panama Colombia 1,079,130 485,516 1,654,772 575,642 Inversiones de Gases de Colombia S.A. Invercolsa S.A. (1) Colombian peso 51.88 % Holding with investments in natural gas and LPG transportation and distribution companies in Colombia Colombia Colombia 817,849 18,198 1,361,333 543,484 Consolidated subsidiaries (2/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Black Gold Re Ltd. U.S. dollar 100 % Reinsurer for companies of the Ecopetrol Business Group Bermuda Bermuda 751,916 54,547 888,577 136,661 Oleoducto de Colombia S.A. – ODC Colombian peso 73 % Transportation by crude oil pipelines Colombia Colombia 422,898 329,775 663,666 240,768 Bioenergy S.A.S Colombian peso 99.61 % Production of biofuels Colombia Colombia 46,756 (270,376) 219,686 172,930 Esenttia Masterbatch Ltda Colombian peso 100 % Manufacture of polypropylene compounds and masterbatches Colombia Colombia 263,152 113,587 347,308 84,156 Ecopetrol Oleo é Gas do Brasil Ltda. Brazilian real 100 % Exploration and exploitation of hydrocarbons Brazil Brazil 728,744 (140,819) 757,348 28,604 Bioenergy Zona Franca S.A.S. Colombian peso 99.61 % Production of biofuels Colombia Colombia (89,565) (236,088) 358,751 448,316 Ecopetrol del Perú S.A. U.S. dollar 100 % Exploration and exploitation of hydrocarbons Peru Peru 50,311 (2,025) 52,351 2,040 ECP Hidrocarburos de México S.A. de C.V. U.S. dollar 100 % Offshore exploration Mexico Mexico 38,144 (73,303) 70,854 32,710 Ecopetrol Costa Afuera S.A.S. Colombian peso 100 % Offshore exploration Colombia Colombia 12,208 (3,760) 32,130 19,922 Esenttia Resinas del Perú SAC U.S. dollar 100 % Commercialization polypropylene resins and masterbatches Peru Peru 4,830 101 28,831 24,001 Ecopetrol Energía S.A.S E.S.P. Colombian peso 100 % Energy supply service Colombia Colombia 7,405 3,990 106,773 99,368 Ecopetrol Germany Gmbh (2) U.S. dollar 100 % Exploration and exploitation of hydrocarbons Germany Angola 2,283 (12) 2,283 — Ecopetrol USA Inc. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 7,070,295 1,483,597 7,070,295 — Ecopetrol Permian LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 3,043,138 (4,768) 3,044,851 1,713 Topili Servicios Administrativos S de RL de CV Mexican peso 100 % Specialized management services Mexico Mexico 46 (4) 49 3 Kalixpan Servicios Técnicos S de RL de CV Mexican peso 100 % Specialized services related to oil and gas industry Mexico Mexico (3) (3) 1 4 (1) Values according to consolidated financial statements of the company. The result in profit (loss) corresponds to one month of operation. Assets and liabilities values as of December 2019. (2) Company in liquidation process. |
Disclosure of interests in associates | Exhibit 1 – Consolidated subsidiaries, associates and joint ventures Consolidated subsidiary companies (1/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Refinería de Cartagena S.A.S. U.S. dollar 100 % Refining of hydrocarbons, commercialization and distribution of products Colombia Colombia 17,260,342 63,700 26,738,049 9,477,707 Cenit Transporte y Logística S.A.S. Colombian peso 100 % Storage and transport by pipelines of hydrocarbons Colombia Colombia 15,289,423 4,322,501 17,470,013 2,180,590 Oleoducto Central S. A. - Ocensa U.S. dollar 72.65 % Transportation by crude oil pipelines Colombia Colombia 3,718,707 2,697,990 7,172,245 3,453,538 Ecopetrol Global Energy S.L.U U.S. dollar 100 % Investment vehicle Spain Spain 7,889,271 1,256,639 7,892,018 2,747 Hocol Petroleum Limited U.S. dollar 100 % Investment vehicle Bermuda Bermuda 3,008,263 378,889 3,008,416 153 Ecopetrol América LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 2,529,782 (64,032) 3,067,856 538,074 Hocol S.A. U.S. dollar 100 % Exploration, exploitation and production of hydrocarbons Cayman Islands Colombia 2,000,248 366,311 3,293,912 1,293,664 Esenttia S.A. U.S. dollar 100 % Production and commercialization of polypropylene resin Colombia Colombia 1,652,851 197,639 2,100,014 447,163 Ecopetrol Capital AG U.S. dollar 100 % Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. Switzerland Switzerland 1,630,044 124,098 6,885,838 5,255,794 Andean Chemicals Ltd. U.S. dollar 100 % Investment vehicle Bermuda Bermuda 1,158,661 (190,135) 1,159,558 897 Oleoducto Bicentenario de Colombia S.A.S. Colombian peso 55.97 % Transportation by crude oil pipelines Colombia Colombia 1,569,418 575,910 3,792,998 2,223,580 Oleoducto de los Llanos Orientales S. A. - ODL Colombian peso 65 % Transportation by crude oil pipelines Panama Colombia 1,079,130 485,516 1,654,772 575,642 Inversiones de Gases de Colombia S.A. Invercolsa S.A. (1) Colombian peso 51.88 % Holding with investments in natural gas and LPG transportation and distribution companies in Colombia Colombia Colombia 817,849 18,198 1,361,333 543,484 Consolidated subsidiaries (2/2) Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Black Gold Re Ltd. U.S. dollar 100 % Reinsurer for companies of the Ecopetrol Business Group Bermuda Bermuda 751,916 54,547 888,577 136,661 Oleoducto de Colombia S.A. – ODC Colombian peso 73 % Transportation by crude oil pipelines Colombia Colombia 422,898 329,775 663,666 240,768 Bioenergy S.A.S Colombian peso 99.61 % Production of biofuels Colombia Colombia 46,756 (270,376) 219,686 172,930 Esenttia Masterbatch Ltda Colombian peso 100 % Manufacture of polypropylene compounds and masterbatches Colombia Colombia 263,152 113,587 347,308 84,156 Ecopetrol Oleo é Gas do Brasil Ltda. Brazilian real 100 % Exploration and exploitation of hydrocarbons Brazil Brazil 728,744 (140,819) 757,348 28,604 Bioenergy Zona Franca S.A.S. Colombian peso 99.61 % Production of biofuels Colombia Colombia (89,565) (236,088) 358,751 448,316 Ecopetrol del Perú S.A. U.S. dollar 100 % Exploration and exploitation of hydrocarbons Peru Peru 50,311 (2,025) 52,351 2,040 ECP Hidrocarburos de México S.A. de C.V. U.S. dollar 100 % Offshore exploration Mexico Mexico 38,144 (73,303) 70,854 32,710 Ecopetrol Costa Afuera S.A.S. Colombian peso 100 % Offshore exploration Colombia Colombia 12,208 (3,760) 32,130 19,922 Esenttia Resinas del Perú SAC U.S. dollar 100 % Commercialization polypropylene resins and masterbatches Peru Peru 4,830 101 28,831 24,001 Ecopetrol Energía S.A.S E.S.P. Colombian peso 100 % Energy supply service Colombia Colombia 7,405 3,990 106,773 99,368 Ecopetrol Germany Gmbh (2) U.S. dollar 100 % Exploration and exploitation of hydrocarbons Germany Angola 2,283 (12) 2,283 — Ecopetrol USA Inc. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 7,070,295 1,483,597 7,070,295 — Ecopetrol Permian LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 3,043,138 (4,768) 3,044,851 1,713 Topili Servicios Administrativos S de RL de CV Mexican peso 100 % Specialized management services Mexico Mexico 46 (4) 49 3 Kalixpan Servicios Técnicos S de RL de CV Mexican peso 100 % Specialized services related to oil and gas industry Mexico Mexico (3) (3) 1 4 (1) Values according to consolidated financial statements of the company. The result in profit (loss) corresponds to one month of operation. Assets and liabilities values as of December 2019. (2) Company in liquidation process. Associated companies and joint ventures Ownership Geographic Profit Functional interest Country/ area of (loss) of Total Total Company currency Ecopetrol Activity Domicile operations Equity the year assets liabilities Associates Serviport S.A. (1) Colombian peso 49 % Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements Colombia Colombia 22,593 1,164 59,044 36,451 Sociedad Portuaria Olefinas y Derivados S.A. (1) Colombian peso 50 % Construction, use, maintenance and administration of port facilities, ports, private docks Colombia Colombia 3,816 646 6,753 2,937 Joint ventures Equion Energía Limited U.S. dollar 51 % Exploration, exploitation and production of hydrocarbons United Kingdom Colombia 2,234,067 396,380 2,625,837 391,770 Offshore International Group Inc. U.S. dollar 50 % Exploration, exploitation and production of hydrocarbons United States Peru 736,847 (48,247) 1,766,271 1,029,424 Ecodiesel Colombia S.A. (2) Colombian peso 50 % Production, commercialization and distribution of biofuels and oleochemicals Colombia Colombia 92,191 17,964 147,087 54,896 (1) Information available as of September 30, 2019. The investment is 100% impaired as of December 31, 2019. (2) Information available as of November 30, 2019. |
Exhibit 2. Conditions of the _2
Exhibit 2. Conditions of the most significant loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of conditions of the most significant loans [Abstract] | |
Disclosure of loans | Outstanding Outstanding balance balance Interest Amortization Payment of Type of credit Company Issue date Expiry date Currency Disbursement Dec 31, 2019 Dec 31, 2018 rate plan interest dec-10 dec-20 COP 479,900 479,900 479,900 Floating Bullet Half-yearly dec-10 dec-40 COP 284,300 284,300 284,300 Floating Bullet Half-yearly Bonds, domestic Ecopetrol S.A. aug-13 aug-23 COP 168,600 168,600 168,600 Floating Bullet Half-yearly Currency aug -13 aug-28 COP 347,500 347,500 347,500 Floating Bullet Half-yearly aug -13 aug-43 COP 262,950 262,950 262,950 Floating Bullet Half-yearly Local currency Oleoducto Bicentenario S.A.S jul-12 jul-24 COP 2,100,000 1,021,890 1,191,050 Floating Quarterly Quarterly syndicated loan ODL Finance S.A. aug -13 aug-20 COP 800,000 312,608 224,000 Floating Quarterly Quarterly Commercial loan Bioenergy abr-11 dec-31 COP 505,723 530,733 444,157 Floating Monthly Monthly sep-13 sep-23 USD 1,300 1,300 1,300 Fixed Bullet Half-yearly sep-13 sep-43 USD 850 850 850 Fixed Bullet Half-yearly Bonds, foreign Ecopetrol S.A. may-14 may-45 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly currency sep-14 may-25 USD 1,200 1,200 1,200 Fixed Bullet Half-yearly jun-15 jun-26 USD 1,500 1,500 1,500 Fixed Bullet Half-yearly jun-16 sep-23 USD 500 500 500 Fixed Bullet Half-yearly Oleoducto Central S.A. may-14 may-21 USD 500 506 500 Fixed Bullet Half-yearly International dec-17 dec-27 USD 2,001 1,530 1,742 Fixed Half-yearly Half-yearly commercial credits - dec-17 dec-27 USD 76 58 66 Floating Half-yearly Half-yearly Refinería de Ecopetrol S.A. dec-17 dec-27 USD 73 56 63 Fixed Half-yearly Half-yearly Cartagena dec-17 dec-27 USD 159 121 138 Floating Half-yearly Half-yearly dec-17 dec-25 USD 359 288 321 Floating Half-yearly Half-yearly |
Reporting entity (Details)
Reporting entity (Details) | Dec. 31, 2019 |
Reporting entity | |
Proportion of shares available for public trade | 11.51% |
Proportion of shares held by majority share holders | 88.49% |
Basis for presentation (Details
Basis for presentation (Details) | Nov. 29, 2019 | Dec. 31, 2018 |
Basis for presentation | ||
Percenatge of Direct Share Holdings Of Share Capital | 99.00% | |
Percenatge of Indirect Share Holdings Of Share Capital | 1.00% | |
Invercolsa [member] | ||
Basis for presentation | ||
Percentage of ownership interest acquired | 8.53% | |
Percentage of interest held | 51.88% |
Accounting policies (Details)
Accounting policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Plant and equipment [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 11 years |
Plant and equipment [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 60 years |
Pipelines, networks and lines [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 11 years |
Pipelines, networks and lines [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Buildings [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 11 years |
Buildings [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Other [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 6 years |
Other [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 40 years |
Accounting policies - Additiona
Accounting policies - Additional Information (Details) | Dec. 31, 2019 |
Disclosure of accounting policies [Line Items] | |
Percentage of Interest Rate On Accumulated Severance Amount | 12.00% |
Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Percentage of voting equity interests acquired | 20.00% |
Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Percentage of voting equity interests acquired | 50.00% |
New standards and regulatory _3
New standards and regulatory changes - Right-of-use assets and lease liabilities (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at the beginning | $ 0 | ||
Balance at the end | 456,225 | $ 0 | |
Lease liabilities [abstract] | |||
Repayment of borrowings | (300,326) | 0 | $ 0 |
Lease liabilities | |||
Lease liabilities [abstract] | |||
Balance at the beginning | 797,889 | ||
IFRS 16 adoption (January 1st) | 490,245 | ||
Additions | 224,493 | ||
Disposals | (50) | ||
Finance cost | 76,139 | ||
Repayment of borrowings | (300,326) | ||
Exchange difference | 2,564 | ||
Balance at the end | 1,290,954 | 797,889 | |
Sublease | |||
Lease liabilities [abstract] | |||
Balance at the beginning | 0 | ||
IFRS 16 adoption (January 1st) | 29,610 | ||
Finance cost | 3,302 | ||
Repayment of borrowings | (3,476) | ||
Balance at the end | 29,436 | 0 | |
Right-of-use assets | |||
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at the beginning | 0 | ||
IFRS 16 adoption (January 1st) | 460,635 | ||
Additions | 224,493 | ||
Amortization of the period | (175,354) | ||
Impairment loss | (53,488) | ||
Disposals | (61) | ||
Balance at the end | 456,225 | 0 | |
Lands and buildings | |||
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at the beginning | 0 | ||
IFRS 16 adoption (January 1st) | 236,519 | ||
Additions | 26,252 | ||
Amortization of the period | (44,254) | ||
Disposals | (4) | ||
Balance at the end | 218,513 | 0 | |
Plant and equipment [member] | |||
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at the beginning | 0 | ||
IFRS 16 adoption (January 1st) | 78,412 | ||
Additions | 123,341 | ||
Amortization of the period | (50,944) | ||
Impairment loss | (53,488) | ||
Disposals | (57) | ||
Balance at the end | 97,264 | 0 | |
Vehicles | |||
Disclosure of quantitative information about right-of-use assets [abstract] | |||
Balance at the beginning | 0 | ||
IFRS 16 adoption (January 1st) | 145,704 | ||
Additions | 74,900 | ||
Amortization of the period | (80,156) | ||
Balance at the end | $ 140,448 | $ 0 |
New standards and regulatory _4
New standards and regulatory changes - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | |||
Right-of-use assets and subleases | $ 456,225 | $ 0 | |
2019 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Lease Term | 12 months | ||
IFRS 16 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Right-of-use assets and subleases | $ 490,245 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents. | ||||
Banks | $ 5,813,306 | $ 4,511,078 | ||
Short-term investments | 1,262,105 | 1,799,597 | ||
Cash | 347 | 1,069 | ||
Cash and cash equivalents | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 | $ 8,410,467 |
Cash and cash equivalents - Cre
Cash and cash equivalents - Credit quality of issuers of investments (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 | $ 8,410,467 |
AAA [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 3,851,656 | 3,092,236 | ||
A-1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 1,244,462 | 512,757 | ||
BRC1+ [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 673,342 | 470,623 | ||
BBB [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 569,514 | 1,305,037 | ||
F1+ [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 244,547 | 222,454 | ||
AA [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 229,473 | 107,520 | ||
A [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 167,404 | 0 | ||
A-2 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 89,996 | 147,186 | ||
BB [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 43 | 0 | ||
BAA2 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 10 | 0 | ||
A1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 0 | 394,696 | ||
F1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 0 | 48,566 | ||
Other [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | $ 5,311 | $ 10,669 |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents. | ||
Restricted Cash and Cash Equivalents | $ 85,286 | $ 92,331 |
Average rate of return on cash and cash equilents | 3.20% | 3.00% |
Trade and other receivables, _3
Trade and other receivables, net (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Customers | ||
Foreign | $ 2,759,993 | $ 2,404,531 |
Domestic | 2,015,517 | 1,512,821 |
Fuel price stabilization fund(1) | 256,303 | 3,828,691 |
Accounts receivable from employees | 95,693 | 78,459 |
Industrial services | 47,691 | 154,152 |
Related parties (Note 30) | 27,449 | 23,480 |
Other | 497,688 | 192,109 |
Total current | 5,700,334 | 8,194,243 |
Non-current | ||
Accounts receivable from employees | 508,588 | 470,609 |
Related parties (Note 30) | 93,657 | 117,824 |
Domestic customers | 52,819 | |
Other | 131,732 | 167,141 |
Total non-current | $ 786,796 | $ 755,574 |
Trade and other receivables, _4
Trade and other receivables, net - Allowance for doubtful accounts (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade and other receivables, net | |||
Opening balance | $ 268,654 | $ 170,016 | $ 144,329 |
Additions, net | 14,158 | 107,725 | 35,229 |
Accounts receivable write-off and uses | (21) | (9,087) | (9,542) |
Closing balance | $ 282,791 | $ 268,654 | $ 170,016 |
Trade and other receivables, _5
Trade and other receivables, net - Additional Information (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
IFRS Statement [Line Items] | ||
Stabilization fund received | $ 5,359,869 | |
Ecopetrol | ||
IFRS Statement [Line Items] | ||
Stabilization fund received | $ 4,435,974 | |
Reficar | ||
IFRS Statement [Line Items] | ||
Stabilization fund received | $ 923,895 |
Inventories, net (Details)
Inventories, net (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories, net | ||
Crude oil | $ 1,965,022 | $ 1,958,572 |
Fuels and petrochemicals | 1,876,247 | 1,524,548 |
Materials for the production of goods | 1,816,830 | 1,617,287 |
Current inventories | $ 5,658,099 | $ 5,100,407 |
Inventories, net - Changes of t
Inventories, net - Changes of the allowances for losses (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories, net | |||
Opening balance | $ (86,938) | $ (194,507) | $ (265,435) |
Additions, net | 115,778 | ||
Reversals, net | (44,191) | (9,134) | |
Foreign currency translation | 371 | (9,717) | 4,266 |
Uses | (768) | 1,508 | 75,796 |
Closing balance | $ (131,526) | $ (86,938) | $ (194,507) |
Inventories, net - Additional I
Inventories, net - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories, net | ||
Inventories adjustment | $ 9,759 | $ 30,252 |
Other financial assets (Details
Other financial assets (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | $ 4,971,057 | $ 8,144,238 |
Other financial assets | 4,979,292 | 8,147,815 |
Current | 1,624,018 | 5,321,098 |
Non-current | 3,355,274 | 2,826,717 |
Assets measured at amortized cost [Member] | ||
Assets measured at fair value through profit or loss | ||
Other financial assets | 3,367 | 3,577 |
Hedging instruments [Member] | ||
Assets measured at fair value through profit or loss | ||
Other financial assets | 4,868 | 0 |
Local currency | ||
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | 1,630,149 | 3,389,869 |
Foreign currency | ||
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | $ 3,340,908 | $ 4,754,369 |
Other financial assets - Maturi
Other financial assets - Maturity (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | $ 4,979,292 | $ 8,147,815 |
2019 | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 1,624,018 | 5,321,098 |
2021 | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 983,571 | 1,847,241 |
Later than two years and not later than five years [member] | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 1,791,549 | 823,425 |
Later than five years [member] | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | $ 580,154 | $ 156,051 |
Other financial assets - Other
Other financial assets - Other financial assets by fair value hierarchy level (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | $ 4,975,925 | $ 8,144,238 |
Level 1 | ||
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | 472,547 | 372,636 |
Level 2 | ||
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | $ 4,503,378 | $ 7,771,602 |
Other financial assets - Credit
Other financial assets - Credit quality of the issuers of other financial assets (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | $ 4,971,057 | $ 8,144,238 |
AAA [Member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 2,707,019 | 3,105,894 |
A+ [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 712,934 | 161,160 |
AA [Member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 477,423 | 15,430 |
F1+ [Member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 350,325 | 353,175 |
AA- [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 186,325 | 455,584 |
A [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 186,222 | 80,334 |
BBB [Member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 159,968 | 0 |
AA+ [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 155,012 | 193,747 |
BRC1+ [Member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 0 | 611,905 |
BBB+ [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 0 | 18,731 |
A1 [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 18,168 | 3,148,043 |
Other | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | $ 17,661 | $ 235 |
Other financial assets - Additi
Other financial assets - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Colombian pesos [Member] | ||
Disclosure of Other financial assets [line Items] | ||
Average rate of return on investments | 5.40% | 5.40% |
US Dollar [Member] | ||
Disclosure of Other financial assets [line Items] | ||
Average rate of return on investments | 3.60% | 2.10% |
Taxes - Current tax assets and
Taxes - Current tax assets and liabilities (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current tax assets | ||
Current tax assets | $ 1,518,807 | $ 1,031,307 |
Current tax liabilities | ||
Current tax liabilities | 2,570,779 | 1,751,300 |
Non-current tax liabilities | 70,543 | 0 |
Income tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 1,967,353 | 1,065,688 |
Tax of Industry and Commerce [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 195,776 | 174,207 |
National tax and surcharge on gasoline [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 145,569 | 141,408 |
Carbon tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 54,586 | 48,520 |
Value added tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 33,098 | 168,185 |
Other taxes [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 174,397 | 153,292 |
Other taxes [Member] | ||
Current tax assets | ||
Current tax assets | 714,197 | 211,558 |
Income tax [member] | ||
Current tax assets | ||
Current tax assets | 190,605 | 765,399 |
Credit tax balance [Member] | ||
Current tax assets | ||
Current tax assets | $ 614,005 | $ 54,350 |
Taxes - Income tax expense (Det
Taxes - Income tax expense (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Current income tax | $ 7,117,040 | $ 7,539,093 | $ 5,108,549 |
Deferred income tax | (2,365,108) | 783,136 | 472,772 |
Adjustments to prior years' current and deferred tax | (33,519) | (63,744) | 218,947 |
Income tax expenses | $ 4,718,413 | $ 8,258,485 | $ 5,800,268 |
Taxes - Reconciliation of the i
Taxes - Reconciliation of the income tax expenses (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Net income before income tax | $ 19,723,568 | $ 20,613,875 | $ 13,769,662 |
Statutory rate | 33.00% | 37.00% | 40.00% |
Income tax at statutory rate | $ 6,508,777 | $ 7,627,134 | $ 5,507,865 |
ETR reconciliation items: | |||
Non-deductible expenses | 295,550 | 379,633 | 271,414 |
Rate differential adjustment | 132,888 | 172,352 | 186,588 |
Impairment of non-financial assets | 57,646 | (128,461) | (175,750) |
Increase in shareholding in Invercolsa | (2,943) | ||
Non-taxable income | (524,658) | (119,963) | (107,881) |
Prior years' taxes | (33,520) | (63,744) | 218,947 |
Foreign currency translation and exchange difference | (54,318) | 751,210 | (186,787) |
Tax discounts and tax credit | (110,857) | ||
Ecopetrol U.S.A. deferred tax | (1,550,152) | ||
Effect of tax reform | 0 | (359,676) | |
Non-deductible wealth tax | 0 | 85,872 | |
Income tax expenses | 4,718,413 | 8,258,485 | 5,800,268 |
Current | 7,127,492 | 7,416,038 | 5,076,692 |
Deferred | (2,409,079) | 842,447 | 723,576 |
Income tax expenses | $ 4,718,413 | $ 8,258,485 | $ 5,800,268 |
Taxes - Deferred income tax (De
Taxes - Deferred income tax (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes | ||
Deferred tax assets | $ 6,809,347 | $ 3,879,427 |
Deferred tax liabilities | (1,328,831) | (1,337,943) |
Net deferred income tax | $ 5,480,516 | $ 2,541,484 |
Taxes - Deferred tax assets and
Taxes - Deferred tax assets and liabilities (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | $ 5,480,516 | $ 2,541,484 | $ 2,682,881 | $ 2,608,311 |
Loss carry forwards [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 2,849,087 | 1,002,062 | 611,766 | |
Provisions [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 2,404,032 | 1,994,762 | 1,840,988 | |
Employee benefits [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 1,875,872 | 1,161,860 | 1,373,561 | |
Accounts payable [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 1,631,706 | 1,193,098 | 208,618 | |
Accounts receivable [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 139,410 | 79,591 | 94,864 | |
Excess presumptive income | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 64,249 | (37,638) | ||
Right-of-use assets | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | (33,592) | 0 | 0 | |
Investments and hedging [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | (45,844) | (143,717) | ||
Goodwill [member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | (363,968) | (404,394) | (408,932) | |
Property, plant and equipment and Natural and environmental resources [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | $ (3,040,436) | $ (2,304,140) | $ (1,006,299) |
Taxes - Deferred tax assets (De
Taxes - Deferred tax assets (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Taxes [Line Items] | |||
Opening balance | $ 2,541,484 | $ 2,682,881 | $ 2,608,311 |
Profit or loss | 2,409,079 | (842,447) | (723,576) |
OCI | 627,958 | 701,050 | 798,146 |
Increase in Invercolsa shareholding | (98,005) | ||
Closing balance | 5,480,516 | 2,541,484 | 2,682,881 |
Property, plant and equipment and Natural and environmental resources [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (2,304,140) | (1,006,299) | |
Profit or loss | (736,296) | (1,297,841) | |
OCI | 0 | 0 | |
Closing balance | (3,040,436) | (2,304,140) | (1,006,299) |
Provisions [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 1,994,762 | 1,840,988 | |
Profit or loss | 409,270 | 153,774 | |
OCI | 0 | 0 | |
Closing balance | 2,404,032 | 1,994,762 | 1,840,988 |
Employee benefits [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 1,161,860 | 1,373,561 | |
Profit or loss | (57,343) | (178,160) | |
OCI | 771,355 | (33,541) | |
Closing balance | 1,875,872 | 1,161,860 | 1,373,561 |
Loss carry forwards [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 1,002,062 | 611,766 | |
Profit or loss | 1,847,025 | 390,296 | |
OCI | 0 | 0 | |
Closing balance | 2,849,087 | 1,002,062 | 611,766 |
Accounts payable [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 1,193,098 | 208,618 | |
Profit or loss | 438,608 | 984,480 | |
OCI | 0 | 0 | |
Closing balance | 1,631,706 | 1,193,098 | 208,618 |
Accounts receivable [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 79,591 | 94,864 | |
Profit or loss | 59,819 | (15,273) | |
OCI | 0 | 0 | |
Increase in Invercolsa shareholding | 0 | ||
Closing balance | 139,410 | 79,591 | 94,864 |
Goodwill [member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (404,394) | (408,932) | |
Profit or loss | 40,426 | 4,538 | |
OCI | 0 | 0 | |
Increase in Invercolsa shareholding | 0 | ||
Closing balance | (363,968) | (404,394) | (408,932) |
Right-of-use assets | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 0 | 0 | |
Profit or loss | (33,592) | 0 | |
OCI | 0 | 0 | |
Increase in Invercolsa shareholding | 0 | ||
Closing balance | (33,592) | 0 | 0 |
Others [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (181,355) | (31,685) | |
Profit or loss | 441,162 | (884,261) | |
OCI | (143,397) | 734,591 | |
Increase in Invercolsa shareholding | (98,005) | ||
Closing balance | $ 18,405 | $ (181,355) | $ (31,685) |
Taxes - Deferred tax detail not
Taxes - Deferred tax detail not recognized (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Opening balance | $ 2,541,484 | $ 2,682,881 | $ 2,608,311 |
Deferred tax recognized in profit or loss | 2,409,079 | (842,447) | (723,576) |
Increase due to business combination (Invercolsa) | (98,005) | ||
Deferred tax recognized in other comprehensive income(a) | 627,958 | 701,050 | 798,146 |
Closing balance | $ 5,480,516 | $ 2,541,484 | $ 2,682,881 |
Taxes - Income tax recorded in
Taxes - Income tax recorded in other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | $ 2,233,149 | $ 2,229,484 | $ 2,344,671 |
Deferred tax | (627,958) | (701,050) | (798,146) |
After tax | 1,605,191 | 1,528,434 | 1,546,525 |
Other comprehensive income | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | 0 | 925 | 6,649 |
Deferred tax | 28,877 | (34,283) | 762 |
After tax | 28,877 | (33,358) | 7,411 |
Cash flow hedging for future crude oil exports [member] | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | (356,339) | 797,658 | 167,458 |
Deferred tax | 118,008 | (264,284) | (82,622) |
After tax | (238,331) | 533,374 | 84,836 |
Hedge of a net investment in a foreign operation (Note 29.1.3) | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | 87,524 | 1,382,278 | (86,563) |
Deferred tax | (26,257) | (410,324) | 28,566 |
After tax | 61,267 | 971,954 | (57,997) |
Hedge with derivative instruments | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | (69,220) | 77,872 | (53,385) |
Deferred tax | 22,769 | (25,698) | 17,617 |
After tax | (46,451) | 52,174 | (35,768) |
Actuarial valuation gains (losses) [member] | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | 2,571,184 | (29,249) | 2,310,512 |
Deferred tax | (771,355) | 33,539 | (762,469) |
After tax | $ 1,799,829 | $ 4,290 | $ 1,548,043 |
Taxes - Additional Information
Taxes - Additional Information (Details) $ in Thousands, $ in Millions | Jan. 01, 2018 | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017 | Dec. 31, 2019COP ($) |
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 33.00% | 33.00% | 37.00% | 40.00% | |||
Average effective tax rate | 23.90% | 23.90% | 40.10% | ||||
Description of nature of potential income tax consequences that would result from payment of dividend | Further, if the earnings against which the dividends are distributed were not subject to corporate tax, these dividends are taxable by the income tax applicable during the distribution period (for 2019 the rate is 33%). In this scenario, the 7.5% tax on dividends will be applicable to the distributed amount, once it is reduced by the 33% (35% in 2018) income tax rate. | Further, if the earnings against which the dividends are distributed were not subject to corporate tax, these dividends are taxable by the income tax applicable during the distribution period (for 2019 the rate is 33%). In this scenario, the 7.5% tax on dividends will be applicable to the distributed amount, once it is reduced by the 33% (35% in 2018) income tax rate. | |||||
Description of applicability of surtax | The income tax rate for the 2018 tax year was 33% with a surcharge of 4% applicable on net income exceeding COP$800 million. | The income tax rate for the 2018 tax year was 33% with a surcharge of 4% applicable on net income exceeding COP$800 million. | |||||
Description of tax losses carry forward | Tax losses may be offset against ordinary net income obtained in the following twelve taxable years. | Tax losses may be offset against ordinary net income obtained in the following twelve taxable years. | |||||
Deferred tax assets | $ 3,879,427,000 | $ 6,809,347,000 | |||||
Deferred tax assets for accumulated income tax losses | $ 1,002,063,000 | ||||||
Percentage Of Net Equity | 1.50% | 1.50% | |||||
Description Of Vat Rate And Conditions | , and it has been noted that VAT withholding may be up to 50% of the tax amount, subject to regulation by the National Government. The VAT rate remains at 19%. | , and it has been noted that VAT withholding may be up to 50% of the tax amount, subject to regulation by the National Government. The VAT rate remains at 19%. | |||||
Description Of Audit Benefit Terms | private settlement by taxpayers of income tax and supplements that increase net income tax by a minimum of at least 30%, | private settlement by taxpayers of income tax and supplements that increase net income tax by a minimum of at least 30%, | |||||
Limitations Covering Tax Return With Favourable Balance Period | 3 years | ||||||
Description of Change in Limitation Period upon Compliance of Given Condition | when these have been filed extemporaneously. Returns filed by taxpayers that have made transactions subject to the transfer pricing regulations have a statute of limitations of six years. | when these have been filed extemporaneously. Returns filed by taxpayers that have made transactions subject to the transfer pricing regulations have a statute of limitations of six years. | when these have been filed extemporaneously. Returns filed by taxpayers that have made transactions subject to the transfer pricing regulations have a statute of limitations of six years. | ||||
Description of statute of limitations for tax return in which tax losses are originated or carried forward | For tax returns in which tax losses are either originated or carried forward, the statute of limitations will be 12 years counted as of their filing dates. | For tax returns in which tax losses are either originated or carried forward, the statute of limitations will be 12 years counted as of their filing dates. | For tax returns in which tax losses are either originated or carried forward, the statute of limitations will be 12 years counted as of their filing dates. | ||||
Description of Change in Effective tax rate | The decrease from the previous year is mainly due to: a) the effect of the deferred tax assets not recognized of Ecopetrol USA and Permian, b) a reduction of the nominal tax rate by 4 bps, (33% in 2019 as compared to 37% in 2018), c) the use of the 50% tax discount in the industry and commerce tax, d) the appreciation of Ecopetrol's increased interest in Invercolsa, and, e) the application of the Tax reform for estimating the deferred tax balances; among others. | The decrease from the previous year is mainly due to: a) the effect of the deferred tax assets not recognized of Ecopetrol USA and Permian, b) a reduction of the nominal tax rate by 4 bps, (33% in 2019 as compared to 37% in 2018), c) the use of the 50% tax discount in the industry and commerce tax, d) the appreciation of Ecopetrol's increased interest in Invercolsa, and, e) the application of the Tax reform for estimating the deferred tax balances; among others. | |||||
Description of Consistency in The Return When Increase in Minimum Tax rate | Under this benefit, private settlement by taxpayers of income tax and supplements that increase net income tax by a minimum of at least 30%, or 20% over the net income tax of the immediately preceding year, shall be considered firm for six (6) or twelve (12) months, respectively after the date of presentation if not notified of a deadline for correction or special requirement, or a special deadline or provisional settlement, provided that the return is filed timely and the payment is made within the established deadlines. | Under this benefit, private settlement by taxpayers of income tax and supplements that increase net income tax by a minimum of at least 30%, or 20% over the net income tax of the immediately preceding year, shall be considered firm for six (6) or twelve (12) months, respectively after the date of presentation if not notified of a deadline for correction or special requirement, or a special deadline or provisional settlement, provided that the return is filed timely and the payment is made within the established deadlines. | |||||
Threshold Limit of Income tax Below which Tax Benefit is Not Applicable | $ 2,528,097 | ||||||
Percentage of gains | 10.00% | 10.00% | |||||
Base tax amount | 507,161,000 | ||||||
Deferred tax assets amount unrecognized | $ 50,716,000 | ||||||
Percentage of tax discount in the industry and commerce tax | 50.00% | 50.00% | |||||
Excesses of presumptive income | $ 1,332,854,000 | ||||||
Deferred tax asset recognised | 6,809,347,000 | $ 3,879,427,000 | |||||
Increase in profit due to recognition of deferred tax asset | $ 180,073,000 | ||||||
Minimum success rate | 75.00% | 75.00% | |||||
Description of deferred tax assets recognized. | (i) taxpayers who enjoy tax benefits due to their location in a specified geographic region; (ii) if it is demonstrated that declared withholdings at source are non-existent; (iii) if the net income tax is less than 71 UVT (COP$2,528.097 for fiscal year 2020). The deadline stipulated in this law does not extend to declarations of withholdings at source nor to the sales tax, which shall be established by the general regulation. | (i) taxpayers who enjoy tax benefits due to their location in a specified geographic region; (ii) if it is demonstrated that declared withholdings at source are non-existent; (iii) if the net income tax is less than 71 UVT (COP$2,528.097 for fiscal year 2020). The deadline stipulated in this law does not extend to declarations of withholdings at source nor to the sales tax, which shall be established by the general regulation. | |||||
Machinery [member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Percentage of Depreciation on Property Plant and Equipment | 10.00% | 10.00% | |||||
Vehicles | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Percentage of Depreciation on Property Plant and Equipment | 20.00% | 20.00% | |||||
Infrastructure [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Percentage of Depreciation on Property Plant and Equipment | 2.22% | 2.22% | |||||
Unreported Assets and Nonexistent Liabilities [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable Tax Rate On Unreported Assets or Nonexistent Liabilities | 15.00% | 15.00% | |||||
2019 [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 33.00% | 33.00% | |||||
Percentage Of Net Equity | 1.50% | 1.50% | |||||
2020 [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 32.00% | 32.00% | |||||
Percentage Of Net Equity | 0.50% | 0.50% | |||||
2021 [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 31.00% | 31.00% | |||||
2022 After [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 30.00% | 30.00% | |||||
2021 After [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Percentage Of Net Equity | 0.00% | 0.00% | |||||
2019 and 2020 [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Presumtive income tax | 0.00% | 0.00% | |||||
2018 [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 33.00% | 33.00% | |||||
Excess of Income tax losses [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Deferred tax assets for tax losses and excesses of presumptive income amount | $ 2,849,087,000 | ||||||
Dividend Tax Rate [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 7.50% | 7.50% | 5.00% | ||||
Refinera de Cartagena | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Excesses of presumptive income | $ 228,569,000 | $ 948,671,000 | |||||
Deferred tax asset recognised | 1,052,848,000 | ||||||
Additonal Deferred tax asset recognised | 228,569,000 | ||||||
Bioenergy Zona Franca [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Excesses of presumptive income | 53,392,000 | ||||||
Refinera de Cartagena, Bioenergy And Ecopetrol USA [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Tax losses | 6,385,989,000 | ||||||
Bioenergy | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Excesses of presumptive income | 5,361,000 | ||||||
Deferred tax asset recognised | 64,343,000 | ||||||
Additonal Deferred tax asset recognised | 5,361,000 | ||||||
Deferred tax assets not recognised | 105,592,000 | ||||||
Excess presumptive income were not recognised | 74,481,000 | ||||||
Andean Chemicals Ltd. [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Deferred tax assets not recognised | 105,592,000 | ||||||
Excess presumptive income were not recognised | 74,481,000 | ||||||
Ecopetrol USA | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Tax losses | $ 1,904 | 6,144,400,000 | |||||
Deferred tax asset recognised | $ 182,977,000 | ||||||
Asset retirement obligation | 22,590,000 | ||||||
Tax carry forward term | 20 years | 20 years | |||||
Tax losses as a percentage of taxable income | 80.00% | ||||||
Ecopetrol Costa Afuera | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Deferred tax assets not recognised | $ 105,592,000 | ||||||
Excess presumptive income were not recognised | 74,481,000 | ||||||
Hocol petroleum limited | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Excess presumptive income were not recognised | $ 74,481,000 | ||||||
Refinera de Cartagena, Bioenergy, Ecopetrol Costa Afuera, Ecopetrol USA, Permian and Andean Chemicals Ltd [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Tax losses | $ 4,292,418,000 | $ 12,402,061,000 | |||||
Ecopetrol Group [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 33.00% | 33.00% | |||||
Ecopetrol USA Inc | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Tax losses | $ 2,067 | ||||||
Increase in tax losses | $ 107 | ||||||
Deferred tax asset recognised | $ 1,288,249,000 | ||||||
Bottom of range [member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Presumptive income, percentage on beginning equity | 1.50% | ||||||
Tariff Percentage | 30.00% | 30.00% | |||||
Top of range [member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Presumptive income, percentage on beginning equity | 3.50% | ||||||
Tariff Percentage | 33.00% | 33.00% | |||||
Colombia Country [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Withholding Dividend Tax Rate | 7.50% | 7.50% | |||||
Free Trade Zone Area [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 20.00% | 20.00% | |||||
Free Trade Zone Area [Member] | Ecopetrol Group [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 15.00% | 15.00% | |||||
Free trade zone with legal stability contract [Member] | Ecopetrol Group [Member] | |||||||
Disclosure of detailed information about income tax [Line Items] | |||||||
Applicable tax rate | 15.00% | 15.00% |
Other assets (Details)
Other assets (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | |||
Partners in joint operations | [1] | $ 921,983 | $ 519,460 |
Advanced payments to contractors and suppliers | 360,781 | 221,767 | |
Prepaid expenses | 272,007 | 191,168 | |
Trust funds | [2] | 144,798 | |
Related parties (Note 30) | 57,016 | 19,214 | |
Other assets | 22,393 | 68,819 | |
Total current | 1,778,978 | 1,020,428 | |
Non-current | |||
Abandonment and pension funds | [3] | 445,457 | 392,084 |
Employee benefits | 220,998 | 213,645 | |
Trust funds | [2] | 171,008 | 147,471 |
Advances and deposits | 56,027 | 61,556 | |
Judicial deposits and attachments | 40,317 | 43,137 | |
Other assets | 8,674 | 2,837 | |
Total non-current | $ 942,481 | $ 860,730 | |
[1] | Corresponds to the net amount of cash calls and cutbacks generated in relation to the operations carried out with partners through Exploration and Production (E&P) contracts, Technical Evaluations (TEA) contracts and agreements entered in to with the National Hydrocarbons Agency (ANH), as well as through association contracts and other types of contracts. | ||
[2] | Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2017 and 2018, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. | ||
[3] | Corresponds to Ecopetrol’s share in trusts established to support costs of abandonment of wells and dismantling of facilities, as well as the payment of future retirement pensions in some association contracts |
Business combinations - Effect
Business combinations - Effect of changes in shareholding (Details) - Invercolsa [member] $ in Millions | Dec. 31, 2019COP ($) |
Disclosure of detailed information about business combination [line items] | |
Increase in the ownership interest in Invercolsa at fair value | $ 217,974 |
(+) Fair value of previously held interest on the date of acquisition of controlling interest | 1,107,969 |
(=) Total fair value of investment in Invercolsa | 1,325,943 |
(-) Carrying amount of previously held interest in Invercolsa | (277,019) |
Gain on acquisition acquisition of control of Invercolsa (Note 27) | $ 1,048,924 |
Business combinations - Recogni
Business combinations - Recognised for the assets acquired and the liabilities (Details) - Invercolsa [member] $ in Millions | Dec. 31, 2019COP ($) |
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |
Cash and cash equivalent | $ 20,530 |
Current accounts receivable | 195,225 |
Inventories | 19,576 |
Current tax assets | 10,704 |
Other assets | 2,810 |
Investments in associates (1) | 1,824,552 |
Trade accounts and other accounts receivables | 52,820 |
Property, plant and equipment 14 | 1,338,947 |
Deferred tax assets | 9,623 |
Other assets | 807 |
Current loans and borrowings | (137,683) |
Trade accounts and other accounts payable | (58,423) |
Current provisions for employee benefits | (7,003) |
Current tax liabilities | (23,597) |
Provisions and contingencies | (8,576) |
Other liabilities | (13,650) |
Non - Current loans and borrowings | (186,923) |
Deferred tax liabilities | (107,629) |
Total net assets (2) | $ 2,932,110 |
Business combinations - Investm
Business combinations - Investments in associates measured at fair value (Details) - Invercolsa [member] $ in Millions | 12 Months Ended |
Dec. 31, 2019COP ($) | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | $ 1,824,552 |
Percentage of net assets corresponding to acquisiton Invercolsa group | 100.00% |
Fair value of the non-controlling interest on the date of acquisition | $ 1,606,390 |
Gases del Caribe S.A. E.S.P. [member] | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | 1,527,911 |
Gas Natural del Oriente S.A. E.S.P. [member] | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | 166,685 |
Gases de la Guajira S.A. E.S.P. [member] | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | 68,608 |
Extrucol S.A. [memebr] | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | 28,501 |
E2 Energa Eficiente S.A. E.S.P. [member] | |
Disclosure of detailed information about business combination [line items] | |
Investments in associates measured at fair value on the date of acquisition | $ 32,847 |
Business combinations - Additio
Business combinations - Additional Information (Details) - COP ($) $ in Millions | Nov. 29, 2019 | Jan. 01, 2019 | Dec. 31, 2019 |
Disclosure of detailed information about business combination [line items] | |||
Description of acquiree | If the acquisition had occurred on January 1, 2019, management estimates that the consolidated revenue and net profit attributable to owners of the parent would have increased by COP$459,286 and COP$134,464, respectively. | ||
Invercolsa [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Percentage of interest held | 51.88% | ||
Percentage of interest acquired | 8.53% | ||
Revenue included in the consolidated profit or loss statement | $ 459,286 | $ 72,712 | |
Profits included in the consolidated profit or loss statement | $ 134,464 | $ 18,198 |
Investments in associates and_3
Investments in associates and joint ventures - Composition and movements (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investments in joint ventures | ||||
Investments in joint ventures | $ 1,418,315 | $ 1,599,674 | ||
Investments in associates | ||||
Investments in associates | 1,826,757 | 244,662 | ||
Investments in joint ventures and associates | 3,245,072 | 1,844,336 | $ 1,330,460 | $ 1,552,694 |
Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 2,271,033 | 2,133,431 | ||
Investments in associates | ||||
Investments in associates | 1,837,827 | 255,874 | ||
Gases del Caribe S.A. E.S.P. [member] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 1,527,911 | 0 | ||
Gas Natural del Oriente S.A. E.S.P. [member] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 166,685 | 0 | ||
Gases de la Guajira S.A. E.S.P. [member] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 68,608 | 0 | ||
Extrucol S.A. [memebr] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 28,501 | 0 | ||
E2 Energa Eficiente S.A. E.S.P. [member] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 32,847 | 0 | ||
Inversiones de Gases de Colombia S.A. - Invercolsa S.A. (1) | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 0 | 243,294 | ||
Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 11,070 | 11,212 | ||
Serviport S.A | Accumulated impairment [member] | ||||
Investments in associates | ||||
Investments in associates | (11,070) | (11,212) | ||
Sociedad Portuaria Olefinas y Derivados | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 2,205 | 1,368 | ||
Equion Energy Limited [Member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 2,234,067 | 1,939,686 | ||
Equion Energy Limited [Member] | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 1,515,067 | 1,364,933 | ||
Equion Energy Limited [Member] | Accumulated impairment [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | (322,388) | (187,636) | ||
Offshore International Group | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 736,847 | 771,492 | ||
Offshore International Group | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 709,871 | 727,194 | ||
Offshore International Group | Accumulated impairment [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | (530,330) | (346,121) | ||
Ecodiesel Colombia S.A | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | $ 46,095 | $ 41,304 |
Investments in associates and_4
Investments in associates and joint ventures - Movement of investments in associates and joint ventures (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | $ 1,844,336 | $ 1,330,460 | $ 1,552,694 |
Effects of equity method through: | |||
Profit or loss | 366,904 | 165,836 | 93,538 |
Other comprehensive income | (170,460) | 137,562 | (14,752) |
Dividends declared | (79,866) | (90,350) | (285,961) |
Impairment reversal (loss) (Note 17) | (318,820) | 300,828 | (15,059) |
Foreign currency translation | 1,602,978 | ||
Closing balance | 3,245,072 | 1,844,336 | 1,330,460 |
Joint ventures [member] | |||
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | 1,599,674 | 1,105,282 | 1,303,157 |
Effects of equity method through: | |||
Profit or loss | 257,366 | 59,928 | 46,869 |
Other comprehensive income | 4,531 | 135,831 | (14,752) |
Dividends declared | (4,192) | (3,503) | (224,837) |
Impairment reversal (loss) (Note 17) | (318,962) | 302,136 | (5,155) |
Foreign currency translation | (120,102) | ||
Closing balance | 1,418,315 | 1,599,674 | 1,105,282 |
Associates [member] | |||
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | 244,662 | 225,178 | 249,537 |
Effects of equity method through: | |||
Profit or loss | 109,538 | 105,908 | 46,669 |
Other comprehensive income | (174,991) | 1,731 | 0 |
Dividends declared | (75,674) | (86,847) | (61,124) |
Impairment reversal (loss) (Note 17) | 142 | (1,308) | (9,904) |
Foreign currency translation | 1,723,080 | ||
Closing balance | $ 1,826,757 | $ 244,662 | $ 225,178 |
Investments in associates and_5
Investments in associates and joint ventures - Additional information about associates and joint ventures (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of financial position | ||||
Current assets | $ 23,364,461 | $ 27,030,612 | ||
Non-current assets | 110,525,835 | 97,612,886 | ||
Total assets | 133,890,296 | 124,643,498 | ||
Current liabilities | 21,742,299 | 17,824,622 | ||
Non-current liabilities | 53,916,369 | 49,711,096 | ||
Total liabilities | 75,658,668 | 67,535,718 | ||
Equity | 58,231,628 | 57,107,780 | $ 48,215,699 | $ 43,560,501 |
Other complementary information | ||||
Cash and cash equivalents | 7,075,758 | 6,311,744 | 7,945,885 | $ 8,410,467 |
Loans and borrowings | 5,012,173 | 4,019,927 | ||
Non-current Loans and borrowings | 33,226,966 | 34,042,718 | ||
Statement of profit or loss | ||||
Sales revenue | 71,488,512 | 68,603,872 | 55,954,228 | |
Costs | (44,972,360) | (41,184,379) | (36,908,325) | |
Administrative expenses and others | (5,488,994) | (4,961,079) | (2,874,048) | |
Financial (expenses) income | (1,670,494) | (2,010,375) | (2,495,731) | |
Income tax | 4,718,413 | 8,258,485 | 5,800,268 | |
Financial year results | 15,005,155 | 12,355,390 | 7,969,394 | |
Other comprehensive income -loss for the year, net of tax | (1,743,107) | 1,037,450 | (1,815,907) | |
Offshore International Group | ||||
Statement of financial position | ||||
Current assets | 284,591 | 354,959 | ||
Non-current assets | 1,481,680 | 1,523,549 | ||
Total assets | 1,766,271 | 1,878,508 | ||
Current liabilities | 310,561 | 221,606 | ||
Non-current liabilities | 718,863 | 885,410 | ||
Total liabilities | 1,029,424 | 1,107,016 | ||
Equity | 736,847 | 771,492 | ||
Other complementary information | ||||
Cash and cash equivalents | 48,752 | 96,592 | ||
Loans and borrowings | 0 | 95,633 | ||
Non-current Loans and borrowings | 0 | 137,708 | ||
Statement of profit or loss | ||||
Sales revenue | 529,167 | 653,054 | 393,210 | |
Costs | (690,484) | (585,192) | (508,461) | |
Administrative expenses and others | (64,115) | (353,010) | (103,340) | |
Financial (expenses) income | (31,288) | (21,227) | (20,264) | |
Income tax | 208,473 | (16,594) | 60,575 | |
Financial year results | (48,247) | (322,969) | (178,280) | |
Other comprehensive income -loss for the year, net of tax | 0 | 0 | 0 | |
Dividends paid to the Ecopetrol Business Group | 0 | 0 | 0 | |
Depreciation and amortization | 226,654 | 243,601 | 232,953 | |
Equion Energy Limited [Member] | ||||
Statement of financial position | ||||
Current assets | 2,530,453 | 2,083,614 | ||
Non-current assets | 95,384 | 484,336 | ||
Total assets | 2,625,837 | 2,567,950 | ||
Current liabilities | 315,002 | 550,933 | ||
Non-current liabilities | 76,768 | 77,331 | ||
Total liabilities | 391,770 | 628,264 | ||
Equity | 2,234,067 | 1,939,686 | ||
Other complementary information | ||||
Cash and cash equivalents | 188,820 | 185,762 | ||
Loans and borrowings | 0 | 3,176 | ||
Non-current Loans and borrowings | 0 | 0 | ||
Statement of profit or loss | ||||
Sales revenue | 1,285,891 | 1,490,177 | 1,213,692 | |
Costs | (671,179) | (755,656) | (793,999) | |
Administrative expenses and others | (624) | 29,136 | 12,188 | |
Financial (expenses) income | (3,660) | (3,659) | 2,373 | |
Income tax | (214,048) | (338,487) | (180,546) | |
Financial year results | 396,380 | 421,511 | 253,708 | |
Other comprehensive income -loss for the year, net of tax | 1,102,757 | 1,095,090 | 913,728 | |
Dividends paid to the Ecopetrol Business Group | 0 | 0 | 217,075 | |
Depreciation and amortization | $ 404,482 | $ 511,615 | $ 557,970 |
Investments in associates and_6
Investments in associates and joint ventures - Reconciliation of equity (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 1,418,315 | $ 1,599,674 |
Equion Energy Limited [Member] | ||
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 2,234,067 | $ 1,939,686 |
% of Ecopetrol's ownership | 51.00% | 51.00% |
Ecopetrol's ownership | $ 1,139,374 | $ 989,240 |
Additional value of the investment | 375,693 | 375,693 |
Impairment | (322,388) | (187,636) |
Carrying amount of the investment | 1,192,679 | 1,177,297 |
Offshore International Group | ||
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 736,847 | $ 771,492 |
% of Ecopetrol's ownership | 50.00% | 50.00% |
Ecopetrol's ownership | $ 368,424 | $ 385,746 |
Additional value of the investment | 341,447 | 341,448 |
Impairment | (530,330) | (346,121) |
Carrying amount of the investment | $ 179,541 | $ 381,073 |
Property, plant and equipment_2
Property, plant and equipment (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | $ 62,799,983 | $ 61,404,374 |
Ending Balance | 64,214,822 | 62,799,983 |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 100,131,011 | 92,692,898 |
Additions/capitalizations | 4,012,659 | 3,302,929 |
Acquisitions through business combinations, property, plant and equipment | 1,338,947 | |
Increase (Decrease) in abandonment costs | 256,751 | 294,608 |
Capitalized financial interests | 142,310 | 123,972 |
Exchange differences capitalized | 7,716 | 10,530 |
Disposals | (840,924) | (340,856) |
Foreign currency translation | 361,709 | 3,488,174 |
Transfers/ reclassifications | 88,308 | 558,756 |
Ending Balance | 105,498,487 | 100,131,011 |
Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (37,331,028) | (31,288,524) |
Depreciation expense | (4,084,564) | (3,945,079) |
Reversal (loss) of an impairment | (426,611) | (1,083,285) |
Disposals | 707,501 | 250,395 |
Foreign currency translation | (146,685) | (1,042,798) |
Transfers/ reclassifications | (2,278) | (221,737) |
Ending Balance | (41,283,665) | (37,331,028) |
Plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 28,488,953 | 27,781,921 |
Ending Balance | 28,959,829 | 28,488,953 |
Plant and equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 46,474,369 | 42,561,894 |
Additions/capitalizations | 804,570 | 1,196,520 |
Acquisitions through business combinations, property, plant and equipment | 123,436 | |
Increase (Decrease) in abandonment costs | 148,764 | 85,580 |
Capitalized financial interests | 77,627 | 48,351 |
Exchange differences capitalized | 4,208 | 4,107 |
Disposals | (500,876) | (135,468) |
Foreign currency translation | 244,666 | 2,324,744 |
Transfers/ reclassifications | 618,707 | 388,641 |
Ending Balance | 47,995,471 | 46,474,369 |
Plant and equipment [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (17,985,416) | (14,779,973) |
Depreciation expense | (2,001,116) | (2,008,348) |
Reversal (loss) of an impairment | 519,835 | (752,534) |
Disposals | 481,384 | 116,225 |
Foreign currency translation | (103,365) | (677,901) |
Transfers/ reclassifications | 53,036 | 117,115 |
Ending Balance | (19,035,642) | (17,985,416) |
Pipelines, networks and lines [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 19,571,493 | 19,538,423 |
Ending Balance | 19,735,537 | 19,571,493 |
Pipelines, networks and lines [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 34,349,283 | 32,000,049 |
Additions/capitalizations | 765,994 | 944,797 |
Acquisitions through business combinations, property, plant and equipment | 1,118,178 | |
Increase (Decrease) in abandonment costs | 102,402 | 209,028 |
Capitalized financial interests | 32,630 | 34,399 |
Exchange differences capitalized | 1,769 | 2,922 |
Disposals | (165,936) | (112,171) |
Foreign currency translation | 84,357 | 849,868 |
Transfers/ reclassifications | 81,970 | 420,391 |
Ending Balance | 36,370,647 | 34,349,283 |
Pipelines, networks and lines [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (14,777,790) | (12,461,626) |
Depreciation expense | (1,634,783) | (1,465,429) |
Reversal (loss) of an impairment | (113,860) | (311,080) |
Disposals | 116,769 | 84,217 |
Foreign currency translation | (36,341) | (313,311) |
Transfers/ reclassifications | (189,105) | (310,561) |
Ending Balance | (16,635,110) | (14,777,790) |
Work in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 4,127,262 | 3,312,898 |
Ending Balance | 5,145,288 | 4,127,262 |
Work in progress [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 4,624,703 | 3,866,318 |
Additions/capitalizations | 2,097,378 | 993,817 |
Acquisitions through business combinations, property, plant and equipment | 44,876 | |
Increase (Decrease) in abandonment costs | 0 | |
Capitalized financial interests | 12,831 | 14,853 |
Exchange differences capitalized | 696 | 1,262 |
Disposals | (78,399) | (14,723) |
Foreign currency translation | 2,691 | 32,585 |
Transfers/ reclassifications | (445,122) | (269,409) |
Ending Balance | 6,259,654 | 4,624,703 |
Work in progress [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (497,441) | (553,420) |
Depreciation expense | 0 | 0 |
Reversal (loss) of an impairment | (626,878) | 55,979 |
Disposals | 0 | 0 |
Foreign currency translation | 0 | 0 |
Transfers/ reclassifications | 9,953 | |
Ending Balance | (1,114,366) | (497,441) |
Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 4,729,755 | 4,950,024 |
Ending Balance | 4,701,691 | 4,729,755 |
Buildings [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 7,852,278 | 7,618,586 |
Additions/capitalizations | 243,039 | 147,005 |
Acquisitions through business combinations, property, plant and equipment | 9,062 | |
Increase (Decrease) in abandonment costs | 1,248 | |
Capitalized financial interests | 15,800 | 14,350 |
Exchange differences capitalized | 857 | 1,219 |
Disposals | (24,050) | (11,997) |
Foreign currency translation | 10,757 | 100,091 |
Transfers/ reclassifications | 48,954 | (16,976) |
Ending Balance | 8,157,945 | 7,852,278 |
Buildings [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (3,122,523) | (2,668,562) |
Depreciation expense | (326,512) | (347,510) |
Reversal (loss) of an impairment | (87,338) | (64,279) |
Disposals | 17,807 | 8,996 |
Foreign currency translation | (3,656) | (27,782) |
Transfers/ reclassifications | 65,968 | (23,386) |
Ending Balance | (3,456,254) | (3,122,523) |
Lands [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3,950,274 | 3,799,833 |
Ending Balance | 3,973,856 | 3,950,274 |
Lands [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3,984,576 | 3,839,355 |
Additions/capitalizations | 20,098 | 14,909 |
Acquisitions through business combinations, property, plant and equipment | 22,924 | |
Increase (Decrease) in abandonment costs | 0 | |
Capitalized financial interests | 1,033 | 6,703 |
Exchange differences capitalized | 56 | 569 |
Disposals | (354) | (9,763) |
Foreign currency translation | 12,869 | 124,903 |
Transfers/ reclassifications | 13,336 | 7,900 |
Ending Balance | 4,054,538 | 3,984,576 |
Lands [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (34,302) | (39,522) |
Depreciation expense | 0 | 0 |
Reversal (loss) of an impairment | (35,533) | 5,220 |
Disposals | 0 | 0 |
Foreign currency translation | 0 | 0 |
Transfers/ reclassifications | (10,847) | |
Ending Balance | (80,682) | (34,302) |
Other [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 1,932,246 | 2,021,275 |
Ending Balance | 1,698,621 | 1,932,246 |
Other [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 2,845,802 | 2,806,696 |
Additions/capitalizations | 81,580 | 5,881 |
Acquisitions through business combinations, property, plant and equipment | 20,471 | |
Increase (Decrease) in abandonment costs | 4,337 | |
Capitalized financial interests | 2,389 | 5,316 |
Exchange differences capitalized | 130 | 451 |
Disposals | (71,309) | (56,734) |
Foreign currency translation | 6,369 | 55,983 |
Transfers/ reclassifications | (229,537) | 28,209 |
Ending Balance | 2,660,232 | 2,845,802 |
Other [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (913,556) | (785,421) |
Depreciation expense | (122,153) | (123,792) |
Reversal (loss) of an impairment | (82,837) | (16,591) |
Disposals | 91,541 | 40,957 |
Foreign currency translation | (3,323) | (23,804) |
Transfers/ reclassifications | 68,717 | (4,905) |
Ending Balance | $ (961,611) | $ (913,556) |
Natural and environmental res_3
Natural and environmental resources (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | $ 23,075,450 | |
Net balance | 29,072,798 | $ 23,075,450 |
Gross carrying amount [member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 53,936,041 | 50,183,858 |
Additions/capitalizations (1) | 5,144,295 | 3,579,982 |
Acquisition of interests in joint operations (2) | (12,065) | |
Increase (decrease) in abandonment costs | 5,703 | 0 |
Disposals | (84,052) | (79) |
Withdrawal of exploratory assets and dry wells (2) (3) | 0 | (1,563) |
Capitalized financial interests (3) (4) | 94,995 | 70,186 |
Exchange differences capitalized | 5,150 | 5,961 |
Foreign currency translation | 68,793 | 773,678 |
Transfers | 651,641 | (663,917) |
Balance | 59,822,566 | 53,936,041 |
Gross carrying amount [member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 2,919,146 | 2,215,263 |
Additions/capitalizations (1) | 166,431 | 27,839 |
Acquisition of interests in joint operations (2) | 0 | |
Increase (decrease) in abandonment costs | 1,965,309 | 733,609 |
Disposals | (9,253) | (2,080) |
Withdrawal of exploratory assets and dry wells (2) (3) | 0 | 0 |
Capitalized financial interests (3) (4) | 0 | 0 |
Exchange differences capitalized | 0 | 0 |
Foreign currency translation | (3,004) | 24,574 |
Transfers | (1,745) | (24,381) |
Balance | 5,036,884 | 2,919,146 |
Gross carrying amount [member] | Exploration and evaluation [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 4,806,000 | 4,508,808 |
Additions/capitalizations (1) | 4,487,467 | 1,499,685 |
Acquisition of interests in joint operations (2) | 0 | |
Increase (decrease) in abandonment costs | (38,835) | 34,063 |
Disposals | (142,127) | (87,953) |
Withdrawal of exploratory assets and dry wells (2) (3) | (340,271) | (897,361) |
Capitalized financial interests (3) (4) | 10,834 | 6,675 |
Exchange differences capitalized | 587 | 567 |
Foreign currency translation | (112,917) | 75,203 |
Transfers | (308,019) | (333,687) |
Balance | 8,362,719 | 4,806,000 |
Accumulated amortization and impairment [member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (36,806,667) | (34,014,963) |
Depletion expense | (3,836,479) | (3,471,803) |
Recovery (losses) for impairment (Note 17) | (1,017,061) | 414,208 |
Disposals | 83,667 | 79 |
Foreign currency translation | (61,862) | (563,229) |
Transfers | (354,695) | 829,041 |
Balance | (41,993,097) | (36,806,667) |
Accumulated amortization and impairment [member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (1,779,070) | (1,584,701) |
Depletion expense | (383,360) | (196,286) |
Recovery (losses) for impairment (Note 17) | 0 | (106) |
Disposals | 8,511 | 0 |
Foreign currency translation | (2,256) | (19,080) |
Transfers | (99) | 21,103 |
Balance | (2,156,274) | (1,779,070) |
Accumulated amortization and impairment [member] | Exploration and evaluation [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 0 | 0 |
Depletion expense | 0 | 0 |
Recovery (losses) for impairment (Note 17) | 0 | 0 |
Disposals | 0 | 0 |
Foreign currency translation | 0 | 0 |
Transfers | 0 | 0 |
Balance | 0 | 0 |
Natural and environmental resources [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 23,075,450 | 21,308,265 |
Net balance | 29,072,798 | 23,075,450 |
Natural and environmental resources [Member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 17,129,374 | 16,168,895 |
Net balance | 17,829,469 | 17,129,374 |
Natural and environmental resources [Member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 1,140,076 | 630,562 |
Net balance | 2,880,610 | 1,140,076 |
Natural and environmental resources [Member] | Exploration and evaluation [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 4,806,000 | 4,508,808 |
Net balance | 8,362,719 | 4,806,000 |
Natural and environmental resources [Member] | Gross carrying amount [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 61,661,187 | 56,907,929 |
Additions/capitalizations (1) | 9,798,193 | 5,051,828 |
Acquisition of interests in joint operations (2) | (12,065) | |
Increase (decrease) in abandonment costs | 1,932,177 | 767,672 |
Disposals | (235,432) | (90,112) |
Withdrawal of exploratory assets and dry wells (2) (3) | (340,271) | (898,924) |
Capitalized financial interests (3) (4) | 105,829 | 76,861 |
Exchange differences capitalized | 5,737 | 6,528 |
Foreign currency translation | (47,128) | 873,455 |
Transfers | 341,877 | (1,021,985) |
Balance | 73,222,169 | 61,661,187 |
Natural and environmental resources [Member] | Accumulated amortization and impairment [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (38,585,737) | (35,599,664) |
Depletion expense | (4,219,839) | (3,668,089) |
Recovery (losses) for impairment (Note 17) | (1,017,061) | 414,102 |
Disposals | 92,178 | 79 |
Foreign currency translation | (64,118) | (582,309) |
Transfers | (354,794) | 850,144 |
Balance | $ (44,149,371) | $ (38,585,737) |
Natural and environmental res_4
Natural and environmental resources - Accounting for suspended exploratory wells (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | $ 935,110 | $ 1,146,006 | $ 1,642,247 |
Number of projects exceeding 1 year | 30 | 24 | 24 |
Later than one year and not later than three years [member] | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | $ 361,700 | $ 496,871 | $ 600,767 |
Later than three years and not later than five years [member] | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | 132,021 | 375,371 | 791,261 |
Later than five years [member] | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | 441,389 | 273,764 | 250,219 |
2019 | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | $ 0 | $ 9,511 | $ 2,480 |
Intangible assets (Details)
Intangible assets (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 410,747 | |
Ending Balance | 483,098 | $ 410,747 |
Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 303,391 | 295,141 |
Ending Balance | $ 302,382 | $ 303,391 |
Intangibles, Useful life | 5 years | 5 years |
Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 107,356 | $ 85,085 |
Ending Balance | $ 180,716 | $ 107,356 |
Intangibles, Useful life | 7 years | 7 years |
Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 410,747 | $ 380,226 |
Ending Balance | 483,098 | 410,747 |
Gross carrying amount [member] | Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 1,015,720 | 960,556 |
Acquisitions | 48,064 | 69,442 |
Disposals | (114,187) | (46,007) |
Foreign currency translation | 3,477 | 25,339 |
Transfers/reclassifications | 41,525 | 6,390 |
Ending Balance | 994,599 | 1,015,720 |
Gross carrying amount [member] | Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 197,283 | 168,552 |
Acquisitions | 120,225 | 36,227 |
Disposals | (1,041) | (5,643) |
Foreign currency translation | (3,946) | 2,955 |
Exchange differences capitalized | (14) | |
Transfers/reclassifications | (27,260) | (4,808) |
Ending Balance | 285,247 | 197,283 |
Gross carrying amount [member] | Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 1,213,003 | 1,129,108 |
Acquisitions | 168,289 | 105,669 |
Disposals | (115,228) | (51,650) |
Foreign currency translation | (469) | 28,294 |
Exchange differences capitalized | (14) | |
Transfers/reclassifications | 14,265 | 1,582 |
Ending Balance | 1,279,846 | 1,213,003 |
Accumulated amortization [member] | Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (712,329) | (665,415) |
Amortization of the period | (88,044) | (75,818) |
Reversal of impairment loss | 53 | |
Disposals | 114,143 | 46,004 |
Foreign currency translation | (2,333) | (20,501) |
Transfers/reclassifications | (3,707) | 3,401 |
Ending Balance | (692,217) | (712,329) |
Accumulated amortization [member] | Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (89,927) | (83,467) |
Amortization of the period | (14,982) | (15,864) |
Reversal of impairment loss | 2 | |
Disposals | 1,041 | 5,546 |
Foreign currency translation | (33) | (184) |
Transfers/reclassifications | (632) | 4,042 |
Ending Balance | (104,531) | (89,927) |
Accumulated amortization [member] | Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (802,256) | (748,882) |
Amortization of the period | (103,026) | (91,682) |
Reversal of impairment loss | 55 | |
Disposals | 115,184 | 51,550 |
Foreign currency translation | (2,366) | (20,685) |
Transfers/reclassifications | (4,339) | 7,443 |
Ending Balance | $ (796,748) | $ (802,256) |
Impairment of non-current ass_3
Impairment of non-current assets (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | $ (1,762,437) | $ (368,634) | $ 1,311,138 |
Exploration and Production [Member] | Impairment by segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | (1,982,044) | 785,940 | 183,718 |
Refining and petrochemicals [Member] | Impairment by segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | 452,163 | (984,704) | 1,067,965 |
Transportation and logistics [Member] | Impairment by segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | (232,556) | (169,870) | 59,455 |
Natural and environmental resources [Member] | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | (1,017,061) | 414,102 | 376,934 |
Investment in joint ventures and associates [Member] | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | (318,820) | 300,828 | (15,059) |
Others non-current assets [Member] | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | 55 | (279) | (28,656) |
Impairment of Property, Plant and equipment [Member] | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | $ (426,611) | $ (1,083,285) | $ 977,919 |
Impairment of non-current ass_4
Impairment of non-current assets - Exploration and production (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Exploration and production segment (reversal of impairment loss) recognised in profit or loss | $ (1,982,044) | $ 785,940 | $ 183,718 |
Oil fields [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Exploration and production segment (reversal of impairment loss) recognised in profit or loss | (1,663,082) | 483,803 | 188,873 |
Investment in joint ventures (Note 13) [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Exploration and production segment (reversal of impairment loss) recognised in profit or loss | (318,962) | 302,136 | (5,155) |
Other Assets [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Exploration and production segment (reversal of impairment loss) recognised in profit or loss | $ 0 | $ 1 | $ 0 |
Impairment of non-current ass_5
Impairment of non-current assets - Breakdown of oilfields impairment losses (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Detailed information about impairment losses reservals of assets Exploration and Production | |||
(Impairment loss) reversal | $ (1,982,044) | $ 785,940 | $ 183,718 |
Oil fields [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
(Impairment loss) reversal | (1,663,082) | 483,803 | 188,873 |
Fields in Colombia [Member] | Oil fields [Member] | Reversal [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 3,842,819 | 19,156,326 | 13,229,212 |
Recoverable amount | 6,047,345 | 50,462,080 | 23,906,828 |
(Impairment loss) reversal | 74,577 | 689,665 | 298,210 |
Fields in Colombia [Member] | Oil fields [Member] | Loss [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 4,992,462 | 764,808 | 2,172,747 |
Recoverable amount | 3,322,284 | 405,421 | 1,588,207 |
(Impairment loss) reversal | (1,673,258) | (359,387) | (584,540) |
Fields operated abroad | Oil fields [Member] | Reversal [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 200,910 | 1,810,618 | 748,510 |
Recoverable amount | 539,785 | 2,719,086 | 1,324,010 |
(Impairment loss) reversal | 4,391 | 157,709 | $ 475,203 |
Fields operated abroad | Oil fields [Member] | Loss [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 0 | 184,375 | |
Recoverable amount | 0 | 180,191 | |
(Impairment loss) reversal | $ (68,792) | $ (4,184) |
Impairment of non-current ass_6
Impairment of non-current assets - Investments in joint ventures (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | $ (318,962) | $ 302,136 | $ (5,155) |
Offshore International Group | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | (184,209) | 193,345 | 37,589 |
Equion Energy Limited [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | $ (134,753) | $ 108,791 | $ (42,744) |
Impairment of non-current ass_7
Impairment of non-current assets - Cash Generating Units (Details) - Refining and Petrochemical segment [Member] - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | $ 452,163 | $ (984,704) | $ 1,067,965 |
Refineria De Cartagana [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 911,597 | (770,297) | 1,434,298 |
Refineria De Cartagana [Member] | Carrying Amount1 [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 22,292,788 | 23,411,058 | 20,578,412 |
Refineria De Cartagana [Member] | Recoverable amount [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 23,204,385 | 22,640,761 | 22,012,710 |
Refineria de Barrancabermeja (projects) [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | (225,094) | (273,987) | |
Refineria de Barrancabermeja (projects) [Member] | Carrying Amount1 [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 901,517 | 1,172,773 | |
Refineria de Barrancabermeja (projects) [Member] | Recoverable amount [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 676,423 | 898,786 | |
Bioenergy [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | (234,340) | (213,461) | (92,346) |
Bioenergy [Member] | Carrying Amount1 [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | 575,331 | 774,343 | 757,741 |
Bioenergy [Member] | Recoverable amount [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | $ 340,991 | 560,882 | $ 665,395 |
Other [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | (946) | ||
Other [Member] | Carrying Amount1 [Member] | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Impairment loss - Refining and petrochemical segment (reversal of impairment loss) recognized in profit or loss | $ 946 |
Impairment of non-current ass_8
Impairment of non-current assets - Additional information (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Information about prices based on information provided by specialized market analysts and management analysts | Oil price – Brent: the forecasts include USD$55.61/barrel for the first year, USD$54.91/barrel for the medium term and USD$70.1/barrel for the long term. | In 2018, the assumptions taken USD$81.4/barrel for the first year, USD$67.6/barrel for the medium term and USD$71.4/barrel as of the year 2030. | In 2017, the assumptions taken USD$52.9/barrel for 2018, USD$72.5/barrel average for the next six years and USD$81.9/barrel as of 2030. |
Offshore International Group | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Discount rate used in current estimate of value in use | 8.50% | 8.92% | 8.61% |
Impairment loss | $ 530,330 | $ 346,121 | |
Refineria de Barrancabermeja (projects) [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Expense for impairment | $ 225,094 | $ 273,987 | |
Refineria De Cartagana [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Discount rate used in current estimate of value in use | 6.23% | 6.48% | |
Premium risk rate used in current estimate of value in use | 0.59% | ||
Weighted average cost of capital, measurement input [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Weighted average cost of capital, significant unobservable inputs, assets | 6.31 | 7.46 | 8.17 |
Bioenergy [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Discount rate used in current estimate of value in use | 6.03% | 6.97% | |
Transportation and logistics segment [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Discount rate used in current estimate of value in use | 4.88% | 5.60% | |
Impairment loss | $ 232,556 | $ 167,917 | $ 59,455 |
Impairment loss relating to South Cash Generating Unit | 106,983 | ||
Impairment Loss Relating to North Cash Generating Unit | $ 125,140 |
Goodwill (Details)
Goodwill (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | $ 1,159,922 | $ 1,159,922 |
Oleoducto central S.A [Member] | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | 683,496 | 683,496 |
Hocol petroleum limited | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | 537,598 | 537,598 |
Andean chemical limited [Member] | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | 127,812 | 127,812 |
Esenttia S.A [Member] | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | 108,137 | 108,137 |
Gross carrying amount [member] | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | 1,457,043 | 1,457,043 |
Accumulated impairment [member] | Hocol petroleum limited | ||
Goodwill From Acquisitions [Abstract] | ||
Goodwill. | $ (297,121) | $ (297,121) |
Loans and borrowings (Details)
Loans and borrowings (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 38,239,139 | $ 38,062,645 | |
Less short-term | 5,012,173 | 4,019,927 | |
Total long-term | 33,226,966 | 34,042,718 | |
Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 4,459,807 | $ 4,048,775 | |
Local currency | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 8.70% | 8.00% | |
Borrowings | $ 1,567,598 | $ 1,568,034 | |
Local currency | Syndicated Loan [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 8.00% | 7.90% | |
Borrowings | $ 1,115,874 | $ 1,439,590 | |
Local currency | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [1] | 7.20% | 0.00% |
Borrowings | [1] | $ 1,039,303 | $ 591,153 |
Local currency | Commercial loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 8.30% | 7.60% | |
Borrowings | $ 737,032 | $ 449,998 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 33,779,332 | $ 34,013,870 | |
Foreign currency | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 5.90% | 5.70% | |
Borrowings | $ 25,832,740 | $ 25,599,996 | |
Foreign currency | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [1] | 6.20% | 0.00% |
Borrowings | [1] | $ 251,651 | $ 206,737 |
Foreign currency | Commercial loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.10% | 4.40% | |
Borrowings | $ 6,586,538 | $ 7,352,002 | |
Foreign currency | Loans From Related Parties [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 0.00% | 0.00% | |
Borrowings | $ 1,108,403 | $ 855,135 | |
[1] | Corresponds mainly to present value of the payments to be made during the term of the operative lease contracts of pipelines, tanks, property and vehicles, recognized by the implementation of IFRS 16. (see Note 5.1). |
Loans and borrowings - Maturity
Loans and borrowings - Maturity of loans and borrowings (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 38,239,139 | $ 38,062,645 |
Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,459,807 | 4,048,775 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 33,779,332 | 34,013,870 |
2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,012,173 | 4,019,927 |
2019 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,331,337 | 643,344 |
2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,680,836 | 3,376,583 |
1 to 5 years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 20,274,052 | 17,171,126 |
1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 2,060,711 | 2,367,303 |
1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 18,213,341 | 14,803,823 |
5 to 10 years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7,563,010 | 11,511,664 |
5 to 10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 716,446 | 633,366 |
5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,846,564 | 10,878,298 |
>10 years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,389,904 | 5,359,928 |
>10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 351,313 | 404,762 |
>10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,038,591 | 4,955,166 |
Bonds [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,567,598 | 1,568,034 |
Bonds [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 25,832,740 | 25,599,996 |
Bonds [Member] | 2019 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 571,969 | 116,693 |
Bonds [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,386,032 | 1,374,390 |
Bonds [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 403,996 | 842,514 |
Bonds [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 13,873,755 | 10,605,708 |
Bonds [Member] | 5 to 10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 358,976 | 362,446 |
Bonds [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,574,713 | 8,664,732 |
Bonds [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 232,657 | 246,381 |
Bonds [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,998,240 | 4,955,166 |
Commercial Loan refineria De Cartagena [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7,352,002 | |
Commercial Loan refineria De Cartagena [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,116,370 | |
Commercial Loan refineria De Cartagena [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,061,541 | |
Commercial Loan refineria De Cartagena [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 2,174,091 | |
Commercial Loan refineria De Cartagena [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | |
Syndicated loans [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,115,874 | 1,439,590 |
Syndicated loans [Member] | 2019 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 361,545 | 406,582 |
Syndicated loans [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 754,329 | 1,033,008 |
Syndicated loans [Member] | 5 to 10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Syndicated loans [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Financial leasing [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,039,303 | |
Financial leasing [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 251,651 | |
Financial leasing [Member] | 2019 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 179,448 | |
Financial leasing [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 57,284 | |
Financial leasing [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 559,337 | |
Financial leasing [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 175,962 | |
Financial leasing [Member] | 5 to 10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 235,791 | |
Financial leasing [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 18,405 | |
Financial leasing [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 64,727 | |
Financial leasing [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | |
Commercial loans [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,586,538 | |
Commercial loans [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,129,117 | |
Commercial loans [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,163,624 | |
Commercial loans [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,253,446 | |
Commercial loans [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 40,351 | |
Loans From Related Parties [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,108,403 | |
Loans From Related Parties [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,108,403 | |
Loans From Related Parties [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | |
Loans From Related Parties [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | |
Other [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 737,032 | 1,041,151 |
Other [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,061,872 | |
Other [Member] | 2019 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 218,375 | 120,069 |
Other [Member] | 2019 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 885,823 | |
Other [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 343,049 | 491,781 |
Other [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 136,574 | |
Other [Member] | 5 to 10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 121,679 | 270,920 |
Other [Member] | 5 to 10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 39,475 | |
Other [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 53,929 | 158,381 |
Other [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 0 |
Loans and borrowings - Breakdow
Loans and borrowings - Breakdown by type of interest rate and currency (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 38,239,139 | $ 38,062,645 |
Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,459,807 | 4,048,775 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 33,779,332 | 34,013,870 |
Fixed interest rate [member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 598,802 | 252,224 |
Fixed interest rate [member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 31,087,439 | 31,432,667 |
Floating interest rate | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,861,005 | 3,796,551 |
Floating interest rate | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 2,691,893 | $ 2,581,203 |
Loans and borrowings - Movement
Loans and borrowings - Movement of net financial debt (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net financial debt explanatory [Line Items] | |||
Cash flow | $ 764,014 | $ (1,634,141) | $ (464,582) |
Exchange difference Recognized in profit or loss | 40,639 | 372,223 | 5,514 |
Financial cost registered to projects | (3,334,469) | (3,512,161) | (3,660,601) |
Financial income (expense) recognized in profit or loss | (1,670,494) | (2,010,375) | (2,495,731) |
Cash and equivalents [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | 6,311,744 | 7,945,885 | |
Cash flow | 505,466 | (2,040,386) | |
Exchange difference Recognized in profit or loss | 258,548 | 406,245 | |
Exchange difference Recognized in other comprehensive income | 0 | 0 | |
Financial cost registered to projects | 0 | 0 | |
Financial income (expense) recognized in profit or loss | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Other movements not generating cash flow | 0 | 0 | |
Ending Balance | 7,075,758 | 6,311,744 | 7,945,885 |
Other financial assets [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | 8,147,815 | 6,533,725 | |
Cash flow | (3,117,549) | 843,612 | |
Exchange difference Recognized in profit or loss | 182,396 | 920,609 | |
Exchange difference Recognized in other comprehensive income | 0 | 0 | |
Financial cost registered to projects | 0 | 0 | |
Financial income (expense) recognized in profit or loss | (18,551) | 92,906 | |
Foreign currency translation | (204,441) | (245,958) | |
Other movements not generating cash flow | (10,378) | 2,921 | |
Ending Balance | 4,979,292 | 8,147,815 | 6,533,725 |
Loans and borrowings [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | (38,062,645) | (43,547,835) | |
Cash flow | 3,303,303 | 11,363,077 | |
Exchange difference Recognized in profit or loss | (151,518) | (816,840) | |
Exchange difference Recognized in other comprehensive income | (53,911) | (2,165,569) | |
Financial cost registered to projects | (261,592) | (217,891) | |
Financial income (expense) recognized in profit or loss | (1,894,490) | (2,399,414) | |
Foreign currency translation | (14,627) | (203,446) | |
Other movements not generating cash flow | (1,103,659) | (74,727) | |
Ending Balance | (38,239,139) | (38,062,645) | (43,547,835) |
Net financial debt [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | (23,603,086) | (29,068,225) | |
Cash flow | 691,220 | 10,166,303 | |
Exchange difference Recognized in profit or loss | 289,426 | 510,014 | |
Exchange difference Recognized in other comprehensive income | (53,911) | (2,165,569) | |
Financial cost registered to projects | (261,592) | (217,891) | |
Financial income (expense) recognized in profit or loss | (1,913,041) | (2,306,508) | |
Foreign currency translation | (219,068) | (449,404) | |
Other movements not generating cash flow | (1,114,037) | (71,806) | |
Ending Balance | $ (26,184,089) | $ (23,603,086) | $ (29,068,225) |
Loans and borrowings - Addition
Loans and borrowings - Additional Information (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Financial instruments designated as hedging instruments, at fair value | $ 7,331 | $ 6,500 | ||
Loans Payable Fair Value | $ 43,261,792 | $ 38,305,674 | ||
Bioenergy | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Guaranteed loan amount | $ 6,343 | |||
Hedge of a net investment in a foreign operation (Note 29.1.3) | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Financial instruments designated as hedging instruments, at fair value | 6,031 | |||
Cash flow hedging for future crude oil exports [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Financial instruments designated as hedging instruments, at fair value | $ 1,300 |
Trade and other payables (Detai
Trade and other payables (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other payables | |||
Suppliers | $ 8,115,015 | $ 6,878,510 | |
Partners' advances | 925,761 | 874,010 | |
Withholding tax | 673,204 | 246,867 | |
Related parties (Note 30) | 187,616 | 116,418 | |
Insurance and reinsurance | 136,041 | 211,883 | |
Agreements in transport contracts | [1] | 71,239 | 210,196 |
Deposits received from third parties | 44,826 | 49,158 | |
Dividends payable | 157,181 | 84,657 | |
Various creditors | 402,808 | 304,613 | |
Trade and other payables | 10,713,691 | 8,976,312 | |
Current | 10,689,246 | 8,945,790 | |
Non-current | 24,445 | 30,522 | |
Trade and other payables | $ 10,713,691 | $ 8,976,312 | |
[1] | Corresponds to the value of debt from agreements in transport contracts of oil pipelines and poliducts, impacted by volumetric adjustments, compensation for quality and other inventory management agreements. |
Provisions for employees' ben_3
Provisions for employees' benefits (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Post-employment benefits | ||
Post-employment benefits | $ 11,481,064 | $ 8,606,551 |
Current | 1,929,087 | 1,816,882 |
Non-current | 9,551,977 | 6,789,669 |
Healthcare [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 6,908,799 | 5,507,784 |
Pension [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 2,853,718 | 1,452,322 |
Education [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 458,441 | 479,945 |
Bonds [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 352,917 | 331,064 |
Other plans [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 98,729 | 82,576 |
Termination benefits - Voluntary retirement plan [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 124,186 | 137,859 |
Post employment and termination benefits [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 10,796,790 | 7,991,550 |
Other Employment Benefts [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 96,678 | 93,199 |
Social benefits and salaries [Member] | ||
Post-employment benefits | ||
Post-employment benefits | $ 587,596 | $ 521,802 |
Provisions for employees' ben_4
Provisions for employees' benefits - Net of post-employment benefits (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Employee benefits liabilities | |||
Opening balance | $ 20,344,061 | $ 20,252,896 | |
Current service cost | 76,478 | 77,373 | |
Past service cost | 0 | 50,489 | |
Interest expense | 1,339,175 | 1,266,506 | |
Actuarial (losses) gains | 3,028,709 | (84,306) | |
Benefits paid | (1,278,780) | (1,218,897) | |
Closing balance | 23,509,643 | 20,344,061 | |
Plan assets | |||
Opening balance | 12,352,511 | 12,474,408 | |
Return on assets | 801,282 | 780,664 | |
Contributions to funds | 83,071 | 21,971 | |
Benefits paid | (975,636) | (868,975) | |
Actuarial (losses) gains | 451,625 | (55,557) | |
Closing balance | 12,712,853 | 12,352,511 | |
Net post-employment benefits liability | 10,796,790 | 7,991,550 | |
Pension and pension bonds [Member] | |||
Employee benefits liabilities | |||
Opening balance | [1] | 14,131,943 | 14,147,464 |
Current service cost | [1] | 0 | 0 |
Past service cost | [1] | 0 | 0 |
Interest expense | [1] | 920,622 | 888,583 |
Actuarial (losses) gains | [1] | 1,755,300 | (56,655) |
Benefits paid | [1] | (891,393) | (847,449) |
Closing balance | [1] | 15,916,472 | 14,131,943 |
Plan assets | |||
Opening balance | [1] | 12,348,557 | 12,471,163 |
Return on assets | [1] | 801,065 | 780,494 |
Contributions to funds | [1] | 0 | 0 |
Benefits paid | [1] | (891,393) | (847,449) |
Actuarial (losses) gains | [1] | 451,609 | (55,651) |
Closing balance | [1] | 12,709,838 | 12,348,557 |
Net post-employment benefits liability | [1] | 3,206,634 | 1,783,386 |
Healthcare and education [Member] | |||
Employee benefits liabilities | |||
Opening balance | 6,212,118 | 6,105,432 | |
Current service cost | 76,478 | 77,373 | |
Past service cost | 0 | 50,489 | |
Interest expense | 418,553 | 377,923 | |
Actuarial (losses) gains | 1,273,409 | (27,651) | |
Benefits paid | (387,387) | (371,448) | |
Closing balance | 7,593,171 | 6,212,118 | |
Plan assets | |||
Opening balance | 3,954 | 3,245 | |
Return on assets | 217 | 170 | |
Contributions to funds | 83,071 | 21,971 | |
Benefits paid | (84,243) | (21,526) | |
Actuarial (losses) gains | 16 | 94 | |
Closing balance | 3,015 | 3,954 | |
Net post-employment benefits liability | $ 7,590,156 | $ 6,208,164 | |
[1] | There is no cost for the pension and pension plans service, due to the fact that the beneficiaries were retired as of July 31, 2010. |
Provisions for employees' ben_5
Provisions for employees' benefits - Movement in profit and loss and in other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recognized in profit or loss | |||
Interest expense, net | $ 537,893 | $ 485,842 | $ 373,522 |
Current service cost | 76,478 | 77,373 | 52,164 |
Past service cost | 0 | 50,489 | 0 |
Remedies | 10,213 | 503 | 13,889 |
Benefits plan costs recognized in profit or loss | 624,584 | 614,207 | 439,575 |
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | (2,571,184) | 29,249 | (2,310,512) |
Deferred tax | 771,355 | (33,539) | 762,469 |
Other comprehensive income, net of taxes | (1,799,829) | (4,290) | (1,548,043) |
Pension and pension bonds [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | (1,303,693) | 1,003 | (1,312,195) |
Healthcare [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | (1,268,379) | (17,356) | (794,535) |
Education [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | 922 | 45,509 | (203,779) |
Termination benefits - Voluntary retirement plan [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | $ (34) | $ 93 | $ (3) |
Provisions for employees' ben_6
Provisions for employees' benefits - Plan assets of pension and pension (Details) - Pension Trust - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Assets of benefit plan | $ 12,712,853 | $ 12,352,511 |
Floating interest rate | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 823,977 | 653,828 |
Local currency | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 1,899,787 | 2,219,634 |
Foreign currency | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 870,859 | 691,658 |
Bonds issued by the national government | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 4,301,961 | 4,307,972 |
Bonds of private entities | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 3,122,630 | 2,910,071 |
Other public bonds | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 1,082,815 | 1,014,663 |
Bonds of foreign entities | ||
Disclosure of defined benefit plans [line items] | ||
Cash and cash equivalents, amount contributed to fair value of plan assets | $ 610,824 | $ 554,685 |
Provisions for employees' ben_7
Provisions for employees' benefits - Credit ratings of the issuers and counterparties in assets (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 12,712,853 | $ 12,352,511 |
AAA [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 5,138,279 | 4,683,190 |
Nation [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 4,448,221 | 4,364,188 |
AA+ [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 837,009 | 860,905 |
BBB- [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 455,201 | 426,743 |
BBB [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 319,514 | 193,579 |
BAA3 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 219,830 | 310,788 |
SP1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 84,933 | 0 |
A-1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 78,156 | 0 |
BRC1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 68,313 | 89,211 |
F1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 56,728 | 249,361 |
BBB+ [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 22,113 | 86,040 |
A3 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 17,267 | 17,075 |
AA- [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 16,067 | 60,382 |
BAA1 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 15,538 | 21,395 |
AA [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 6,679 | 28,367 |
A [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 11,841 | 62,754 |
Other credit ratings [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 30,129 | 55,768 |
Not available ratings [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 887,035 | $ 842,765 |
Provisions for employees' ben_8
Provisions for employees' benefits - Actuarial assumptions (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 5.75% | 6.75% |
Expected inflation rate | 3.00% | 3.00% |
Pension growth rate | 3.00% | 3.00% |
Bonds [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 5.25% | 6.50% |
Expected inflation rate | 3.00% | 3.00% |
Healthcare [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 6.00% | 7.00% |
Expected inflation rate | 3.00% | 3.00% |
Cost trend - Short-term rate | 7.00% | 7.00% |
Cost trend - Long-term rate | 4.00% | 4.00% |
Education [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 5.50% | 6.75% |
Expected inflation rate | 3.00% | 3.00% |
Cost trend - Short-term rate | 4.00% | 4.00% |
Cost trend - Long-term rate | 4.00% | 4.00% |
Other benefits [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 4.83% | 5.87% |
Expected inflation rate | 3.00% | 3.00% |
Other benefits [Member] | Top of range [member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Salary growth rate | 5.50% | 5.10% |
Other benefits [Member] | Bottom of range [member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Salary growth rate | 4.70% | 4.70% |
Provisions for employees' ben_9
Provisions for employees' benefits - Maturity of benefit obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019COP ($) | |
2019 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 1,326,347 |
2019 | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 949,034 |
2019 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 377,313 |
2021 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,351,967 |
2021 | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 967,734 |
2021 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 384,233 |
2020 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,392,054 |
2020 | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,000,730 |
2020 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 391,324 |
2023 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,401,828 |
2023 | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,000,770 |
2023 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 401,058 |
2024 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,443,549 |
2024 | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,038,858 |
2024 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 404,691 |
5 to 10 years | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 7,632,353 |
5 to 10 years | Pension and pension bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 5,551,125 |
5 to 10 years | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 2,081,228 |
Provisions for employees' be_10
Provisions for employees' benefits - Sensitivity analysis (Details) $ in Millions | Dec. 31, 2019COP ($) |
Discount rate [Member] | Pension [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | $ 15,765,778 |
+50 basis points | 14,032,277 |
Discount rate [Member] | Bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 1,098,700 |
+50 basis points | 1,022,732 |
Discount rate [Member] | Education [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 478,697 |
+50 basis points | 440,209 |
Discount rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 231,732 |
+50 basis points | 220,426 |
Discount rate [Member] | Health [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 7,464,162 |
+50 basis points | 6,418,743 |
Inflation rate [Member] | Pension [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 14,045,125 |
+50 basis points | 15,744,316 |
Inflation rate [Member] | Bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 1,021,771 |
+50 basis points | 1,099,381 |
Inflation rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 125,653 |
+50 basis points | 128,775 |
Salary growth rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 94,266 |
+50 basis points | 103,434 |
Cost trend [Member] | Education [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 439,471 |
+50 basis points | 478,793 |
Cost trend [Member] | Health [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 6,425,329 |
+50 basis points | $ 7,452,021 |
Provisions for employees' be_11
Provisions for employees' benefits - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | ||
Termination benefits expense | $ 124,186 | $ 137,859 |
Level 1 | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of plan assets | 26.60% | 47.40% |
Level 2 | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of plan assets | 73.40% | 52.60% |
Accrued liabilities and provi_3
Accrued liabilities and provisions (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | $ 7,754,012 | $ 6,537,449 | $ 5,917,870 |
Increase in abandonment costs | 2,188,928 | 1,062,280 | 39,634 |
Additions (reversals) | 262,253 | 307,646 | 197,934 |
Uses | (515,288) | (396,992) | (93,824) |
Financial cost | 226,806 | 186,518 | 379,524 |
Foreign currency translation | (3,950) | 63,225 | (300) |
Transfers | 5,527 | (6,114) | 96,611 |
Balance End Period | 9,918,288 | 7,754,012 | 6,537,449 |
Current | 789,297 | 814,409 | 558,828 |
Non-current | 9,128,991 | 6,939,603 | 5,978,621 |
Asset retirement obligation [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 6,719,275 | 5,527,324 | 5,064,660 |
Increase in abandonment costs | 2,188,928 | 1,062,280 | 39,634 |
Additions (reversals) | 112,486 | 71,015 | 110,587 |
Uses | (410,191) | (182,130) | (66,469) |
Financial cost | 226,803 | 186,518 | 379,891 |
Foreign currency translation | (5,240) | 54,610 | (979) |
Transfers | 3,359 | (342) | 0 |
Balance End Period | 8,835,420 | 6,719,275 | 5,527,324 |
Current | 589,411 | 549,678 | 199,824 |
Non-current | 8,246,009 | 6,169,597 | 5,327,500 |
Litigation [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 127,945 | 182,966 | 209,932 |
Increase in abandonment costs | 0 | 0 | 0 |
Additions (reversals) | 58,913 | 61,851 | (19,185) |
Uses | (45,342) | (114,647) | (7,742) |
Financial cost | 0 | 0 | 0 |
Foreign currency translation | 79 | (2,368) | (39) |
Transfers | (4,166) | 143 | 0 |
Balance End Period | 137,429 | 127,945 | 182,966 |
Current | 28,662 | 88,623 | 159,881 |
Non-current | 108,767 | 39,322 | 23,085 |
Environmental contingencies provision [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 906,792 | 827,159 | 643,278 |
Increase in abandonment costs | 0 | 0 | 0 |
Additions (reversals) | 90,854 | 174,780 | 106,532 |
Uses | (59,755) | (100,215) | (19,613) |
Financial cost | 3 | 0 | (367) |
Foreign currency translation | 1,211 | 10,983 | 718 |
Transfers | 6,334 | (5,915) | 96,611 |
Balance End Period | 945,439 | 906,792 | 827,159 |
Current | 171,224 | 176,108 | 199,123 |
Non-current | $ 774,215 | $ 730,684 | $ 628,036 |
Accrued liabilities and provi_4
Accrued liabilities and provisions - Litigation (Details) - Legal proceedings contingent liability [member] - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Provision to execute contracts [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Estimated financial effect of contingent liabilities | $ 93,992 | $ 93,992 |
Consulting Group and Industrial Consulting SAS [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Estimated financial effect of contingent liabilities | $ 0 | $ 15,541 |
Accrued liabilities and provi_5
Accrued liabilities and provisions - Legal proceedings not recognised (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019COP ($)item | Dec. 31, 2018COP ($)item | |
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 947 | 993 |
Proceedings amount | $ | $ 1,939,055 | $ 1,882,649 |
Constitutional Action [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 14 | 13 |
Proceedings amount | $ | $ 1,092,228 | $ 1,075,965 |
Ordinary Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 160 | 149 |
Proceedings amount | $ | $ 780,150 | $ 701,080 |
Ordinary Labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 593 | 652 |
Proceedings amount | $ | $ 49,055 | $ 76,744 |
Ordinary Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 52 | 54 |
Proceedings amount | $ | $ 16,269 | $ 15,875 |
Arbitration [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 0 | 1 |
Proceedings amount | $ | $ 0 | $ 10,608 |
Special labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 13 | 14 |
Proceedings amount | $ | $ 720 | $ 1,056 |
Penal [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 1 | 1 |
Proceedings amount | $ | $ 595 | $ 0 |
Executive Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 1 | 2 |
Proceedings amount | $ | $ 28 | $ 40 |
Guardianship [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 112 | 105 |
Proceedings amount | $ | $ 10 | $ 0 |
Executive Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | item | 1 | 2 |
Proceedings amount | $ | $ 0 | $ 1,281 |
Accrued liabilities and provi_6
Accrued liabilities and provisions - Details of contingent assets (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019COP ($)item | Dec. 31, 2018COP ($)item | |
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 450 | 473 |
Proceedings amount | $ | $ 599,869 | $ 576,532 |
Ordinary Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 35 | 47 |
Proceedings amount | $ | $ 373,555 | $ 229,935 |
Ordinary Labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 50 | 51 |
Proceedings amount | $ | $ 3,295 | $ 6,086 |
Ordinary Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 75 | 40 |
Proceedings amount | $ | $ 86,363 | $ 12,101 |
Arbitration [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 1 | 1 |
Proceedings amount | $ | $ 67,232 | $ 261,754 |
Special labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 57 | 59 |
Proceedings amount | $ | $ 307 | $ 320 |
Penal [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 156 | 189 |
Proceedings amount | $ | $ 60,177 | $ 58,481 |
Executive Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 11 | 15 |
Proceedings amount | $ | $ 4,028 | $ 4,286 |
Guardianship [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 4 | 6 |
Executive Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 61 | 65 |
Proceedings amount | $ | $ 4,912 | $ 3,569 |
Accrued liabilities and provi_7
Accrued liabilities and provisions - Additional information (Details) $ in Millions, $ in Millions | Jun. 28, 2019USD ($) | Mar. 16, 2018USD ($) | May 25, 2016USD ($) | Mar. 08, 2016USD ($) | Dec. 31, 2019COP ($) | Jun. 28, 2019COP ($) | Dec. 31, 2018 | Mar. 16, 2018COP ($) | Apr. 28, 2017USD ($) | Apr. 28, 2017COP ($) |
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Mandatory investments, natural resources | 1.00% | |||||||||
Frontera Energy [Member] | ||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Threshold notice period of continuous calendar days for termination of agreement | 180 days | |||||||||
Income that cannot be recognized | $ 163,852 | |||||||||
Amount owed by counterparty | $ 334,582 | |||||||||
Refinera de Cartagena SA [Member] | ||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Legal proceedings in process, claims made, value | $ 2,000 | |||||||||
Legal proceedings in process, damages sought, value | $ 106 | |||||||||
Contingent asset claim | $ 129 | $ 432,303 | ||||||||
Contingent asset claim invoices provisionally paid | $ 137 | $ 139 | ||||||||
Legal proceedings in process, claims made, value updated including interest | $ 137 | $ 503,241 | ||||||||
Contingent asset non detailed counterclaim | $ 116 | $ 387,558 | ||||||||
Exploration and Production [Member] | ||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Discount rate applied to cash flow projections | 3.01% | 3.54% | ||||||||
Transportation and logistics [Member] | ||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Discount rate applied to cash flow projections | 2.61% | 3.69% | ||||||||
Refining and petrochemicals [Member] | ||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | ||||||||||
Discount rate applied to cash flow projections | 3.94% | 3.84% |
Equity - Ecopetrol Business Gro
Equity - Ecopetrol Business Group's reserves (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of changes in equity [Line Items] | ||
Other reserves | $ 3,784,658 | $ 5,138,895 |
Legal reserve [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | 3,243,832 | 2,088,192 |
Fiscal and statutory reserves [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | 509,082 | 509,081 |
Occasional reserves [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | $ 31,744 | $ 2,541,622 |
Equity - Movement of equity res
Equity - Movement of equity reserves (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of changes in equity [Line Items] | ||
Opening balance | $ 57,107,780 | $ 48,215,699 |
Closing balance | 58,231,628 | 57,107,780 |
Equity reserves [Member] | ||
Disclosure of changes in equity [Line Items] | ||
Opening balance | 5,138,895 | 2,177,869 |
Release of reserves | (3,050,703) | (751,718) |
Allocation to reserves | 5,355,852 | 3,712,744 |
Dividends declared | (3,659,386) | 0 |
Closing balance | $ 3,784,658 | $ 5,138,895 |
Equity - Other comprehensive in
Equity - Other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of changes in equity [Line Items] | ||||
Equity | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 | $ 43,560,501 |
Other comprehensive income | ||||
Disclosure of changes in equity [Line Items] | ||||
Foreign currency translation | 10,265,398 | 10,235,891 | 7,706,623 | |
Cash flow hedge with derivative instruments | 3,689 | (30,962) | 6,942 | |
Cash flow hedges for future exports | (135,748) | (374,079) | 159,295 | |
Actuarial gain on defined benefit plans | (2,357,210) | (557,381) | (553,091) | |
Hedge of a net investment in a foreign operation | (1,130,583) | (1,069,316) | (97,362) | |
Others | 1,114 | 176,608 | 176,608 | |
Equity | $ 6,646,660 | $ 8,380,761 | $ 7,399,015 | $ 9,222,710 |
Equity - Earnings per share (De
Equity - Earnings per share (Details) - COP ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | |||
Profit attributable to Ecopetrol's shareholders | $ 13,744,011 | $ 11,381,386 | $ 7,178,539 |
Weighted average number of outstanding shares | 41,116,694,690 | 41,116,694,690 | 41,116,694,690 |
Net basic earnings per share (Colombian pesos) | $ 334.3 | $ 276.8 | $ 174.6 |
Equity - Additional information
Equity - Additional information (Details) - COP ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2011 | |
Disclosure of changes in equity [Line Items] | ||||
Capital commitments | $ 36,540,000 | |||
Number of shares authorised | 60,000,000,000 | |||
Number of shares subscribed | 41,116,694,690 | |||
Proportion of shares available for public trade | 11.51% | |||
Number of shares available for public trade | 4,731,906,273 | |||
Proportion of shares held by majority share holders | 88.49% | |||
Number of shares held by majority share holders | 36,384,788,417 | |||
Capital reserve | $ 11,499,933 | |||
Number of shares reserved for issue under options and contracts for sale of shares | 18,883,305,310 | |||
Subscribed and Paid-In-Capital | $ 25,040,067 | $ 25,040,067 | ||
Additional Paid in Capital | 6,607,699 | 6,607,699 | ||
Additional paid-in capital receivable | $ 143 | |||
Dividends recognised as distributions to owners per share | $ 9,251,256 | |||
Dividends paid to non-controlling interests, classified as financing activities | 768,328 | $ 558,986 | ||
Colombian Peso [Member] | ||||
Disclosure of changes in equity [Line Items] | ||||
Dividends paid to equity holders of parent, classified as financing activities | $ 3,659,373 | $ 945,661 | ||
Dividends recognised as distributions to owners of parent, relating to prior years | $ 3,659,386 | |||
Share-based payment arrangements [member] | ||||
Disclosure of changes in equity [Line Items] | ||||
Additional Paid in Capital | $ 2,118,468 | |||
Share-based payment arrangements [member] | Colombian Peso [Member] | ||||
Disclosure of changes in equity [Line Items] | ||||
Additional Paid in Capital | 4,457,997 | |||
Financial guarantee contracts [member] | ||||
Disclosure of changes in equity [Line Items] | ||||
Additional Paid in Capital | $ 31,377 |
Sales revenue from contracts _3
Sales revenue from contracts with customers - National and foreign sales (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 71,488,512 | $ 68,603,872 | $ 55,954,228 |
Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 32,519,831 | 29,187,067 | 26,006,139 |
Recognition of price differential | 1,785,277 | 3,835,533 | 2,229,953 |
Revenue | 34,305,108 | 33,022,600 | 28,236,092 |
Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 37,183,404 | 35,581,272 | 27,718,136 |
Med-distillates [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 13,541,756 | 11,586,192 | 9,590,326 |
Gasoline and turbo fuel [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 9,373,030 | 7,952,852 | 6,990,187 |
Gasoline and turbo fuel [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 1,085,392 | 1,782,194 | 1,223,994 |
Services [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from rendering of services | 309,353 | 239,410 | 283,799 |
Transport Service [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 3,829,102 | 3,531,404 | 3,589,553 |
Natural Gas [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 2,305,543 | 1,885,846 | 1,815,754 |
Natural Gas [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 27,255 | 27,899 | 32,303 |
Plastic and rubber [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 760,301 | 822,367 | 833,982 |
Plastic and rubber [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 1,200,668 | 1,268,582 | 1,169,101 |
Asphalts [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 544,200 | 335,426 | 275,803 |
L.P.G. and propane [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 372,916 | 574,639 | 509,619 |
L.P.G. and propane [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 13,591 | 20,212 | 15,631 |
Other products [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 507,336 | 489,507 | 280,226 |
Other products [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 456,948 | 350,811 | 441,124 |
Cash flow hedging - Reclassification to profit or loss [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | (386,773) | 128,404 | 160,772 |
Crude Oil [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 356,857 | 550,479 | 909,871 |
Crude Oil [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 28,523,596 | 26,898,737 | 21,479,063 |
Diesel [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 4,391,798 | 3,050,839 | 1,213,740 |
Fuel oil [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 97,907 | 509,482 | 354,058 |
Fuel oil [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 1,870,929 | 2,053,594 | 1,982,408 |
Aromatics | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 228,552 | 282,545 | 217,418 |
Polyethylene [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 190,133 | 270,887 | 167,348 |
Other Income Gas Contracts [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 102,845 | $ 156,031 | $ 188,195 |
Revenue from rendering of services | $ 102,845 |
Sales revenue from contracts _4
Sales revenue from contracts with customers - Sales by geographic area (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 100.00% | 100.00% | 100.00% |
Revenue | $ 71,488,512 | $ 68,603,872 | $ 55,954,228 |
Colombia Country [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 48.00% | 48.10% | 50.50% |
Revenue | $ 34,305,108 | $ 33,022,600 | $ 28,236,092 |
United States Of America Country [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 24.30% | 21.50% | 22.40% |
Revenue | $ 17,371,173 | $ 14,765,674 | $ 12,532,932 |
Asia continent [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 18.90% | 17.90% | 11.00% |
Revenue | $ 13,529,151 | $ 12,271,225 | $ 6,136,796 |
Central America And Caribbean [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 4.90% | 6.60% | 10.80% |
Revenue | $ 3,472,665 | $ 4,449,033 | $ 6,070,565 |
South America And Others [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 2.10% | 4.30% | 3.50% |
Revenue | $ 1,502,815 | $ 2,968,038 | $ 1,947,226 |
Europe continent [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 1.80% | 1.60% | 1.80% |
Revenue | $ 1,307,600 | $ 1,127,302 | $ 1,030,617 |
Sales revenue from contracts _5
Sales revenue from contracts with customers - Additional information (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 100.00% | 100.00% | 100.00% |
Terpel [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 16.00% | 14.00% | 14.30% |
Others [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Percentage of entitys revenue | 10.00% |
Cost of sales - before impairme
Cost of sales - before impairment of non-current assets (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about cost of sales of non current assets [line Items] | |||
Total Variable Costs | $ 32,699,443 | $ 29,838,341 | $ 26,567,933 |
Total Fixed Costs | 12,272,917 | 11,346,038 | 10,340,392 |
Cost of sales | (44,972,360) | (41,184,379) | (36,908,325) |
Varible Costs [Member] | |||
Disclosure of detailed information about cost of sales of non current assets [line Items] | |||
Imported products | 12,639,710 | 11,809,529 | 11,637,419 |
Depreciation, amortization and depletion | 5,523,306 | 5,064,518 | 5,765,186 |
Purchases of crude in association and concession | 5,466,496 | 3,820,746 | 2,240,704 |
Purchases of hydrocarbons - ANH | 5,437,177 | 5,667,567 | 4,338,576 |
Process materials | 1,016,617 | 968,884 | 889,122 |
Electric energy | 829,543 | 662,297 | 561,424 |
Hydrocarbon transport services | 821,654 | 696,964 | 665,714 |
Taxes and economic rights | 788,924 | 441,207 | 449,959 |
Purchases of other products and gas | 584,507 | 632,509 | 488,056 |
Services contracted in associations | 267,778 | 260,207 | 195,689 |
Others | (676,269) | (186,087) | (663,916) |
Fixed Costs [Member] | |||
Disclosure of detailed information about cost of sales of non current assets [line Items] | |||
Hydrocarbon transport services | 268,572 | 261,237 | 333,671 |
Services contracted in associations | 1,211,510 | 1,040,221 | 1,008,336 |
Depreciation and amortization | 2,781,446 | 2,555,176 | 2,366,849 |
Maintenance | 2,497,002 | 2,260,984 | 2,038,970 |
Labor costs | 2,316,567 | 2,105,803 | 1,815,213 |
Services contracted | 1,841,009 | 1,796,354 | 1,414,056 |
Materials and operating supplies | 574,678 | 565,601 | 468,205 |
Taxes and contributions | 516,933 | 393,690 | 343,505 |
General costs | $ 265,200 | $ 366,972 | $ 551,587 |
Administrative, operations an_3
Administrative, operations and project expenses (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
Exploration costs | [1] | $ 763,562 | $ 1,387,463 | $ 1,342,952 |
Administrative expenses | 2,151,599 | 1,653,858 | 1,764,524 | |
Operations and project expenses | 2,631,754 | 2,903,132 | 2,926,065 | |
Administrative expenses [Member] | ||||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
General expenses | 1,140,975 | 911,645 | 723,341 | |
Labor expenses | 759,324 | 662,258 | 624,424 | |
Taxes | 48,753 | 39,117 | 362,963 | |
Depreciation and amortization | 202,547 | 40,838 | 53,796 | |
Operations and project expenses [Member] | ||||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
Exploration costs | 763,452 | 1,387,379 | 1,341,940 | |
Labor expenses | 402,531 | 316,386 | 310,947 | |
Taxes | 483,330 | 433,506 | 324,223 | |
Commissions, fees, freights and services | 558,370 | 466,862 | 471,657 | |
Fee for regulatory entities | 94,785 | 98,794 | 63,470 | |
Depreciation and amortization | 75,484 | 44,318 | 95,516 | |
Maintenance | 56,333 | 50,846 | 122,273 | |
Others | $ 197,469 | $ 105,041 | $ 196,039 | |
[1] | Exploration expenses include the costs of geological and geophysical activities, as well as the non-productive exploratory wells. |
Other operating income (expen_3
Other operating income (expenses), net (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other operating income (expenses), net | ||||
Gain (loss) on acquisition of participations and interests (1) | [1] | $ 1,048,924 | $ (12,065) | $ 451,095 |
(Loss) profit on sale of assets | (148,021) | (93,601) | 40,227 | |
Expense for legal provisions | (98,020) | (68,398) | (72,408) | |
Impairment loss of short-term assets | (90,441) | (105,692) | (68,800) | |
Expense for gas pipeline availability BOMT contracts | [2] | 0 | 0 | (72,318) |
Other income | 344,354 | 244,301 | 227,607 | |
Other operating income (expense) | $ 1,056,796 | $ (35,455) | $ 505,403 | |
[1] | For 2019, this corresponds mainly to gains related to the business combination of Invercolsa S.A. (see Note 12) | |||
[2] | Corresponds to the services rendered in connection with the BOMT contracts for the construction, operation, maintenance and transfer of gas pipelines with Transgas. This contract terminated in August 2017. |
Financial result, net (Details)
Financial result, net (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Finance income | ||||
Results from financial assets and others | $ 975,245 | $ 745,571 | $ 739,148 | |
Yield and interest | 481,674 | 383,624 | 405,562 | |
Dividends | [1] | 117,260 | 0 | 0 |
Gain on sale of equity instruments | 0 | 368 | 13,236 | |
Other finance income | 49,157 | 0 | 1,410 | |
Finance income | 1,623,336 | 1,129,563 | 1,159,356 | |
Finance expenses | ||||
Interest | [2] | (1,894,490) | (2,399,414) | (2,385,994) |
Financial cost of other liabilities | [3] | (757,509) | (668,782) | (753,047) |
Results from financial assets and others | (638,767) | (381,445) | (481,308) | |
Other financial expenses | (43,703) | (62,520) | (40,252) | |
Finance costs | (3,334,469) | (3,512,161) | (3,660,601) | |
Foreign exchange gain (loss), net | 40,639 | 372,223 | 5,514 | |
Financial result, net | $ (1,670,494) | $ (2,010,375) | $ (2,495,731) | |
[1] | In 2007, Arrendadora Financiera Internacional Bolivariana (AFIB) and Ecopetrol S.A. signed an agreement to constitute a trust fund, in which Invercolsa deposited dividends corresponding to 8.53% of the participation in dispute, regarding the shares acquired by Fernando Londoño. In 2019, as a result of the sentence of the Supreme Court of Justice, Ecopetrol received the amount of dividends that were in that trust. See Note 12 -Business combinations. | |||
[2] | As of December 31, 2019, borrowing costs for the financing of developing natural resources and property, plant and equipment of COP$248,139 (2018 - COP$200,833 and 2017 - COP$191,651) were capitalized. | |||
[3] | Includes the financial expense of the asset retirement obligations and the liabilities for post-employment benefits. |
Financial result, net - Additio
Financial result, net - Additional information (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial result, net | |||
Interest costs capitalised | $ 248,139 | $ 200,833 | $ 191,651 |
Dividends Percentage on Participation in Dispute | 8.53% |
Risk management - Financial ass
Risk management - Financial assets and liabilities (Details) $ in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) | Dec. 31, 2016COP ($) |
Disclosure of detailed information about financial risk management [Line Items] | ||||||
Cash and cash equivalents | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 | $ 8,410,467 | ||
Other financial assets | 4,979,292 | 8,147,815 | ||||
Trade receivables | 27,449 | 23,480 | ||||
Trade payables | $ (8,115,015) | $ (6,878,510) | ||||
US Dollar [Member] | ||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||
Cash and cash equivalents | $ 114 | $ 514 | ||||
Other financial assets | 1,468 | 2,138 | ||||
Trade receivables | 81 | |||||
Trade payables | (202) | |||||
Loans and borrowings | (9,429) | (9,689) | ||||
Other assets and liabilities, net | 64 | 63 | ||||
Net liability position | $ (7,702) | $ (7,176) |
Risk management - Financial a_2
Risk management - Financial assets and liabilities denominated in foreign currency (Details) - Currency risk [member] $ in Millions | 12 Months Ended |
Dec. 31, 2019COP ($) | |
Disclosure of detailed information about financial risk management [Line Items] | |
One Percent variations in exchange rate, Effect on income before income taxes | $ (12,158) |
One Percent variations in exchange rate, other comprehensive income | (240,247) |
Five Percent variations in exchange rate, Effect on income before income taxes | (60,791) |
Five Percent variations in exchange rate, other omprehensive income | $ (1,201,236) |
Risk management - Non-derivativ
Risk management - Non-derivative hedging instrument (Details) - Cash flow hedging for future crude oil exports [member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about financial risk management [Line Items] | |||
Hedging instrument at the beginning of the period | $ 1,300 | $ 3,332 | |
Reassignment of hedging instruments | 5,551 | 3,366 | |
Realized exports | (5,551) | (3,366) | |
Capital payments | [1] | 0 | (2,032) |
Hedging instrument at the end of the period | $ 1,300 | $ 1,300 | |
[1] | On December 27, 2018, Ecopetrol S.A. paid in advance the entire 10year international bond issued in 2009, whose nominal value was USD$1,500 million. Equally, on June 30, 2017, Ecopetrol prepaid the entire outstanding balance of the international syndicated loan whose nominal value was USD$1,925 million and original maturity date was February 2020. |
Risk management - Other compreh
Risk management - Other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Risk management | |||
Opening balance | $ (374,079) | $ 159,295 | $ 244,131 |
Exchange difference | (35,607) | (704,871) | (15,933) |
Reclassification to profit or loss | 386,773 | (128,404) | (160,772) |
Ineffectiveness | 5,173 | 35,617 | 9,247 |
Deferred income tax | (118,008) | 264,284 | 82,622 |
Closing balance | $ (135,748) | $ (374,079) | $ 159,295 |
Risk management - Cumulative ex
Risk management - Cumulative exchange difference (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019COP ($) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | $ (196,153) |
Taxes | 60,405 |
After taxes | (135,748) |
2020 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (50,986) |
Taxes | 16,316 |
After taxes | (34,670) |
2021 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (53,249) |
Taxes | 16,507 |
After taxes | (36,742) |
2022 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (53,249) |
Taxes | 15,975 |
After taxes | (37,274) |
2023 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (38,669) |
Taxes | 11,607 |
After taxes | $ (27,062) |
Risk management - Hedge recogni
Risk management - Hedge recognised in other comprehensive income (Details) - Hedge of a net investment in a foreign operation (Note 29.1.3) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial risk management [Line Items] | |||
Hedging instrument at the beginning of the period | $ 1,069,316 | $ 97,362 | $ 155,359 |
Exchange difference | 87,524 | 1,381,900 | (86,892) |
Ineffectiveness | 0 | 378 | 329 |
Deferred income tax | (26,257) | (410,324) | 28,566 |
Hedging instrument at the end of the period | $ 1,130,583 | $ 1,069,316 | $ 97,362 |
Risk management - Significant c
Risk management - Significant concentration of credit risk (Details) - Financial assets past due but not impaired [member] - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | $ 648,118 | $ 292,528 |
Less than 3 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | 243,893 | 157,608 |
Between 3 and 6 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | 136,700 | 41,263 |
More than 6 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | $ 267,525 | $ 93,657 |
Risk management - Sensitivity o
Risk management - Sensitivity of the Ecopetrol Business (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019COP ($) | |
Increase in floating interest (+100 basis points) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Financial assets (Financial expenses) | $ (16,320) |
Financial liabilities (Financial income) | 32,276 |
Plan assets (Other comprehensive income) | (590,991) |
Decrease in floating interest (-100 basis points) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Financial assets (Financial income) | 16,278 |
Financial liabilities (Financial expenses) | (32,345) |
Plan assets (Other comprehensive income) | $ 629,633 |
Risk management - Maturity of f
Risk management - Maturity of financial liabilities (Details) $ in Millions | Dec. 31, 2019COP ($) |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | $ 57,389,625 |
Trade and other payables | 10,715,867 |
Total | 68,105,492 |
2019 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 3,680,187 |
Trade and other payables | 10,689,246 |
Total | 14,369,433 |
1 to 5 years | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 19,206,790 |
Trade and other payables | 26,621 |
Total | 19,233,411 |
5 to 10 years | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 15,022,371 |
Trade and other payables | 0 |
Total | 15,022,371 |
>10 years | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 19,480,277 |
Trade and other payables | 0 |
Total | $ 19,480,277 |
Risk management - Leverage rati
Risk management - Leverage ratio (Details) - COP ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Risk management | |||||
Loans and borrowings (Note 19) | $ 38,239,139 | $ 38,062,645 | |||
Cash and cash equivalents (Note 6) | (7,075,758) | (6,311,744) | $ (7,945,885) | $ (8,410,467) | |
Other financial assets (Note 9) | (4,979,292) | (8,147,815) | |||
Net financial debt | 26,184,089 | 23,603,086 | |||
Equity (Note 23) | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 | $ 43,560,501 | |
Leverage | [1] | 31.02% | 29.24% | ||
[1] | Leverage = Net financial debt / (Net financial debt + Equity) |
Risk management - Additional In
Risk management - Additional Information (Details) $ in Millions | Oct. 01, 2015USD ($) | Dec. 27, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) | Nov. 30, 2019USD ($) | Jun. 30, 2017USD ($) |
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Closing foreign exchange rate | $ 3,277.14 | $ 3,249.75 | $ 2,984 | ||||||
Financial instruments designated as hedging instruments, at fair value | $ 7,331 | $ 6,500 | |||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | $ (60,740,000,000) | 80,636,000,000 | |||||||
Maximum percentage of cash investment held in portfolio, non current | 1.00% | 1.00% | |||||||
Net short position contracts | $ 378 | $ 332 | |||||||
Other comprehensive gains (losses) on hedges of derivative instruments net of tax | $ 43,141,000,000 | $ (52,174,000,000) | |||||||
Repayments of bonds, notes and debentures | $ 1,500 | ||||||||
Hedging Instruments Foreign Currency Debt | $ 5,440 | ||||||||
Hedge of a net investment in a foreign operation (Note 29.1.3) | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Financial instruments designated as hedging instruments, at fair value | 6,031 | ||||||||
Hedge of a net investment in a foreign operation (Note 29.1.3) | Ecopetrol Business Group | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Financial instruments designated as hedging instruments, at fair value | 5,200 | ||||||||
Hedge of a net investment in Ecopetrol Permian LLC | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Financial instruments designated as hedging instruments, at fair value | 831 | $ 930 | |||||||
Foreign Currency Commercial Loans Six [Member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Notional amount | $ 1,925 | ||||||||
Colombian Peso [Member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Gross financial assets set off against financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | 7,769 | ||||||||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | 7,331 | ||||||||
US Dollar [Member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Gross financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | $ 67 | ||||||||
Floating interest rate | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Borrowings, interest rate | 17.00% | 17.00% | 19.00% | ||||||
Peso portfolio [Member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Maximum percentage of cash investment held in portfolio | 10.00% | 10.00% | |||||||
U.S. dollor portfolio [Member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Maximum percentage of cash investment held in portfolio, current | 5.00% | 5.00% | |||||||
Commodity price risk [member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | $ 1,602,000,000 | ||||||||
Commodity price risk [member] | Ecopetrol Business Group | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
Gain (loss) on hedge ineffectiveness recognised in profit or loss | $ 4,868,000,000 | ||||||||
Currency risk [member] | |||||||||
Disclosure of detailed information about financial risk management [Line Items] | |||||||||
The Increase Decrease In Foreign exchange Rate | 0.80% | 0.80% |
Related parties (Details)
Related parties (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | $ 27,449 | $ 23,480 | ||
Accounts receivable-Loans | 93,657 | 117,824 | ||
Other assets | 57,016 | 19,214 | ||
Accounts payable | 187,616 | 116,418 | ||
Loans | 1,108,403 | 855,135 | ||
Other liabilities | 795 | 68 | ||
Accounts receivable, Current | 27,449 | 23,480 | ||
Accounts receivable, Non-current | 0 | 0 | ||
Accounts receivable - Loans, Current | 0 | 0 | ||
Accounts receivable - Loans, Non-current | 93,657 | 117,824 | ||
Other assets, Current | 57,016 | 19,214 | ||
Other assets, Non-current | 0 | 0 | ||
Accounts payable, Current | 187,616 | 116,418 | ||
Accounts payable, Non-current | 0 | 0 | ||
Loans, Current | 1,108,403 | 855,135 | ||
Loans, Non-current | 0 | 0 | ||
Other liabilities, Current | 795 | 68 | ||
Other liabilities, Non-current | 0 | 0 | ||
Serviport S.A | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 0 | 0 | ||
Accounts receivable-Loans | 0 | 0 | ||
Other assets | 0 | 0 | ||
Accounts payable | 4,668 | 5,482 | ||
Loans | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Equion Energy Limited [Member] | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 25,333 | [1] | 22,958 | |
Accounts receivable-Loans | 0 | [1] | 0 | |
Other assets | 57,016 | [1] | 19,214 | |
Accounts payable | 153,501 | [1] | 87,079 | |
Loans | 1,108,403 | [1] | 855,135 | |
Other liabilities | 794 | [1] | 67 | |
Ecodiesel Colombia S.A | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 2,116 | 522 | ||
Accounts receivable-Loans | 0 | 0 | ||
Other assets | 0 | 0 | ||
Accounts payable | 29,447 | 23,857 | ||
Loans | 0 | 0 | ||
Other liabilities | 1 | 1 | ||
Offshore International Group | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | [2] | 0 | 0 | |
Accounts receivable-Loans | [2] | 93,657 | 117,824 | |
Other assets | [2] | 0 | 0 | |
Accounts payable | [2] | 0 | 0 | |
Loans | [2] | 0 | 0 | |
Other liabilities | [2] | $ 0 | $ 0 | |
[1] | The interest rate of the loan with Capital AG corresponds to 2.37%. | |||
[2] | Loan granted by Ecopetrol S.A. to Savia Perú S.A. (subsidiary of Offshore International Group) for USD$57 million in 2016, with an interest rate of 4.99% payable semiannually from 2017 and maturing in 2021. The balance in nominal value of this loan as of December 31, 2019 is USD$28 million (2018 - USD$35 million). On December 11, 2019, Ecopetrol S.A. and the Korea National Oil Corporation ("KNOC") awarded to Savia a modification to the credit conditions. That modification is related to the payments of the principal to expire on December 16, 2019 (USD$7 million), June 15, 2020 (USD$7 million) and December 15, 2020 (USD$7 million), for the debtor to cancel this amount on February 19, 2021, at which time the final payment will be made for USD$28 million. |
Related parties - Transactions
Related parties - Transactions with related parties (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | $ 329,241 | $ 76,248 | $ 447,652 |
Purchases And Other Assets, Related Party Transactions | 849,754 | 1,113,782 | 857,905 |
Equion Energy Limited [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 317,382 | 67,002 | 425,881 |
Purchases And Other Assets, Related Party Transactions | 569,105 | 846,284 | 598,636 |
Ecodiesel Colombia S.A | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 8,614 | 6,860 | 6,583 |
Purchases And Other Assets, Related Party Transactions | 280,649 | 267,498 | 259,269 |
Offshore International Group | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 3,245 | 2,386 | 15,188 |
Purchases And Other Assets, Related Party Transactions | $ 0 | $ 0 | $ 0 |
Related parties - Directors and
Related parties - Directors and key management personnel (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Felipe Bayon | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Jaime Caballero | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Orlando Diaz | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Jorge Calvache | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Maria Consuelo Barrera | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Rafael Espinosa Rozo | |
Disclosure of transactions between related parties [line items] | |
Key Management Personnel Shareholding Description | <1% outstanding shares |
Related parties - Additional In
Related parties - Additional Information (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 11, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018COP ($) | Dec. 31, 2016USD ($) | |
Disclosure of transactions between related parties [line items] | |||||||||
Key management personnel compensation | $ 4,969,000 | $ 4,687,000 | $ 4,426,000 | ||||||
Virtual Meetings Attendance Fee Percentage | 50.00% | ||||||||
Cancellation of fees | $ 1,847 | 2,152 | 1,877 | ||||||
Payment of key management personnel compensation | $ 22,632 | $ 21,580 | 20,669 | ||||||
Provisions for employee benefits | $ 11,481,064 | $ 8,606,551 | |||||||
Ownership Interest Held By Government | 88.49% | ||||||||
Description of any retirement benefit plan termination terms | five years (2016-2021) | ||||||||
Maximum Percentage of Price Differential | 3 | ||||||||
Executive officers [Member] | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Provisions for employee benefits | $ 5,401 | $ 18,740 | $ 5,491 | ||||||
Offshore International Group | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Loans and receivables | $ 28 | $ 35 | $ 57 | ||||||
Loans And Receivable Interest Rate | 4.99% | ||||||||
December 16, 2019 | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Modified Principal Payments to be Paid at Specific Dates | $ 7 | ||||||||
June 15, 2020 | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Modified Principal Payments to be Paid at Specific Dates | 7 | ||||||||
December 15, 2020 | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Modified Principal Payments to be Paid at Specific Dates | 7 | ||||||||
February 19, 2021 | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Modified Principal Payments to be Paid at Specific Dates | $ 28 | ||||||||
Equion Energy Limited [Member] | |||||||||
Disclosure of transactions between related parties [line items] | |||||||||
Loans And Receivable Interest Rate | 2.37% | 2.37% |
Joint operations - Contracts in
Joint operations - Contracts in which Ecopetrol is not the operator (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of joint operations [line items] | |
Type | Production |
% Participation | 98.00% |
Geographic area of operations | Colombia |
Chipiron Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Chipirón |
Type | Production |
Geographic area of operations | Colombia |
Chipiron Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | Bottom of range [member] | |
Disclosure of joint operations [line items] | |
% Participation | 30.00% |
Chipiron Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | Top of range [member] | |
Disclosure of joint operations [line items] | |
% Participation | 40.00% |
Cosecha Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Cosecha |
Type | Production |
% Participation | 30.00% |
Geographic area of operations | Colombia |
Cravo norte Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Cravo Norte |
Type | Production |
% Participation | 55.00% |
Geographic area of operations | Colombia |
Rondon Contract [Member] | Occidental Andina LLC [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Rondón |
Type | Production |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Guajira Contract [Member] | Chevron Petroleum Group [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Guajira |
Type | Production |
% Participation | 57.00% |
Geographic area of operations | Colombia |
Nare Contract [Member] | Mansarovar Energy Colombia Ltd [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Nare |
Type | Production |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Quifa Contract [Member] | Meta Petroleum Corp [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Quifa |
Type | Production |
% Participation | 40.00% |
Geographic area of operations | Colombia |
Piedemonte Contract [Member] | Equion Energy Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Piedemonte |
Type | Production |
% Participation | 55.00% |
Geographic area of operations | Colombia |
Casanare Contract One [Member] | Perenco Colombia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Casanare |
Type | Production |
% Participation | 74.40% |
Geographic area of operations | Colombia |
Corocora Contract One [Member] | Perenco Colombia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Corocora |
Type | Production |
% Participation | 83.91% |
Geographic area of operations | Colombia |
Estero Contract One [Member] | Perenco Colombia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Estero |
Type | Production |
% Participation | 95.98% |
Geographic area of operations | Colombia |
Garcero Contract One [Member] | Perenco Colombia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Garcero |
Type | Production |
% Participation | 91.22% |
Geographic area of operations | Colombia |
Orocue Contract One [Member] | Perenco Colombia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Orocúe |
Type | Production |
% Participation | 86.47% |
Geographic area of operations | Colombia |
Tayrona Contract [Member] | Petrobras, Repsol & Statoil [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Tayrona |
Type | Exploration |
% Participation | 30.00% |
Geographic area of operations | North Caribbean Offshore |
Deep Rydberg/Aleatico Contract [Member] | Shell [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Deep Rydberg/Aleatico |
Type | Exploration |
% Participation | 29.00% |
Geographic area of operations | Gulf of Mexico |
Gunflint Contract [Member] | Noble Energy [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Gunflint |
Type | Production |
% Participation | 32.00% |
Geographic area of operations | Gulf of Mexico |
Dalmatian Contract [Member] | Murphy Oil [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Dalmatian |
Type | Production |
% Participation | 30.00% |
Geographic area of operations | Gulf of Mexico |
K2 Contract [Member] | Anadarko [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | K2 |
Type | Production |
% Participation | 21.00% |
Geographic area of operations | Gulf of Mexico |
Palmer Contract [Member] | Shell - Parmer [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Palmer |
Type | Exploration |
% Participation | 30.00% |
Geographic area of operations | Gulf of Mexico |
Warrior Contract [Member] | OXY (Anadarko) [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Warrior |
Type | Exploration |
% Participation | 30.00% |
ESOXX Contract [Member] | HESS [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | ESOXX |
Type | Exploration |
% Participation | 21.00% |
Geographic area of operations | Gulf of Mexico |
Bloque 8 Contract [Member] | PEMEX Exploracion Y Produccion [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Bloque 8 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Gulf of Mexico |
Bloque 6 Contract [Member] | PETRONAS PC Carigali Mexico Operations, S.A. de C.V. [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Bloque 6 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Gulf of Mexico |
Rodeo Midland Basin Contract [Member] | Occidental Petroleum Company [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Rodeo Midland Basin |
Type | Production |
% Participation | 49.00% |
Geographic area of operations | Texas U.S. - Midland Basin |
Niscota Contract [Member] | Equion Energia Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Niscota |
Type | Production |
% Participation | 20.00% |
Geographic area of operations | Colombia |
Pau Brasil Contract [Member] | CNOOC - British Petroleum [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Pau Brasil |
Type | Exploration |
% Participation | 20.00% |
Geographic area of operations | Brazil |
Saturno Contract [Member] | Shell / Chevron [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Saturno |
Type | Exploration |
% Participation | 10.00% |
Geographic area of operations | Brazil |
CE-M-715_R11 Contract [Member] | Chevron [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | CE-M-715_R11 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Brazil |
SSJN1 Contract [Member] | Lewis [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | SSJN1 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Mana Contract [Member] | Interoil Colombia [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Mana |
Type | Production |
% Participation | 30.00% |
Geographic area of operations | Colombia |
Ambrosia Contract [Member] | Interoil Colombia [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Ambrosia |
Type | Production |
% Participation | 30.00% |
Geographic area of operations | Colombia |
Rio Opia Contract [Member] | Interoil Colombia [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Rio Opia |
Type | Production |
% Participation | 30.00% |
Geographic area of operations | Colombia |
Rancho Hermoso Otras formaciones Contract [Member] | Canacol [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Rancho Hermoso Otras formaciones |
Type | Production |
% Participation | 70.00% |
Geographic area of operations | Colombia |
La Punta Santo Domingo Contract [Member] | Vetra [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | La Punta Santo Domingo |
Type | Production |
% Participation | 45.00% |
Geographic area of operations | Colombia |
Llanos 86 Contract [Member] | Geopark [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Llanos 86 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Llanos 87 Contract [Member] | Geopark [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Llanos 87 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Llanos 104 Contract [Member] | Geopark [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Llanos 104 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Joint operations - Contracts _2
Joint operations - Contracts in which Ecopetrol is the operator (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of joint operations [line items] | |
Type | Production |
% Participation | 98.00% |
Geographic area of operations | Colombia |
VMM29 Contract [Member] | ExxonMobil Exploration Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | VMM29 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
CR2 Contract [Member] | ExxonMobil Exploration Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | CR2 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
C62 Contract [Member] | ExxonMobil Exploration Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | C62 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
CPO9 Contract [Member] | Talisman Colombia Oil | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | CPO9 |
Type | Exploration |
% Participation | 55.00% |
Geographic area of operations | Colombia |
RC9 Contract [Member] | ONGC Videsh Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | RC9 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
VMM32 Contract [Member] | CPVEN Sucursal Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | VMM32 |
Type | Exploration |
% Participation | 51.00% |
Geographic area of operations | Colombia |
CR4 Contract [Member] | Shell Exploracion and Produccion [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | CR4 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
San Jacinto Contract [Member] | SK Innovation Co Ltd. [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | San Jacinto |
Type | Exploration |
% Participation | 70.00% |
Geographic area of operations | Colombia |
Catleya Contract [Member] | Repsol Exploracion Colombia S.A. [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Catleya |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Cardon Contract [Member] | Emerald Energy PLC Suc. Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Cardon |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
CPO9 - Akacias Contract [Member] | Talismn Colombia oil and gas Ltd [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | CPO9 – Akacias |
Type | Production |
% Participation | 55.00% |
Geographic area of operations | Colombia |
ORC401 CRC-2004-01 Contract [Member] | Parex Resources Colombia Ltd. [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | ORC401 CRC-2004-01 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
La Cira Infantas [Member] | Occidental Andina LLC [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | La Cira Infantas |
Type | Exploration |
% Participation | 58.00% |
Teca Contract [Member] | Occidental Andina LLC [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Teca |
Type | Production |
% Participation | 76.00% |
Geographic area of operations | Colombia |
Guariquies I Contract [Member] | Ramshorn International Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Guariquies I |
Type | Production |
% Participation | 50.00% |
Geographic area of operations | Colombia |
San Jacinto Rio Paez Contract [Member] | Perenco Oil And Gas [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | San Jacinto Rio Paez |
Type | Production |
% Participation | 68.00% |
Geographic area of operations | Colombia |
San Jacinto Rio Paez Contract [Member] | Cepsa Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | San Jacinto Rio Paez |
Type | Production |
% Participation | 68.00% |
Geographic area of operations | Colombia |
Mundo Nuevo Contract [Member] | Total Colombia [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Mundo Nuevo |
Type | Exploration |
% Participation | 15.00% |
Geographic area of operations | Colombia |
Mundo Nuevo Contract [Member] | Talisman Oil Gas [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Mundo Nuevo |
Type | Exploration |
% Participation | 15.00% |
Geographic area of operations | Colombia |
Block RC-9 Contract- Caribbean Round No. 37-2007 Contract [Member] | ONGC Videsh Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Block RC–9 Contract–Caribbean Round No.37–2007 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Gulf of Mexico |
Cusiana Planta de Gas Contract [Member] | Equion Energy Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Cusiana Planta de Gas |
Type | Production |
% Participation | 98.00% |
Geographic area of operations | Colombia |
Joint operations - Additional I
Joint operations - Additional Information (Details) - USD ($) $ in Millions | Nov. 22, 2019 | Oct. 21, 2019 | Oct. 20, 2019 | Jul. 17, 2019 | Jul. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Nov. 13, 2019 |
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 98.00% | |||||||
Strategic Alliance with Occidental Petroleum Corp [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 49.00% | |||||||
Percentage of advance payment for acquiring interest in joint operation | 50.00% | |||||||
Percentage of deferred payment to be paid over time in joint operation | 50.00% | |||||||
Cash transfer | $ 1,500 | |||||||
Strategic Alliance with Occidental Petroleum Corp [Member] | Occidental Petroleum Corp [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 51.00% | |||||||
Acquisition 30% Sul De Gato Do Mato Discovery [Member] | Shell [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 50.00% | 80.00% | ||||||
Remaining proportion of ownership interest in joint operation | 20.00% | |||||||
Acquisition 30% Sul De Gato Do Mato Discovery [Member] | Ecopetrol Oleo e Gas do Brasil Ltda. [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Agreement amount on acquisition of interest | $ 105 | |||||||
Remaining proportion of ownership interest in joint operation | 30.00% | |||||||
Agreement for the Acquisition of 10% In Saturn Block [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 10.00% | |||||||
Agreement for the Acquisition of 10% In Saturn Block [Member] | Shell and Chevron [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 45.00% | |||||||
Agreement for the Acquisition of 10% In Saturn Block [Member] | Ecopetrol Oleo e Gas do Brasil Ltda. [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 10.00% | |||||||
Cash transfer | $ 85 | |||||||
Stake in Guajira Association [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 57.00% | |||||||
Stake in Guajira Association [Member] | Chevron [Member] | ||||||||
Disclosure of joint operations [line items] | ||||||||
Proportion of ownership interest in joint operation | 43.00% | |||||||
Percentage of ownership interest acquired by Hocol | 43.00% |
Information by segments (Detail
Information by segments (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 71,488,512 | $ 68,603,872 | $ 55,954,228 |
Cost of sales | (44,972,360) | (41,184,379) | (36,908,325) |
Gross profit | 26,516,152 | 27,419,493 | 19,045,903 |
Administrative expenses and others | (5,488,994) | (4,961,079) | (2,874,048) |
Operation and projects expenses | (2,631,754) | (2,903,132) | (2,926,065) |
Impairment of non-current assets | (1,762,437) | (368,634) | 1,311,138 |
Other operating income and expenses net | 1,056,796 | (35,455) | 505,403 |
Operating income (expenses) | 21,027,158 | 22,458,414 | 16,171,855 |
Financial result net | |||
Financial income | 1,623,336 | 1,129,563 | 1,159,356 |
Financial expenses | (3,334,469) | (3,512,161) | (3,660,601) |
Foreign exchange gain (loss), net | 40,639 | 372,223 | 5,514 |
Financial result, net | (1,670,494) | (2,010,375) | (2,495,731) |
Share of profits of associates and joint ventures | 366,904 | 165,836 | 93,538 |
Income before tax | 19,723,568 | 20,613,875 | 13,769,662 |
Income tax | (4,718,413) | (8,258,485) | (5,800,268) |
Net profit (loss) for the period | 15,005,155 | 12,355,390 | 7,969,394 |
Profit (loss) attributable to: | |||
Group owners of parent | 13,744,011 | 11,381,386 | 7,178,539 |
Non-controlling interest | 1,261,144 | 974,004 | 790,855 |
Net income | 15,005,155 | 12,355,390 | 7,969,394 |
Supplementary information | |||
Depreciation depletion and amortization | 8,582,783 | 7,704,850 | 8,281,347 |
Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (12,272,918) | (11,346,037) | (10,340,394) |
Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (32,699,442) | (29,838,342) | (26,567,931) |
Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 71,488,512 | 68,603,872 | 55,954,228 |
Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | |
Exploration and Production [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 52,667,990 | 50,372,764 | 36,494,934 |
Cost of sales | (36,373,865) | (32,239,184) | (26,310,084) |
Gross profit | 16,294,125 | 18,133,580 | 10,184,850 |
Administrative expenses and others | 1,284,560 | 889,293 | 781,386 |
Operation and projects expenses | (1,475,710) | (1,993,054) | (2,070,916) |
Impairment of non-current assets | (1,982,044) | 785,940 | 183,718 |
Other operating income and expenses net | 49,673 | (137,836) | 545,218 |
Operating income (expenses) | 11,601,484 | 15,899,337 | 8,061,484 |
Financial result net | |||
Financial income | 1,440,440 | 1,099,893 | 1,062,393 |
Financial expenses | (2,311,133) | (2,038,312) | (2,288,576) |
Foreign exchange gain (loss), net | 287,286 | 868,479 | (101,030) |
Financial result, net | (583,407) | (69,940) | (1,327,213) |
Share of profits of associates and joint ventures | 227,401 | 135,265 | 120,786 |
Income before tax | 11,245,478 | 15,964,662 | 6,855,057 |
Income tax | (1,925,798) | (6,096,591) | (3,034,556) |
Net profit (loss) for the period | 9,319,680 | 9,868,071 | 3,820,501 |
Profit (loss) attributable to: | |||
Group owners of parent | 9,382,129 | 9,930,519 | 3,820,501 |
Non-controlling interest | (62,449) | (62,448) | 0 |
Net income | 9,319,680 | 9,868,071 | 3,820,501 |
Supplementary information | |||
Depreciation depletion and amortization | 5,892,822 | 5,248,364 | 5,981,294 |
Exploration and Production [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (9,587,961) | (8,871,709) | (8,055,925) |
Exploration and Production [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (26,785,904) | (23,367,475) | (18,254,159) |
Exploration and Production [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 31,295,118 | 30,112,900 | 25,004,320 |
Exploration and Production [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 21,372,872 | 20,259,864 | 11,490,614 |
Refining and petrochemicals [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 38,770,806 | 37,011,373 | 28,644,016 |
Cost of sales | (37,856,219) | (35,658,753) | (26,855,395) |
Gross profit | 914,587 | 1,352,620 | 1,788,621 |
Administrative expenses and others | 496,155 | 443,880 | 516,501 |
Operation and projects expenses | (743,378) | (668,177) | (965,457) |
Impairment of non-current assets | 452,163 | (984,704) | 1,067,965 |
Other operating income and expenses net | 1,014,988 | (13,652) | (11,694) |
Operating income (expenses) | 1,142,205 | (757,793) | 1,362,934 |
Financial result net | |||
Financial income | 229,297 | 147,689 | 164,006 |
Financial expenses | (996,790) | (1,295,528) | (1,110,874) |
Foreign exchange gain (loss), net | (179,936) | (517,410) | 163,992 |
Financial result, net | (947,429) | (1,665,249) | (782,876) |
Share of profits of associates and joint ventures | 17,091 | 27,730 | 15,245 |
Income before tax | 211,867 | (2,395,312) | 595,303 |
Income tax | (83,504) | 420,224 | (238,625) |
Net profit (loss) for the period | 128,363 | (1,975,088) | 356,678 |
Profit (loss) attributable to: | |||
Group owners of parent | 117,708 | (1,973,075) | 358,859 |
Non-controlling interest | 10,655 | (2,013) | (2,181) |
Net income | 128,363 | (1,975,088) | 356,678 |
Supplementary information | |||
Depreciation depletion and amortization | 1,398,948 | 1,307,216 | 1,188,871 |
Refining and petrochemicals [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (3,523,948) | (3,204,791) | (2,886,745) |
Refining and petrochemicals [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (34,332,271) | (32,453,962) | (23,968,650) |
Refining and petrochemicals [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 36,393,470 | 34,947,948 | 27,343,359 |
Refining and petrochemicals [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,377,336 | 2,063,425 | 1,300,657 |
Transportation and logistics [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 13,070,736 | 11,354,167 | 10,598,064 |
Cost of sales | (3,738,194) | (3,402,087) | (3,271,835) |
Gross profit | 9,332,542 | 7,952,080 | 7,326,229 |
Administrative expenses and others | 372,942 | 320,498 | 466,669 |
Operation and projects expenses | (434,904) | (263,104) | (142,847) |
Impairment of non-current assets | (232,556) | (169,870) | 59,455 |
Other operating income and expenses net | 74,607 | 118,905 | (28,121) |
Operating income (expenses) | 8,366,747 | 7,317,513 | 6,748,047 |
Financial result net | |||
Financial income | 273,613 | 110,898 | 106,659 |
Financial expenses | (306,878) | (407,589) | (434,664) |
Foreign exchange gain (loss), net | (66,711) | 21,154 | (57,448) |
Financial result, net | (99,976) | (275,537) | (385,453) |
Share of profits of associates and joint ventures | 138 | 2,841 | (42,493) |
Income before tax | 8,266,909 | 7,044,817 | 6,320,101 |
Income tax | (2,709,111) | (2,582,118) | (2,527,087) |
Net profit (loss) for the period | 5,557,798 | 4,462,699 | 3,793,014 |
Profit (loss) attributable to: | |||
Group owners of parent | 4,244,860 | 3,424,234 | 2,999,978 |
Non-controlling interest | 1,312,938 | 1,038,465 | 793,036 |
Net income | 5,557,798 | 4,462,699 | 3,793,014 |
Supplementary information | |||
Depreciation depletion and amortization | 1,291,013 | 1,149,270 | 1,111,182 |
Transportation and logistics [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (3,039,452) | (2,805,516) | (2,637,604) |
Transportation and logistics [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (698,742) | (596,571) | (634,231) |
Transportation and logistics [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,799,924 | 3,543,024 | 3,606,549 |
Transportation and logistics [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 9,270,812 | 7,811,143 | 6,991,515 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | (33,021,020) | (30,134,432) | (19,782,786) |
Cost of sales | 32,995,918 | 30,115,645 | 19,528,989 |
Gross profit | (25,102) | (18,787) | (253,797) |
Administrative expenses and others | (2,058) | 187 | (32) |
Operation and projects expenses | 22,238 | 21,203 | 253,155 |
Impairment of non-current assets | 0 | 0 | 0 |
Other operating income and expenses net | (82,472) | (2,872) | 0 |
Operating income (expenses) | (83,278) | (643) | (610) |
Financial result net | |||
Financial income | (320,014) | (228,917) | (173,702) |
Financial expenses | 280,332 | 229,268 | 173,513 |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Financial result, net | (39,682) | 351 | (189) |
Share of profits of associates and joint ventures | 122,274 | 0 | 0 |
Income before tax | (686) | (292) | (799) |
Income tax | 0 | 0 | 0 |
Net profit (loss) for the period | (686) | (292) | (799) |
Profit (loss) attributable to: | |||
Group owners of parent | (686) | (292) | (799) |
Non-controlling interest | 0 | 0 | 0 |
Net income | (686) | (292) | (799) |
Supplementary information | |||
Depreciation depletion and amortization | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | 3,878,443 | 3,535,979 | 3,239,880 |
Elimination of intersegment amounts [member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | 29,117,475 | 26,579,666 | 16,289,109 |
Elimination of intersegment amounts [member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | $ (33,021,020) | $ (30,134,432) | $ (19,782,786) |
Information by segments - Sales
Information by segments - Sales by product (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Total sales revenue | $ 71,488,512 | $ 68,603,872 | $ 55,954,228 |
Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 32,519,831 | 29,187,067 | 26,006,139 |
Recognition of price differential | 1,785,277 | 3,835,533 | 2,229,953 |
Total sales revenue | 34,305,108 | 33,022,600 | 28,236,092 |
Domestic sales [Member] | Med-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 13,541,756 | 11,586,192 | 9,590,326 |
Domestic sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 9,373,030 | 7,952,852 | 6,990,187 |
Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,829,102 | 3,531,404 | 3,589,553 |
Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,305,543 | 1,885,846 | 1,815,754 |
Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 760,301 | 822,367 | 833,982 |
Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 544,200 | 335,426 | 275,803 |
Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 372,916 | 574,639 | 509,619 |
Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 356,857 | 550,479 | 909,871 |
Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Services | 309,353 | 239,410 | 283,799 |
Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 228,552 | 282,545 | 217,418 |
Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 190,133 | 270,887 | 167,348 |
Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 102,845 | 156,031 | 188,195 |
Services | 102,845 | ||
Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 97,907 | 509,482 | 354,058 |
Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 507,336 | 489,507 | 280,226 |
Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 37,183,404 | 35,581,272 | 27,718,136 |
Foreign sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,085,392 | 1,782,194 | 1,223,994 |
Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 27,255 | 27,899 | 32,303 |
Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,200,668 | 1,268,582 | 1,169,101 |
Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 13,591 | 20,212 | 15,631 |
Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 28,523,596 | 26,898,737 | 21,479,063 |
Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 4,391,798 | 3,050,839 | 1,213,740 |
Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,870,929 | 2,053,594 | 1,982,408 |
Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (386,773) | 128,404 | 160,772 |
Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 456,948 | 350,811 | 441,124 |
Exploration and Production [Member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 52,667,990 | 50,372,764 | 36,494,934 |
Exploration and Production [Member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 24,526,007 | 23,279,898 | 14,840,170 |
Recognition of price differential | 0 | 0 | 0 |
Total sales revenue | 24,526,007 | 23,279,898 | 14,840,170 |
Exploration and Production [Member] | Domestic sales [Member] | Med-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 725 | 1,334 |
Exploration and Production [Member] | Domestic sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 57,316 | 37,279 | 41,157 |
Exploration and Production [Member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,909,770 | 2,535,658 | 2,540,233 |
Exploration and Production [Member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 24,690 | 26,406 | 34,834 |
Exploration and Production [Member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 179,541 | 245,875 | 199,796 |
Exploration and Production [Member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 21,056,104 | 20,142,527 | 11,668,529 |
Exploration and Production [Member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Services | 169,062 | 103,522 | 140,227 |
Exploration and Production [Member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 156,031 | 188,195 | |
Services | 102,845 | ||
Exploration and Production [Member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,464 | 20,391 | 14,758 |
Exploration and Production [Member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 25,215 | 11,484 | 11,107 |
Exploration and Production [Member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 28,141,983 | 27,092,866 | 21,654,764 |
Exploration and Production [Member] | Foreign sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 27,255 | 27,899 | 32,303 |
Exploration and Production [Member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 13,591 | 20,212 | 15,631 |
Exploration and Production [Member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 28,461,601 | 26,898,737 | 21,426,666 |
Exploration and Production [Member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (386,773) | 128,404 | 160,772 |
Exploration and Production [Member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 26,309 | 17,614 | 19,392 |
Refining and petrochemicals [Member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 38,770,807 | 37,011,374 | 28,644,016 |
Refining and petrochemicals [Member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 27,944,164 | 24,687,531 | 20,351,058 |
Recognition of price differential | 1,785,277 | 3,835,533 | 2,229,953 |
Total sales revenue | 29,729,441 | 28,523,064 | 22,581,011 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Med-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 13,573,007 | 11,662,476 | 9,588,992 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 11,269,797 | 9,690,113 | 8,052,289 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 51,812 | 36,321 | 41,998 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 49,420 | 0 | 4 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 760,301 | 822,367 | 833,982 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 519,510 | 309,020 | 240,969 |
Refining and petrochemicals [Member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 193,375 | 329,569 | 309,823 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Services | 232,407 | 190,612 | 179,912 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 228,552 | 282,545 | 217,418 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 190,133 | 270,887 | 167,348 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | |
Services | 0 | ||
Refining and petrochemicals [Member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 96,443 | 489,091 | 339,300 |
Refining and petrochemicals [Member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 779,407 | 604,530 | 379,023 |
Refining and petrochemicals [Member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 9,041,366 | 8,488,310 | 6,063,005 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,085,392 | 1,782,194 | 1,223,994 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,200,668 | 1,268,582 | 1,169,101 |
Refining and petrochemicals [Member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 61,995 | 0 | 52,397 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 4,391,798 | 3,050,839 | 1,213,740 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,870,929 | 2,053,594 | 1,982,408 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 430,584 | 333,101 | 421,365 |
Transportation and logistics [Member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 13,070,737 | 11,354,167 | 10,598,064 |
Transportation and logistics [Member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 13,070,682 | 11,354,071 | 10,597,697 |
Recognition of price differential | 0 | 0 | 0 |
Total sales revenue | 13,070,682 | 11,354,071 | 10,597,697 |
Transportation and logistics [Member] | Domestic sales [Member] | Med-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 12,853,762 | 11,089,012 | 10,277,921 |
Transportation and logistics [Member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Services | 216,920 | 265,059 | 319,776 |
Transportation and logistics [Member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | |
Services | 0 | ||
Transportation and logistics [Member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 55 | 96 | 367 |
Transportation and logistics [Member] | Foreign sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transportation and logistics [Member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 55 | 96 | 367 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | (33,021,022) | (30,134,433) | (19,782,786) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | (33,021,022) | (30,134,433) | (19,782,786) |
Recognition of price differential | 0 | 0 | 0 |
Total sales revenue | (33,021,022) | (30,134,433) | (19,782,786) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Med-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (31,251) | (77,009) | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (1,896,767) | (1,737,261) | (1,062,102) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (9,133,788) | (7,631,208) | (6,771,523) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (653,647) | (649,812) | (724,483) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | (805) | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (20,699,247) | (19,592,048) | (10,758,658) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Services | (309,036) | (319,783) | (356,116) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | |
Services | 0 | ||
Elimination of intersegment amounts [member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (297,286) | (126,507) | (109,904) |
Elimination of intersegment amounts [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Gasoline and turbo fuel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | $ 0 | $ 0 | $ 0 |
Information by segments - Capit
Information by segments - Capital expenditures by segments (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | |||
Investment property | $ 13,979,141 | $ 8,460,426 | $ 6,107,506 |
Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 4,012,659 | 3,302,929 | 2,363,283 |
Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 9,798,193 | 5,051,828 | 3,568,355 |
Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 168,289 | 105,669 | 175,868 |
Exploration and Production [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 11,975,162 | 7,180,187 | 4,649,792 |
Exploration and Production [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 2,151,194 | 2,071,604 | 927,282 |
Exploration and Production [Member] | Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 9,798,193 | 5,051,828 | 3,568,355 |
Exploration and Production [Member] | Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 25,775 | 56,755 | 154,155 |
Refining and petrochemicals [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 518,081 | 722,450 | 611,690 |
Refining and petrochemicals [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 497,512 | 702,247 | 606,749 |
Refining and petrochemicals [Member] | Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 20,569 | 20,203 | 4,941 |
Transportation and logistics [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 1,485,898 | 557,789 | 846,024 |
Transportation and logistics [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 1,363,953 | 529,078 | 829,252 |
Transportation and logistics [Member] | Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 0 | 0 | 0 |
Transportation and logistics [Member] | Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | $ 121,945 | $ 28,711 | $ 16,772 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ in Billions | Feb. 21, 2020 | Feb. 07, 2020 |
Ecopetrol reported agreement with shell [member] | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Percentage of interest acquired | 50.00% | |
Authorization of issuance and placement of bonds | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Allowed liquidity position in capital market | $ 2 |
Supplemental information on o_3
Supplemental information on oil and gas producing activities - Capitalized costs relating to oil and gas exploration and production activities (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental information on oil and gas producing activities (unaudited) | |||
Natural and environmental properties | $ 60,261,025 | $ 53,752,436 | $ 48,129,595 |
Wells, equipment and facilities - property, plant and equipment | 30,150,268 | 29,416,081 | 30,405,565 |
Exploration and production projects | 8,801,630 | 8,463,584 | 6,632,812 |
Accumulated depreciation, depletion and amortization | (60,346,094) | (55,689,222) | (51,791,897) |
Net capitalized costs | $ 38,866,829 | $ 35,942,879 | $ 33,376,075 |
Supplemental information on o_4
Supplemental information on oil and gas producing activities - Costs incurred in oil and gas exploration and developed activities (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplemental information on oil and gas producing activities (unaudited) | ||||
Acquisition of proved properties | [1] | $ 2,668,960 | $ 0 | $ 591,875 |
Acquisition of unproved properties | [2] | 261,231 | 81,295 | 164,180 |
Exploration costs | 640,556 | 1,197,946 | 1,095,588 | |
Development costs | 8,084,283 | 6,346,276 | 3,599,385 | |
Total costs incurred | $ 11,655,030 | $ 7,625,517 | $ 5,451,028 | |
[1] | In July 2019, Ecopetrol S.A. and Occidental Petroleum Corp. (OXY) entered into a Joint Operation contract in order to execute a joint plan for the development of unconventional drilling in the Permian Basin in the state of Texas (USA). On December 2017, Ecopetrol América Inc. acquired an 11.6% interest in the K2 oil field in the Gulf of Mexico from MCX, increasing its share from 9.2% to 20.8%. | |||
[2] | On July 17, 2019, the Ministry of Mines and Energy of Brazil authorized the transfer of 10% of the Saturn block for USD$85 million, located in the Santos basin, to Ecopetrol Óleo e Gás do Brasil, this percentage of which Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda. were equal holders. In the new shareholding structure, Ecopetrol retains 10% of the interests of the block, while Shell (operator) and Chevron each retain 45% of the total. As of December 2017, the investments were mainly made by Ecopetrol América Inc. in offshore exploration projects of the Warrior and Rydberg wells. |
Supplemental information on o_5
Supplemental information on oil and gas producing activities - Results of operations for oil and gas exploration and production activities (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenues | ||||
Sales | $ 42,070,018 | $ 39,633,866 | $ 29,823,565 | |
Transfers | 11,564,358 | 11,794,014 | 7,518,216 | |
Total | 53,634,376 | 51,427,880 | 37,341,781 | |
Production cost | [1] | 9,336,387 | 8,337,413 | 6,535,794 |
Depreciation, depletion and amortization | [2] | 6,049,543 | 5,591,774 | 6,349,382 |
Other production costs | [3] | 21,550,907 | 18,918,275 | 14,066,593 |
Exploration expenses | [4] | 763,562 | 1,387,463 | 1,342,952 |
Other expenses | [5] | 4,163,241 | 1,036,983 | 882,743 |
Total | 41,863,640 | 35,271,908 | 29,177,464 | |
Income before income tax expense | 11,770,736 | 16,155,972 | 8,164,317 | |
Income tax expenses | (2,107,363) | (6,303,251) | (3,678,955) | |
Results of operations for exploration and production activities | $ 9,663,373 | $ 9,852,721 | $ 4,485,362 | |
[1] | Production costs are lifting costs incurred to operate and maintain productive wells and related equipment and facilities including costs such as operating labor, materials, supplies, and fuel consumed in operations and the costs of operating natural gas liquids plants. In addition, they include expenses related to the asset retirement obligations that were recognized during 2019, 2018 and 2017 of COP$198,394, COP$187,340 and COP$380,810, respectively. | |||
[2] | In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2019, 2018 and 2017 in depreciation, depletion and amortization, were COP$272,147, COP$180,193 and COP$179,601, respectively. | |||
[3] | Corresponds to transportation costs and naphtha that are not part of the Ecopetrol Business Group’s lifting cost. | |||
[4] | Exploration expenses include the costs of geological and geophysical activities, as well as the non-productive exploratory wells. | |||
[5] | Corresponds to administration, marketing expenses and impairment. |
Supplemental information on o_6
Supplemental information on oil and gas producing activities - Reserve information (Details) - gal | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||||
Opening balance | [1] | 1,727 | 1,659 | 1,598 | ||
Proved reserves, Revisions of previous estimates | [2] | 83 | 121 | 175 | ||
Proved reserves, Improved recovery | 94 | 129 | 73 | |||
Proved reserves, Purchases | 164 | 0 | 4 | |||
Proved reserves, Extensions and discoveries | 67 | 57 | 43 | |||
Proved reserves, Production | (242) | (239) | (234) | |||
Closing balance | 1,893 | 1,727 | [1] | 1,659 | [1] | |
Proved developed reserves: Opening balance | 1,389 | 1,372 | 1,329 | |||
Proved developed reserves: Closing balance | 1,365 | 1,389 | 1,372 | |||
Proved undeveloped reserves: Opening balance | 338 | 287 | 269 | |||
Proved undeveloped reserves: Closing balance | 529 | 338 | 287 | |||
Gas [Member] | ||||||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||||
Opening balance | [1] | 3,002 | 3,254 | 3,218 | ||
Proved reserves, Revisions of previous estimates | [2] | 51 | (4) | 294 | ||
Proved reserves, Improved recovery | 3 | 4 | 4 | |||
Proved reserves, Purchases | 126 | 0 | 2 | |||
Proved reserves, Extensions and discoveries | 2 | 18 | 0 | |||
Proved reserves, Production | (278) | (270) | (264) | |||
Closing balance | 2,906 | 3,002 | [1] | 3,254 | [1] | |
Proved developed reserves: Opening balance | 2,882 | 3,158 | 3,131 | |||
Proved developed reserves: Closing balance | 2,662 | 2,882 | 3,158 | |||
Proved undeveloped reserves: Opening balance | 119 | 96 | 87 | |||
Proved undeveloped reserves: Closing balance | 244 | 119 | 96 | |||
Oil [Member] | ||||||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||||
Opening balance | [1] | 1,200 | 1,088 | 1,033 | ||
Proved reserves, Revisions of previous estimates | [2] | 74 | 121 | 124 | ||
Proved reserves, Improved recovery | 94 | 128 | 72 | |||
Proved reserves, Purchases | 142 | 0 | 3 | |||
Proved reserves, Extensions and discoveries | 66 | 54 | 44 | |||
Proved reserves, Production | (193) | (191) | (188) | |||
Closing balance | 1,383 | 1,200 | [1] | 1,088 | [1] | |
Proved developed reserves: Opening balance | 883 | 818 | 779 | |||
Proved developed reserves: Closing balance | 898 | 883 | 818 | |||
Proved undeveloped reserves: Opening balance | 317 | 270 | 254 | |||
Proved undeveloped reserves: Closing balance | 486 | 317 | 270 | |||
[1] | The values for 2019 were not rounded for presentation purposes. | |||||
[2] | Represents changes in previous proved reserves, upward or downward, resulting from new information (except for an increase in a proved area), usually obtained from development drilling and production history or result from changes in economic factors. |
Supplemental information on o_7
Supplemental information on oil and gas producing activities - Future net cash flows (Details) - COP ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental information on oil and gas producing activities (unaudited) | |||
Future cash inflows | $ 279,722,107 | $ 275,046,421 | $ 182,114,282 |
Future costs | |||
Production | (93,589,960) | (90,176,326) | (70,159,534) |
Development | (32,734,702) | (21,945,453) | (14,860,992) |
Income taxes | (37,077,231) | (41,102,015) | (23,660,328) |
Future net cash flow | 116,320,214 | 121,822,627 | 73,433,428 |
10% discount factor | (36,934,889) | (35,518,187) | (22,216,583) |
Standardized measure of discounted net cash flows | $ 79,385,325 | $ 86,304,440 | $ 51,216,845 |
Supplemental information on o_8
Supplemental information on oil and gas producing activities - discounted net cash flows (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplemental information on oil and gas producing activities (unaudited) | ||||
Net change in sales and transfer prices and in production cost (lifting) related to future production | $ 2,411,040 | $ 79,632,263 | $ 26,918,170 | |
Changes in estimated future development costs | (12,627,361) | (13,141,340) | (1,978,913) | |
Sales and transfer of oil and gas produced, net of production costs | (44,297,989) | (43,090,467) | (30,805,987) | |
Net change due to extensions, discoveries and improved recovery | [1] | 7,061,712 | 8,496,249 | 3,226,852 |
Net change due to purchase and sales of minerals in place | 213,539 | 0 | 211,777 | |
Net change due to revisions in quantity estimates | 6,756,418 | 10,163,131 | 9,090,882 | |
Previously estimated development costs incurred during the period | 23,200,357 | 12,505,421 | 3,482,570 | |
Accretion of discount | 11,542,289 | 6,771,897 | 4,416,512 | |
Timing and other | (4,993,389) | (13,633,228) | 8,991,981 | |
Net change in income taxes | 3,814,269 | (12,616,331) | (6,462,611) | |
Aggregate change in the standardized measure of discounted future net cash flows for the year | $ (6,919,115) | $ 35,087,595 | $ 17,091,233 | |
[1] | For comparative purposes, figures as of December 2017 were reclassified. |
Supplemental information on o_9
Supplemental information on oil and gas producing activities - Additional Information (Details) $ in Millions, $ in Millions | Jul. 17, 2019USD ($) | Nov. 12, 2017 | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) |
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Provisions for asset retirement obligations included in cost capitalized to natural and enviromental properties | $ 2,260,113 | $ 1,076,116 | $ 598,125 | ||
Expense related to the asset retirement obligations | 198,394 | 187,340 | 380,810 | ||
Depreciation, depletion and amortization related to asset retirement obligations | $ 272,147 | $ 180,193 | $ 179,601 | ||
Percentage of transferred crude oil and gas production based on value to intercompany units | 21.60% | 22.90% | 20.10% | ||
Percentage of transferred crude oil and gas production based on volume to intercompany units | 51.50% | 51.80% | 48.40% | ||
Interest Rate On Acquisition | 10.00% | ||||
Proportion of ownership interest in joint operation | 98.00% | ||||
Ecopetrol Oleo e Gas do Brasil Ltda. [Member] | |||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Cash transferred | $ 85 | ||||
Shell and Chevron [Member] | |||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Proportion of ownership interest in joint operation | 45.00% | ||||
K2 oil field [Member] | MCX Exploration USA LLC [Member] | |||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Percentage of interest in product acquired | 11.60% | ||||
K2 oil field [Member] | MCX Exploration USA LLC [Member] | Bottom of range [member] | |||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Proportion of ownership interest in associate | 9.20% | ||||
K2 oil field [Member] | MCX Exploration USA LLC [Member] | Top of range [member] | |||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | |||||
Proportion of ownership interest in associate | 20.80% |
Exhibit 1. Consolidated subsi_3
Exhibit 1. Consolidated subsidiaries, associates and joint ventures - Consolidated subsidiary companies (Details) - COP ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Equity | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 | $ 43,560,501 | |
Profit (loss) of the year | 15,005,155 | 12,355,390 | $ 7,969,394 | ||
Total assets | 133,890,296 | 124,643,498 | |||
Total liabilities | $ 75,658,668 | $ 67,535,718 | |||
Refineria de Cartagena SAS [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Refining of hydrocarbons, commercialization and distribution of products | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 17,260,342 | ||||
Profit (loss) of the year | 63,700 | ||||
Total assets | 26,738,049 | ||||
Total liabilities | $ 9,477,707 | ||||
Cenit Transporte y Logistica S.A.S. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Storage and transport by pipelines of hydrocarbons | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 15,289,423 | ||||
Profit (loss) of the year | 4,322,501 | ||||
Total assets | 17,470,013 | ||||
Total liabilities | $ 2,180,590 | ||||
Oleoducto Central S A [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 72.65% | ||||
Activity | Transportation by crude oil pipelines | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 3,718,707 | ||||
Profit (loss) of the year | 2,697,990 | ||||
Total assets | 7,172,245 | ||||
Total liabilities | $ 3,453,538 | ||||
Ecopetrol Global Energy SLU [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Investment vehicle | ||||
Country/Domicile | Spain | ||||
Geographic area of operations | Spain | ||||
Equity | $ 7,889,271 | ||||
Profit (loss) of the year | 1,256,639 | ||||
Total assets | 7,892,018 | ||||
Total liabilities | $ 2,747 | ||||
Hocol Petroleum Limited - HPL [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Investment vehicle | ||||
Country/Domicile | Bermuda | ||||
Geographic area of operations | Bermuda | ||||
Equity | $ 3,008,263 | ||||
Profit (loss) of the year | 378,889 | ||||
Total assets | 3,008,416 | ||||
Total liabilities | $ 153 | ||||
Ecopetrol America LLC [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration and exploitation of hydrocarbons | ||||
Country/Domicile | United States | ||||
Geographic area of operations | United States | ||||
Equity | $ 2,529,782 | ||||
Profit (loss) of the year | (64,032) | ||||
Total assets | 3,067,856 | ||||
Total liabilities | $ 538,074 | ||||
Hocol S.A [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration, exploitation and production of hydrocarbons | ||||
Country/Domicile | Cayman Islands | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 2,000,248 | ||||
Profit (loss) of the year | 366,311 | ||||
Total assets | 3,293,912 | ||||
Total liabilities | $ 1,293,664 | ||||
Esenttia S.A [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Production and commercialization of polypropylene resin | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 1,652,851 | ||||
Profit (loss) of the year | 197,639 | ||||
Total assets | 2,100,014 | ||||
Total liabilities | $ 447,163 | ||||
Ecopetrol Capital AG [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. | ||||
Country/Domicile | Switzerland | ||||
Geographic area of operations | Switzerland | ||||
Equity | $ 1,630,044 | ||||
Profit (loss) of the year | 124,098 | ||||
Total assets | 6,885,838 | ||||
Total liabilities | $ 5,255,794 | ||||
Andean Chemicals Ltd. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Investment vehicle | ||||
Country/Domicile | Bermuda | ||||
Geographic area of operations | Bermuda | ||||
Equity | $ 1,158,661 | ||||
Profit (loss) of the year | (190,135) | ||||
Total assets | 1,159,558 | ||||
Total liabilities | $ 897 | ||||
Oleoducto Bicentenario de Colombia S.A.S [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 55.97% | ||||
Activity | Transportation by crude oil pipelines | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 1,569,418 | ||||
Profit (loss) of the year | 575,910 | ||||
Total assets | 3,792,998 | ||||
Total liabilities | $ 2,223,580 | ||||
Oleoducto de los Llanos Orientales S A ODL [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 65.00% | ||||
Activity | Transportation by crude oil pipelines | ||||
Country/Domicile | Panama | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 1,079,130 | ||||
Profit (loss) of the year | 485,516 | ||||
Total assets | 1,654,772 | ||||
Total liabilities | $ 575,642 | ||||
Inversiones de Gases de Colombia S.A. - Invercolsa S.A. (1) | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | [1] | Colombian peso | |||
Ownership interest Ecopetrol | [1] | 51.88% | |||
Activity | [1] | Holding with investments in natural gas and LPG transportation and distribution companies in Colombia | |||
Country/Domicile | [1] | Colombia | |||
Geographic area of operations | [1] | Colombia | |||
Equity | [1] | $ 817,849 | |||
Profit (loss) of the year | [1] | 18,198 | |||
Total assets | [1] | 1,361,333 | |||
Total liabilities | [1] | $ 543,484 | |||
Black Gold Re Ltd. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Reinsurer for companies of the Ecopetrol Business Group | ||||
Country/Domicile | Bermuda | ||||
Geographic area of operations | Bermuda | ||||
Equity | $ 751,916 | ||||
Profit (loss) of the year | 54,547 | ||||
Total assets | 888,577 | ||||
Total liabilities | $ 136,661 | ||||
Oleoducto de Colombia SA - ODC [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 73.00% | ||||
Activity | Transportation by crude oil pipelines | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 422,898 | ||||
Profit (loss) of the year | 329,775 | ||||
Total assets | 663,666 | ||||
Total liabilities | $ 240,768 | ||||
Bioenergy S.A. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 99.61% | ||||
Activity | Production of biofuels | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 46,756 | ||||
Profit (loss) of the year | (270,376) | ||||
Total assets | 219,686 | ||||
Total liabilities | $ 172,930 | ||||
Esenttia Masterbatch Ltda [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Manufacture of polypropylene compounds and masterbatches | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 263,152 | ||||
Profit (loss) of the year | 113,587 | ||||
Total assets | 347,308 | ||||
Total liabilities | $ 84,156 | ||||
Ecopetrol Oleo e Gas do Brasil Ltda. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Brazilian real | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration and exploitation of hydrocarbons | ||||
Country/Domicile | Brazil | ||||
Geographic area of operations | Brazil | ||||
Equity | $ 728,744 | ||||
Profit (loss) of the year | (140,819) | ||||
Total assets | 757,348 | ||||
Total liabilities | $ 28,604 | ||||
Bioenergy Zona Franca SAS [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 99.61% | ||||
Activity | Production of biofuels | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ (89,565) | ||||
Profit (loss) of the year | (236,088) | ||||
Total assets | 358,751 | ||||
Total liabilities | $ 448,316 | ||||
Ecopetrol del Peru SA [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration and exploitation of hydrocarbons | ||||
Country/Domicile | Peru | ||||
Geographic area of operations | Peru | ||||
Equity | $ 50,311 | ||||
Profit (loss) of the year | (2,025) | ||||
Total assets | 52,351 | ||||
Total liabilities | $ 2,040 | ||||
ECP Hidrocarburos de Mexico SA de CV [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Offshore exploration | ||||
Country/Domicile | Mexico | ||||
Geographic area of operations | Mexico | ||||
Equity | $ 38,144 | ||||
Profit (loss) of the year | (73,303) | ||||
Total assets | 70,854 | ||||
Total liabilities | $ 32,710 | ||||
Ecopetrol Costa Afuera SAS [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Offshore exploration | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 12,208 | ||||
Profit (loss) of the year | (3,760) | ||||
Total assets | 32,130 | ||||
Total liabilities | $ 19,922 | ||||
Esenttia Resinas del Peru SAC [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Commercialization polypropylene resins and masterbatches | ||||
Country/Domicile | Peru | ||||
Geographic area of operations | Peru | ||||
Equity | $ 4,830 | ||||
Profit (loss) of the year | 101 | ||||
Total assets | 28,831 | ||||
Total liabilities | $ 24,001 | ||||
Ecopetrol Energia SAS ESP [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Colombian peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Energy supply service | ||||
Country/Domicile | Colombia | ||||
Geographic area of operations | Colombia | ||||
Equity | $ 7,405 | ||||
Profit (loss) of the year | 3,990 | ||||
Total assets | 106,773 | ||||
Total liabilities | $ 99,368 | ||||
Ecopetrol Germany Gmbh (2) [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | [2] | U.S. dollar | |||
Ownership interest Ecopetrol | [2] | 100.00% | |||
Activity | [2] | Exploration and exploitation of hydrocarbons | |||
Country/Domicile | [2] | Germany | |||
Geographic area of operations | [2] | Angola | |||
Equity | [2] | $ 2,283 | |||
Profit (loss) of the year | [2] | (12) | |||
Total assets | [2] | $ 2,283 | |||
Ecopetrol USA Inc | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration and exploitation of hydrocarbons | ||||
Country/Domicile | United States | ||||
Geographic area of operations | United States | ||||
Equity | $ 7,070,295 | ||||
Profit (loss) of the year | 1,483,597 | ||||
Total assets | $ 7,070,295 | ||||
Ecopetrol Permian LLC [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Exploration and exploitation of hydrocarbons | ||||
Country/Domicile | United States | ||||
Geographic area of operations | United States | ||||
Equity | $ 3,043,138 | ||||
Profit (loss) of the year | (4,768) | ||||
Total assets | 3,044,851 | ||||
Total liabilities | $ 1,713 | ||||
Topili Servicios Administrativos S de RL de CV [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Mexican peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Specialized management services | ||||
Country/Domicile | Mexico | ||||
Geographic area of operations | Mexico | ||||
Equity | $ 46 | ||||
Profit (loss) of the year | (4) | ||||
Total assets | 49 | ||||
Total liabilities | $ 3 | ||||
Kalixpan Servicios Tecnicos S de RL de CV [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | Mexican peso | ||||
Ownership interest Ecopetrol | 100.00% | ||||
Activity | Specialized services related to oil and gas industry | ||||
Country/Domicile | Mexico | ||||
Geographic area of operations | Mexico | ||||
Equity | $ (3) | ||||
Profit (loss) of the year | (3) | ||||
Total assets | 1 | ||||
Total liabilities | $ 4 | ||||
[1] | Values according to consolidated financial statements of the company. The result in profit (loss) corresponds to one month of operation. Assets and liabilities values as of December 2019. | ||||
[2] | Company in liquidation process. |
Exhibit 1. Consolidated subsi_4
Exhibit 1. Consolidated subsidiaries, associates and joint ventures - Consolidated subsidiaries (Details) - COP ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Equity | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 | $ 43,560,501 | |
Profit (loss) of the year | 15,005,155 | 12,355,390 | 7,969,394 | ||
Total assets | 133,890,296 | 124,643,498 | |||
Total liabilities | $ 75,658,668 | $ 67,535,718 | |||
Equion Energy Limited [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol, joint venture | 51.00% | 51.00% | |||
Activity, joint venture | Exploration, exploitation and production of hydrocarbons | ||||
Country/Domicile, joint venture | United Kingdom | ||||
Geographic area of operations, joint venture | Colombia | ||||
Equity | $ 2,234,067 | $ 1,939,686 | |||
Profit (loss) of the year | 396,380 | 421,511 | 253,708 | ||
Total assets | 2,625,837 | 2,567,950 | |||
Total liabilities | $ 391,770 | $ 628,264 | |||
Offshore International Group | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | U.S. dollar | ||||
Ownership interest Ecopetrol, joint venture | 50.00% | 50.00% | |||
Activity, joint venture | Exploration, exploitation and production of hydrocarbons | ||||
Country/Domicile, joint venture | United States | ||||
Geographic area of operations, joint venture | Peru | ||||
Equity | $ 736,847 | $ 771,492 | |||
Profit (loss) of the year | (48,247) | (322,969) | $ (178,280) | ||
Total assets | 1,766,271 | 1,878,508 | |||
Total liabilities | $ 1,029,424 | $ 1,107,016 | |||
Ecodiesel Colombia S.A | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | [1] | Colombian peso | |||
Ownership interest Ecopetrol, joint venture | [1] | 50.00% | |||
Activity, joint venture | [1] | Production, commercialization and distribution of biofuels and oleochemicals | |||
Country/Domicile, joint venture | [1] | Colombia | |||
Geographic area of operations, joint venture | [1] | Colombia | |||
Equity | [1] | $ 92,191 | |||
Profit (loss) of the year | [1] | 17,964 | |||
Total assets | [1] | 147,087 | |||
Total liabilities | [1] | $ 54,896 | |||
Serviport S.A | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | [2] | Colombian peso | |||
Ownership interest Ecopetrol, associate | [2] | 49.00% | |||
Activity, associate | [2] | Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements | |||
Country/Domicile, associate | [2] | Colombia | |||
Geographic area of operations, associate | [2] | Colombia | |||
Equity | [2] | $ 22,593 | |||
Profit (loss) of the year | [2] | 1,164 | |||
Total assets | [2] | 59,044 | |||
Total liabilities | [2] | $ 36,451 | |||
Sociedad Portuaria Olefinas y Derivados S.A. [Member] | |||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | |||||
Functional currency | [2] | Colombian peso | |||
Ownership interest Ecopetrol, associate | [2] | 50.00% | |||
Activity, associate | [2] | Construction, use, maintenance and administration of port facilities, ports, private docks | |||
Country/Domicile, associate | [2] | Colombia | |||
Geographic area of operations, associate | [2] | Colombia | |||
Equity | [2] | $ 3,816 | |||
Profit (loss) of the year | [2] | 646 | |||
Total assets | [2] | 6,753 | |||
Total liabilities | [2] | $ 2,937 | |||
[1] | Information available as of November 30, 2019. | ||||
[2] | Information available as of September 30, 2019. The investment is 100% impaired as of December 31, 2019. |
Exhibit 2 . Conditions of the m
Exhibit 2 . Conditions of the most significant loans (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 38,239,139 | $ 38,062,645 |
Bonds domestic currency One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2010-12 | |
Expiry date | 2020-12 | |
Currency | COP | |
Disbursement | $ 479,900 | |
Borrowings | $ 479,900 | 479,900 |
Interest rate | Floating | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds domestic currency Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2010-12 | |
Expiry date | 2040-12 | |
Currency | COP | |
Disbursement | $ 284,300 | |
Borrowings | $ 284,300 | 284,300 |
Interest rate | Floating | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds domestic currency Three [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2013-08 | |
Expiry date | 2023-08 | |
Currency | COP | |
Disbursement | $ 168,600 | |
Borrowings | $ 168,600 | 168,600 |
Interest rate | Floating | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds domestic currency Four [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2013-08 | |
Expiry date | 2028-08 | |
Currency | COP | |
Disbursement | $ 347,500 | |
Borrowings | $ 347,500 | 347,500 |
Interest rate | Floating | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds domestic currency Five [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2013-08 | |
Expiry date | 2043-08 | |
Currency | COP | |
Disbursement | $ 262,950 | |
Borrowings | $ 262,950 | 262,950 |
Interest rate | Floating | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Local Currency Syndicated Loan One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Oleoducto Bicentenario S.A.S | |
Issue date | 2012-07 | |
Expiry date | 2024-07 | |
Currency | COP | |
Disbursement | $ 2,100,000 | |
Borrowings | $ 1,021,890 | 1,191,050 |
Interest rate | Floating | |
Amortization of the principal | Quarterly | |
Payment of interest | Quarterly | |
Local Currency Syndicated Loan Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | ODL Finance S.A. | |
Issue date | 2013-08 | |
Expiry date | 2020-08 | |
Currency | COP | |
Disbursement | $ 800,000 | |
Borrowings | $ 312,608 | 224,000 |
Interest rate | Floating | |
Amortization of the principal | Quarterly | |
Payment of interest | Quarterly | |
Commercial Loan [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Bioenergy | |
Issue date | 2011-08 | |
Expiry date | 2031-12 | |
Currency | COP | |
Disbursement | $ 505,723 | |
Borrowings | $ 530,733 | 444,157 |
Interest rate | Floating | |
Amortization of the principal | Monthly | |
Payment of interest | Monthly | |
Bonds Foreign currency One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2013-09 | |
Expiry date | 2023-09 | |
Currency | USD | |
Disbursement | $ 1,300 | |
Borrowings | $ 1,300 | 1,300 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2013-09 | |
Expiry date | 2043-09 | |
Currency | USD | |
Disbursement | $ 850 | |
Borrowings | $ 850 | 850 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Three [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2014-05 | |
Expiry date | 2045-05 | |
Currency | USD | |
Disbursement | $ 2,000 | |
Borrowings | $ 2,000 | 2,000 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Four [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2014-09 | |
Expiry date | 2025-05 | |
Currency | USD | |
Disbursement | $ 1,200 | |
Borrowings | $ 1,200 | 1,200 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Five [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2015-06 | |
Expiry date | 2026-06 | |
Currency | USD | |
Disbursement | $ 1,500 | |
Borrowings | $ 1,500 | 1,500 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Six [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2016-06 | |
Expiry date | 2023-09 | |
Currency | USD | |
Disbursement | $ 500 | |
Borrowings | $ 500 | 500 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
Bonds Foreign currency Seven [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Oleoducto Central S.A. | |
Issue date | 2014-05 | |
Expiry date | 2021-05 | |
Currency | USD | |
Disbursement | $ 500 | |
Borrowings | $ 506 | 500 |
Interest rate | Fixed | |
Amortization of the principal | Bullet | |
Payment of interest | Half-yearly | |
International commercial credits - Refineria de Cartagena One [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2017-12 | |
Expiry date | 2027-12 | |
Currency | USD | |
Disbursement | $ 2,001 | |
Borrowings | $ 1,530 | 1,742 |
Interest rate | Fixed | |
Amortization of the principal | Half-yearly | |
Payment of interest | Half-yearly | |
International commercial credits - Refineria de Cartagena Two [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2017-12 | |
Expiry date | 2027-12 | |
Currency | USD | |
Disbursement | $ 76 | |
Borrowings | $ 58 | 66 |
Interest rate | Floating | |
Amortization of the principal | Half-yearly | |
Payment of interest | Half-yearly | |
International commercial credits - Refineria de Cartagena Three [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2017-12 | |
Expiry date | 2027-12 | |
Currency | USD | |
Disbursement | $ 73 | |
Borrowings | $ 56 | 63 |
Interest rate | Fixed | |
Amortization of the principal | Half-yearly | |
Payment of interest | Half-yearly | |
International commercial credits - Refineria de Cartagena Four [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2017-12 | |
Expiry date | 2027-12 | |
Currency | USD | |
Disbursement | $ 159 | |
Borrowings | $ 121 | 138 |
Interest rate | Floating | |
Amortization of the principal | Half-yearly | |
Payment of interest | Half-yearly | |
International commercial credits - Refineria de Cartagena Five [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Company | Ecopetrol S.A. | |
Issue date | 2017-12 | |
Expiry date | 2025-12 | |
Currency | USD | |
Disbursement | $ 359 | |
Borrowings | $ 288 | $ 321 |
Interest rate | Floating | |
Amortization of the principal | Half-yearly | |
Payment of interest | Half-yearly |