Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Disclosure of classes of share capital [line items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Transition Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity Registrant Name | ECOPETROL S.A. |
Entity Common Stock, Shares Outstanding | 41,116,694,690 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001444406 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
ICFR Auditor Attestation Flag | false |
Common shares | |
Disclosure of classes of share capital [line items] | |
Title of 12(b) Security | Ecopetrol common shares par value COP$609 per share |
Trading Symbol | EC |
Security Exchange Name | NYSE |
American depository receipts | |
Disclosure of classes of share capital [line items] | |
Title of 12(b) Security | American Depository Shares (as evidenced by American Depository Receipts), each representing 20 common shares par value COP$609 per share |
Trading Symbol | EC |
Security Exchange Name | NYSE |
Consolidated statement of finan
Consolidated statement of financial position - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 5,082,308 | $ 7,075,758 |
Trade and other receivables, net | 4,819,092 | 5,700,334 |
Inventories, net | 5,053,960 | 5,658,099 |
Other financial assets | 2,194,651 | 1,624,018 |
Current tax assets | 3,976,295 | 1,518,807 |
Other assets | 1,664,036 | 1,778,978 |
Current assets subtotal | 22,790,342 | 23,355,994 |
Assets held for sale | 44,032 | 8,467 |
Total current assets | 22,834,374 | 23,364,461 |
Non-current assets | ||
Investment in associates and joint ventures | 3,174,628 | 3,245,072 |
Trade and other receivables, net | 676,607 | 786,796 |
Property, plant and equipment | 66,508,338 | 64,214,822 |
Natural and environmental resources | 31,934,159 | 29,072,798 |
Right-of-use assets | 377,886 | 456,225 |
Intangible assets | 555,043 | 483,098 |
Non-current tax assets | 8,071,733 | 6,809,347 |
Other financial assets | 877,008 | 3,355,274 |
Goodwill | 1,594,279 | 1,159,922 |
Other assets | 1,090,114 | 942,481 |
Total non-current assets | 114,859,795 | 110,525,835 |
Total assets | 137,694,169 | 133,890,296 |
Current liabilities | ||
Loans and borrowings | 4,923,346 | 5,012,173 |
Trade and other payables | 8,449,041 | 10,689,246 |
Provisions for employee benefits | 2,022,137 | 1,929,087 |
Current tax liabilities | 1,243,883 | 2,570,779 |
Accrued liabilities and provisions | 1,221,109 | 789,297 |
Other liabilities | 391,771 | 751,717 |
Current liabilities sub total | 18,251,287 | 21,742,299 |
Liabilities related to non-current assets held for sale | 31,156 | 0 |
Total current liabilities | 18,282,443 | 21,742,299 |
Non-current liabilities | ||
Loans and borrowings | 41,808,408 | 33,226,966 |
Trade and other payables | 21,064 | 24,445 |
Provisions for employee benefits | 10,401,530 | 9,551,977 |
Non current tax liabilities | 1,866,054 | 1,399,374 |
Accrued liabilities and provisions | 11,206,621 | 9,128,991 |
Other liabilities | 608,686 | 584,616 |
Total non-current liabilities | 65,912,363 | 53,916,369 |
Total liabilities | 84,194,806 | 75,658,668 |
Equity | ||
Subscribed and paid in capital | 25,040,067 | 25,040,067 |
Additional paid in capital | 6,607,699 | 6,607,699 |
Reserves | 9,635,136 | 3,784,658 |
Other comprehensive income | 7,947,062 | 6,646,660 |
Retained earnings | 669,900 | 12,334,706 |
Equity attributable to owners of parent | 49,899,864 | 54,413,790 |
Non-controlling interest | 3,599,499 | 3,817,838 |
Total equity | 53,499,363 | 58,231,628 |
Total liabilities and equity | $ 137,694,169 | $ 133,890,296 |
Consolidated statement of profi
Consolidated statement of profit or loss - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated statement of profit or loss | |||
Sales revenue | $ 50,223,393 | $ 71,488,512 | $ 68,603,872 |
Cost of sales | (37,567,472) | (44,972,360) | (41,184,379) |
Gross profit | 12,655,921 | 26,516,152 | 27,419,493 |
Administrative expenses | (3,373,150) | (2,151,599) | (1,653,858) |
Operations and project expenses | (2,586,016) | (2,631,754) | (2,903,132) |
Impairment loss of non-current assets, net | (633,156) | (1,762,437) | (368,634) |
Other operating income (expenses), net | 1,118,166 | 1,056,796 | (35,455) |
Operating income | 7,181,765 | 21,027,158 | 22,458,414 |
Financial results, net | |||
Finance income | 1,101,430 | 1,623,336 | 1,129,563 |
Finance expenses | (3,929,791) | (3,334,469) | (3,512,161) |
Foreign exchange gain, net | 346,774 | 40,639 | 372,223 |
Financial result, net | (2,481,587) | (1,670,494) | (2,010,375) |
Share of profits of associates and joint ventures | 76,336 | 366,904 | 165,836 |
Profit before income tax expense | 4,776,514 | 19,723,568 | 20,613,875 |
Income tax expense | (2,038,661) | (4,718,413) | (8,258,485) |
Net profit for the year | 2,737,853 | 15,005,155 | 12,355,390 |
Net profit attributable to: | |||
Owners of parent | 1,586,677 | 13,744,011 | 11,381,386 |
Non-controlling interest | 1,151,176 | 1,261,144 | 974,004 |
Net profit (loss) for the period | $ 2,737,853 | $ 15,005,155 | $ 12,355,390 |
Basic and diluted earnings per share | $ 38.6 | $ 334.3 | $ 276.8 |
Consolidated statement of compr
Consolidated statement of comprehensive income - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated statement of comprehensive income | |||
Net profit for the year | $ 2,737,853 | $ 15,005,155 | $ 12,355,390 |
Other comprehensive income that may be reclassified to profit or loss in subsequent periods -net of taxes: | |||
Cash flow hedge for future exports | (722) | 238,331 | (533,374) |
Hedge of a net investment in a foreign operation | (364,343) | (61,267) | (971,954) |
Cash flow hedge with derivative instruments | 55,072 | 46,451 | (52,174) |
Foreign currency translation | 1,569,996 | 8,701 | 2,599,242 |
Other comprehensive income that will be reclassified to profit or loss, net of tax | 1,260,003 | 232,216 | 1,041,740 |
Other comprehensive income that will not to be reclassified to profit or loss in subsequent periods -net of taxes: | |||
Remeasurement gain (loss) on defined benefit plans | 96,221 | (1,799,829) | (4,290) |
Other losses | (175,494) | 0 | |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | 96,221 | (1,975,323) | (4,290) |
Other comprehensive income (loss) for the year, net of tax | 1,356,224 | (1,743,107) | 1,037,450 |
Total comprehensive income for the year, net of tax | 4,094,077 | 13,262,048 | 13,392,840 |
Comprehensive income attributable to: | |||
Owners of parent | 2,887,080 | 11,502,149 | 12,363,132 |
Non-controlling interest | 1,206,997 | 1,759,899 | 1,029,708 |
Comprehensive income | $ 4,094,077 | $ 13,262,048 | $ 13,392,840 |
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, 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 |
Net profit | 0 | 0 | 0 | 0 | 1,586,677 | 1,586,677 | 1,151,176 | 2,737,853 |
Dividends declared | 0 | 0 | 0 | 0 | (7,401,005) | (7,401,005) | (1,425,586) | (8,826,591) |
Change in participation in subsidiaries | 0 | 0 | 0 | 0 | 0 | 0 | 249 | 249 |
Legal | 0 | 0 | 1,325,148 | 0 | (1,325,148) | 0 | 0 | 0 |
Fiscal and statutory reserves | 0 | 0 | 509,082 | 0 | (509,082) | 0 | 0 | 0 |
Occasional | 0 | 0 | 4,557,074 | 0 | (4,557,074) | 0 | 0 | 0 |
Appropriation of reserves, net | 0 | 0 | (540,826) | 0 | 540,826 | 0 | 0 | 0 |
Other comprehensive income | ||||||||
Cash flow hedge for future exports | 0 | 0 | 0 | (722) | 0 | (722) | 0 | (722) |
Hedge of a net investment in a foreign operation | 0 | 0 | 0 | (364,343) | 0 | (364,343) | 0 | (364,343) |
Cash flow hedge with derivative instruments | 0 | 0 | 0 | 40,443 | 0 | 40,443 | 14,629 | 55,072 |
Foreign currency translation | 0 | 0 | 0 | 1,528,803 | 0 | 1,528,803 | 41,193 | 1,569,996 |
Remeasurement loss on defined benefit plans | 0 | 0 | 0 | 96,221 | 0 | 96,221 | 0 | 96,221 |
Closing balance at Dec. 31, 2020 | $ 25,040,067 | $ 6,607,699 | $ 9,635,136 | $ 7,947,062 | $ 669,900 | $ 49,899,864 | $ 3,599,499 | $ 53,499,363 |
Consolidated statement of cash
Consolidated statement of cash flows - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flow provided by operating activities: | ||||
Net profit for the period | $ 2,737,853 | $ 15,005,155 | $ 12,355,390 | |
Adjustments to reconcile the net profit to net cash provided by operating activities: | ||||
Income tax expense | 2,038,661 | 4,718,413 | 8,258,485 | |
Depreciation, depletion and amortization | 9,324,538 | 8,582,783 | 7,704,850 | |
Foreign exchange income | (346,774) | (40,639) | (372,223) | |
Finance cost of loans and borrowings | 2,384,342 | 1,894,490 | 2,399,414 | |
Finance cost of post-employment benefits and abandonment costs | 872,987 | 757,509 | 668,782 | |
Write off of exploratory assets and dry wells | 448,132 | 340,271 | 898,924 | |
Loss on disposal of non-current assets | 246,317 | 121,121 | 75,835 | |
Gain on revaluation of assets in Guajira association | [1] | (1,284,372) | 0 | 0 |
(Gain) loss on acquisition of participations and interests | [1] | (86,026) | (1,048,924) | 12,065 |
Gain on loss of control | (65,695) | 0 | 0 | |
Impairment loss of short-term assets | 34,416 | 90,441 | 136,044 | |
Impairment loss of non-current assets | 633,156 | 1,762,437 | 368,634 | |
(Gain) loss on fair value adjustment of financial assets | (43,948) | 18,551 | (92,906) | |
Share of profit of associates and joint ventures | (76,336) | (366,904) | (165,836) | |
Net gain on the sale of assets held for sale | (5,635) | (2,846) | 0 | |
Hedge ineffectiveness | 9,779 | 5,173 | 35,239 | |
Realized loss (gain) on foreign exchange cash flow hedges | 193,374 | 386,773 | (128,404) | |
Net change in operational assets and liabilities: | ||||
Trade and other receivables | 678,349 | 2,381,905 | (2,039,161) | |
Inventories | 716,077 | (597,552) | (448,135) | |
Trade and other payables | (2,550,411) | 1,389,064 | 1,355,175 | |
Tax assets and liabilities | (1,256,889) | (1,409,334) | (1,413,915) | |
Provisions for employee benefits | 465,062 | (234,629) | (181,060) | |
Provisions and contingencies | (30,185) | (253,043) | (89,345) | |
Other assets and liabilities | (392,843) | (492,745) | (218,542) | |
Cash flows from (used in) operations | 14,643,929 | 33,007,470 | 29,119,310 | |
Income tax paid | (5,457,225) | (5,295,703) | (6,650,116) | |
Net cash provided by operating activities | 9,186,704 | 27,711,767 | 22,469,194 | |
Cash flow used in investing activities: | ||||
Investment in property, plant and equipment | (5,032,317) | (4,012,659) | (3,302,929) | |
Investment in natural and environmental resources | (5,994,462) | (9,798,193) | (5,051,828) | |
Acquisitions of intangibles | (90,082) | (168,289) | (105,669) | |
Sales (purchases) of other financial asset, net | 2,107,856 | 3,117,549 | (843,612) | |
Interests received | 299,246 | 481,674 | 383,624 | |
Dividends received | 157,241 | 189,169 | 108,991 | |
Proceeds from sales of assets | 23,713 | 154,780 | 92,620 | |
Net cash used in investment activities | (8,528,805) | (10,035,969) | (8,718,803) | |
Cash flow used in financing activities: | ||||
Proceeds from borrowings | 13,805,403 | 359,876 | 517,747 | |
Repayment of borrowings | (5,003,885) | (1,596,630) | (9,270,262) | |
Interest payments | (2,345,683) | (1,766,223) | (2,610,562) | |
Lease payments | (350,539) | (300,326) | 0 | |
Dividends paid | (8,734,351) | (13,867,029) | (4,427,701) | |
Net cash used in financing activities | (2,629,055) | (17,170,332) | (15,790,778) | |
Exchange difference in cash and cash equivalents | (22,294) | 258,548 | 406,246 | |
Net (decrease) increase in cash and cash equivalents | (1,993,450) | 764,014 | (1,634,141) | |
Cash and cash equivalents at the beginning of the year | 7,075,758 | 6,311,744 | 7,945,885 | |
Cash and cash equivalent at the end of the year | $ 5,082,308 | $ 7,075,758 | $ 6,311,744 | |
[1] | Results in the acquisition of La Guajira: Ecopetrol COP$1,284,372 and Hocol COP$86,026. For Ecopetrol it corresponds to the revaluation of the assets that it already had in the Guajira association and for Hocol it corresponds to the Bargain obtained from the acquisition of the 43% stake. (Note 12 - Business combinations). |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
Basis for presentation | |
Basis for presentation | 2. Basis for presentation 2.1 Statement of compliance and authorization of financial statements The consolidated financial statements of Ecopetrol and its subsidiaries as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019 and 2018 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 April 8, 2021. 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 had changes in the Group: 2020 a) b) 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. 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. 2.8 Impact of Covid-19 on financial statements The Covid-19 outbreak was first reported in late 2019 in China. Subsequently, taking into account the level of expansion, the World Health Organization (WHO) declared the outbreak as a pandemic on March 11, 2020. Said status is maintained to the date of this annual report. Many countries have undertaken various public health measures to control the spread of COVID-19, including mandatory quarantines, forced economic shutdowns and travel restrictions, as well as economic measures to mitigate the impacts of such public health policies on their respective national economy. The Covid-19 pandemic has also caused significant volatility in financial and commodity markets around the world. While governments have announced aid packages to the most affected people and taken macroeconomic measures to face the crisis, the COVID-19 pandemic has disrupted economies worldwide. On March 17, 2020, Colombia Government, through Legislative Decree 417 of 2020, declared a 30 day state of national emergency in light of the health and economic crisis caused by the outbreak of COVID-19. On May 6, 2020, the Government declared a state of emergency for an additional 30 days. For the rest of 2020, the National Government and local authorities implemented sectored lockdowns, and partial closures of commerce and not essential economic activities according to the number of new cases of infected population and hospital capacity. The Government also has implemented other economic and public health measures to address the crisis, including (i) border closure for all non-citizens and non-residents; (ii) short term and low interest loans for all types of agricultural producers; (iii) payroll subsidies for companies and credit lines for different sectors of the economy; (iv) incentivizing working from home and a mandatory work from home order for 80% of Government employees and (v) reduction in the prices of gasoline, among others. This situation has had a significant impact on the oil industry. Most specifically, travel bans imposed by several countries and established quarantine measures reduced demand levels for oil and its derivative products in 2020. Ecopetrol’s operations were affected by this situation and as a consequence, some plants in our refineries and some of our wells were temporarily closed due to low demand and prices and the measures taken to contain the spread of COVID-19 in workers and contractors. In this context, Ecopetrol took the following actions during 2020 to face the impacts of the pandemic: - - - - - - - These measures were aimed at ensuring the sustainability of the Ecopetrol Group's business in an environment of low prices, prioritizing cash-generating opportunities with better equilibrium prices, maintaining growth dynamics with a focus on the execution of strategic asset development plans, and in asset value preservation through investments to gain reliability, integrity and continuity to the current operation in refineries, transportation systems and production fields. Similarly, these actions are covered by Ecopetrol’s risk management policies and procedures. (Note 30). In terms of Ecopetrol’s results of operations as of and for the year ended December 31, 2020, the most significant impacts were the following in: (i) a reduction in revenues (Note 25), especially due to the contraction in demand and a decrease in the international Brent price, partially offset with the higher exchange rate, (ii) an increase in financial costs due to an increase in debt (Note 29), a decrease in valuation to fair value and lower yields of the securities portfolio, which in turn were as a result of low market rates, (iii) recognition of impairment at the end of the year as described above (Note 18), and (iv) an increase in our depreciation expenses (Notes 14, 15, 16 and 17), partly generated by the update of the Ecopetrol’s reserve balance (Note 35). As a result of the measures taken, the constant monitoring of the COVID-19 pandemic, the ongoing vaccination programs and the evolution of the Ecopetrol Group’s results, while we cannot offer any assurances, as of the date of this annual report, Ecopetrol does not believe that the Covid-19 pandemic will have a significant impact on the Ecopetrol Group in the long-term. Nonetheless, the Ecopetrol Group will continue to monitor the evolution of the COVID-19 pandemic and the market to determine the need to implement subsequent stages of the COVID-19 intervention plan and will continuously review impairment indicators on long-lived assets and on investments in companies. 2.9 Reclassifications For presentation purposes, the Group reclassifies some items in the comparative figures as of December 2019. This had no impact on the items in the statements of financial position, profit or loss, comprehensive income, changes in equity or cash flows. |
Significant estimates and accou
Significant estimates and accounting judgments | 12 Months Ended |
Dec. 31, 2020 | |
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 Impairment of non-current assets 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 (except over the goodwill), 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 related to upstream. 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–current 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, refining plants 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. See Note 4.13 - Provisions and contingent liabilities (Obligation to withdraw assets). 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, 2020 | |
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. Additionally, equity instruments are measured at fair value. 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 analysis. 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 previously accumulated in OCI are recognized in profit or loss when the hedged transaction affects the statement of profit or loss. 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 30.3 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 30.4 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 31 – 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 recognizes 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 contract, it recognizes 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 recognized 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 purchase transaction, 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 10 – 55 years Pipelines, networks and lines 10 – 40 years Buildings 10 – 42 years Other 3 – 35 years Lands are recognized 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 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/depletion 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 — Impairment of non-current assets and 4.12 — Impairment of non–current 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 the Ecopetrol Business Group intends to continue to pursue their development in the future, are |
New standards and regulatory ch
New standards and regulatory changes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Ecopetrol applied certain standards and amendments which were effective for annual periods beginning on or after January 1, 2020. Ecopetrol has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. - - These modifications have no impact on the consolidated financial statements, as there is currently no interest rate coverage. - These modifications have not had any impact on the consolidated financial statements. - These modifications have not had an impact on the consolidated financial statements. - This amendment was not applied given that the number of contracts that would be within its scope is reduced and – evaluating its impact at the business group level – it is not material. Consequently, each company will guarantee that the changes in the lease contracts under IFRS 16 comply with the current guidelines of the standard, which establishes that the modifications are recorded as a higher or lower value of the asset in use. 5.2 New standards issued by the IASB that will enter into force in future periods The new amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. Ecopetrol intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Effective January 1, 2021: - Within the accounting analysis, Ecopetrol established that the contractual cash flows of financial assets or financial liabilities measured at amortized cost would change as a result of the interest rate reform. According to the standard, the contracts that change the basis for determining the contractual flows as a result of the interest rate reform should not have a recalculation in the IRR and therefore no accounting impact on the Income Statement applying paragraph B5.4.5 of IFRS 9. Monthly financial expenses will be measured at the new interest rate without implying a remeasurement in the rate that may affect the current cost of the financial asset and/or liability. Effective as of January 1, 2022 with early adoption in 2021: - The amendment is effective for annual reporting periods beginning on or after 1 January 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. Ecopetrol will apply the amendment with early adoption in 2021 subject to approval by decree as required in Colombia regulation. - - Entry into force as of January 1, 2022 or later periods: - The Company constantly monitors the new accounting standards, updates or amendments that the IASB issues, to validate their application and impacts on the Financial Statements. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 6. Cash and cash equivalents 2020 2019 Banks 4,215,518 5,813,306 Short–term investments (1) 866,606 1,262,105 Cash 184 347 5,082,308 7,075,758 (1) As of December 31, 2020, cash and cash equivalents balance included COP$11,682 (COP$85,286 as of December 31, 2019), 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, 2020 and 2019 were 2.2% and 3.2%, respectively. The following table reflects the credit quality of issuers of investments included in cash and cash equivalents: Rating 2020 2019 AAA 2,578,090 3,851,656 F1+ 1,286,310 244,547 A-1 851,394 1,244,462 F1 207,773 — BRC1+ 99,923 673,342 AAAf 28,552 — F3 12,184 — A 4,319 167,404 BRC1 2,336 — AAAmmf 2,162 — Aaa 1,431 — AA 546 229,473 BBB 121 569,514 AA- 22 — A-2 — 89,996 BB — 43 Baa2 — 10 Other 7,145 5,311 5,082,308 7,075,758 See credit risk policy in Note 30.7. |
Trade and other receivables, ne
Trade and other receivables, net | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables, net | |
Trade and other receivables, net | 7. Trade and other receivables, net 2020 2019 Current Customers Foreign 2,021,070 2,759,993 Domestic 1,913,106 2,015,517 Fuel price stabilization fund (1) 319,927 256,303 Related parties (Note 31) 105,048 27,449 Accounts receivable from employees 97,723 95,693 Industrial services 39,651 47,691 Other (2) 322,567 497,688 4,819,092 5,700,334 Non–current Accounts receivable from employees 474,693 508,588 Domestic customers 51,955 52,819 Related parties (Note 31) — 93,657 Other (2) 149,959 131,732 676,607 786,796 (1) (2) 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, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Opening balance 282,791 268,654 170,016 Additions, net 16,253 14,158 107,725 Effect of change of control in subsidiaries (Note 28) (5,517) — — Accounts receivable write–off and uses (2,383) (21) (9,087) Closing balance 291,144 282,791 268,654 |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, net | |
Inventories, net | 8. Inventories, net 2020 2019 Crude oil 1,719,426 1,965,022 Fuels and petrochemicals 1,407,297 1,876,247 Materials for the production of goods 1,927,237 1,816,830 5,053,960 5,658,099 The following are the changes of the allowances for losses for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Opening balance (131,526) (86,938) (194,507) (Additions) reversals, net (9,748) (44,191) 115,778 Foreign currency translation (122) 371 (9,717) Effect of change of control in subsidiaries (Note 28) 20,075 - - Uses, transfers and reclassifications (1) 11,772 (768) 1,508 Closing balance (109,549) (131,526) (86,938) (1) It mainly includes the update of the provision in joint operations. 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 2020 was COP$9,017 (2019 - COP$9,759). |
Other financial assets
Other financial assets | 12 Months Ended |
Dec. 31, 2020 | |
Other financial assets | |
Other financial assets | 9 . Other financial assets 2020 2019 Assets measured at fair value through profit or loss Investment Portfolio – Local currency 474,535 1,630,149 Investment Portfolio – Foreign currency 2,494,124 3,340,908 2,968,659 4,971,057 Assets measured at fair value through other comprehensive income 732 - Assets measured at amortized cost 3,391 3,367 Hedging instruments 98,877 4,868 3,071,659 4,979,292 Current 2,194,651 1,624,018 Non–current 877,008 3,355,274 3,071,659 4,979,292 The average return of the investment portfolio in Colombian pesos and U.S. dollars were approximately 5.6% (2019 – 5.4%) and approximately 2.3% (2019 – 3.6%), respectively. Changes in fair value are recognized in financial results (Note 28). 9.1 Restrictions As of December 31, 2020 and 2019, there were no investments with restricted use. 9.2 Maturity 2020 2019 Up to 1 year 2,194,651 1,624,018 1 – 2 years 101,216 983,571 2 – 5 years 573,420 1,791,549 > 5 years 202,372 580,154 3,071,659 4,979,292 9.3 Fair value The following is the balance of other financial assets by fair value hierarchy level as of December 31, 2020 and 2019: 2020 2019 Level 1 5,273 472,547 Level 2 3,062,995 4,503,378 3,068,268 4,975,925 There were no transfers between hierarchy levels for the years ended December 31, 2020 and 2019. 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: 2020 2019 A-1 1,107,777 — BBB- 758,472 — F1+ 551,626 350,325 AAA 353,939 2,707,019 A-3 127,861 — A+ 60,692 712,934 F1 43,839 — AA- 21,263 186,325 A 21,179 186,222 AA 7,759 477,423 AA+ 5,332 155,012 A1 — 18,168 BBB — 159,968 Rating not available 876 — Other 11,044 25,896 3,071,659 4,979,292 See credit risk policy in Note 30.8. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Taxes | 10. Taxes 10.1 Current and Non-current tax assets and liabilities 2020 2019 Current tax assets Income tax (1) 1,823,027 190,605 Credit tax balance (2) 1,311,693 614,005 Other taxes (3) 841,575 714,197 3,976,295 1,518,807 Non-current tax assets Deferred tax assets 7,673,912 6,809,347 Income tax credits (4) 397,821 — 8,071,733 6,809,347 Current tax liabilities Income tax payable (5) 811,197 1,967,353 Industry and commerce tax 161,813 195,776 National tax and surcharge on gasoline 137,710 145,569 Carbon tax 64,091 54,586 Value added tax 5,607 33,098 Other taxes (6) 63,465 174,397 1,243,883 2,570,779 Non-current tax liabilities Deferred tax liabilities Income tax payable (7) (1) Given the payment for self-withholdings during the year, credit for foreign tax paid, credit for 50% of the industry and commerce paid, and VAT credit for acquisition of real productive fixed assets, a favorable balance is generated for the term. (2) Corresponds mainly to the Ecopetrol´s value added tax (VAT) and industry and commerce tax in favour. (3) Includes the VAT credit derived from the acquisition of real productive fixed assets, following Article 95 of Law 2010 of 2019 and municipal advance payments and self-withholdings. (4) Corresponds to the effective VAT credit paid on the acquisition of real productive fixed assets, which, given the limitations established by law, will be used in future income tax returns. (5) In addition to the income tax recognized as a current liability, it includes the short-term portion of the liability of “works for taxes” related to Ecopetrol and Cenit, the income tax payment mechanism for 2017, established in Law 1819 of 2016 for COP$94,185 and COP$39,379 respectively. (6) It mainly includes royalties, transport tax among others. (7) 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, 2018 and 2019. In compliance therewith, in May 2018, 2019 and 2020, 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 In accordance with Law 2010/2019 (Tax Reform) the tax provisions applicable to individual companies in Colombia for the taxable year 2020 are the following: - The income tax rate applicable to national companies and foreign entities will be 32% for the year 2020, 31% for the year 2021 and 30% for the year 2022 and subsequent years. - For the years 2019 and 2020, the presumptive income rate will be 1.5% and 0.5%, respectively, of the taxpayer's net equity from the immediately previous year. From 2021 the applicable tax rate will be 0%. - The income tax for tax free trade zone users will be 20%. If the company located in the free zone has a Legal Stability Agreement (hereinafter LSA), the income tax rate will continue to be 15% during the term of said contract. This is the case of Refinería de Cartagena S.A.S. (“Reficar”) and Esenttia Masterbatch Ltda. ("Esenttia MB"). - For fiscal year 2020, the Group had subsidiaries that were subject to a 32% income tax rate, subsidiaries located in free trade zones that were subject to a 15% income tax rate depending upon whether or not they complied with the LSA rules and other subsidiaries that were subject to statutory income tax rates applicable in countries where they are incorporated. - The tax depreciation percentages are adjusted based on the table established in Law 1819 of 2016. On the other hand, oil investments amortization will be calculated based on the technical production units as it is recorded for accounting purposes. - The cost of acquisition of exploration rights, geology and geophysics (G&G), exploratory drilling, among others, is capitalized for tax purposes until the technical and commercial feasibilities of extracting the resource are achieved. - Tax losses generated as of January 1, 2017 may be offset against ordinary net income obtained in the following 12 taxable years. - Following the 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 to the formula provided for this purpose in said article and subject to the term established in Article 189 of the Colombian Tax Code. Statute of limitations of tax returns By general rule, the statute of limitations for the income tax return corresponds to 3 years counted as from the due date to file the return or the filing date, when these have been lately filed. Returns filed by taxpayers that have made transactions, subject to the transfer pricing regulations, have a five-year statute of limitations, for the tax returns that are filed as of January 1, 2020. For tax returns with favorable balances, the statute of limitations will be 3 years as of the filing date of the request for refunds or offsetting. For tax returns in which tax losses are carried forward, the statute of limitations will be 6 years (5 years from 2020) counted as of their filing date. With respect to tax returns where tax losses are calculated, the statute of limitations will be 12 years and if the losses are carried forward within the last 2 years of the 12–year period, the statute of limitations will be extended up to 3 additional years from the year of offsetting. The income tax returns of the taxable years 2011, 2012, 2014, 2015, 2016, 2017, 2018 and 2019 and income tax for equality - CREE - of the taxable years 2014, 2015, and 2016 of Group Companies are subject to acceptance and review by the tax authorities. Income tax expense 2020 2019 2018 Current income tax (1) 2,861,606 7,117,040 7,539,093 Deferred income tax (2) (791,824) (2,365,108) 783,136 Adjustments to prior years’ current and deferred tax (31,121) (33,519) (63,744) Income tax expenses 2,038,661 4,718,413 8,258,485 (1) (2) Reconciliation of the income tax expenses The reconciliation between the income tax expense and the current tax applicable to the Ecopetrol Business Group in Colombia is as follows: 2020 2019 2018 Net income before income tax 4,776,514 19,723,568 20,613,875 Statutory rate 32.0 % 33.0 % 37.0 % Income tax at statutory rate 1,528,484 6,508,777 7,627,134 Effective tax rate reconciliation items: Non–deductible expenses 289,043 295,550 379,633 Reversal of deferred tax recognized in prior years 245,508 — — Rate differential adjustment 14,974 132,888 172,352 Impairment of non–current assets — 57,646 (128,461) Variation in equity accounting method in Invercolsa 7,002 (2,943) — Non–taxable income (1) (35,471) (524,658) (119,963) Prior years’ taxes (2) (50,159) (33,519) (63,744) Foreign currency translation and exchange difference 59,852 (54,319) 751,210 Tax discounts and tax credit (20,572) (110,857) — Ecopetrol U.S.A. adjustment income tax (3) — (1,550,152) — Effect of tax reform — — (359,676) Income tax calculated 2,038,661 4,718,413 8,258,485 Effective tax rate 42.7 % 23.9 % 40.1 % Current 2,583,832 7,127,492 7,416,038 Deferred (4) (545,171) (2,409,079) 842,447 2,038,661 4,718,413 8,258,485 (1) It includes mainly the non-taxable dividends. (2) It includes the update effect of 2020 deferred tax compared to 2019 for COP$19,038. (3) In 2019, two companies, Ecopetrol USA Inc. and Ecopetrol Permian, were incorporated e 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. 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. The International Accounting Standard - IAS 12 establishes when a company has strong evidence that will allow it to offset the tax losses, it is possible to calculate a deferred tax asset. Additionally, the tax projections with the entry into operation of Ecopetrol Permian, allow to infer that it will generate enough income to recover the losses of previous years, therefore the recognition of deferred tax asset is feasible. (4) Includes COP$383,346 that corresponds to deferred tax liability of Guajira association (Note 12). The effective tax rate as of December 31, 2020, is 42.7% (2019 – 23.9%). The increase from the previous year is mainly due to: a) the decrease in projected profit at the end of each year, b) the limitation in the use of the tax credits, c) the effect of the adjustment for exchange differences in the companies of the business group that are dollar functional currency, d) the effect of the adjustment of Permian in 2019 and e) the effect of the companies of the group with losses that have a nominal rate different from the parent company. Deferred income tax 2020 2019 Deferred tax assets 7,673,912 6,809,347 Deferred tax liabilities (1,639,206) (1,328,831) Net deferred income tax 6,034,706 5,480,516 The detail of deferred tax assets and liabilities is as follows: 2020 2019 Deferred tax assets (liabilities) Loss carry forwards (1) 4,478,606 2,550,816 Provisions (2) 3,187,850 2,404,032 Employee benefits (3) 1,874,242 1,875,872 Accounts payable (4) (10,626) 711,503 Loans and borrowings 846,019 920,203 Accounts receivable 183,843 139,410 Excess presumptive income 61,722 298,273 Other 47,269 (15,189) Goodwill (5) (366,346) (363,968) Property plant and equipment and Natural and environmental resources (6) (4,267,873) (3,040,436) 6,034,706 5,480,516 (1) In 2020, a deferred tax asset for tax losses carryforwards was recognized in the following companies: Ecopetrol USA Inc. (COP$1,663,411), Refinería de Cartagena (COP$1,601,570) and Ecopetrol S.A. (COP$1,189,973). (2) Corresponds to non-deductible accounting provisions, mainly the asset retirement obligation (ARO) provision. (3) Actuarial calculations for health, pensions and bonds, education and other long-term benefits to employees. (4) The variation corresponds to the change in the methodology for the deferred tax in the estimated liabilities. (5) According to Colombian tax law, goodwill is subject to amortization, while under IFRS it is not amortized but such goodwill is subject to impairment tests, and any difference results in a deferred tax liability. (6) For tax 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 the capital gains of 10% tax rate applicable to the lands. The main variation is related to the income tax rate variation from 31% to 30%. Deferred tax details are as follows: Loss Excess carry Accounts Loans and presumptive forwards Provisions Employee benefits payable borrowings income As of December 31, 2018 1,002,062 1,994,762 1,161,860 365,646 827,452 (37,638) Profit or loss 1,548,754 409,270 (57,343) 345,857 92,751 335,911 OCI — — 771,355 — — — As of December 31, 2019 2,550,816 2,404,032 1,875,872 711,503 920,203 298,273 Profit or loss 1,927,790 783,818 39,608 (722,129) (74,184) (236,551) Increase due to business combinations (Guajira association) — — — — — — OCI — — (41,238) — — — As of December 31, 2020 4,478,606 3,187,850 1,874,242 (10,626) 846,019 61,722 PPE and Natural Accounts resources Goodwill receivable Others Total As of December 31, 2018 (2,304,140) (404,394) 79,591 (143,717) 2,541,484 Profit or loss (736,296) 40,426 59,819 341,053 2,380,202 OCI — — — (114,520) 656,835 Increase in shareholding in Invercolsa — — — (98,005) (98,005) As of December 31. 2019 (3,040,436) (363,968) 139,410 (15,189) 5,480,516 Profit or loss (844,091) (2,378) 44,433 (68,306) 848,010 Increase due to business combinations (Guajira association – Note 12) (383,346) — — — (383,346) OCI — — — 130,764 89,526 As of December 31, 2020 (4,267,873) (366,346) 183,843 47,269 6,034,706 Deferred tax assets recognized Deferred tax assets recognized in the consolidated financial statements as of December 31, 2020 and 2019 amounted to COP$7,673,912 and COP$6,809,347, 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 tax amounted to COP$4,540,328 and COP$2,849,087 as of December 31, 2020 and 2019 respectively, and is mainly comprised of: · Tax losses carryforwards that do not expire corresponding to Refinería de Cartagena (COP$8,007,852) and Ecopetrol USA (USD $404 million - COP$1,386,730), amount to COP$9,394,582 (2019 - COP$6,385,989) that generates deferred taxes of COP$1,601,570 (2019 - COP$1,052,848), and COP$306,172 (2019 - COP$182,977), respectively. · Tax losses carryforwards that expire in 20 years from the year in which they were incurred corresponding to Ecopetrol USA amounting to COP$6,532,048 (2019 - COP$6,144,400) (USD $1,904 million) and correspond to deferred tax assets of COP$1,357,239 (2019 - COP$1,288,249). · Tax losses carryforwards that expire in the following 12 years counted as from the year they were incurred corresponding to Ecopetrol S.A. amounting to COP$3,953,551 resulting in a deferred tax assets of COP$1,189,973. Additionally, as of December 31, 2020 the excess of presumptive income amounted to COP $199,103 resulting in a deferred tax asset of COP$61,722 in Ecopetrol S.A. The Ecopetrol Business Group recognizes deferred tax assets to the extent that it is probable that they will be realized against available source of income, including projections of future taxable income. In accordance to the tax rules regulation applicable until December 31, 2016, excess of presumptive income and excess minimum base excesses before 2017 incurred in the income tax and income tax for equity equality - (CREE, as its acronym in Spanish) respectively, may be offset with the ordinary taxable income in the following five (5) years, using for this purpose, the formula established in numeral 6th, of Article 290 of Law 1819/2016. The tax loss carryforwards of Ecopetrol USA generated between 2008 and 2017, expire in 20 years from the year in which they were incurred. The tax loss carryforwards generated starting January 1, 2018 have no expiration date and its use is limited to 80% of taxable income. The movements of deferred income tax for the years as of December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Opening balance 5,480,516 2,541,484 2,682,881 Deferred tax recognized in profit or loss 928,517 2,409,079 (842,447) Increase due to business combination (383,346) (98,005) — Deferred tax recognized in other comprehensive income (a) 89,526 656,835 666,767 Foreign currency translation (80,507) (28,877) 34,283 Closing balance 6,034,706 5,480,516 2,541,484 (a) The following is the detail of the income tax recorded in other comprehensive income: December 31. 2020 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) (137,459) 41,238 (96,221) Cash flow hedging for future crude oil exports (Note 30.3) (1,186) 1,908 722 Hedge of a net investment in a foreign operation (Note 30.4) 520,490 (156,147) 364,343 Hedge with derivative instruments (78,547) 23,475 (55,072) 303,298 (89,526) 213,772 December 31. 2019 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) 2,571,184 (771,355) 1,799,829 Cash flow hedging for future crude oil exports (Note 30.3) (356,339) 118,008 (238,331) Hedge of a net investment in a foreign operation (Note 30.4) 87,524 (26,257) 61,267 Hedge with derivatives instruments (69,220) 22,769 (46,451) 2,233,149 (656,835) 1,576,314 December 31. 2018 Pre-tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) (29,249) 33,539 4,290 Cash flow hedging for future crude oil exports (Note 30.3) 797,658 (264,284) 533,374 Hedge of a net investment in a foreign operation (Note 30.4) 1,382,278 (410,324) 971,954 Hedge with derivatives instruments 77,872 (25,698) 52,174 2,228,559 (666,767) 1,561,792 Deferred tax assets not recognized Deferred tax assets related to the tax loss carryforwards incurred by the subsidiaries Andean Chemicals Ltd and Ecopetrol Costa Afuera S.A.S. in the amount of COP$1,912 and COP$71,305, respectively, excess of presumptive income of Hocol Petroleum Company, and Reficar in the amount of COP$245,508, were not recognized, as the Management considered that it is not probable that these deferred tax assets will be recoverable in the foreseeable future. If the Ecopetrol Business Group had recognized this deferred tax asset, the profit for the year ending December 31, 2020 would have increased by COP$247,420. Deferred tax assets (liabilities) not recognized As of December 31, 2020, by application of the exception indicated in IAS 12, paragraph 39, the deferred tax asset was not recognized on the difference between the accounting and tax basis associated with investments in Ecopetrol subsidiaries and joint ventures (Base: COP$812,673 - Tax: COP$81,267). Income tax provisions and contingent liabilities The income tax returns for taxable years 2011, 2012, 2014, 2015, 2016, 2017, 2018 and 2019 and CREE tax returns for taxable years 2014, 2015, and 2016 of Group companies are subject to acceptance and review by part of the tax authorities. The management of the Group companies considers that the amounts recorded as tax liabilities are sufficient and are supported by current regulations, doctrine and jurisprudence to address any claim that may be established with respect to such years. Uncertain tax positions - IFRIC 23 Ecopetrol Business Group’s strategy is to avoid making aggressive tax decisions that may cause questioning of its tax returns, by tax authorities. Regarding uncertain tax 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 threshold has been established by IFRIC 23, which has been calculated based on current regulations and tax opinion provided by our tax advisors. In accordance with the aforementioned interpretation, the Ecopetrol Business Group considers that uncertain tax positions include in its determination of income tax will not affect the results if it is probable that the position will be accepted by the tax authorities. Notwithstanding, the Ecopetrol Business Group will continue to monitor new tax regulations and ruling 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 10% for 2020 ( 7.5% in 2019). 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 32% in 2020 (33% in 2019) 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 withholding tax for this concept. 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 tax, its costs and deductions, considering for these operations the arm’s length principle. Ecopetrol filed in 2020 its transfer pricing informative return for the 2019 taxable year, and its corresponding supporting documentation, as well as the country-by-country report and the master file for the same year, following the current tax law. For fiscal year 2020, 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, 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 2020, which imply changes in the income provision of the taxable year 2020. 10.2.3. Value Added Tax (VAT) Law 2010/2019 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 and is not allowed to be discounted from the VAT return. 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, 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) withholding tax returns which, being considered ineffective, will be enforceable, (ii) electronic notification of administrative acts; (iii) payment of the entire amount covered by a statement for objections to avoid late interest at the current rate plus two points; and (iv) elimination of the extension of the status of limitations to three (3) additional years due to tax losses offset and (v) a five-year status of limitations for those taxpayers who must comply with the transfer pricing regime. Additionally, an audit benefit was included for fiscal years 2020 to 2021. Under this benefit, the income tax returns that reflect an increase in the net income tax 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 have access to tax benefits due to their location in a specified geographic region; (ii) if it is demonstrated that the withholding taxes reported are non-existent; (iii) if the net income tax is less than 71 UVT (COP$2,5 for fiscal year 2020). The reduced status of limitation stated is not applicable for withholding tax returns and VAT retuns, which shall follow the general tax rules. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Other assets | 11. Other assets 2020 2019 Current Partners in joint operations (1) 534,145 921,983 Advanced payments to contractors and suppliers 503,698 360,781 Prepaid expenses 369,979 272,007 Trust funds (2) 218,158 144,798 Related parties (Note 31) 7,093 57,016 Other assets 30,963 22,393 1,664,036 1,778,978 Non–current Abandonment and pension funds (3) 405,376 445,457 Trust funds (4) 338,067 171,008 Employee benefits 221,658 220,998 Advanced payments and deposits 54,392 56,027 Judicial deposits and attachments 42,672 40,317 Other assets 27,949 8,674 1,090,114 942,481 (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) It mainly includes the deposits related to Guajira Association's abandonment fund. (3) Mainly 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. (4) Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2019 and 2020, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business combinations | |
Business combinations | 12. 12.1 Additional interest in Invercolsa On November 29, 2019, Ecopetrol acquired 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%. In 2020 Ecopetrol finalized the fair value of separately identified assets and liabilities acquired, that resulted in an adjustment of COP$434,357 from Property, Plant and Equipment and Natural Resources to Goodwill (Note 19). 12.2 Guajira association contract On November 22, 2019, Hocol S.A. – a 100% subsidiary of Ecopetrol Corporate Group – signed a Purchase Agreement and Sale of Assets with “Chevron” in order to acquire the entire stake owned by the latter in the Guajira Association (43% of the association contract) and its position as operator. The remaining 57% stake in this association belongs to Ecopetrol S.A. The transaction was subject to the approval of the Superintendence of Industry and Commerce (SIC), which was made official on April 2, 2020, through resolution 12785/2020. As established in the agreement, the start of the operation by Hocol would be the first business day of the month following the date of this approval, i.e. May 1, 2020. Therefore, this is the acquisition date for accounting recognition purposes. The transaction price was determined based on a fixed reference value as of January 1, 2019 plus or minus price adjustments that relied directly on variables associated with the Guajira asset between January 1, 2019 and May 1, 2020. The clauses of the purchase agreement indicate that there is a 180-day term to finish adjusting the differences arising from the movement on the assets acquired and the liabilities assumed. During the review and approval process to determine the final price, Chevron and Hocol signed an agreement to extend the deadline for the closing of the transaction, which is expected to end during the first half of 2021. These deadlines are in regulatory compliance. Ecopetrol and Hocol measured the assets acquired and the liabilities assumed in proportion to their participation in accordance with the provisions of IFRS 11 - Joint agreements and IFRS 3 - Business combinations. For Ecopetrol, this transaction is configured as an acquisition in stages. Fair value was determined using the income approach applying the discounted cash flow methodology. The fair values of property, plant and equipment, natural and environmental resources and deferred tax have been determined based on the information available and following the guidelines of IFRS 3. Therefore, they may have adjustments associated with working capital, in compliance with the clauses of the purchase agreement and the guidelines defined in IFRS 3. The table below summarizes the amounts recognized for the assets acquired and the liabilities assumed at the acquisition date: Ecopetrol Hocol Total Assets Accounts receivable — 19,545 19,545 Property, plant and equipment 829,121 361,426 1,190,547 Natural resources 615,642 214,852 830,494 Right-of-use asset — 206 206 Other assets (1) 113,107 145,660 258,767 1,557,870 741,689 2,299,559 Liabilities Accounts payable (585) (20,342) (20,927) Deferred tax (383,346) (38,611) (421,957) Provisions (37,798) (34,234) (72,032) Other liabilities (2) (34,455) (102,487) (136,942) (456,184) (195,674) (651,858) Fair value of net assets 1,101,686 546,015 1,647,701 (1) (2) The effect on operating results as of December 31, 2020 is summarized below: Ecopetrol Hocol Total Fair value of the net assets 1,101,686 546,015 1,647,701 Book value of net assets (200,660) — (200,660) Consideration paid — (454,630) (454,630) Foreign currency translation — (5,359) (5,359) (=) Net profit from the acquisition 901,026 86,026 987,052 Recognized in: Property, plant and equipment (Note 14) 720,670 361,426 1,082,096 Natural and environmental resources (Note 15) 563,546 214,852 778,398 Intangibles (Note 17) 156 — 156 Accounts receivable — 19,545 19,545 Right-of-use asset — 206 206 Other assets — 145,660 145,660 Accounts payable — (20,342) (20,342) Deferred tax — (38,611) (38,611) Provisions — (34,234) (34,234) Other liabilities — (102,487) (102,487) Consideration paid — (454,630) (454,630) Foreign currency translation — (5,359) (5,359) Subtotal 1,284,372 86,026 1,370,398 Profit on acquisition before deferred tax (Note 28) 1,284,372 86,026 1,370,398 (-) Deferred tax expense (Note 10) (383,346) — (383,346) Net profit from the acquisition after deferred tax 901,026 86,026 987,052 Costs related to the acquisition of $19,898 million were excluded from the pre-existing participation and were recognized as operating expenses in the period. Effects on the Ecopetrol Group's results Ecopetrol Group's income includes COP$238,955 related to the acquisition of the Guajira association, while the profit for the year increased by COP$161,423. If this business combination took place on January 1, 2020, the Group's income would have an amount of COP$50,308,407, while the profit for the year would be COP$2,766,398. Management considers that these figures represent an approximate measure of the performance on an annualized basis and provide a benchmark for comparison for future periods. In determining the Group's anticipated income and profits, if the Guajira association had been acquired at the beginning of the current reporting period, management would have calculated the depreciation of property, plant and equipment and natural resources acquired on the basis of its fair value in the initial recognition for the business combination instead of the carrying amounts recognized in the financial statements prior to the acquisition. |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 Investment in joint ventures Equion Energía Limited 1,642,735 1,515,067 Offshore International Group 613,258 709,871 Ecodiesel Colombia S.A. 51,672 46,095 2,307,665 2,271,033 Less impairment: Equion Energía Limited (314,460) (322,388) Offshore International Group (1) (609,826) (530,330) 1,383,379 1,418,315 Investments in associates Gases del Caribe S.A. E.S.P. 1,512,629 1,527,911 Gas Natural del Oriente S.A. E.S.P. 143,893 166,685 Gases de la Guajira S.A. E.S.P. 69,518 68,608 E2 Energía Eficiente S.A. E.S.P. 35,614 28,501 Extrucol S.A. 26,996 32,847 Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. 8,541 11,070 Sociedad Portuaria Olefinas y Derivados 2,599 2,205 1,799,790 1,837,827 Less impairment: Serviport S.A. (8,541) (11,070) 1,791,249 1,826,757 3,174,628 3,245,072 (1) The movement includes COP$2,527 related to foreign currency translation, recognized in Equity. The following is the movement of investments in associates and joint ventures: For the year ended December 31, 2020: Associates Joint ventures Total Opening balance 1,826,757 1,418,315 3,245,072 Effects of equity method through: Profit or loss 114,779 (38,443) 76,336 Other comprehensive income (2,923) — (2,923) Dividends declared (1) (148,665) (9,017) (157,682) Impairment reversal (loss) (Note 18) 2,529 (69,041) (66,512) Foreign currency translation (1,228) 81,565 80,337 Closing balance 1,791,249 1,383,379 3,174,628 (1) 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 18) 142 (318,962) (318,820) Foreign currency translation and other movements (1) 1,723,080 (120,102) 1,602,978 Closing balance 1,826,757 1,418,315 3,245,072 (1) Invercolsa S.A. became a subsidiary as of November 29, 2019, 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. 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 (loss) reversal (Note 18) (1,308) 302,136 300,828 Closing balance 244,662 1,599,674 1,844,336 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 Energía Limited and the Offshore International Group, as of December 31, 2020 and 2019: 2020 2019 Offshore Offshore Equion Energía International Equion Energía International Limited Group Limited Group Statement of financial position Current assets 2,616,813 266,240 2,530,453 284,591 Non–current assets 13,538 1,302,555 95,384 1,481,680 Total assets 2,630,351 1,568,795 2,625,837 1,766,271 Current liabilities 81,259 154,086 315,002 310,561 Non–current liabilities 49,773 871,089 76,768 718,863 Total liabilities 131,032 1,025,175 391,770 1,029,424 Equity 2,499,319 543,620 2,234,067 736,847 Other complementary information Cash and cash equivalents 36,601 110,622 188,820 48,752 2020 2019 2018 Equion Offshore Equion Offshore Equion Offshore Energía International Energía International Energía International Limited Group Limited Group Limited Group Statement of profit or loss Sales revenue 257,066 325,812 1,285,891 529,167 1,490,177 653,054 Costs (127,672) (364,750) (671,179) (690,484) (755,656) (585,192) Other operating income (expenses), net 60,852 (234,597) (624) (64,115) 29,136 (353,010) Financial (expenses) income (1,090) (24,034) (3,660) (31,288) (3,659) (21,227) Income tax (45,137) 59,818 (214,048) 208,473 (338,487) (16,594) Financial year results 144,019 (237,751) 396,380 (48,247) 421,511 (322,969) Other comprehensive results 1,223,990 — 1,102,757 — 1,095,090 — Other complementary information Depreciation and amortization 41,536 205,243 404,482 226,654 511,615 243,601 This is a reconciliation of equity of the significant investments and the carrying amount of investments as of December 31: 2020 2019 Equion Offshore Equion Offshore Energía International Energía International Limited Group Limited Group Equity of the joint venture 2,499,319 543,620 2,234,067 736,847 % of Ecopetrol’s ownership 51 % 50 % 51 % 50 % Ecopetrol’s ownership 1,274,654 271,811 1,139,374 368,424 Additional value of the investment 375,693 341,447 375,693 341,447 Impairment (314,460) (609,826) (322,388) (530,330) Unrealized gain (7,612) — — — Carrying amount of the investment 1,328,275 3,432 1,192,679 179,541 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 47,995,471 36,370,647 6,259,654 8,157,945 4,054,538 2,660,232 105,498,487 Additions/capitalizations (1) 1,625,316 1,179,602 1,573,469 390,731 18,705 244,494 5,032,317 Increase in abandonment costs (Note 23) 181,318 15,035 — 3,885 — 3,126 203,364 Capitalized financial interests (2) 42,052 31,511 38,756 14,965 753 8,324 136,361 Exchange differences capitalized 1,338 1,002 1,233 476 24 265 4,338 Disposals (491,677) (84,184) (79,077) (16,390) (10,155) (85,785) (767,268) Effect of control loss in subsidiaries (3) (298,570) (592,885) (775) (266,526) (60,341) (144,189) (1,363,286) Adjustment on fair value for business combination (Note 12) 547,965 44,538 — 54,413 — 73,754 720,670 Foreign currency translation 1,336,351 478,103 19,804 59,107 73,181 29,876 1,996,422 Transfers (4) 149,217 (301,675) (298,836) 13,863 36,121 (97,636) (498,946) Balance as of December 31, 2020 51,088,781 37,141,694 7,514,228 8,412,469 4,112,826 2,692,461 110,962,459 Accumulated depreciation and impairment losses 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) Depreciation expense (2,296,176) (1,634,545) — (341,052) — (113,207) (4,384,980) Reversal (loss) of an impairment (Note 18) (368,754) 329,743 (327,751) (18,074) 8,799 (8,601) (384,638) Disposals 443,259 75,150 3,492 14,279 11 82,310 618,501 Effect of control loss in subsidiaries (3) 266,825 403,095 262 221,708 30,669 108,081 1,030,640 Foreign currency translation (306,506) (155,927) 959 (13,707) 3,403 (9,738) (481,516) Transfers/reclassifications 40,125 59,570 413,948 (35,624) (40,748) (5,734) 431,537 Balance as of December 31, 2020 (21,256,869) (17,558,024) (1,023,456) (3,628,724) (908,500) (44,454,121) 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 Net balance as of December 31, 2020 29,831,912 19,583,670 6,490,772 4,783,745 4,034,278 1,783,961 66,508,338 (1) Includes capitalizations for the acquisition of Guajira association by Hocol for a value of COP$361,426 (See Note 12). (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 20 - Loans and borrowings. (3) See effects of control loss in subsidiaries in Note 28. 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 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 18) 519,835 (113,860) (626,878) (87,338) (35,533) (29,349) (373,123) 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) 15,229 (55,766) 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 20 - Loans and borrowings. |
Natural and environmental resou
Natural and environmental resources | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 59,822,566 5,036,884 8,362,719 73,222,169 Additions/capitalizations (1) 3,659,270 123,446 2,211,746 5,994,462 Increase in abandonment costs (Note 23) — 2,075,992 28,097 2,104,089 Disposals (1,806) 260 (223,805) (225,351) Withdrawal of exploratory assets and dry wells (2) — — (448,132) (448,132) Capitalized financial interests 111,140 — — 111,140 Exchange differences capitalized 3,535 — — 3,535 Adjustment at fair value for business combinations (Note 12) 563,546 — — 563,546 Foreign currency translation 440,978 23,353 (138,809) 325,522 Transfers 768,049 (28,084) (923,922) (183,957) Balance as of December 31, 2020 65,367,278 7,231,851 8,867,894 81,467,023 Accumulated amortization and impairment losses Balance as of December 31, 2019 (41,993,097) (2,156,274) — (44,149,371) Depletion expense (3,810,349) (831,909) — (4,642,258) Reversal (loss) of impairment (Note 18) 116,403 — (334,112) (217,709) Disposals 213 (40) 93,975 94,148 Foreign currency translation (310,894) (14,546) — (325,440) Transfers (108,423) 21,320 (205,131) (292,234) Balance as of December 31, 2020 (46,106,147) (2,981,449) (49,532,864) Net balance as of December 31, 2019 17,829,469 2,880,610 8,362,719 29,072,798 Net balance as of December 31, 2020 19,261,131 4,250,402 8,422,626 31,934,159 (1) Includes capitalizations for the acquisition of Guajira association by Hocol for a value of COP$214,852 (See Note 12). (2) Includes dry wells: 1) Ecopetrol: Nafta 1, Caronte, Alqamari, Boranda Sur and Coyote; 2) Hocol: Obiwan and 3) Ecopetrol Brasil: a well of Saturno. Additionally, exploration costs of Ecopetrol America are included. 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 18) (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 20 - Loans and borrowings. 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, 2020, 2019 and 2018: 2020 2019 2018 Between 1 and 3 years (a) — 361,700 496,871 Between 3 and 5 years (b) 319,368 132,021 375,371 More than 5 years (c) 589,604 441,389 273,764 Total suspended exploratory wells 908,972 935,110 1,146,006 Number of projects exceeding 1 year 16 30 24 Wells under 1 year of suspension — — 9,511 (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. (b) For 2020, the balance corresponds mainly to wells of Ecopetrol: Purple Angel and Gorgon. 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, Luna-1 and Gala 1K, which are under evaluation; and ii) Offshore International Group, temporarily abandoned for future production plans. |
Right-of-use assets
Right-of-use assets | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use assets | |
Right-of-use assets | 16. Right-of-use assets The following is the movement of right-of-use assets for the years ended December 31, 2020 and 2019: Lands and Plant and Right-of-use Lease buildings equipment Vehicles assets Subleases liabilities Balance as of December 31, 2019 218,513 97,264 140,448 456,225 29,436 1,290,954 Additions 41,303 14,618 32,582 88,503 — 88,503 Amortization of the period (52,200) (29,038) (98,726) (179,964) — — Remeasurements (41,907) 33,686 69,255 61,034 — 76,799 Impairment loss 312 29,718 5,844 35,874 — — Disposals (13,343) (4,321) — (17,664) — (28,916) Effect of control loss in subsidiaries (61,044) (7,432) — (68,476) (29,436) (102,671) Finance cost — — — — — 64,988 Repayment of borrowings and interests — — — — — (350,539) Exchange difference 1,838 (556) 1,072 2,354 — 16,080 Balance as of December 31, 2020 93,472 133,939 150,475 377,886 — 1,055,198 (1) See effects of control loss in subsidiaries in Note 28. Lands and Plant and Right-of-use Lease buildings equipment Vehicles assets Subleases liabilities Balance as of December 31, 2018 — — — — — 797,889 IFRS 16 implementation (January 1st) 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 (43,759) (66,831) (64,764) (175,354) — — Impairment loss (Note 18) (495) (37,601) (15,392) (53,488) — — Disposals (4) (57) — (61) — (50) Finance cost — — — — 3,302 76,139 Repayment of borrowings and interests — — — — (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 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Intangible assets | 17. Intangible assets The following is the movement of intangibles and their amortization and impairment for the years ended December 31, 2020 and 2019: Licenses and Other software intangibles Total Cost Balance as of December 31, 2019 994,599 285,247 1,279,846 Acquisitions 43,817 46,265 90,082 Foreign currency translation 12,569 5,072 17,641 Effect of control loss in subsidiaries (Note 28) (10,584) — (10,584) Disposals (5,430) — (5,430) Adjustment on fair value for business combination (Note 12) 156 — 156 Transfers 30,892 64,174 95,066 Balance as of December 31, 2020 1,066,019 400,758 1,466,777 Accumulated amortization Balance as of December 31, 2019 (692,217) (104,531) (796,748) Amortization of the period (93,907) (23,429) (117,336) Recovery -losses for impairment (Note 18) (176) 5 (171) Disposals 5,558 11 5,569 Effect of control loss in subsidiaries (Note 28) 9,877 — 9,877 Foreign currency translation (8,689) (65) (8,754) Transfers (2,116) (2,055) (4,171) Balance as of December 31, 2020 (781,670) (130,064) (911,734) Net balance as of December 31, 2019 302,382 180,716 483,098 Net balance as of December 31, 2020 284,349 270,694 555,043 Useful life <5 years <7 years Licenses and Other software intangibles 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 (Note 18) 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 |
Impairment of non-current asset
Impairment of non-current assets | 12 Months Ended |
Dec. 31, 2020 | |
Impairment of non-current assets | |
Impairment of non-current assets | 18. 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–current 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. As described in Note 2.8, the 2020 Covid-19 pandemic generated a significant impact on the world's economy and consequently on the oil industry - hand in hand with significant volatility in the financial and commodity markets of all the world. This situation has been improving in recent months, as a result of the reopening of different sectors of the economy and the advancement of vaccination programs. Based on the impairment tests conducted by the Ecopetrol Business Group, the following are the impairment or reversals for the years ended on December 31, 2020, 2019 and 2018: Impairment (loss) reversal by segment 2020 2019 2018 Exploration and Production (192,693) (1,982,044) 785,940 Refining and Petrochemicals (781,528) 452,163 (984,704) Transport and Logistics 341,065 (232,556) (169,870) (633,156) (1,762,437) (368,634) Recognized in: Property, plant and equipment (Note 14) (384,638) (373,123) (1,083,285) Natural resources (Note 15) (217,709) (1,017,061) 414,102 Investment in joint ventures and associates (Note 13) (66,512) (318,820) 300,828 Right of use assets (Note 16) 35,874 (53,488) — Intangibles (Note 17) (171) 55 (279) (633,156) (1,762,437) (368,634) 18.1 Exploration and production The impairment reversal of assets of the Exploration and Production segment for the years ended December 31 of 2020, 2019 and 2018 is the following: 2020 2019 2018 Oilfields (123,652) (1,663,082) 483,803 Investment in joint ventures (69,041) (318,962) 302,136 Other — — 1 (192,693) (1,982,044) 785,940 18.1.1 Oilfields An impairment expense was recognized in the year 2020 as a result of the current economic context of the hydrocarbons sector, the behavior of market variables, price differentials versus the reference to Brent, technical and operational information available. This impairment was mainly recognized in fields that operate in Colombia: Occidente B, Sur, Teca, Tibú, La Hocha and Espinal, and in the field K2 abroad. In addition, a recovery was recognized in: Casabe, as a consequence of a significant increase in its reserves, as well as Provincia, Lisama and Orito. 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. The following is the breakdown of oilfields impairment losses or reversals for the years ended December 31, 2020, 2019 and 2018: 2020 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 24,845,238 61,224,928 1,019,395 Loss 2,439,799 1,423,561 (1,016,238) Fields operated abroad Loss 1,277,609 1,150,800 (126,809) (123,652) 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 — (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 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: – – – – 18.1.2 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: 2020 2019 2018 Equion Energía Limited 7,928 (134,753) 108,791 Offshore International Group (76,969) (184,209) 193,345 (69,041) (318,962) 302,136 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 2020 for Offshore International Group of 5.79% (2019–8.50% and 2018 – 8.92%). There was a recovery in 2020 on the investment in Equion mainly originated by the update of the transport rates through pipelines where Ecopetrol has a shareholding, and an impairment loss was recorded on the investment in Offshore International Group considering the fair value of the sale transaction. In 2019, an impairment loss for both. Offshore International Group and Equion Energía 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. 18.2 Refining and Petrochemical The following is the Cash Generating Units impairment or reversals in the refining and petrochemical segment for the years ended December 31, 2020, 2019 and 2018: 2020 Carrying Recoverable Impairment Cash–generating units amount amount loss Refinería de Cartagena 24,041,174 23,600,649 (440,525) Invercolsa S.A. 276 273 (3) Refinería de Barrancabermeja (projects) 676,334 335,334 (341,000) (781,528) 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 Cash–generating units amount amount loss Refinería de Cartagena 23,411,058 22,640,761 (770,297) Bioenergy 774,343 560,882 (213,461) Other 946 — (946) (984,704) The grouping of assets to determine the CGUs is consistent with prior periods. 18.2.1 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) a real discount rate (after tax) of 5.10% (2019-6.23% and 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 impairment expense for 2020 was mainly derived from lower refining margins associated with external factors associated with the COVID-19 pandemic. On the other hand, management endured operational improvements that compensate to a certain extent for the effects of macroeconomic variables. 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. 18.2.2 Bioenergy Starting June 24, 2020, Bioenergy entered the mandatory liquidation process. Therefore, as of this date the Group does not have control over Bioenergy and it is no longer a part of the consolidated figures. An impairment expense was recorded in 2019 in the amount of $234,340. This value was mainly generated by changes in operating variables, changes in the projection of operating flows and the need for greater resources, mainly due to the results of the renewal of older cane plantations. An impairment loss was observed in 2018 mainly due to the updating of the project entry dates, the stabilization process of the industrial plant and the updating of operating variables. The recoverable amount of Bioenergy for 2019 and 2018 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. 18.2.3 Refinería de Barrancabermeja An impairment expense of COP$341,000 was recognized as of December 31, 2020 as a result of the update of the analysis for the Barrancabermeja Refinery Modernization Project, in relation to engineering work based on the evaluations carried out and the current context of the industry. 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 reverse 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. 18.3 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 3.17% (2019 - 4.88% and 2018 - 5.60%) and iii) transport volume projections based on the end of year results for 2020 and the long-term volumetric transport program. In 2020, Cenit recognized an impairment recovery of COP$341,065, related to the South CGU, which includes Tumaco Port and the TransAndino Pipeline (OTA, by its acronym in Spanish) and the North CGU, which includes the section Banadia - Ayacucho, and it is part of the Caño Limón Pipeline, due to volumetric recovery and changes in tariffs. The fair value of these CGUs is COP$7,049,007 and their book value is COP$2,153,631. 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. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Goodwill | 19. Goodwill 2020 2019 Oleoducto Central S.A. 683,496 683,496 Hocol Petroleum Ltd. 537,598 537,598 Invercolsa S.A. (1) 434,357 — Andean Chemical Ltd 127,812 127,812 Propilco S.A. 108,137 108,137 1,891,400 1,457,043 Less impairment Hocol Petroleum Ltd. (297,121) (297,121) 1,594,279 1,159,922 (1) As of December 31, 2020 and 2019, 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 for these periods. |
Loans and borrowings
Loans and borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Loans and borrowings | |
Loans and borrowings | 20. Loans and borrowings 20.1 Composition of loans and borrowings Weighted average effective interest rate as of December 31 2020 2019 2020 2019 Local currency Bonds 6.4 % 8.7 % 1,084,461 1,567,598 Syndicated loan 5.6 % 8.0 % 811,079 1,115,874 Lease liabilities (1) 6.6 % 7.2 % 836,489 1,039,303 Commercial loan 6.3 % 8.3 % 312,408 737,032 3,044,437 4,459,807 Foreign currency Bonds (2) 6.0 % 5.9 % 33,944,548 25,832,740 Commercial loan (3) 3.6 % 4.1 % 8,247,014 6,586,538 Loans from related parties (Note 31) 0.8 % 2.4 % 1,277,046 1,108,403 Lease liabilities (1) 6.1 % 6.2 % 218,709 251,651 43,687,317 33,779,332 46,731,754 38,239,139 Current 4,923,346 5,012,173 Non–current 41,808,408 33,226,966 46,731,754 38,239,139 (1) Corresponds 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 - Leases. (2) On April 29, 2020, Ecopetrol issued and placed external public debt bonds for an amount of USD$2,000 million, with a 10-year term and a coupon rate of 6.875%. (3) Includes contingent credit line for USD$665 million with international banking (Scotiabank and Mizuho Bank). In 2020, financial obligations were acquired for a total amount of COP$13,805,403 (2019 – COP$359,876 and 2018 – COP$517,747) as part of the market risk mitigation strategy (Note 30). 20.2 Fair value of loans The fair value of loans and borrowings is COP$52,721,790 and COP$43,261,792 as of December 31, 2020 and 2019, 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). 20.3 Maturity of loans and borrowings The following are the maturities of loans and borrowing as of December 31, 2020: Up to 1 year (1) 1 – 5 years 5-10 years > 10 years Total Local currency Bonds 65,829 354,081 370,900 293,651 1,084,461 Syndicated loan 242,660 568,419 — — 811,079 Financial leasing 167,059 418,938 211,233 39,259 836,489 Other 106,410 205,998 — — 312,408 581,958 1,547,436 582,133 332,910 3,044,437 Foreign currency Bonds 1,905,325 14,692,852 12,109,859 5,236,512 33,944,548 Commercial loans 1,098,593 6,563,863 584,558 — 8,247,014 Loans from related parties 1,277,046 — — — 1,277,046 Financial leasing 60,424 149,381 8,904 — 218,709 4,341,388 21,406,096 12,703,321 5,236,512 43,687,317 4,923,346 22,953,532 13,285,454 5,569,422 46,731,754 (1) 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 (1) Includes short–term credit and the current portion of long–term debt, as applicable. 20.4 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, 2020 and 2019: 2020 2019 Local currency Fixed rate 523,870 598,802 Floating rate 2,520,567 3,861,005 3,044,437 4,459,807 Foreign currency Fixed rate 38,706,328 31,087,439 Floating rate 4,980,989 2,691,893 43,687,317 33,779,332 46,731,754 38,239,139 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. 20.5 Loans designated as hedging instrument As of December 31, 2020, Ecopetrol S.A. designated USD$8,549 million (2019- USD$7,331 million) of foreign currency debt as a hedging instrument, of which USD$7,249 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 30 – Risk management . 20.6 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, 2020 the covenants, loans and payments have been fulfilled. - The loan entered into by Oleoducto de los Llanos was 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. In August 2020, the payment of the last installment of the syndicated loan was made, thus ending the syndicated loan agreement signed with Grupo Aval. - 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. 20.7 Movement of net financial debt The following is the movement of net financial debt as of December 31, 2020, 2019 and 2018: Cash and Other financial Loans and Net financial equivalents assets borrowings debt 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 (1) — (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) Cash flow (1,971,156) (2,107,856) (6,105,296) (10,184,308) Exchange difference: Recognized in profit or loss (22,294) 38,701 747,744 764,151 Recognized in other comprehensive income — — (722,458) (722,458) Financial cost registered to projects — — (255,372) (255,372) Financial income (expense) recognized in profit or loss — 43,948 (2,386,537) (2,342,589) Foreign currency translation — 42,529 (175,885) (133,356) Effect of loss of control in subordinates — — 528,981 528,981 Other movements that do not generate cash flow — 75,045 (123,792) (48,747) Balance as of December 31, 2020 5,082,308 3,071,659 (46,731,754) (38,577,787) (1) |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables | |
Trade and other payables | 21 . Trade and other payables 2020 2019 Suppliers 6,491,909 8,115,015 Partners’ advances 497,898 925,761 Withholding tax 462,429 673,204 Insurance and reinsurance 240,803 136,041 Dividends payable (1) 223,571 157,181 Deposits received from third parties 85,545 44,826 Related parties (Note 31) 72,316 187,616 Agreements in transport contracts (2) 37,941 71,239 Hedging operations 6,405 — Various creditors 351,288 402,808 8,470,105 10,713,691 Current 8,449,041 10,689,246 Non - current 21,064 24,445 8,470,105 10,713,691 (1) During 2020, the Group paid dividends to its shareholders in the amount of COP$8,734,351 (2019 - COP$13,867,029 and 2018 - COP$4,427,701) net of withholdings when applicable. (2) Corresponds to the value of the debt for agreements in the pipelines transportation contracts, calculated in the volumetric 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, 2020 | |
Provisions for employees' benefits | |
Provisions for employees' benefits | 22. Provisions for employees’ benefits 2020 2019 Post–employment benefits Healthcare 7,193,527 6,908,799 Pension 2,819,985 2,853,718 Education 485,792 458,441 Bonds 342,669 352,917 Other plans 102,632 98,729 Termination benefits – Voluntary retirement plan (1) 713,407 124,186 11,658,012 10,796,790 Social benefits and salaries 674,080 587,596 Other employee benefits 91,575 96,678 12,423,667 11,481,064 Current 2,022,137 1,929,087 Non–current 10,401,530 9,551,977 12,423,667 11,481,064 (1) 22.1 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, 2020 and 2019: Pension and bonds (1) Other Total 2020 2019 2020 2019 2020 2019 Liabilities for employee benefits Opening balance 15,916,472 14,131,943 7,593,171 6,212,118 23,509,643 20,344,061 Current service cost — — 118,035 76,478 118,035 76,478 Past service cost (2) — — 631,761 — 631,761 — Interest expense 882,785 920,622 439,682 418,553 1,322,467 1,339,175 Actuarial gains 418,187 1,755,300 87,311 1,273,409 505,498 3,028,709 Benefits paid (897,061) (891,393) (359,366) (387,387) (1,256,427) (1,278,780) Closing balance 16,320,383 15,916,472 8,510,594 7,593,171 24,830,977 23,509,643 Plan assets Opening balance 12,709,838 12,348,557 3,015 3,954 12,712,853 12,352,511 Return on assets 700,168 801,065 136 217 700,304 801,282 Contributions to funds — — 370,090 83,071 370,090 83,071 Benefits paid (897,061) (891,393) (358,199) (84,243) (1,255,260) (975,636) Actuarial gains 644,784 451,609 194 16 644,978 451,625 Closing balance 13,157,729 12,709,838 15,236 3,015 13,172,965 12,712,853 Net post–employment benefits liability 3,162,654 3,206,634 8,495,358 7,590,156 11,658,012 10,796,790 (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. (2) It includes the new voluntary retirement plan. The following table shows the movement in profit and loss and in other comprehensive income as of December 31, 2020, 2019 and 2018: 2020 2019 2018 Recognized in profit or loss Interest expense. net 622,163 537,893 485,842 Current service cost 118,035 76,478 77,373 Past service cost — — 50,489 Remedies — 10,213 503 740,198 624,584 614,207 Recognized in other comprehensive income Pension and pension bonds 226,597 (1,303,693) 1,003 Healthcare (33,324) (1,268,379) (17,356) Education and severance (55,693) 922 45,509 Termination benefits – Voluntary retirement plan (121) (34) 93 137,459 (2,571,184) 29,249 Deferred tax (41,238) 771,355 (33,539) 96,221 (1,799,829) (4,290) 22.2 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, 2020 and 2019: 2020 2019 Bonds issued by the national government 4,958,612 4,301,961 Bonds of private entities 3,177,531 3,122,630 Other foreign currency 1,992,800 870,859 Other local currency 1,502,349 1,899,787 Other public bonds 777,562 1,082,815 Variable yield 679,448 823,977 Bonds of foreign entities 84,663 610,824 13,172,965 12,712,853 23.3% (2019 –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 76.7% (2019 – 73.4%) are classified as level 2. 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: 2020 2019 Nation 5,102,222 4,448,221 AAA 4,369,805 5,138,279 AA+ 570,716 837,009 BBB- 458,273 455,201 BBB 201,163 319,514 AA 134,454 6,679 F1+ 61,192 56,728 BRC1+ 52,296 68,313 A3 11,633 17,267 BBB+ 10,328 22,113 AA- 4,014 16,067 BAA3 — 219,830 SP1+ — 84,933 A-1+ — 78,156 BAA1 — 15,538 A 5,307 11,841 Other credit ratings 297,048 30,129 Not available ratings 1,894,514 887,035 13,172,965 12,712,853 See credit risk policy in Note 30.8. 22.3 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, 2020 and 2019: 2020 Pension Bonds Health Education Other benefits (1) Discount rate 5.50 % 4.75 % 6.00 % 5.00 % 4.09 % Salary growth rate N/A N/A N/A N/A 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 6.67 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A 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 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. 22.4 Maturity of benefit obligation The cash flows required for payment of post–employment obligations are the following: Period Pension and bonds Other benefits Total 2021 967,810 482,953 1,450,763 2022 996,869 493,791 1,490,660 2023 1,019,379 507,009 1,526,388 2024 1,034,972 511,627 1,546,599 2025 1,069,252 514,556 1,583,808 2026 and thereafter 5,607,391 2,602,556 8,209,947 22.5 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, 2020: Pension Bonds Health Education Other benefits Discount rate –50 basis points 16,139,465 1,147,350 7,798,461 515,004 846,709 +50 basis points 14,368,856 1,072,868 6,715,899 464,394 812,726 Inflation rate –50 basis points 14,314,193 1,072,094 N/A N/A 717,069 +50 basis points 16,193,316 1,147,825 N/A N/A 740,501 Salary growth rate –50 basis points N/A N/A N/A N/A 96,530 +50 basis points N/A N/A N/A N/A 105,392 Cost trend –50 basis points N/A N/A 6,720,777 464,319 N/A +50 basis points N/A N/A 6,720,777 514,849 N/A 22.6 Voluntary retirement plan In October 2019, 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 May 2020, Ecopetrol started offering this retirement plan, to which 421 workers have applied. In August 2016, the Ecopetrol offered a voluntary retirement plan, which as of December 31, 2020 was used by 125 workers (2019 - 132) who met certain requirements. This plan includes benefits such as monthly income, education and health benefits until the date on which the employee is granted their retirement pension. As of December 31, 2020, the amount of the net obligation associated with voluntary retirement plans is $713,407 (2019 - $124,186). |
Accrued liabilities and provisi
Accrued liabilities and provisions | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and provisions | |
Accrued liabilities and provisions | 23. Accrued liabilities and provisions Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2019 8,835,420 137,429 945,439 9,918,288 Increase in abandonment costs 2,307,453 — — 2,307,453 Additions 143,320 32,108 237,181 412,609 Uses (291,793) (31,709) (106,448) (429,950) Financial costs 258,464 — — 258,464 Effect of control loss in subsidiaries (Note 28) (23,874) (20,117) — (43,991) Adjustment on fair value for business combination 31,137 — — 31,137 Foreign currency translation 37,239 428 5,476 43,143 Transfers (58,041) — (11,382) (69,423) Balance as of December 31, 2020 11,239,325 118,139 1,070,266 12,427,730 Current 949,638 46,844 224,627 1,221,109 Non-current 10,289,687 71,295 845,639 11,206,621 11,239,325 118,139 1,070,266 12,427,730 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 Asset Environmental 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 23.1 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, 2020 were: Exploration and Production 2.65% (2019 - 3.01%), Transportation and Logistics 2.71% (2019 - 2.61%) and Refining and Petrochemicals 3.67% (2019 - 3.94%). The increase in the provision in 2020 was generated due to the fall in discount rates, directly associated with the decrease in macroeconomic variables impacted by Covid-19. 23.2 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, 2017 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. In 2019, Law 1955/2019 was issued, which in its Article 321 unifies the basis for the settlement of this obligation and requires updating the investment obligations of 1% to present value. Ecopetrol carried out the recertification of the settlement base and the acceptance of the percentage of updating of the investment values of 1% in more than 90 environmental licenses, generating a lower provision for this obligation. Currently, ANLA's pronouncements are being received in relation to article 321 of Law 1955, some through official letters and others through resolutions. Ecopetrol has filed an appeal for reconsideration with ANLA in most cases, which are under review by this authority. 23.3 Contingencies 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 there were early termination rights under the Ship-or-Pay Transport Agreements entered by each of them and Bicentenario in 2012 (the Transport Agreements). Bicentenario has rejected the terms of the letters, noting that there is 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 for transport service under the aforementioned agreements. Consequently, Bicentenario executed the standby letters of credit posted as guarantee for the Transport Agreements. On October 19, 2018, Bicentenario notified Frontera of the existence of a “Dispute” pursuant to Clause 20 of the respective Transport Agreement and moved to the party dispute settlement stage as provided for in such clause. Such discussions ended without an agreement on December 19, 2018. On January 28, 2019, Bicentenario filed an Arbitration Claim against Frontera in accordance with the arbitration clause of the Transportation Agreement to claim any compensation, indemnification or other restitution deriving from the alleged early termination of said agreements. Similarly, on November 1, 2018, Bicentenario notified Vetra and Canacol of the existence of a “Dispute” pursuant to Clause 20 of the respective Transport Agreement and moved to the party dispute settlement stage as provided for in each such respective clause. Such discussions ended without agreement on March, 2019. See section Bicentenario, Cenit and Frontera Settlement Agreement below for further developments on the disputes. Cenit Transporte y Logística de Hidrocarburos S.A.S. (“Cenit”) On November 2018, Cenit filed an arbitration claim against Frontera Energy Group (“Frontera”) claiming that the Ship or Pay Agreements of the Caño Limón - Coveñas pipeline, which termination was alleged by Frontera, are in full force and effect and that Frontera is obliged to comply with their terms and conditions, including a dispute regarding the payment of transportation fees applicable to such agreements. Cenit considers that the amounts owed by Frontera for this concept as of December 31, 2020, are $ 334,583. The abovementioned fees dispute was at the root of the opposition manifested by Frontera Group against the application of the fees defined by the Ministry of Mines and Energy for the period 2015-2019. The rate differential amounts to $114,075 which was placed by Frontera in a trust fund, whilst the balance of the debt according to Cenit’s accounting records on the same date are $99,734, thus evidencing that the amounts receivable are funded. Frontera has not paid the component of the fee related to the abandonment fund to which Cenit considers they are entitled by virtue of the application of resolutions 31480 and 31661 issued by the Ministry of Mines and Energy. Frontera Energy Group owed $ 9,663 in connection therewith. Bicentenario, Cenit and Frontera Settlement Agreement On November 17, 2020, Cenit, Bicentenario and Frontera reached an agreement, for the joint filing of a petition for a binding settlement which, upon completion and approval by the competent Colombian court, will resolve all the disputes pending among them, related to the Caño Limón – Coveñas pipeline, and will terminate all the pending arbitration proceedings related to such disputes. This transaction eliminates any uncertainty related to the potential outcomes of the disputes, thus protecting the interests of all the parties and those of their stakeholders and create new business opportunities for the parties involved. The settlement arrangement includes a full and final mutual release upon closing of all present and future amounts claimed by all parties in respect of the terminated transportation contracts for the Bicentenario and Caño Limón – Coveñas pipelines. Frontera will also enter into new transportation contracts with Cenit and Bicentenario. Frontera will transfer to Cenit its 43.03% stake in Bicentenario´s shareholdings. The new ship or pay commitment is projected to be approximately 3,900 bbls/day, based on the current oil price, for a term of five years subject to adjustments, at a current fee of $11.5/bbl. Frontera will not have to make payments for oil it may have to ship through alternate pipelines. These contracts will allow Cenit and Bicentenario to obtain payment of certain amounts included in the settlement, during the term of the contracts. The arrangement is conditional upon certain regulatory approvals, including approval of the settlement arrangement as a conciliation under Colombian law, which requires an opinion from the Attorney General’s Office (Procuraduría General de la Nación) which was issued on March 24, 2021 and approval of the Administrative Tribunal of Cundinamarca. As of the date of this annual report the final approval by the Administrative Tribunal of Cundinamarca was pending. Bicentenario, Cenit and Canacol Settlement Agreement On October 30, 2020 Cenit and Canacol reached an agreement to settle all their aforementioned disputes. The settlement arrangement includes a full and final mutual release upon closing of all present and future amounts claimed by all parties in respect of the terminated transportation contracts for the Caño Limón – Coveñas pipelines. On November 18, 2020 the competent arbitration tribunal approved the conciliation agreement entered into by Cenit and Canacol, according to which Canacol was obliged to transfer all its outstanding shares in Bicentenario to Cenit. Additionally, as part of the settlement, Canacol entered into new transportation contracts with Cenit. These contracts will allow Cenit to obtain payment of certain amounts included in the settlement, during the term of the contracts. On the other hand, on March 8, 2021 Bicentenario and Canacol reached an agreement to settle all their aforementioned disputes. The agreement established a formula that seeks to end all contractual obligation disputes between the parties and settle all the outstanding obligations between the companies. (Approval of the conciliation between Bicentenario and Canacol is still pending as of the date of this annual report). Bicentenario, Cenit and Vetra Settlement Agreement On November 23, 2020, Cenit and Vetra reached an agreement to settle all their aforementioned disputes. The settlement arrangement includes a full and final mutual release upon closing of all present and future amounts claimed by all parties in respect of the terminated transportation contracts for Caño Limón – Coveñas pipelines. On February 18, 2021 the competent arbitration tribunal approved the conciliation agreement entered into by Cenit and Vetra, according to which Vetra is obliged to transfer all its outstanding shares in Bicentenario to Cenit and to make a cash payment for the remaining balance of the amounts included in the settlement. On the other hand, on January 13, 2021 Bicentenario and Vetra reached an agreement to settle all their aforementioned disputes. The agreement established a formula that seeks to end all contractual obligations between the parties and settle all the outstanding obligations between the companies. (Approval of the conciliation between Bicentenario and Vetra is still pending as of the date of this annual report). Refinería de Cartagena S.A.S. Arbitration tribunal: On March 8, 2016, Reficar filed a request for arbitration with the International Chamber of Commerce (the “ICC”) against Chicago Bridge & Iron Company NV, CB&I (UK) Limited and CBI Colombiana SA (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 the preliminary version of its counterclaim against Reficar, for approximately USD $ 213 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, Reficar filed its non-detailed claim and, on the same date, CB&I submitted its Statement of Counterclaim increasing its claims to approximately USD $116 million and COP$387,558 million, including USD $70 million for a letter of credit compliance. 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 relation to this matter, as of December 31, 2020 there is a balance of approximately USD $ 122 million, in invoices paid by Reficar to CB&I, under the PIP and MOA Agreements of the EPC contract, whose supports provided to date by CB&I do not show acceptance by AMEC Foster Wheeler - PCIB. In January 2020, McDermott International Inc. – CB&I parent company – commenced a bankruptcy case under title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. Faced with this situation, Refinería de Cartagena has taken actions to protect its interests and has a group of experts with whom it will continue to evaluate other measures it may adopt in this new circumstance. As a consequence of the initiation of the reorganization process, the arbitration was suspended until July 1, 2020, as described below. On January 21, 2020, Comet II BV, the successor in interest to Chicago Bridge & Iron Company NV, commenced bankruptcy case under title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas. Before the beginning of the insolvency process of Comet II BV, an automatic suspension of the initiation or continuation of any action, process or execution of judgment or award against Comet II BV became effective, which suspended the arbitration. 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 or August 30, 2020.- whichever would occur first. On June 30, 2020, McDermott International Inc. notified the occurrence of the effective date of the reorganization plan, for which the suspension of arbitration was lifted on July 1, 2020. On May 6, 2020, the Superintendence of Companies ordered the judicial liquidation of CBI Colombiana SA, one of the defendants in the CB&I arbitration. On October 22, 2020, Reficar requested its recognition as a creditor of CBI Colombiana SA, up to the maximum amount of its claims in the arbitration. On January 15, 2021, the liquidator of CBI Colombiana SA accepted Reficar’s request. On September 22, 2020, the tribunal scheduled the start of the hearings for May 2021. The outcome of the arbitration remains uncertain until such time as the arbitration ruling is issued. 23.4 Investigations of control entities – Reficar 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 former employee of Ecopetrol, and former employees of Reficar, as well as against (ii) 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 this annual report, 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 this annual report, 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 this annual report, both Ecopetrol and Reficar have no liability under these proceedings. 1.3 In 2017, 2018, 2019, 2020 and 2021 the Office of the Comptroller General initiated a special/financial audit in Reficar and delivered a final report. In this report the Office of the Comptroller General concluded that, in their opinion, Reficar’s Financial Statements do not reasonably represent, the entity’s financial position. This situation originates in the different interpretation, by Reficar and the Comptroller General, of the applicable accounting laws. Reficar has used all the legal mechanism to enforce its position. As of the date of this annual report, considering the best Group’s knowledge, Reficar’s 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 this annual report, the former and 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. Mr. Reinoso filed an appeal against the decision and is awaiting resolution. In another investigation, on October 21, 2020, the Attorney General’s Office issued its judgment against a former employee of Reficar, Nicolas Isaksson Palacios, related to the failure to fulfill some of his duties for acting “ultra vires” in the exercise of his functions. The Attorney General’s Office closed the case against the rest of the former members of Reficar’s Board of Directors and other Reficar employee. The specific content and status of the remaining two ongoing investigations remains confidential. As of the date of this annual report, 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 in which Ecopetrol has been recognized as a victim: 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, 2019. 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 and Ecopetrol and Reficar were recognized as victims. 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. 3.3 On June 12, 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). Ecopetrol and Reficar were recognized as victims. 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. The defense attorneys have not yet had an opportunity to present their case against such facts in a court of law. 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 this annual report, the current Boards of Directors of Ecopetrol and Reficar and the current employees are not part of the above proceedings. None of the legal proceedings described in this paragraph are related with bribery charges. As of the date of this annual report, Ecopetrol and Reficar have no knowledge of any legal proceeding in the United States regarding the project. 23.5 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, 2020 and 2019: 2020 2019 Number of Number of Type of process processes Proceedings processes Proceedings Constitutional action 20 15,810,719 16 15,689,778 Ordinary administrative 156 714,606 162 781,686 Ordinary labor 659 54,030 614 51,029 Ordinary civil 54 6,363 54 17,956 Executive administrative 2 11,951 1 28 Special labor 15 3,106 13 720 Penal 2 595 1 595 Action of protection 234 47 112 10 Executive civil 1 — 1 — 1,143 16,601,417 974 16,541,802 23.6 The following is a breakdown of the Ecopetrol Business Group’s principal contingent assets, where the associated contingent gain is likely, but not certain: 2020 2019 Number of Number of Type of process processes Proceedings processes Proceedings Ordinary administrative 99 402,380 37 384,215 Arbitration 2 138,386 1 67,232 Ordinary civil 114 82,572 75 86,363 Penal 149 61,466 156 60,177 Executive civil 57 5,299 61 4,912 Ordinary labor 48 3,129 50 3,295 Executive administrative 10 2,450 11 4,028 Special labor 84 426 57 307 Action of protection 5 - 4 - 568 696,108 452 610,529 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Equity | 24. Equity The main components of equity are detailed below: 24.1 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, 2020 and 2019, subscribed and paid–in capital amounts to COP$25,040,067. There are no potentially dilutive shares. 24.2 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). 24.3 Equity reserves The following is the composition of the Ecopetrol Business Group’s reserves as of December 31, 2020 and 2019: 2020 2019 Legal reserve 4,568,980 3,243,832 Fiscal and statutory reserves 509,082 509,082 Occasional reserves (1) 4,557,074 31,744 9,635,136 3,784,658 (1) Ecopetrol's General Shareholders' Meeting, held on March 27, 2020, approved the 2019 profit distribution project and set up a reserve of 4,557,074 in order to support the Company's financial sustainability and flexibility in development of its strategy. The movement of equity reserves is the following for the years ended December 31, 2020 and 2019: 2020 2019 Opening balance 3,784,658 5,138,895 Release of reserves (540,826) (3,050,703) Allocation to reserves 6,391,304 5,355,852 Dividends declared — (3,659,386) Closing balance 9,635,136 3,784,658 24.4 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 General Assembly of Shareholders of Ecopetrol S.A. held on March 27, 2020, decreed dividends on the 2019 profit for COP$7,401,005 (2019 – COP$9,251,256). A total of 100% of decreed dividends was paid during 2020 and 2019. On March 26, 2021, the ordinary General Shareholders Assembly approved a distribution of ordinary dividends for the fiscal year ended December 31, 2020 amounting to COP$698,984 million, or COP$17 per share, based on the number of outstanding shares. The payment date will be April 22, 2021 for 100% of shareholders. 24.5 Other comprehensive income attributable to owners of parent The following is the composition of the other comprehensive income attributable to the shareholders of the parent, Ecopetrol S.A., net of tax: 2020 2019 2018 Foreign currency translation 11,794,201 10,265,398 10,235,891 Cash flow hedge with derivative instruments 44,132 3,689 (30,962) Cash flow hedges for future exports (136,470) (135,748) (374,079) Actuarial gain on defined benefit plans (2,260,989) (2,357,210) (557,381) Hedge of a net investment in a foreign operation (1,494,926) (1,130,583) (1,069,316) Others 1,114 1,114 176,608 7,947,062 6,646,660 8,380,761 24.6 Earnings per share 2020 2019 2018 Profit attributable to Ecopetrol’s shareholders 1,586,677 13,744,011 11,381,386 Weighted average number of outstanding shares 41,116,694,690 41,116,694,690 41,116,694,690 Net basic earnings per share (Colombian pesos) COP$ 38.6 COP$ 334.3 COP$ 276.8 |
Sales revenue from contracts wi
Sales revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2020 | |
Sales revenue from contracts with customers | |
Sales revenue from contracts with customers | 25 . Sales revenue from contracts with customers 2020 2019 2018 National sales Mid–distillates (1) 8,860,588 15,041,883 14,039,638 Gasoline and turbo fuels (1) 6,768,046 9,658,180 9,334,939 Services 2,859,559 4,115,626 3,531,404 Natural gas 2,845,155 2,256,123 1,885,846 Plastic and rubber 865,204 834,133 899,410 Fuel gas service 671,570 72,249 - Asphalts 526,100 544,200 335,426 LPG and propane 375,775 372,916 574,639 Crude oil 230,520 356,857 550,479 Aromatics 155,740 228,552 282,545 Polyethylene 138,035 192,436 270,887 Fuel oil 37,001 97,907 509,482 Other income gas contracts (2) 32,190 102,845 156,031 Other products 322,232 431,201 651,874 24,687,715 34,305,108 33,022,600 Foreign sales Crude oil (3) 19,498,582 28,523,596 26,898,737 Diesel 3,164,068 4,391,798 3,050,839 Plastic and rubber 1,302,131 1,249,189 1,308,685 Fuel oil (4) 968,429 1,870,929 2,053,594 Gasoline and turbo fuels 179,257 1,085,392 1,782,194 LPG and propane 18,943 13,591 20,212 Natural gas 17,231 27,255 27,899 Cash flow hedge for future exports – Reclassification to profit or loss (Note 30.3) (193,374) (386,773) 128,404 Other products 580,411 408,427 310,708 25,535,678 37,183,404 35,581,272 50,223,393 71,488,512 68,603,872 (1) 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). As of December 31, 2020, the value recognized by price differential corresponds to COP$142,723 (2019 COP$1,785,277; 2018 COP$3,835,533). See Note 4.16 – Sales revenue recognition from contracts with customers. (2) Corresponds to the income on the participation in the profits of gas sales, according to the agreement signed between Ecopetrol and Hocol (considering the assets purchase agreement signed with Chevron to acquire the stake owned by the latter in the Guajira Association as of May 1, 2020), for the extension of the association contract for the exploitation of gas in La Guajira. Prior to this acquisition, the agreement was signed between Ecopetrol and Chevron since 2004. (3) Includes hedges with derivative instruments for COP$(587,591). (4) Includes hedges with derivative instruments for COP$(76,382). Sales by geographic areas 2020 % 2019 % 2018 % Colombia 24,687,715 49.2 % 34,305,108 48.0 % 33,022,600 48.1 % United States 11,365,218 22.6 % 17,371,173 24.3 % 14,765,674 21.5 % Asia 9,497,498 18.9 % 13,529,151 18.9 % 12,271,225 17.9 % Central America and the Caribbean 2,581,644 5.1 % 3,472,665 4.9 % 4,449,033 6.6 % South America and others 1,296,370 2.6 % 1,502,815 2.1 % 2,968,038 4.3 % Europe 794,948 1.6 % 1,307,600 1.8 % 1,127,302 1.6 % 50,223,393 100 % 71,488,512 100 % 68,603,872 100 % Concentration of customers During 2020, Organización Terpel S.A. represented 15.0% of sales revenue for the period (2019 – 16.0% and 2018 – 14.0%); 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, 2020 | |
Cost of sales | |
Cost of sales | 26. Cost of sales 2020 2019 2018 Variable costs Imported products (1) 7,592,489 12,639,710 11,809,529 Depreciation amortization and depletion 6,069,903 5,523,306 5,064,518 Purchases of crude in association and concession 4,281,661 5,466,496 3,820,746 Purchases of hydrocarbons – ANH (2) 2,798,432 5,437,177 5,667,567 Electric energy 1,098,621 829,543 662,297 Hydrocarbon transport services 874,632 821,654 696,964 Taxes and economic rights 841,443 788,924 441,207 Process materials 827,464 1,016,617 968,884 Purchases of other products and gas 598,015 584,507 632,509 Services contracted in associations 269,637 267,778 260,207 Others (3) 657,634 (676,269) (186,087) 25,909,931 32,699,443 29,838,341 Fixed costs Depreciation and amortization 2,930,120 2,781,446 2,555,176 Labor costs 2,299,761 2,316,567 2,105,803 Maintenance 2,257,370 2,497,002 2,260,984 Services contracted 1,623,375 1,841,009 1,796,354 Services contracted in associations 1,121,010 1,211,510 1,040,221 Taxes and contributions 593,041 516,933 393,690 Materials and operating supplies 508,037 574,678 565,601 Hydrocarbon transport services 253,752 268,572 261,237 General costs 71,075 265,200 366,972 11,657,541 12,272,917 11,346,038 37,567,472 44,972,360 41,184,379 (1) Imported products correspond mainly to diesel 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 valuation of the inventory, product of the costing process, ii) the valuation at Net Realizable Value, and iii) the agreements of inventories by transport and iv) capitalizable costs to projects. |
Administrative, operations and
Administrative, operations and project expenses | 12 Months Ended |
Dec. 31, 2020 | |
Administrative, operations and project expenses | |
Administrative, operations and project expenses | 27. Administrative, operations and project expenses 2020 2019 2018 Administrative expenses Labor expenses (1) (1,658,613) (759,324) (662,258) General expenses (2) (1,424,348) (1,140,975) (911,645) Depreciation and amortization (229,792) (202,547) (40,838) Taxes (60,397) (48,753) (39,117) (3,373,150) (2,151,599) (1,653,858) Operations and project expenses Exploration costs (689,087) (763,452) (1,387,379) Commissions fees freights and services (656,432) (558,370) (466,862) Taxes (428,608) (483,330) (433,506) Labor expenses (309,972) (402,531) (316,386) Fee for regulatory entities (142,695) (94,785) (98,794) Depreciation and amortization (83,909) (60,952) (44,318) Maintenance (78,181) (56,333) (50,846) Right-of-use assets amortization (10,814) (14,532) — Others (186,318) (197,469) (105,041) (2,586,016) (2,631,754) (2,903,132) (1) (2) |
Other operating income (expense
Other operating income (expenses), net | 12 Months Ended |
Dec. 31, 2020 | |
Other operating income (expenses), net | |
Other operating income (expenses), net | 28. Other operating income (expenses), net 2020 2019 2018 Gain on revaluation of assets in Guajira association (1) 1,284,372 — — Gain (loss) on acquisition of participations and interests (1) 86,026 1,048,924 (12,065) Loss on sale of assets (263,647) (148,021) (93,601) Expense for legal provisions (139,978) (98,020) (68,398) Impairment loss of short–term assets (34,416) (90,441) (105,692) Gain on loss of control (2) 65,695 — — Other income 120,114 344,354 244,301 1,118,166 1,056,796 (35,455) (1) Results in the acquisition of La Guajira: Ecopetrol COP$1,284,372 and Hocol COP$86,026. For Ecopetrol it corresponds to the revaluation of the assets that it already had in the Guajira association and for Hocol it corresponds to the Bargain obtained from the acquisition of the 43% stake. (Note 12 - Business combinations). (2) Recognition of the disposal of net assets due to the loss of control due to the opening of the judicial liquidation process of Bioenergy S.A.S. and Bioenergy Zona Franca S.A.S. COP$65,570 (Note 2.2). Liquidation process of ECP Oil and Gas Germany GmbH COP$125. |
Financial result, net
Financial result, net | 12 Months Ended |
Dec. 31, 2020 | |
Financial result, net | |
Financial result, net | 29. Financial result, net 2020 2019 2018 Finance income Results from financial assets and others 665,310 975,245 745,571 Yields and interests 299,246 481,674 383,624 Gain on derivatives valuation 108,838 — — Dividends (1) 44 117,260 — Gain on sale of equity instruments — — 368 Other financial income 27,992 49,157 — 1,101,430 1,623,336 1,129,563 Finance expenses Interest (2) (2,384,342) (1,894,490) (2,399,414) Financial cost of other liabilities (3) (872,987) (757,509) (668,782) Results from financial assets (473,598) (638,767) (381,445) Other financial expenses (198,864) (43,703) (62,520) (3,929,791) (3,334,469) (3,512,161) Foreign exchange gain net 346,774 40,639 372,223 Financial result net (2,481,587) (1,670,494) (2,010,375) (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. (2) As of December 31, 2020, borrowing costs for the financing of developing natural resources and property, plant and equipment of COP$247,501 (2019 – COP$248,139 and 2018 – COP$200,833) 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, 2020 | |
Risk management | |
Risk management | 30. Risk management 30.1 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. The impact of exchange rate fluctuations, especially the Colombian peso/U.S. dollar exchange rate, has been material considering events presented during 2020 such as the disagreement between the members of the Organization of Petroleum Exporting Countries (OPEP) and Russia to maintain the cuts in production and the effects of the Covid-19 pandemic. As of December 31, 2020, the Colombian peso depreciated 4.7%, going from a closing rate as of December 31, 2019 of COP$3,277.14 to COP$3,432.5 pesos per dollar. When the Colombian peso depreciates, export earnings, when converted to pesos, increase, and imports and external debt service become more expensive. The balance of financial assets and liabilities denominated in foreign currency for the years ended December 31, is presented in the following table: (in USD$Million) 2020 2019 Cash and cash equivalents 197 114 Other financial assets 1,164 1,468 Trade receivables and payables, net 203 81 Loans and borrowings (11,814) (9,429) Other assets and liabilities, net 277 64 Net liability position (9,973) (7,702) Of the total net position, USD$(10,158) million correspond to net liabilities of companies with the Colombian peso as its functional currency, of which USD$(8,549) correspond to loans used as hedging instruments whose valuation is recognized in other comprehensive income, the exchange rate difference valuation of the remaining net liabilities for USD$(1,609) million affect the profit or loss. Likewise, USD$(185) million of the net position correspond to monetary assets and liabilities of Group companies with a functional currency different from the Colombian peso, whose valuation is recognized in profit or loss. 30.2 Sensitivity analysis for exchange rate 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, 2020: Scenario / Variation in Effect on income Effect on other the exchange rate before taxes (+/–) comprehensive income (+/–) 1 % (48,866) (293,457) 5 % (244,330) (1,467,286) 30.3 Cash flow hedge for future exports 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$5,440 million of Ecopetrol’s foreign currency debt as a hedge instrument of future revenue from crude oil exports, for the period 2015–2023 in accordance with IFRS 9 – Financial instruments. The following is the movement of foreign currency debt designated as a non–derivative hedging instrument for the years ended December 31, 2020 and 2019: (USD$Million) 2020 2019 Hedging instrument at the beginning of the period 1,300 1,300 Reassignment of hedging instruments 1,230 5,551 Realization of exports (1,230) (5,551) Hedging instrument at the end of the period 1,300 1,300 The following is the movement in other comprehensive income for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Opening balance (135,748) (374,079) 159,295 Exchange difference (201,967) (35,607) (704,871) Reclassification to profit or loss 193,374 386,773 (128,404) Ineffectiveness 9,779 5,173 35,617 Deferred income tax (1,908) (118,008) 264,284 Closing balance (136,470) (135,748) (374,079) 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 2021 (71,358) 21,408 (49,950) 2022 (71,358) 21,408 (49,950) 2023 (52,245) 15,675 (36,570) (194,961) 58,491 (136,470) 30.4 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 designated as the hedged item the net investments in Oleoducto Central S.A. (Ocensa), Ecopetrol América LLC., Hocol Petroleum Ltd, (HPL) and Refinería de Cartagena S.A.S. (Reficar) and as a hedging instrument a portion of its debt denominated in US dollars, in a total amount equivalent to USD$5.2 billion. During 2019 and 2020 Ecopetrol S.A. expanded this hedge for USD$2,049 million to include in the designation the investments in Ecopetrol Permian LLC and Ecopetrol Brasil and add a greater amount in Reficar. The total hedged value as of December 31, 2020 is USD$7,249 million. The following is the movement in other comprehensive income for the years ended December 31: 2020 2019 2018 Opening balance 1,130,583 1,069,316 97,362 Exchange difference 520,490 87,524 1,381,900 Ineffectiveness — — 378 Deferred income tax (156,147) (26,257) (410,324) Closing balance 1,494,926 1,130,583 1,069,316 30.5 Hedging with financial derivatives In 2020, Ecopetrol carries out forward non-delivery operations for the sale of dollars in order to mitigate the volatility of the exchange rate in the cash flow required for the Company's operations. As of December 31, 2020, the Group has open positions for COP$91,305. The impact on the profit or loss as of December 31, 2020 due to the settlement of these hedges generated a loss of COP$62,911 (2019 – COP$60,740) and the amount recognized in the other comprehensive income was a profit of COP$51,486 (2019 – COP$43,141). 30.6 Commodity price risk The price risk of raw materials is associated with the Group’s operations, both exports and imports of crude oil, natural gas and refined products. In order to mitigate this risk, the Group has implemented hedges to partially protect the results from price fluctuations, considering that part of the financial exposure under contracts for the purchase of crude oil and refined products depends on the international oil prices. The risk of such exposure is partially hedged in a natural way, as an integrated Group (with operations in the exploration and production, transportation and logistics and refining segments) and carries out both crude exports at international market prices and sales of refined products at prices correlated with international prices. The Group has a policy for the execution of (strategic and tactical) hedges and implemented processes, procedures and controls for their management. The main purpose of the strategic hedging program is to protect the Group’s consolidated financial statements from the volatility of market variables in a given period of time, to protect income and thus cash flow. On the other hand, tactical hedges allow to capture value in trading operations and Asset Backed Trading (ABT), thereby mitigating the market risk of specific operations. The following is the detail of the operations during 2020: 1) The operations were oriented to specifically protect income and cash flow, limit losses, cover production costs and avoid potential closures of production fields (Apiay, Caño Sur and Chichimene), and therefore a possible acceleration in the decline of the basic curve. For this purpose, hedges for about 30 million barrels (MMBLS) were managed. The operations carried out during 2020 were managed considering the analysis, approval, monitoring and compliance processes as defined in current policies and procedures, achieving the objectives defined for the hedge. In addition, these operations were classified as effective in accordance with IFRS standards. The benefit of these contracts was USD$42.7 million. 2) The commitments in physical spots and term contracts in the commercialization activity represent an exposure to the price risk of commodities, in particular the risk associated with the volatility of the price of crude oil and refined products. Although said exposure is part of the natural risk of the production, refining and commercialization activity carried out by Ecopetrol, in order to maximize value capture, Ecopetrol can concentrate the risk exposure in terms of time and/or indicator that differs from the Company’s natural price risk profile. Swaps operations for 18 MMBLS to mitigate risks associated with storage marketing strategies, anticipated purchases of raw materials, supply to refineries and international sales delivered at the destination port expired last year. Such strategies – together with their hedge – allowed to get benefits of around USD$15 million. Similarly, hedges on exports of heavy fuel oil were made in 2020 corresponding to 3.7 MMBLS; this operation allowed to guarantee profits in the mount of USD$25.5 million. As of the date of this report, the Group has in its asset a swap position of COP$7,572 and a forward position of COP$91,305 (Note 9). These derivative operations are recognized under cash flow hedge accounting. 30.7 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. 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. 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. An aging analysis of the accounts receivable portfolio in arrears, but not impaired, as of December 31, 2020 and 2019 is as follows: 2020 2019 Less than 3 months overdue 56,144 243,893 Between 3 and 6 months overdue 1,270 136,700 More than 6 months overdue 301,858 267,525 359,272 648,118 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. Likewise, the Company may also invest in securities issued or guaranteed by the national government without qualification restrictions. 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 22 – Provisions for employees’ benefits. 30.8 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, 2020, 16% (2019, 17% and 2018, 17%) 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 (25,878) 60,577 (557,002) –100 basis points 25,878 (59,459) 557,901 A sensitivity analysis of discount rates on pension plan assets and liabilities is disclosed in Note 22 – Provisions for employees’ benefits. 30.9 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, 2020. 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$3,432.50 per U.S. dollar: Up to 1 year 1–5 years 5–10 years > 10 years Total Loans (payment of principal and interest) 3,585,623 33,051,812 17,701,887 13,750,003 68,089,325 Trade and other payables 8,449,041 21,064 — — 8,470,105 Total 12,034,664 33,072,876 17,701,887 13,750,003 76,559,430 30.10 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, 2020 and 2019: 2020 2019 Loans and borrowings (Note 20) 46,731,754 38,239,139 Cash and cash equivalents (Note 6) (5,082,308) (7,075,758) Other financial assets (Note 9) (3,071,659) (4,979,292) Net financial debt 38,577,787 26,184,089 Equity (Note 24) 53,499,363 58,231,628 Leverage (1) 41.90 % 31.02 % (1) Leverage = Net financial debt / (Net financial debt + Equity) The movement of the net financial debt is detailed in Note 20.7. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2020 | |
Related parties | |
Related parties | 31. Related parties Balances with associates and joint ventures as of December 31, 2020 and 2019 are as follows: Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energía Limited (1) 1,950 — 7,093 32,335 1,277,046 1,663 Ecodiesel Colombia S.A. 1,345 — — 35,632 — 1 Offshore International Group Inc (2) — 97,300 — — — — Associates Gas Natural del Oriente S.A. E.S.P. — — — — — Extrucol S.A. — — — — — E2 Energía Eficiente S.A. E.S.P. — — — — Serviport S.A. — — — 948 — — Balance as of December 31, 2020 7,748 97,300 7,093 72,316 1,277,046 1,664 Current 7,748 97,300 7,093 72,316 1,277,046 1,664 Non–current — — — — — — 7,748 97,300 7,093 72,316 1,277,046 1,664 (Nota 7) (Nota 7) (Nota 11) (Nota 21) (Nota 20) Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energía Limited(1) 25,333 — 57,016 153,501 1,108,403 794 Ecodiesel Colombia S.A. 2,116 — — 29,447 — 1 Offshore International Group Inc.(2) — 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 21) (Note 20) Loans: (1) Resources deposited by Equion in Ecopetrol Capital AG. Accounts receivable – Loans: (2) Offshore International Group: Loan granted by Ecopetrol S.A. 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, 2020 is USD$28 million (2019 - USD$28 million). The main transactions with related parties as of December 31 are detailed as follows: 2020 2019 2018 Sales and Purchases Sales and Purchases Sales and Purchases services and others services and others services and others Joint Ventures Equion Energía Limited 27,595 356,872 317,382 569,105 67,002 846,284 Ecodiesel Colombia S.A 8,268 346,201 8,614 280,649 6,860 267,498 Offshore International Group 4,461 — 3,245 — 2,386 — 40,324 703,073 329,241 849,754 76,248 1,113,782 Associates E2 Energía Eficiente S.A. E.S.P. 49,860 2,849 — — — — Gas Natural del Oriente S.A. E.S.P. — 26,141 — — — — Extrucol S.A. — 1,162 — — — — 90,184 733,225 329,241 849,754 76,248 1,113,782 31.1 Directors and key management personnel In accordance with the approval given by the shareholders’ meeting in 2012, which was recorded in Minute No. 026, the directors' fees for attending the meetings of the Board of Directors and / or the committees increase from four to six legal monthly minimum legal monthly salaries in force. On the other hand, in the General Shareholders' Meeting of 2018, the amendment of the Corporate Bylaws that appears in Minute No. 036 was approved, by virtue of which, the fourth paragraph of article 23 was eliminated that made the differentiation between the fees for face-to-face and non-face-to-face meetings. The members of the Board of Directors do not have any kind of variable remuneration. The amount paid in 2020 for fees to members of the Board of Directors amounted to COP$3,102 (2019 - COP$1,847). The total compensation paid to Directors as of December 31, 2020, amounted to COP$24,068 (2019 – COP$22,632 and 2018 – COP$21,580). Directors are not eligible to receive pension and retirement benefits. The total amount reserved as of December 31, 2020, to provide pension and retirement benefits to the eligible executive officers amounted to COP$13,413 (2019 – COP$18,740 and 2018 – COP$5,491). As of December 31, 2020, 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 31.2 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. 31.3 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 The ANH, an entity which operates under the rules of the Ministry of Mines and Energy, has as objective to manage the oil and gas reserves and resources owned by the Colombian Nation. By nature of the business, Ecopetrol purchases the crude oil that the ANH receives from producers in Colombia at the prices set in accordance with a established formula, which reflects the sale prices (crude oils and products), adjusted for API gravity quality, sulfur content, transportation rates to the export ports, refining process cost and a commercialization rate (when apply). The contract between Ecopetrol and the ANH ended on October 30, 2020 and a new one began with effect from November 1, 2020 to October 31, 2022. 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 26 - 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 sale prices of regular gasoline and diesel are regulated by the National Government. In that way, there are differentials between the volume reported by the companies at the time of sale and the difference between the parity price and the reference price, the parity price being the one that corresponds to the daily prices of motor gasoline and diesel observed during the month. This differential can be for or against the producers. The value of this differential is detailed in Note 25 - Sales revenue from contracts with customers and in Note 7 - Trade and other receivables, net. (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, 2020 | |
Joint operations | |
Joint operations | 32. 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 2020 are as follows: 32.1 Contracts in which Ecopetrol is not the operator % Geographic area of Partners Contract Type Participation operations Occidental de Colombia LLC Chipirón 30-41 % Occidental Andina LLC Cosecha Production % Colombia Cravo Norte % Rondón % Mansarovar Energy Colombia Ltd Nare Production % Colombia Frontera Energy Colombia Corp. Quifa Production % Colombia Casanare % Corocora % Perenco Colombia Limited Estero Production % Colombia Garcero % Orocúe % ONGC Videsh Limited Sucursal Ronda Caribe RC-10 Exploration % Offshore Caribe Colombiana Norte Petrobras, Repsol & Statoil Tayrona Exploration % Offshore Caribe Norte Fuerte Sur Shell EP Offshore Ventures Limited Purple Angel Exploration % Offshore Caribe Col-5 Norte Saturno % Shell Sul de Gato do Mato Exploration % Brazil Gato do Mato % BP Energy Pau Brasil Exploration % Brazil Chevron CE-M-715_R11 Exploration % Brazil Lewis SSJN1 Exploration % Colombia Mana % Interoil Colombia Ambrosia Production % Colombia Rio Opia % Rancho Hermoso-Mirador % Canacol Rancho Hermoso -Otras formaciones Production % Colombia Llanos 86 % Llanos 87 % Geopark Llanos 104 Exploration % Colombia Llanos 123 % Llanos 124 % Fieldwood - Gunflint Gunflint Production % Gulf of Mexico Murphy Oil - Dalmatian Production % Gulf of Mexico Oxy (Anadarko) - K2 K2 Production % Gulf of Mexico Shell Deep Rydberg/Aleatico Exploration % Gulf of Mexico HESS ESOX Production % Gulf of Mexico Pemex Exploración y Producción Bloque 8 Exploration % Gulf of Mexico PC Carigali Mexico Operation SA Bloque 6 Exploration % Gulf of Mexico Talos Palmer Exploration % Gulf of Mexico OXY (Anadarko) Warrior Exploration % Gulf of Mexico Occidental Petroleum Company Rodeo Midland Basin Production % Permian Texas U.S. 32.2 Contracts in which Ecopetrol is the operator % Geographic area of Partners Contract Type Participation operations VMM29 Exploration % Colombia ExxonMobil Exploration Colombia CR2 C62 Repsol Colombia oil &gas limited CPO9 Exploration % Colombia ONGC Videsh Limited Sucursal Colombia RC9 Exploration % Colombia CPVEN E&P Corp 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 Parex Resources Colombia Ltd. ORC401 CRC-2004-01 Exploration % Colombia Repsol Colombia Oil & Gas Limited CPO9 – Akacias Production % Colombia Occidental Andina LLC La Cira Infantas Production % Teca % Colombia Ramshorn International Limited Guariquies I Production % Colombia Perenco Oil And Gas San Jacinto Rio Paez Production % Colombia Cepsa Colombia Total Colombia Mundo Nuevo Exploration % Colombia Talisman Oil & Gas Equion Energia Limited Emerald Energy Oleoducto Alto Magdalena OAM % Colombia Frontera Energy Lewis Clarinero Exploration % Colombia Talisman Oil & Gas Niscota Production % Colombia Total Colombie ONGC RC-9 Exploration % Colombia 32.3 Relevant operations during the period During 2020 the following relevant events were presented in the joint operations contracts: 1) |
Information by segments
Information by segments | 12 Months Ended |
Dec. 31, 2020 | |
Information by segments | |
Information by segments | 33. Information by segments A description of the Ecopetrol Business Group’s business segments is in Note 4.19 - Information by business segment. 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. 33.1 Statement of profit or loss Below are the consolidated statements of profit or loss by segment for the years ended December 31, 2020, 2019 and 2018: For the year ended on December 31, 2020 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 22,854,925 24,804,887 2,563,581 — 50,223,393 Inter–segment sales 13,985,072 1,299,464 9,630,859 (24,915,395) — Total sales revenue 36,839,997 26,104,351 12,194,440 (24,915,395) 50,223,393 Fixed costs (9,479,317) (3,427,211) (2,813,856) 4,062,842 (11,657,542) Variable costs (23,429,102) (22,398,344) (567,501) 20,485,017 (25,909,930) Cost of sales (32,908,419) (25,825,555) (3,381,357) 24,547,859 (37,567,472) Gross profit 3,931,578 278,796 8,813,083 (367,536) 12,655,921 Administrative expenses (2,163,198) (936,175) (533,594) 259,817 (3,373,150) Operation and project expenses (1,511,510) (781,309) (403,657) 110,460 (2,586,016) Impairment of non–current assets (192,693) (781,528) 341,065 — (633,156) Other operating income and expenses net 1,085,114 34,705 1,827 (3,480) 1,118,166 Operating income (expenses) 1,149,291 (2,185,511) 8,218,724 (739) 7,181,765 Financial result net Financial income 1,177,712 67,832 125,677 (269,791) 1,101,430 Financial expenses (2,896,060) (914,534) (389,394) 270,197 (3,929,791) Foreign exchange gain (loss) net 360,409 (447,880) 434,245 — 346,774 (1,357,939) (1,294,582) 170,528 406 (2,481,587) Share of profits of associates and joint ventures (53,037) 131,462 (2,089) — 76,336 Income before tax (261,685) (3,348,631) 8,387,163 (333) 4,776,514 Income tax 43,569 614,269 (2,696,499) — (2,038,661) Net profit (loss) for the period (218,116) (2,734,362) 5,690,664 (333) 2,737,853 Profit (loss) attributable to: Group owners of parent (139,279) (2,848,511) 4,574,800 (333) 1,586,677 Non–controlling interest (78,837) 114,149 1,115,864 — 1,151,176 (218,116) (2,734,362) 5,690,664 (333) 2,737,853 Supplementary information Depreciation depletion and amortization 6,445,812 1,599,780 1,278,946 — 9,324,538 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 (2,151,599) 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 and Refining and Transport Production Petrochemicals and 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) (1,653,858) 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 33.2 Sales by product The sales by product for each segment are detailed below for the years ended December 31, 2020, 2019 and 2018: For the year ended on December 31, 2020 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid–distillates — 8,871,938 — (11,350) 8,860,588 Gasoline and turbo fuels 6,739 7,880,124 — (1,118,817) 6,768,046 Services 116,485 268,081 12,194,384 (9,719,391) 2,859,559 Natural gas 3,683,018 — — (837,863) 2,845,155 Plastic and rubber — 865,204 — — 865,204 Fuel gas service — 678,396 — (6,826) 671,570 Asphalts 27,043 499,057 — — 526,100 LPG and propane 249,533 133,525 — (7,283) 375,775 Crude oil 13,250,275 — — (13,019,755) 230,520 Aromatics — 155,740 — — 155,740 Polyethylene — 138,035 — — 138,035 Fuel oil 7,758 29,243 — — 37,001 Other income gas contracts 32,190 — — — 32,190 Other products 19,556 417,889 — (115,213) 322,232 17,392,597 19,937,232 12,194,384 (24,836,498) 24,687,715 Foreign sales Crude oil 19,577,898 29 — (79,345) 19,498,582 Diesel — 3,164,068 — — 3,164,068 Plastic and rubber — 1,302,131 — — 1,302,131 Fuel oil — 968,429 — — 968,429 Gasoline and turbo fuels — 179,257 — — 179,257 LPG and propane 18,943 — — — 18,943 Natural gas 17,231 — — — 17,231 Cash flow hedge for future exports – Reclassification to profit or loss (Note 30.3) (193,374) — — — (193,374) Other products 26,702 553,206 56 447 580,411 19,447,400 6,167,120 56 (78,898) 25,535,678 36,839,997 26,104,352 12,194,440 (24,915,396) 50,223,393 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 Production Petrochemicals and 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 33.3 Capital expenditures by segments The following are the investments amounts made by each segment for the years ended December 31, 2020, 2019 and 2018: Exploration Refining and Transport and 2020 and Production Petrochemicals Logistics Total Property, plant and equipment 2,866,600 1,329,181 836,536 5,032,317 Natural and environmental resources 5,994,462 — — 5,994,462 Intangibles 41,002 8,771 40,309 90,082 8,902,064 1,337,952 876,845 11,116,861 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 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | 34. Subsequent events - Sale of stake in Offshore International Group A Share Purchase Agreement was signed on January 19, 2021 with one of the subsidiaries of De Jong Capital LLC. Pursuant to which Ecopetrol sold the entire 50% stake it had in Offshore International Group (OIG). - Non-binding offer to acquire participation in ISA On January 27, 2021, Ecopetrol announced its interest in acquiring 51.4% of the outstanding shares of ISA, currently owned by the Colombian Government’s Ministerio de Hacienda y Credito Publico (MHCP). If the acquisition is consummated, Ecopetrol expects ISA to assist the Ecopetrol Group in increasing its exposure to new businesses aligned with global trends in electrification and decarbonization, which in turn could help leverage the Ecopetrol Group's profitable growth and improve its risk profile. ISA operates and maintains a high voltage transmission network in Colombia, Peru, Bolivia, Brazil and Chile, among others, and participates through its subsidiaries in the toll-road business, telecommunications and management of real-time systems. Based on its public reports as filed with the Superintendencia Financiera de Colombia (the “SFC”), ISA’s consolidated revenues and net income for the third quarter of 2020 totaled COP 2.4 trillion and COP 483.8 billion, respectively; and its total assets were COP 52.3 trillion as of September 30, 2020. As of February 19, 2021, ISA’s market capitalization as reported on the Colombian Stock Exchange (BVC) was COP 25.5 trillion. On February 12, 2021, Ecopetrol and the MHCP signed an exclusivity agreement through which the parties will carry out non-binding preliminary conversations on the terms and conditions of the potential transaction. The exclusivity period is initially scheduled to end on June 30, 2021 unless extended by mutual agreement of the parties. During this period, Ecopetrol will carry out due diligence activities on ISA and the MHCP has agreed to negotiate exclusively with Ecopetrol. - New operating model for the transport segment On February 1, 2021, Cenit assumed the integral operation of its infrastructure, directly executing the local and centralized operation of its hydrocarbon transport systems. With this change, Cenit also assumes the local operation of the Ocensa, Bicentenario and ODC (Oleoducto de Colombia) systems, and consolidates itself as the leader of Ecopetrol Group’s transport segment. - WACC calculation methodology for liquid fuel transport On February 8, 2021, the Energy and Gas Regulatory Commission (CREG) issued resolution 004 of 2021, whereby the Energy and Gas Regulatory Commission (CREG) establishes the WACC calculation methodology for activities regulated by CREG. Said activities include electric power distribution and transmission, and distribution and transportation of gas and liquid fuels. The discount rate for the transportation of liquid fuels through pipelines will be calculated and applied once the rate methodology for this activity is updated. In accordance with the CREG’s regulatory agenda, the methodology proposal is expected to be issued for comments during the second half of 2021 and the final document is expected to be published at the end of the year. |
Supplemental information on oil
Supplemental information on oil and gas producing activities (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental information on oil and gas producing activities (unaudited) | |
Supplemental information on oil and gas producing activities (unaudited) | 35. 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 2020, 2019 and 2018, 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. 35.1 Capitalized costs relating to oil and gas exploration and production activities 2020 2019 2018 Natural and environmental properties 67,767,005 60,261,025 53,752,436 Wells, equipment and facilities – property, plant and equipment 31,166,804 30,150,268 29,416,081 Exploration and production projects 12,494,665 8,801,630 8,463,584 Accumulated depreciation, depletion and amortization (64,233,572) (60,346,094) (55,689,222) Net capitalized cost 47,194,902 38,866,829 35,942,879 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$3,936,494, COP$2,336,236 and COP$1,076,116 during 2020, 2019 and 2018, respectively. 35.2 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. 2020 2019 2018 Acquisition of proved properties (1) 507,907 2,668,960 — Acquisition of unproved properties (2) 1,274,660 261,231 81,295 Exploration costs 1,340,898 640,556 1,197,946 Development costs 7,367,020 8,084,283 6,346,276 10,490,485 11,655,030 7,625,517 (1) For 2020, it corresponds mainly to the acquisition of the entire participation in the Guajira Association (43% of the association contract) by Hocol and its position as operator. 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). (2) During 2020, Ecopetrol S.A. through its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda acquired 30% of the interests, rights and obligations in two areas that correspond to the BM-S-54 Concession Contract and the Sul de Gato do Mato Shared Production Contract, located offshore in Santos basin of Brazil, in the discovery of hydrocarbons called "Gato do Mato". Additionally, Ecopetrol Óleo e Gás do Brasil Ltda has recognized the billing related to activities of drilling during the year. 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. 35.3 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, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Net revenues Sales 30,141,662 42,070,018 39,633,866 Transfers 7,025,839 11,564,358 11,794,014 37,167,501 53,634,376 51,427,880 Production costs(1) 12,753,880 9,336,387 8,337,413 Depreciation, depletion and amortization(2) 6,393,506 6,049,543 5,591,774 Other production costs(3) 14,005,669 21,550,907 18,918,275 Exploration expenses(4) 689,204 763,562 1,387,463 Other expenses(5) 2,227,481 4,163,241 1,036,983 36,069,740 41,863,640 35,271,908 Income before income tax expense 1,097,761 11,770,736 16,155,972 Income tax expense (233,255) (2,107,363) (6,303,251) Results of operations for exploration and production activities 864,506 9,663,373 9,852,721 (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 2020, 2019 and 2018 of COP$213,925, COP$198,394 and COP$187,340, respectively. (2) In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2020, 2019 and 2018 in depreciation, depletion and amortization, were COP$639,123, COP$272,147 and COP$180,193, respectively. (3) Includes 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 2020, 2019 and 2018, the Ecopetrol Business Group transferred approximately 18.9%, 21.6% and 22.9%, respectively, of its crude oil and gas production; (percentages based on the value sales in Colombian pesos) to intercompany business units. Those transfers were 45.9%, 51.5% and 51.8%, respectively, of crude oil and gas production volume (including Reficar). The intercompany transfers were realized at market prices. 35.4 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 2020, 2019 and 2018, and corresponds to the official reserves statements prepared by the Ecopetrol Business Group: 2020 2019 2018 Oil Gas Total Oil Gas Total Oil Gas Total (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) Proved reserves: Opening balance 1,384 2,906 1,894 1,200 3,002 1,727 1,088 3,254 1,659 Revisions of previous estimates(1) (81) 51 (72) 75 51 84 121 (4) 121 Improved recovery 100 74 113 94 3 94 128 4 129 Purchases — 171 30 142 126 164 — — — Extensions and discoveries 41 8 42 66 2 67 54 18 57 Sales (0.9) (0.3) (1) — — — — — — Production (186) (289) (236) (193) (278) (242) (191) (270) (239) Closing balance 1,257 2,921 1,770 1,384 2,906 1,894 1,200 3,002 1,727 Proved developed reserves: Opening balance 898 2,662 1,365 883 2,882 1,389 818 3,158 1,372 Closing balance 834 2,636 1,297 898 2,662 1,365 883 2,882 1,389 Proved undeveloped reserves: Opening balance 486 244 529 317 119 338 270 96 287 Closing balance 423 285 473 486 244 529 317 119 338 Some values were rounded for presentation purposes. (1) 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. 35.5 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. 2020 2019 2018 Future cash inflows 187,210,379 279,722,107 275,046,421 Future costs Production (1) (85,989,384) (93,589,960) (90,176,326) Development (28,752,131) (32,734,702) (21,945,453) Income taxes (13,470,352) (37,077,231) (41,102,015) Future net cash flow 58,998,512 116,320,214 121,822,627 10% discount factor (18,568,308) (36,934,889) (35,518,187) Standardized measure of discounted net cash flows 40,430,204 79,385,325 86,304,440 (1) The following are the principal sources of change in the standardized measure of discounted net cash flows in 2020, 2019 and 2018: 2020 2019 2018 Net change in sales and transfer prices and in production cost (lifting) related to future production (44,482,725) 2,411,040 79,632,263 Changes in estimated future development costs (5,401,560) (12,627,361) (13,141,340) Sales and transfer of oil and gas produced, net of production costs (24,413,621) (44,297,989) (43,090,467) Net change due to extensions, discoveries and improved recovery 3,134,469 7,061,712 8,496,249 Net change due to purchase and sales of minerals in place 570,460 213,539 — Net change due to revisions in quantity estimates (3,414,649) 6,756,418 10,163,131 Previously estimated development costs incurred during the period 7,943,239 23,200,357 12,505,421 Accretion of discount 10,468,951 11,542,289 6,771,897 Timing and other 567,027 (4,993,389) (13,633,228) Net change in income taxes 16,073,288 3,814,269 (12,616,331) Aggregate change in the standardized measure of discounted future net cash flows for the year (38,955,121) (6,919,115) 35,087,595 |
Exhibit 1. Consolidated subsidi
Exhibit 1. Consolidated subsidiaries, associates and joint ventures | 12 Months Ended |
Dec. 31, 2020 | |
Exhibit 1 - Consolidated subsidiaries, associates and joint ventures | |
Exhibit 1 - Consolidated subsidiaries, associates and joint ventures | 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 16,582,279 (1,688,830) 27,321,381 10,739,102 Cenit Transporte y Logística S.A.S. (*) Colombian peso 100 % Storage and transport by pipelines of hydrocarbons Colombia Colombia 16,310,718 4,696,705 18,303,490 1,992,772 Ecopetrol Global Energy S.L.U U.S. dollar 100 % Investment vehicle Spain Spain 9,320,715 (434,773) 9,321,078 363 Ecopetrol USA Inc. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 7,550,468 (294,497) 7,552,294 1,826 Ecopetrol Permian LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 3,566,413 (38,855) 3,590,934 24,521 Hocol Petroleum Limited U.S. dollar 100 % Investment vehicle Bermuda Bermuda 3,444,262 314,057 3,444,326 64 Oleoducto Central S. A. - Ocensa U.S. dollar 72.65 % Transportation by crude oil pipelines Colombia Colombia 3,012,894 2,528,350 6,277,969 3,265,075 Hocol S.A. U.S. dollar 100 % Exploration, exploitation and production of hydrocarbons Cayman Islands Colombia 2,376,723 300,828 3,877,096 1,500,373 Ecopetrol América LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 2,320,615 (353,806) 2,749,860 429,245 Esenttia S.A. U.S. dollar 100 % Production and commercialization of polypropylene resin Colombia Colombia 1,870,802 263,126 2,445,757 574,955 Ecopetrol Capital AG U.S. dollar 100 % Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. Switzerland Switzerland 1,872,129 176,999 7,482,055 5,609,926 Ecopetrol Oleo é Gas do Brasil Ltda. Brazilian real 100 % Exploration and exploitation of hydrocarbons Brazil Brazil 1,657,410 (95,164) 1,692,673 35,263 Oleoducto Bicentenario de Colombia S.A.S. Colombian peso 55.97 % Transportation by crude oil pipelines Colombia Colombia 1,621,598 214,482 3,577,534 1,955,936 Andean Chemicals Ltd. U.S. dollar 100 % Investment vehicle Bermuda Bermuda 1,268,047 (163,877) 1,268,327 280 Oleoducto de los Llanos Orientales S. A. - ODL Colombian peso 65 % Transportation by crude oil pipelines Panama Colombia 1,047,791 444,625 1,465,305 417,514 Black Gold Re Ltd. U.S. dollar 100 % Reinsurer for companies of the Ecopetrol Business Group Bermuda Bermuda 837,693 54,412 1,079,572 241,879 (*) Includes the effect of unrealized profits from transactions of companies in the transport and logistics segment. 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 Inversiones de Gases de Colombia S.A. Invercolsa S.A. y subsidiarias Colombian peso 51.88 % Holding with investments in natural gas and LPG transportation and distribution companies in Colombia Colombia Colombia 765,720 176,865 1,311,588 545,868 Oleoducto de Colombia S.A. - ODC Colombian peso 73 % Transportation by crude oil pipelines Colombia Colombia 411,180 353,424 640,292 229,112 Esenttia Masterbatch Ltda Colombian peso 100 % Manufacture of polypropylene compounds and masterbatches Colombia Colombia 322,511 166,911 401,404 78,893 ECP Hidrocarburos de México S.A. de C.V. U.S. dollar 100 % Offshore exploration Mexico Mexico 59,279 (44,010) 124,237 64,958 Ecopetrol del Perú S.A. U.S. dollar 100 % Exploration and exploitation of hydrocarbons Peru Peru 53,003 305 55,202 2,199 Bioenergy S.A.S. (1) Colombian peso 99.61 % Production of biofuels Colombia Colombia 26,508 (20,248) 194,257 167,749 Ecopetrol Costa Afuera S.A.S. Colombian peso 100 % Offshore exploration Colombia Colombia 13,356 1,148 32,017 18,661 Ecopetrol Energía S.A.S E.S.P. Colombian peso 100 % Energy supply service Colombia Colombia 12,661 5,256 72,859 60,198 Esenttia Resinas del Perú SAC U.S. dollar 100 % Commercialization polypropylene resins and masterbatches Peru Peru 6,275 1,319 39,833 33,558 Topili Servicios Administrativos S de RL de CV Mexican peso 100 % Specialized management services Mexico Mexico 16 (35) 20 4 Kalixpan Servicios Técnicos S de RL de CV Mexican peso 100 % Specialized services related to oil and gas industry Mexico Mexico 20 (31) 24 4 Bioenergy Zona Franca S.A.S. (1) Colombian peso 99.61 % Production of biofuels Colombia Colombia (92,416) (2,850) 361,769 454,185 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 Joint ventures Equion Energía Limited U.S. dollar 51 % Exploration, exploitation and production of hydrocarbons United Kingdom Colombia 2,499,319 167,727 2,630,351 131,032 Offshore International Group Inc. U.S. dollar 50 % Exploration, exploitation and production of hydrocarbons United States Peru 543,621 (237,752) 1,568,795 1,025,174 Ecodiesel Colombia S.A. (2) Colombian peso 50 % Production, commercialization and distribution of biofuels and oleochemicals Colombia Colombia 103,344 29,188 167,801 64,457 Associates Gases del Caribe S.A. E.S.P. Colombian peso 25.40 % Natural gas distribution and commercialization Colombia Colombia 489,367 278,329 2,132,231 1,642,864 Gas Natural del Oriente S.A. E.S.P. Colombian peso 17.91 % Natural gas distribution and commercialization Colombia Colombia 111,181 52,956 202,644 91,463 Gases de la Guajira S.A. E.S.P. Colombian peso 5.36 % Natural gas distribution and commercialization Colombia Colombia 55,265 18,128 170,937 115,672 Colombiana de Extrusión S.A. -Extrucol S.A. Colombian peso 18.16 % Production of pipes and accessories in polyethylene Colombia Colombia 39,620 7,493 66,110 26,490 E2 Energía Eficiente S. A. E.S.P. Colombian peso 9.92 % Energy services, supply, optimization, development, renewal and innovation of energy resources and infrastructure Colombia Colombia 28,802 4,062 93,736 64,934 Serviport S.A. (3) Colombian peso 49 % Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements Colombia Colombia 17,430 568 45,457 28,027 Sociedad Portuaria Olefinas y Derivados S.A. (2) Colombian peso 50 % Construction, use, maintenance and administration of port facilities, ports, private docks Colombia Colombia 4,432 562 8,196 3,764 (1) Companies in liquidation process. See Note 2.2 Basis for consolidation. (2) Information available as of November 30, 2020. (3) Information available as of September 30, 2020, The investment is 100% impaired. |
Exhibit 2. Conditions of the mo
Exhibit 2. Conditions of the most significant loans | 12 Months Ended |
Dec. 31, 2020 | |
Exhibit 2 - Conditions of the most significant debt | |
Exhibit 2 - Conditions of the most significant debt | Exhibit 2 – Conditions of the most significant debt Outstanding Outstanding balance balance Interest Amortization Payment of Type of debt Company Issue date Maturity date Currency Disbursement Dec 31, 2020 Dec 31, 2019 rate plan interest Dec-10 Dec-40 COP 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 Syndicated commercial loan, domestic currency Oleoducto Bicentenario S.A.S Jul-12 Jul-24 COP 2,100,000 800,450 999,950 Floating Quarterly Quarterly Syndicated commercial loan, domestic currency Oleoducto de los Llanos Orientales S.A. Aug -13 Aug-20 COP 800,000 — 96,000 Floating Quarterly Quarterly Nov-20 Aug-25 COP 110,000 110,000 — Floating Half-yearly Half-yearly Commercial loan Inversiones de Gases de Colombia S.A. Invercolsa S.A. and subsidiaries Aug-20 Aug-21 COP 50,000 43,000 — Floating Bullet Quarterly Sep-19 Jul-25 COP 70,912 21,681 70,912 Floating Half-yearly Half-yearly 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 Ecopetrol S.A. May-14 May-45 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly Bonds, foreign Sep-14 May-25 USD 1,200 1,200 1,200 Fixed Bullet Half-yearly currency 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 Apr-20 Apr-30 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly Oleoducto Central S.A. (1) May-14 May-21 USD 500 500 500 Fixed Bullet Half-yearly Jul-20 Jul-27 USD 500 500 500 Fixed Bullet Half-yearly Committed credit line Ecopetrol S.A. Apr-20 Sep-23 USD 665 665 — Floating Bullet Half-yearly Dec-17 Dec-27 USD 2,001 1,305 1,530 Fixed Half-yearly Half-yearly International Dec-17 Dec-27 USD 76 49 58 Floating Half-yearly Half-yearly commercial Ecopetrol S.A. Dec-17 Dec-27 USD 73 48 56 Fixed Half-yearly Half-yearly loans (2) Dec-17 Dec-27 USD 159 103 121 Floating Half-yearly Half-yearly Dec-17 Dec-25 USD 359 257 288 Floating Half-yearly Half-yearly (1) (2) |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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. Additionally, equity instruments are measured at fair value. 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 analysis. 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 previously accumulated in OCI are recognized in profit or loss when the hedged transaction affects the statement of profit or loss. 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 30.3 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 30.4 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 31 – 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 recognizes 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 contract, it recognizes 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 recognized 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 purchase transaction, 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 10 – 55 years Pipelines, networks and lines 10 – 40 years Buildings 10 – 42 years Other 3 – 35 years Lands are recognized 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 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/depletion 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 — Impairment of non-current assets and 4.12 — Impairment of non–current 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 related to research activities are expensed as incurred. |
Business combinations | 4.10 Business combinations The Group recognizes business combinations using the acquisition method. Identifiable assets acquired and liabilities assumed are initially measured at fair value on the acquisition date, subject to certain exceptions. On the acquisition date, the acquirer will separately recognize the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquiree, and any goodwill or bargain purchase resulting from the acquisition. The company that acted as buyer will recognize the goodwill generated as an asset on the acquisition date, measured as the difference between (i) the aggregate of the consideration transferred, the amount of any non-controlling interest and in a business combination achieved in stages the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree and (ii) the net amount on the acquisition date of the identifiable assets acquired and the liabilities assumed. 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, which cannot be reversed in subsequent periods according to IAS 36. Goodwill is not amortized but tested for impairment annually. The acquirer will identify the acquisition date as the date on which control of the acquiree is obtained. The measurement period is the period after the acquisition date during which the acquirer can adjust the provisional amounts recognized in a business combination. The measurement period cannot exceed one year from the acquisition date. During 2019 and 2020 the Group recognized transactions as business combinations (Note 12). |
Leases | 4.11 Leases As of January 1, 2019, the Ecopetrol Business Group adopted IFRS 16, “Leases” (“IFRS 16”) applying the modified retrospective scope. At the beginning of a contract, the Business Group assesses whether a contract is, or contains, a lease. This situation arises if the contract transfers the right to control the use of an identified asset for a period of time in exchange for a consideration. To assess whether a contract conveys the right to control an identified asset, the regulations of IFRS 16 are used. Ecopetrol Business Group as a lessee On the commencement date of the lease, 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. In subsequent recognition, Ecopetrol business Group makes a remeasurement of the lease obligation upon the occurrence of events such as: a) changes in the lease term, b) changes in future lease payments resulting from variations in an index or in the rate used for determine the payments. The amount of the remeasurement of the obligation will be recognized as an adjustment to the asset for the right of use. 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 recognized in the statement of profit or loss on a straight-line basis over the lease terms. 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 recognized, 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 recognized 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). 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. If it is the JOA who controls, it is analyzed whether the contract meets the characteristics of a sublease, and in that case each party must recognize the right of use in proportion to their participation. |
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 in previous periods. 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 risk-free rate adjusted by a premium that reflects the risk and the company credit rating under the current market conditions. 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 22 – 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 hydrocarbons 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 and petrochemicals, 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 the case of the companies that distribute natural gas and LPG, the revenue from the services are recognized when the service is provided to the customer. 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 and a receivable or payable account 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. Additionally, this segment includes distribution of natural gas and LPG activities performed by Invercolsa Group. 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 33. |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting policies | |
Schedule of depreciation and amortisation expense | Plant and equipment 10 – 55 years Pipelines, networks and lines 10 – 40 years Buildings 10 – 42 years Other 3 – 35 years |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
IFRS Statement [Line Items] | |
Schedule of Cash and cash equivalents | 2020 2019 Banks 4,215,518 5,813,306 Short–term investments (1) 866,606 1,262,105 Cash 184 347 5,082,308 7,075,758 (1) |
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 2020 2019 AAA 2,578,090 3,851,656 F1+ 1,286,310 244,547 A-1 851,394 1,244,462 F1 207,773 — BRC1+ 99,923 673,342 AAAf 28,552 — F3 12,184 — A 4,319 167,404 BRC1 2,336 — AAAmmf 2,162 — Aaa 1,431 — AA 546 229,473 BBB 121 569,514 AA- 22 — A-2 — 89,996 BB — 43 Baa2 — 10 Other 7,145 5,311 5,082,308 7,075,758 |
Trade and other receivables, _2
Trade and other receivables, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables, net | |
Schedule of trade and other receivables, net | 2020 2019 Current Customers Foreign 2,021,070 2,759,993 Domestic 1,913,106 2,015,517 Fuel price stabilization fund (1) 319,927 256,303 Related parties (Note 31) 105,048 27,449 Accounts receivable from employees 97,723 95,693 Industrial services 39,651 47,691 Other (2) 322,567 497,688 4,819,092 5,700,334 Non–current Accounts receivable from employees 474,693 508,588 Domestic customers 51,955 52,819 Related parties (Note 31) — 93,657 Other (2) 149,959 131,732 676,607 786,796 (1) (2) |
Schedule of changes in the allowance for doubtful accounts | The changes in the allowance for doubtful accounts for the year ended December 31, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Opening balance 282,791 268,654 170,016 Additions, net 16,253 14,158 107,725 Effect of change of control in subsidiaries (Note 28) (5,517) — — Accounts receivable write–off and uses (2,383) (21) (9,087) Closing balance 291,144 282,791 268,654 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories, net | |
Schedule of inventories, net | 2020 2019 Crude oil 1,719,426 1,965,022 Fuels and petrochemicals 1,407,297 1,876,247 Materials for the production of goods 1,927,237 1,816,830 5,053,960 5,658,099 |
Schedule of changes of the allowances for losses | 2020 2019 2018 Opening balance (131,526) (86,938) (194,507) (Additions) reversals, net (9,748) (44,191) 115,778 Foreign currency translation (122) 371 (9,717) Effect of change of control in subsidiaries (Note 28) 20,075 - - Uses, transfers and reclassifications (1) 11,772 (768) 1,508 Closing balance (109,549) (131,526) (86,938) (1) It mainly includes the update of the provision in joint operations. |
Other financial assets (Tables)
Other financial assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other financial assets [Line Items] | |
Schedule of other financial assets | 2020 2019 Assets measured at fair value through profit or loss Investment Portfolio – Local currency 474,535 1,630,149 Investment Portfolio – Foreign currency 2,494,124 3,340,908 2,968,659 4,971,057 Assets measured at fair value through other comprehensive income 732 - Assets measured at amortized cost 3,391 3,367 Hedging instruments 98,877 4,868 3,071,659 4,979,292 Current 2,194,651 1,624,018 Non–current 877,008 3,355,274 3,071,659 4,979,292 |
Schedule of maturities of other financial assets | 2020 2019 Up to 1 year 2,194,651 1,624,018 1 – 2 years 101,216 983,571 2 – 5 years 573,420 1,791,549 > 5 years 202,372 580,154 3,071,659 4,979,292 |
Schedule of fair value hierarchy level | The following is the balance of other financial assets by fair value hierarchy level as of December 31, 2020 and 2019: 2020 2019 Level 1 5,273 472,547 Level 2 3,062,995 4,503,378 3,068,268 4,975,925 |
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: 2020 2019 A-1 1,107,777 — BBB- 758,472 — F1+ 551,626 350,325 AAA 353,939 2,707,019 A-3 127,861 — A+ 60,692 712,934 F1 43,839 — AA- 21,263 186,325 A 21,179 186,222 AA 7,759 477,423 AA+ 5,332 155,012 A1 — 18,168 BBB — 159,968 Rating not available 876 — Other 11,044 25,896 3,071,659 4,979,292 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes | |
Schedule of current tax assets and tax liabilities and movementos of deferred income tax | 2020 2019 Current tax assets Income tax (1) 1,823,027 190,605 Credit tax balance (2) 1,311,693 614,005 Other taxes (3) 841,575 714,197 3,976,295 1,518,807 Non-current tax assets Deferred tax assets 7,673,912 6,809,347 Income tax credits (4) 397,821 — 8,071,733 6,809,347 Current tax liabilities Income tax payable (5) 811,197 1,967,353 Industry and commerce tax 161,813 195,776 National tax and surcharge on gasoline 137,710 145,569 Carbon tax 64,091 54,586 Value added tax 5,607 33,098 Other taxes (6) 63,465 174,397 1,243,883 2,570,779 Non-current tax liabilities Deferred tax liabilities Income tax payable (7) (1) Given the payment for self-withholdings during the year, credit for foreign tax paid, credit for 50% of the industry and commerce paid, and VAT credit for acquisition of real productive fixed assets, a favorable balance is generated for the term. (2) Corresponds mainly to the Ecopetrol´s value added tax (VAT) and industry and commerce tax in favour. (3) Includes the VAT credit derived from the acquisition of real productive fixed assets, following Article 95 of Law 2010 of 2019 and municipal advance payments and self-withholdings. (4) Corresponds to the effective VAT credit paid on the acquisition of real productive fixed assets, which, given the limitations established by law, will be used in future income tax returns. (5) In addition to the income tax recognized as a current liability, it includes the short-term portion of the liability of “works for taxes” related to Ecopetrol and Cenit, the income tax payment mechanism for 2017, established in Law 1819 of 2016 for COP$94,185 and COP$39,379 respectively. (6) It mainly includes royalties, transport tax among others. (7) 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, 2018 and 2019. In compliance therewith, in May 2018, 2019 and 2020, 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 expense | 2020 2019 2018 Current income tax (1) 2,861,606 7,117,040 7,539,093 Deferred income tax (2) (791,824) (2,365,108) 783,136 Adjustments to prior years’ current and deferred tax (31,121) (33,519) (63,744) Income tax expenses 2,038,661 4,718,413 8,258,485 (1) (2) |
Schedule of Reconciliation of the income tax expenses | The reconciliation between the income tax expense and the current tax applicable to the Ecopetrol Business Group in Colombia is as follows: 2020 2019 2018 Net income before income tax 4,776,514 19,723,568 20,613,875 Statutory rate 32.0 % 33.0 % 37.0 % Income tax at statutory rate 1,528,484 6,508,777 7,627,134 Effective tax rate reconciliation items: Non–deductible expenses 289,043 295,550 379,633 Reversal of deferred tax recognized in prior years 245,508 — — Rate differential adjustment 14,974 132,888 172,352 Impairment of non–current assets — 57,646 (128,461) Variation in equity accounting method in Invercolsa 7,002 (2,943) — Non–taxable income (1) (35,471) (524,658) (119,963) Prior years’ taxes (2) (50,159) (33,519) (63,744) Foreign currency translation and exchange difference 59,852 (54,319) 751,210 Tax discounts and tax credit (20,572) (110,857) — Ecopetrol U.S.A. adjustment income tax (3) — (1,550,152) — Effect of tax reform — — (359,676) Income tax calculated 2,038,661 4,718,413 8,258,485 Effective tax rate 42.7 % 23.9 % 40.1 % Current 2,583,832 7,127,492 7,416,038 Deferred (4) (545,171) (2,409,079) 842,447 2,038,661 4,718,413 8,258,485 (1) It includes mainly the non-taxable dividends. (2) It includes the update effect of 2020 deferred tax compared to 2019 for COP$19,038. (3) In 2019, two companies, Ecopetrol USA Inc. and Ecopetrol Permian, were incorporated e 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. 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. The International Accounting Standard - IAS 12 establishes when a company has strong evidence that will allow it to offset the tax losses, it is possible to calculate a deferred tax asset. Additionally, the tax projections with the entry into operation of Ecopetrol Permian, allow to infer that it will generate enough income to recover the losses of previous years, therefore the recognition of deferred tax asset is feasible. (4) Includes COP$383,346 that corresponds to deferred tax liability of Guajira association (Note 12). |
Schedule of deferred tax | 2020 2019 Deferred tax assets 7,673,912 6,809,347 Deferred tax liabilities (1,639,206) (1,328,831) Net deferred income tax 6,034,706 5,480,516 |
Schedule of deferred income tax assets and liabilities | The detail of deferred tax assets and liabilities is as follows: 2020 2019 Deferred tax assets (liabilities) Loss carry forwards (1) 4,478,606 2,550,816 Provisions (2) 3,187,850 2,404,032 Employee benefits (3) 1,874,242 1,875,872 Accounts payable (4) (10,626) 711,503 Loans and borrowings 846,019 920,203 Accounts receivable 183,843 139,410 Excess presumptive income 61,722 298,273 Other 47,269 (15,189) Goodwill (5) (366,346) (363,968) Property plant and equipment and Natural and environmental resources (6) (4,267,873) (3,040,436) 6,034,706 5,480,516 (1) In 2020, a deferred tax asset for tax losses carryforwards was recognized in the following companies: Ecopetrol USA Inc. (COP$1,663,411), Refinería de Cartagena (COP$1,601,570) and Ecopetrol S.A. (COP$1,189,973). (2) Corresponds to non-deductible accounting provisions, mainly the asset retirement obligation (ARO) provision. (3) Actuarial calculations for health, pensions and bonds, education and other long-term benefits to employees. (4) The variation corresponds to the change in the methodology for the deferred tax in the estimated liabilities. (5) According to Colombian tax law, goodwill is subject to amortization, while under IFRS it is not amortized but such goodwill is subject to impairment tests, and any difference results in a deferred tax liability. (6) For tax 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 the capital gains of 10% tax rate applicable to the lands. The main variation is related to the income tax rate variation from 31% to 30%. |
Schedule of deferred tax | Deferred tax details are as follows: Loss Excess carry Accounts Loans and presumptive forwards Provisions Employee benefits payable borrowings income As of December 31, 2018 1,002,062 1,994,762 1,161,860 365,646 827,452 (37,638) Profit or loss 1,548,754 409,270 (57,343) 345,857 92,751 335,911 OCI — — 771,355 — — — As of December 31, 2019 2,550,816 2,404,032 1,875,872 711,503 920,203 298,273 Profit or loss 1,927,790 783,818 39,608 (722,129) (74,184) (236,551) Increase due to business combinations (Guajira association) — — — — — — OCI — — (41,238) — — — As of December 31, 2020 4,478,606 3,187,850 1,874,242 (10,626) 846,019 61,722 PPE and Natural Accounts resources Goodwill receivable Others Total As of December 31, 2018 (2,304,140) (404,394) 79,591 (143,717) 2,541,484 Profit or loss (736,296) 40,426 59,819 341,053 2,380,202 OCI — — — (114,520) 656,835 Increase in shareholding in Invercolsa — — — (98,005) (98,005) As of December 31. 2019 (3,040,436) (363,968) 139,410 (15,189) 5,480,516 Profit or loss (844,091) (2,378) 44,433 (68,306) 848,010 Increase due to business combinations (Guajira association – Note 12) (383,346) — — — (383,346) OCI — — — 130,764 89,526 As of December 31, 2020 (4,267,873) (366,346) 183,843 47,269 6,034,706 |
Schedule of movements of deferred income tax | 2020 2019 2018 Opening balance 5,480,516 2,541,484 2,682,881 Deferred tax recognized in profit or loss 928,517 2,409,079 (842,447) Increase due to business combination (383,346) (98,005) — Deferred tax recognized in other comprehensive income (a) 89,526 656,835 666,767 Foreign currency translation (80,507) (28,877) 34,283 Closing balance 6,034,706 5,480,516 2,541,484 (a) The following is the detail of the income tax recorded in other comprehensive income: |
Schedule of income tax recorded in other comprehensive income | December 31. 2020 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) (137,459) 41,238 (96,221) Cash flow hedging for future crude oil exports (Note 30.3) (1,186) 1,908 722 Hedge of a net investment in a foreign operation (Note 30.4) 520,490 (156,147) 364,343 Hedge with derivative instruments (78,547) 23,475 (55,072) 303,298 (89,526) 213,772 December 31. 2019 Pre–tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) 2,571,184 (771,355) 1,799,829 Cash flow hedging for future crude oil exports (Note 30.3) (356,339) 118,008 (238,331) Hedge of a net investment in a foreign operation (Note 30.4) 87,524 (26,257) 61,267 Hedge with derivatives instruments (69,220) 22,769 (46,451) 2,233,149 (656,835) 1,576,314 December 31. 2018 Pre-tax Deferred tax After tax Actuarial valuation gains (losses) (Note 22.1) (29,249) 33,539 4,290 Cash flow hedging for future crude oil exports (Note 30.3) 797,658 (264,284) 533,374 Hedge of a net investment in a foreign operation (Note 30.4) 1,382,278 (410,324) 971,954 Hedge with derivatives instruments 77,872 (25,698) 52,174 2,228,559 (666,767) 1,561,792 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Schedule of other assets | 2020 2019 Current Partners in joint operations (1) 534,145 921,983 Advanced payments to contractors and suppliers 503,698 360,781 Prepaid expenses 369,979 272,007 Trust funds (2) 218,158 144,798 Related parties (Note 31) 7,093 57,016 Other assets 30,963 22,393 1,664,036 1,778,978 Non–current Abandonment and pension funds (3) 405,376 445,457 Trust funds (4) 338,067 171,008 Employee benefits 221,658 220,998 Advanced payments and deposits 54,392 56,027 Judicial deposits and attachments 42,672 40,317 Other assets 27,949 8,674 1,090,114 942,481 (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) It mainly includes the deposits related to Guajira Association's abandonment fund. (3) Mainly 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. (4) Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2019 and 2020, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business combinations | |
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 acquisition date: Ecopetrol Hocol Total Assets Accounts receivable — 19,545 19,545 Property, plant and equipment 829,121 361,426 1,190,547 Natural resources 615,642 214,852 830,494 Right-of-use asset — 206 206 Other assets (1) 113,107 145,660 258,767 1,557,870 741,689 2,299,559 Liabilities Accounts payable (585) (20,342) (20,927) Deferred tax (383,346) (38,611) (421,957) Provisions (37,798) (34,234) (72,032) Other liabilities (2) (34,455) (102,487) (136,942) (456,184) (195,674) (651,858) Fair value of net assets 1,101,686 546,015 1,647,701 |
Summary of effect on operating results | The effect on operating results as of December 31, 2020 is summarized below: Ecopetrol Hocol Total Fair value of the net assets 1,101,686 546,015 1,647,701 Book value of net assets (200,660) — (200,660) Consideration paid — (454,630) (454,630) Foreign currency translation — (5,359) (5,359) (=) Net profit from the acquisition 901,026 86,026 987,052 Recognized in: Property, plant and equipment (Note 14) 720,670 361,426 1,082,096 Natural and environmental resources (Note 15) 563,546 214,852 778,398 Intangibles (Note 17) 156 — 156 Accounts receivable — 19,545 19,545 Right-of-use asset — 206 206 Other assets — 145,660 145,660 Accounts payable — (20,342) (20,342) Deferred tax — (38,611) (38,611) Provisions — (34,234) (34,234) Other liabilities — (102,487) (102,487) Consideration paid — (454,630) (454,630) Foreign currency translation — (5,359) (5,359) Subtotal 1,284,372 86,026 1,370,398 Profit on acquisition before deferred tax (Note 28) 1,284,372 86,026 1,370,398 (-) Deferred tax expense (Note 10) (383,346) — (383,346) Net profit from the acquisition after deferred tax 901,026 86,026 987,052 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in associates and joint ventures | |
Schedule of investment entities | 2020 2019 Investment in joint ventures Equion Energía Limited 1,642,735 1,515,067 Offshore International Group 613,258 709,871 Ecodiesel Colombia S.A. 51,672 46,095 2,307,665 2,271,033 Less impairment: Equion Energía Limited (314,460) (322,388) Offshore International Group (1) (609,826) (530,330) 1,383,379 1,418,315 Investments in associates Gases del Caribe S.A. E.S.P. 1,512,629 1,527,911 Gas Natural del Oriente S.A. E.S.P. 143,893 166,685 Gases de la Guajira S.A. E.S.P. 69,518 68,608 E2 Energía Eficiente S.A. E.S.P. 35,614 28,501 Extrucol S.A. 26,996 32,847 Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. 8,541 11,070 Sociedad Portuaria Olefinas y Derivados 2,599 2,205 1,799,790 1,837,827 Less impairment: Serviport S.A. (8,541) (11,070) 1,791,249 1,826,757 3,174,628 3,245,072 (1) The movement includes COP$2,527 related to foreign currency translation, recognized in Equity. |
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, 2020: Associates Joint ventures Total Opening balance 1,826,757 1,418,315 3,245,072 Effects of equity method through: Profit or loss 114,779 (38,443) 76,336 Other comprehensive income (2,923) — (2,923) Dividends declared (1) (148,665) (9,017) (157,682) Impairment reversal (loss) (Note 18) 2,529 (69,041) (66,512) Foreign currency translation (1,228) 81,565 80,337 Closing balance 1,791,249 1,383,379 3,174,628 (1) 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 18) 142 (318,962) (318,820) Foreign currency translation and other movements (1) 1,723,080 (120,102) 1,602,978 Closing balance 1,826,757 1,418,315 3,245,072 (1) Invercolsa S.A. became a subsidiary as of November 29, 2019, 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. 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 (loss) reversal (Note 18) (1,308) 302,136 300,828 Closing balance 244,662 1,599,674 1,844,336 |
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 Energía Limited and the Offshore International Group, as of December 31, 2020 and 2019: 2020 2019 Offshore Offshore Equion Energía International Equion Energía International Limited Group Limited Group Statement of financial position Current assets 2,616,813 266,240 2,530,453 284,591 Non–current assets 13,538 1,302,555 95,384 1,481,680 Total assets 2,630,351 1,568,795 2,625,837 1,766,271 Current liabilities 81,259 154,086 315,002 310,561 Non–current liabilities 49,773 871,089 76,768 718,863 Total liabilities 131,032 1,025,175 391,770 1,029,424 Equity 2,499,319 543,620 2,234,067 736,847 Other complementary information Cash and cash equivalents 36,601 110,622 188,820 48,752 2020 2019 2018 Equion Offshore Equion Offshore Equion Offshore Energía International Energía International Energía International Limited Group Limited Group Limited Group Statement of profit or loss Sales revenue 257,066 325,812 1,285,891 529,167 1,490,177 653,054 Costs (127,672) (364,750) (671,179) (690,484) (755,656) (585,192) Other operating income (expenses), net 60,852 (234,597) (624) (64,115) 29,136 (353,010) Financial (expenses) income (1,090) (24,034) (3,660) (31,288) (3,659) (21,227) Income tax (45,137) 59,818 (214,048) 208,473 (338,487) (16,594) Financial year results 144,019 (237,751) 396,380 (48,247) 421,511 (322,969) Other comprehensive results 1,223,990 — 1,102,757 — 1,095,090 — Other complementary information Depreciation and amortization 41,536 205,243 404,482 226,654 511,615 243,601 |
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: 2020 2019 Equion Offshore Equion Offshore Energía International Energía International Limited Group Limited Group Equity of the joint venture 2,499,319 543,620 2,234,067 736,847 % of Ecopetrol’s ownership 51 % 50 % 51 % 50 % Ecopetrol’s ownership 1,274,654 271,811 1,139,374 368,424 Additional value of the investment 375,693 341,447 375,693 341,447 Impairment (314,460) (609,826) (322,388) (530,330) Unrealized gain (7,612) — — — Carrying amount of the investment 1,328,275 3,432 1,192,679 179,541 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Schedule of plant and equipment and depreciation and impairment | 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, 2019 47,995,471 36,370,647 6,259,654 8,157,945 4,054,538 2,660,232 105,498,487 Additions/capitalizations (1) 1,625,316 1,179,602 1,573,469 390,731 18,705 244,494 5,032,317 Increase in abandonment costs (Note 23) 181,318 15,035 — 3,885 — 3,126 203,364 Capitalized financial interests (2) 42,052 31,511 38,756 14,965 753 8,324 136,361 Exchange differences capitalized 1,338 1,002 1,233 476 24 265 4,338 Disposals (491,677) (84,184) (79,077) (16,390) (10,155) (85,785) (767,268) Effect of control loss in subsidiaries (3) (298,570) (592,885) (775) (266,526) (60,341) (144,189) (1,363,286) Adjustment on fair value for business combination (Note 12) 547,965 44,538 — 54,413 — 73,754 720,670 Foreign currency translation 1,336,351 478,103 19,804 59,107 73,181 29,876 1,996,422 Transfers (4) 149,217 (301,675) (298,836) 13,863 36,121 (97,636) (498,946) Balance as of December 31, 2020 51,088,781 37,141,694 7,514,228 8,412,469 4,112,826 2,692,461 110,962,459 Accumulated depreciation and impairment losses 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) Depreciation expense (2,296,176) (1,634,545) — (341,052) — (113,207) (4,384,980) Reversal (loss) of an impairment (Note 18) (368,754) 329,743 (327,751) (18,074) 8,799 (8,601) (384,638) Disposals 443,259 75,150 3,492 14,279 11 82,310 618,501 Effect of control loss in subsidiaries (3) 266,825 403,095 262 221,708 30,669 108,081 1,030,640 Foreign currency translation (306,506) (155,927) 959 (13,707) 3,403 (9,738) (481,516) Transfers/reclassifications 40,125 59,570 413,948 (35,624) (40,748) (5,734) 431,537 Balance as of December 31, 2020 (21,256,869) (17,558,024) (1,023,456) (3,628,724) (908,500) (44,454,121) 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 Net balance as of December 31, 2020 29,831,912 19,583,670 6,490,772 4,783,745 4,034,278 1,783,961 66,508,338 (1) Includes capitalizations for the acquisition of Guajira association by Hocol for a value of COP$361,426 (See Note 12). (2) Financial interests are capitalized based on the weighted average rate of borrowing costs. See Note 20 - Loans and borrowings. (3) See effects of control loss in subsidiaries in Note 28. 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 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 18) 519,835 (113,860) (626,878) (87,338) (35,533) (29,349) (373,123) 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) 15,229 (55,766) 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 20 - Loans and borrowings. |
Natural and environmental res_2
Natural and environmental resources (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2019 59,822,566 5,036,884 8,362,719 73,222,169 Additions/capitalizations (1) 3,659,270 123,446 2,211,746 5,994,462 Increase in abandonment costs (Note 23) — 2,075,992 28,097 2,104,089 Disposals (1,806) 260 (223,805) (225,351) Withdrawal of exploratory assets and dry wells (2) — — (448,132) (448,132) Capitalized financial interests 111,140 — — 111,140 Exchange differences capitalized 3,535 — — 3,535 Adjustment at fair value for business combinations (Note 12) 563,546 — — 563,546 Foreign currency translation 440,978 23,353 (138,809) 325,522 Transfers 768,049 (28,084) (923,922) (183,957) Balance as of December 31, 2020 65,367,278 7,231,851 8,867,894 81,467,023 Accumulated amortization and impairment losses Balance as of December 31, 2019 (41,993,097) (2,156,274) — (44,149,371) Depletion expense (3,810,349) (831,909) — (4,642,258) Reversal (loss) of impairment (Note 18) 116,403 — (334,112) (217,709) Disposals 213 (40) 93,975 94,148 Foreign currency translation (310,894) (14,546) — (325,440) Transfers (108,423) 21,320 (205,131) (292,234) Balance as of December 31, 2020 (46,106,147) (2,981,449) (49,532,864) Net balance as of December 31, 2019 17,829,469 2,880,610 8,362,719 29,072,798 Net balance as of December 31, 2020 19,261,131 4,250,402 8,422,626 31,934,159 (1) Includes capitalizations for the acquisition of Guajira association by Hocol for a value of COP$214,852 (See Note 12). (2) Includes dry wells: 1) Ecopetrol: Nafta 1, Caronte, Alqamari, Boranda Sur and Coyote; 2) Hocol: Obiwan and 3) Ecopetrol Brasil: a well of Saturno. Additionally, exploration costs of Ecopetrol America are included. 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 18) (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 20 - Loans and borrowings. |
Schedule ofdetailed information about classification by age from completion date of suspended exploaratory wells | 2020 2019 2018 Between 1 and 3 years (a) — 361,700 496,871 Between 3 and 5 years (b) 319,368 132,021 375,371 More than 5 years (c) 589,604 441,389 273,764 Total suspended exploratory wells 908,972 935,110 1,146,006 Number of projects exceeding 1 year 16 30 24 Wells under 1 year of suspension — — 9,511 (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. (b) For 2020, the balance corresponds mainly to wells of Ecopetrol: Purple Angel and Gorgon. 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, Luna-1 and Gala 1K, which are under evaluation; and ii) Offshore International Group, temporarily abandoned for future production plans. |
Right of use assets (Tables)
Right of use assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Right-of-use assets | |
Disclosure of Movement of Right of Use Assets [Table Text Block] | Lands and Plant and Right-of-use Lease buildings equipment Vehicles assets Subleases liabilities Balance as of December 31, 2019 218,513 97,264 140,448 456,225 29,436 1,290,954 Additions 41,303 14,618 32,582 88,503 — 88,503 Amortization of the period (52,200) (29,038) (98,726) (179,964) — — Remeasurements (41,907) 33,686 69,255 61,034 — 76,799 Impairment loss 312 29,718 5,844 35,874 — — Disposals (13,343) (4,321) — (17,664) — (28,916) Effect of control loss in subsidiaries (61,044) (7,432) — (68,476) (29,436) (102,671) Finance cost — — — — — 64,988 Repayment of borrowings and interests — — — — — (350,539) Exchange difference 1,838 (556) 1,072 2,354 — 16,080 Balance as of December 31, 2020 93,472 133,939 150,475 377,886 — 1,055,198 (1) See effects of control loss in subsidiaries in Note 28. Lands and Plant and Right-of-use Lease buildings equipment Vehicles assets Subleases liabilities Balance as of December 31, 2018 — — — — — 797,889 IFRS 16 implementation (January 1st) 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 (43,759) (66,831) (64,764) (175,354) — — Impairment loss (Note 18) (495) (37,601) (15,392) (53,488) — — Disposals (4) (57) — (61) — (50) Finance cost — — — — 3,302 76,139 Repayment of borrowings and interests — — — — (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 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Licenses and Other software intangibles Total Cost Balance as of December 31, 2019 994,599 285,247 1,279,846 Acquisitions 43,817 46,265 90,082 Foreign currency translation 12,569 5,072 17,641 Effect of control loss in subsidiaries (Note 28) (10,584) — (10,584) Disposals (5,430) — (5,430) Adjustment on fair value for business combination (Note 12) 156 — 156 Transfers 30,892 64,174 95,066 Balance as of December 31, 2020 1,066,019 400,758 1,466,777 Accumulated amortization Balance as of December 31, 2019 (692,217) (104,531) (796,748) Amortization of the period (93,907) (23,429) (117,336) Recovery -losses for impairment (Note 18) (176) 5 (171) Disposals 5,558 11 5,569 Effect of control loss in subsidiaries (Note 28) 9,877 — 9,877 Foreign currency translation (8,689) (65) (8,754) Transfers (2,116) (2,055) (4,171) Balance as of December 31, 2020 (781,670) (130,064) (911,734) Net balance as of December 31, 2019 302,382 180,716 483,098 Net balance as of December 31, 2020 284,349 270,694 555,043 Useful life <5 years <7 years Licenses and Other software intangibles 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 (Note 18) 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 |
Impairment of non-current ass_2
Impairment of non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 or reversals for the years ended on December 31, 2020, 2019 and 2018: Impairment (loss) reversal by segment 2020 2019 2018 Exploration and Production (192,693) (1,982,044) 785,940 Refining and Petrochemicals (781,528) 452,163 (984,704) Transport and Logistics 341,065 (232,556) (169,870) (633,156) (1,762,437) (368,634) Recognized in: Property, plant and equipment (Note 14) (384,638) (373,123) (1,083,285) Natural resources (Note 15) (217,709) (1,017,061) 414,102 Investment in joint ventures and associates (Note 13) (66,512) (318,820) 300,828 Right of use assets (Note 16) 35,874 (53,488) — Intangibles (Note 17) (171) 55 (279) (633,156) (1,762,437) (368,634) |
Schedule of Refining and Petrochemical Segment | The following is the Cash Generating Units impairment or reversals in the refining and petrochemical segment for the years ended December 31, 2020, 2019 and 2018: 2020 Carrying Recoverable Impairment Cash–generating units amount amount loss Refinería de Cartagena 24,041,174 23,600,649 (440,525) Invercolsa S.A. 276 273 (3) Refinería de Barrancabermeja (projects) 676,334 335,334 (341,000) (781,528) 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 Cash–generating units amount amount loss Refinería de Cartagena 23,411,058 22,640,761 (770,297) Bioenergy 774,343 560,882 (213,461) Other 946 — (946) (984,704) |
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, 2020, 2019 and 2018: 2020 Carrying Recoverable Impairment (loss) Cash generating units amount amount reversal Oil fields in Colombia Reversal 24,845,238 61,224,928 1,019,395 Loss 2,439,799 1,423,561 (1,016,238) Fields operated abroad Loss 1,277,609 1,150,800 (126,809) (123,652) 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 — (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 |
Investment in joint ventures [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: 2020 2019 2018 Equion Energía Limited 7,928 (134,753) 108,791 Offshore International Group (76,969) (184,209) 193,345 (69,041) (318,962) 302,136 |
Exploration and Production [Member] | |
Impairment of non-current assets [Line Items] | |
Schedule of breakdown of oilfields impairment losses or reversals | The impairment reversal of assets of the Exploration and Production segment for the years ended December 31 of 2020, 2019 and 2018 is the following: 2020 2019 2018 Oilfields (123,652) (1,663,082) 483,803 Investment in joint ventures (69,041) (318,962) 302,136 Other — — 1 (192,693) (1,982,044) 785,940 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill | |
Schedule of goodwill in acquisitions of subsidiaries | 2020 2019 Oleoducto Central S.A. 683,496 683,496 Hocol Petroleum Ltd. 537,598 537,598 Invercolsa S.A. (1) 434,357 — Andean Chemical Ltd 127,812 127,812 Propilco S.A. 108,137 108,137 1,891,400 1,457,043 Less impairment Hocol Petroleum Ltd. (297,121) (297,121) 1,594,279 1,159,922 (1) |
Loans and borrowings (Tables)
Loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of loans and borrowings | |
Schedule of Composition of loans and borrowings | 20.1 Composition of loans and borrowings Weighted average effective interest rate as of December 31 2020 2019 2020 2019 Local currency Bonds 6.4 % 8.7 % 1,084,461 1,567,598 Syndicated loan 5.6 % 8.0 % 811,079 1,115,874 Lease liabilities (1) 6.6 % 7.2 % 836,489 1,039,303 Commercial loan 6.3 % 8.3 % 312,408 737,032 3,044,437 4,459,807 Foreign currency Bonds (2) 6.0 % 5.9 % 33,944,548 25,832,740 Commercial loan (3) 3.6 % 4.1 % 8,247,014 6,586,538 Loans from related parties (Note 31) 0.8 % 2.4 % 1,277,046 1,108,403 Lease liabilities (1) 6.1 % 6.2 % 218,709 251,651 43,687,317 33,779,332 46,731,754 38,239,139 Current 4,923,346 5,012,173 Non–current 41,808,408 33,226,966 46,731,754 38,239,139 (1) Corresponds 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 - Leases. (2) On April 29, 2020, Ecopetrol issued and placed external public debt bonds for an amount of USD$2,000 million, with a 10-year term and a coupon rate of 6.875%. (3) Includes contingent credit line for USD$665 million with international banking (Scotiabank and Mizuho Bank). |
Schedule of Maturity of loans and borrowings | 20.3 Maturity of loans and borrowings The following are the maturities of loans and borrowing as of December 31, 2020: Up to 1 year (1) 1 – 5 years 5-10 years > 10 years Total Local currency Bonds 65,829 354,081 370,900 293,651 1,084,461 Syndicated loan 242,660 568,419 — — 811,079 Financial leasing 167,059 418,938 211,233 39,259 836,489 Other 106,410 205,998 — — 312,408 581,958 1,547,436 582,133 332,910 3,044,437 Foreign currency Bonds 1,905,325 14,692,852 12,109,859 5,236,512 33,944,548 Commercial loans 1,098,593 6,563,863 584,558 — 8,247,014 Loans from related parties 1,277,046 — — — 1,277,046 Financial leasing 60,424 149,381 8,904 — 218,709 4,341,388 21,406,096 12,703,321 5,236,512 43,687,317 4,923,346 22,953,532 13,285,454 5,569,422 46,731,754 (1) 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 (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 | 20.4 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, 2020 and 2019: 2020 2019 Local currency Fixed rate 523,870 598,802 Floating rate 2,520,567 3,861,005 3,044,437 4,459,807 Foreign currency Fixed rate 38,706,328 31,087,439 Floating rate 4,980,989 2,691,893 43,687,317 33,779,332 46,731,754 38,239,139 |
Schedule of Movement of net financial debt | The following is the movement of net financial debt as of December 31, 2020, 2019 and 2018: Cash and Other financial Loans and Net financial equivalents assets borrowings debt 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 (1) — (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) Cash flow (1,971,156) (2,107,856) (6,105,296) (10,184,308) Exchange difference: Recognized in profit or loss (22,294) 38,701 747,744 764,151 Recognized in other comprehensive income — — (722,458) (722,458) Financial cost registered to projects — — (255,372) (255,372) Financial income (expense) recognized in profit or loss — 43,948 (2,386,537) (2,342,589) Foreign currency translation — 42,529 (175,885) (133,356) Effect of loss of control in subordinates — — 528,981 528,981 Other movements that do not generate cash flow — 75,045 (123,792) (48,747) Balance as of December 31, 2020 5,082,308 3,071,659 (46,731,754) (38,577,787) (1) |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables | |
Schedule of trade and other payables | 2020 2019 Suppliers 6,491,909 8,115,015 Partners’ advances 497,898 925,761 Withholding tax 462,429 673,204 Insurance and reinsurance 240,803 136,041 Dividends payable (1) 223,571 157,181 Deposits received from third parties 85,545 44,826 Related parties (Note 31) 72,316 187,616 Agreements in transport contracts (2) 37,941 71,239 Hedging operations 6,405 — Various creditors 351,288 402,808 8,470,105 10,713,691 Current 8,449,041 10,689,246 Non - current 21,064 24,445 8,470,105 10,713,691 (1) During 2020, the Group paid dividends to its shareholders in the amount of COP$8,734,351 (2019 - COP$13,867,029 and 2018 - COP$4,427,701) net of withholdings when applicable. (2) Corresponds to the value of the debt for agreements in the pipelines transportation contracts, calculated in the volumetric compensation for quality and other inventory management agreements. |
Provisions for employees' ben_2
Provisions for employees' benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions for employees' benefits | |
Schedule of provision balances for employee benefits | 2020 2019 Post–employment benefits Healthcare 7,193,527 6,908,799 Pension 2,819,985 2,853,718 Education 485,792 458,441 Bonds 342,669 352,917 Other plans 102,632 98,729 Termination benefits – Voluntary retirement plan (1) 713,407 124,186 11,658,012 10,796,790 Social benefits and salaries 674,080 587,596 Other employee benefits 91,575 96,678 12,423,667 11,481,064 Current 2,022,137 1,929,087 Non–current 10,401,530 9,551,977 12,423,667 11,481,064 (1) |
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, 2020 and 2019: Pension and bonds (1) Other Total 2020 2019 2020 2019 2020 2019 Liabilities for employee benefits Opening balance 15,916,472 14,131,943 7,593,171 6,212,118 23,509,643 20,344,061 Current service cost — — 118,035 76,478 118,035 76,478 Past service cost (2) — — 631,761 — 631,761 — Interest expense 882,785 920,622 439,682 418,553 1,322,467 1,339,175 Actuarial gains 418,187 1,755,300 87,311 1,273,409 505,498 3,028,709 Benefits paid (897,061) (891,393) (359,366) (387,387) (1,256,427) (1,278,780) Closing balance 16,320,383 15,916,472 8,510,594 7,593,171 24,830,977 23,509,643 Plan assets Opening balance 12,709,838 12,348,557 3,015 3,954 12,712,853 12,352,511 Return on assets 700,168 801,065 136 217 700,304 801,282 Contributions to funds — — 370,090 83,071 370,090 83,071 Benefits paid (897,061) (891,393) (358,199) (84,243) (1,255,260) (975,636) Actuarial gains 644,784 451,609 194 16 644,978 451,625 Closing balance 13,157,729 12,709,838 15,236 3,015 13,172,965 12,712,853 Net post–employment benefits liability 3,162,654 3,206,634 8,495,358 7,590,156 11,658,012 10,796,790 (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. (2) It includes the new voluntary retirement plan. |
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, 2020, 2019 and 2018: 2020 2019 2018 Recognized in profit or loss Interest expense. net 622,163 537,893 485,842 Current service cost 118,035 76,478 77,373 Past service cost — — 50,489 Remedies — 10,213 503 740,198 624,584 614,207 Recognized in other comprehensive income Pension and pension bonds 226,597 (1,303,693) 1,003 Healthcare (33,324) (1,268,379) (17,356) Education and severance (55,693) 922 45,509 Termination benefits – Voluntary retirement plan (121) (34) 93 137,459 (2,571,184) 29,249 Deferred tax (41,238) 771,355 (33,539) 96,221 (1,799,829) (4,290) |
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, 2020 and 2019: 2020 2019 Bonds issued by the national government 4,958,612 4,301,961 Bonds of private entities 3,177,531 3,122,630 Other foreign currency 1,992,800 870,859 Other local currency 1,502,349 1,899,787 Other public bonds 777,562 1,082,815 Variable yield 679,448 823,977 Bonds of foreign entities 84,663 610,824 13,172,965 12,712,853 |
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: 2020 2019 Nation 5,102,222 4,448,221 AAA 4,369,805 5,138,279 AA+ 570,716 837,009 BBB- 458,273 455,201 BBB 201,163 319,514 AA 134,454 6,679 F1+ 61,192 56,728 BRC1+ 52,296 68,313 A3 11,633 17,267 BBB+ 10,328 22,113 AA- 4,014 16,067 BAA3 — 219,830 SP1+ — 84,933 A-1+ — 78,156 BAA1 — 15,538 A 5,307 11,841 Other credit ratings 297,048 30,129 Not available ratings 1,894,514 887,035 13,172,965 12,712,853 |
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, 2020 and 2019: 2020 Pension Bonds Health Education Other benefits (1) Discount rate 5.50 % 4.75 % 6.00 % 5.00 % 4.09 % Salary growth rate N/A N/A N/A N/A 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 6.67 % 4.00 % N/A Long–term rate N/A N/A 4.00 % 4.00 % N/A 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 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 2021 967,810 482,953 1,450,763 2022 996,869 493,791 1,490,660 2023 1,019,379 507,009 1,526,388 2024 1,034,972 511,627 1,546,599 2025 1,069,252 514,556 1,583,808 2026 and thereafter 5,607,391 2,602,556 8,209,947 |
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, 2020: Pension Bonds Health Education Other benefits Discount rate –50 basis points 16,139,465 1,147,350 7,798,461 515,004 846,709 +50 basis points 14,368,856 1,072,868 6,715,899 464,394 812,726 Inflation rate –50 basis points 14,314,193 1,072,094 N/A N/A 717,069 +50 basis points 16,193,316 1,147,825 N/A N/A 740,501 Salary growth rate –50 basis points N/A N/A N/A N/A 96,530 +50 basis points N/A N/A N/A N/A 105,392 Cost trend –50 basis points N/A N/A 6,720,777 464,319 N/A +50 basis points N/A N/A 6,720,777 514,849 N/A |
Accrued liabilities and provi_2
Accrued liabilities and provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued liabilities and provisions | |
Schedule of accrued liabilities and provisions | Environmental Asset retirement contingencies and obligation Litigation others Total Balance as of December 31, 2019 8,835,420 137,429 945,439 9,918,288 Increase in abandonment costs 2,307,453 — — 2,307,453 Additions 143,320 32,108 237,181 412,609 Uses (291,793) (31,709) (106,448) (429,950) Financial costs 258,464 — — 258,464 Effect of control loss in subsidiaries (Note 28) (23,874) (20,117) — (43,991) Adjustment on fair value for business combination 31,137 — — 31,137 Foreign currency translation 37,239 428 5,476 43,143 Transfers (58,041) — (11,382) (69,423) Balance as of December 31, 2020 11,239,325 118,139 1,070,266 12,427,730 Current 949,638 46,844 224,627 1,221,109 Non-current 10,289,687 71,295 845,639 11,206,621 11,239,325 118,139 1,070,266 12,427,730 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 Asset Environmental 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 |
Schedule of unrecorded contingent liabilities | 2020 2019 Number of Number of Type of process processes Proceedings processes Proceedings Constitutional action 20 15,810,719 16 15,689,778 Ordinary administrative 156 714,606 162 781,686 Ordinary labor 659 54,030 614 51,029 Ordinary civil 54 6,363 54 17,956 Executive administrative 2 11,951 1 28 Special labor 15 3,106 13 720 Penal 2 595 1 595 Action of protection 234 47 112 10 Executive civil 1 — 1 — 1,143 16,601,417 974 16,541,802 |
Schedule of contingent assets | 2020 2019 Number of Number of Type of process processes Proceedings processes Proceedings Ordinary administrative 99 402,380 37 384,215 Arbitration 2 138,386 1 67,232 Ordinary civil 114 82,572 75 86,363 Penal 149 61,466 156 60,177 Executive civil 57 5,299 61 4,912 Ordinary labor 48 3,129 50 3,295 Executive administrative 10 2,450 11 4,028 Special labor 84 426 57 307 Action of protection 5 - 4 - 568 696,108 452 610,529 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: 2020 2019 Legal reserve 4,568,980 3,243,832 Fiscal and statutory reserves 509,082 509,082 Occasional reserves (1) 4,557,074 31,744 9,635,136 3,784,658 (1) Ecopetrol's General Shareholders' Meeting, held on March 27, 2020, approved the 2019 profit distribution project and set up a reserve of 4,557,074 in order to support the Company's financial sustainability and flexibility in development of its strategy. |
Schedule of balance of movement of equity reserves | The movement of equity reserves is the following for the years ended December 31, 2020 and 2019: 2020 2019 Opening balance 3,784,658 5,138,895 Release of reserves (540,826) (3,050,703) Allocation to reserves 6,391,304 5,355,852 Dividends declared — (3,659,386) Closing balance 9,635,136 3,784,658 |
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: 2020 2019 2018 Foreign currency translation 11,794,201 10,265,398 10,235,891 Cash flow hedge with derivative instruments 44,132 3,689 (30,962) Cash flow hedges for future exports (136,470) (135,748) (374,079) Actuarial gain on defined benefit plans (2,260,989) (2,357,210) (557,381) Hedge of a net investment in a foreign operation (1,494,926) (1,130,583) (1,069,316) Others 1,114 1,114 176,608 7,947,062 6,646,660 8,380,761 |
Schedule of earnings per share | 2020 2019 2018 Profit attributable to Ecopetrol’s shareholders 1,586,677 13,744,011 11,381,386 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$ 38.6 COP$ 334.3 COP$ 276.8 |
Sales revenue from contracts _2
Sales revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Sales revenue from contracts with customers | |
Schedule of detailed information of sales revenue from contracts with customers | 2020 2019 2018 National sales Mid–distillates (1) 8,860,588 15,041,883 14,039,638 Gasoline and turbo fuels (1) 6,768,046 9,658,180 9,334,939 Services 2,859,559 4,115,626 3,531,404 Natural gas 2,845,155 2,256,123 1,885,846 Plastic and rubber 865,204 834,133 899,410 Fuel gas service 671,570 72,249 - Asphalts 526,100 544,200 335,426 LPG and propane 375,775 372,916 574,639 Crude oil 230,520 356,857 550,479 Aromatics 155,740 228,552 282,545 Polyethylene 138,035 192,436 270,887 Fuel oil 37,001 97,907 509,482 Other income gas contracts (2) 32,190 102,845 156,031 Other products 322,232 431,201 651,874 24,687,715 34,305,108 33,022,600 Foreign sales Crude oil (3) 19,498,582 28,523,596 26,898,737 Diesel 3,164,068 4,391,798 3,050,839 Plastic and rubber 1,302,131 1,249,189 1,308,685 Fuel oil (4) 968,429 1,870,929 2,053,594 Gasoline and turbo fuels 179,257 1,085,392 1,782,194 LPG and propane 18,943 13,591 20,212 Natural gas 17,231 27,255 27,899 Cash flow hedge for future exports – Reclassification to profit or loss (Note 30.3) (193,374) (386,773) 128,404 Other products 580,411 408,427 310,708 25,535,678 37,183,404 35,581,272 50,223,393 71,488,512 68,603,872 (1) 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). As of December 31, 2020, the value recognized by price differential corresponds to COP$142,723 (2019 COP$1,785,277; 2018 COP$3,835,533). See Note 4.16 – Sales revenue recognition from contracts with customers. (2) Corresponds to the income on the participation in the profits of gas sales, according to the agreement signed between Ecopetrol and Hocol (considering the assets purchase agreement signed with Chevron to acquire the stake owned by the latter in the Guajira Association as of May 1, 2020), for the extension of the association contract for the exploitation of gas in La Guajira. Prior to this acquisition, the agreement was signed between Ecopetrol and Chevron since 2004. (3) Includes hedges with derivative instruments for COP$(587,591). (4) Includes hedges with derivative instruments for COP$(76,382). |
Schedule of sales by geographic areas | 2020 % 2019 % 2018 % Colombia 24,687,715 49.2 % 34,305,108 48.0 % 33,022,600 48.1 % United States 11,365,218 22.6 % 17,371,173 24.3 % 14,765,674 21.5 % Asia 9,497,498 18.9 % 13,529,151 18.9 % 12,271,225 17.9 % Central America and the Caribbean 2,581,644 5.1 % 3,472,665 4.9 % 4,449,033 6.6 % South America and others 1,296,370 2.6 % 1,502,815 2.1 % 2,968,038 4.3 % Europe 794,948 1.6 % 1,307,600 1.8 % 1,127,302 1.6 % 50,223,393 100 % 71,488,512 100 % 68,603,872 100 % |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cost of sales | |
Schedule of cost of sales of non current assets | 2020 2019 2018 Variable costs Imported products (1) 7,592,489 12,639,710 11,809,529 Depreciation amortization and depletion 6,069,903 5,523,306 5,064,518 Purchases of crude in association and concession 4,281,661 5,466,496 3,820,746 Purchases of hydrocarbons – ANH (2) 2,798,432 5,437,177 5,667,567 Electric energy 1,098,621 829,543 662,297 Hydrocarbon transport services 874,632 821,654 696,964 Taxes and economic rights 841,443 788,924 441,207 Process materials 827,464 1,016,617 968,884 Purchases of other products and gas 598,015 584,507 632,509 Services contracted in associations 269,637 267,778 260,207 Others (3) 657,634 (676,269) (186,087) 25,909,931 32,699,443 29,838,341 Fixed costs Depreciation and amortization 2,930,120 2,781,446 2,555,176 Labor costs 2,299,761 2,316,567 2,105,803 Maintenance 2,257,370 2,497,002 2,260,984 Services contracted 1,623,375 1,841,009 1,796,354 Services contracted in associations 1,121,010 1,211,510 1,040,221 Taxes and contributions 593,041 516,933 393,690 Materials and operating supplies 508,037 574,678 565,601 Hydrocarbon transport services 253,752 268,572 261,237 General costs 71,075 265,200 366,972 11,657,541 12,272,917 11,346,038 37,567,472 44,972,360 41,184,379 (1) Imported products correspond mainly to diesel 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 valuation of the inventory, product of the costing process, ii) the valuation at Net Realizable Value, and iii) the agreements of inventories by transport and iv) capitalizable costs to projects. |
Administrative, operations an_2
Administrative, operations and project expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Administrative, operations and project expenses | |
Schedule of administrative, operations and project expenses | 2020 2019 2018 Administrative expenses Labor expenses (1) (1,658,613) (759,324) (662,258) General expenses (2) (1,424,348) (1,140,975) (911,645) Depreciation and amortization (229,792) (202,547) (40,838) Taxes (60,397) (48,753) (39,117) (3,373,150) (2,151,599) (1,653,858) Operations and project expenses Exploration costs (689,087) (763,452) (1,387,379) Commissions fees freights and services (656,432) (558,370) (466,862) Taxes (428,608) (483,330) (433,506) Labor expenses (309,972) (402,531) (316,386) Fee for regulatory entities (142,695) (94,785) (98,794) Depreciation and amortization (83,909) (60,952) (44,318) Maintenance (78,181) (56,333) (50,846) Right-of-use assets amortization (10,814) (14,532) — Others (186,318) (197,469) (105,041) (2,586,016) (2,631,754) (2,903,132) (1) (2) |
Other operating income (expen_2
Other operating income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other operating income (expenses), net | |
Schedule of other operating income (expenses), net | 2020 2019 2018 Gain on revaluation of assets in Guajira association (1) 1,284,372 — — Gain (loss) on acquisition of participations and interests (1) 86,026 1,048,924 (12,065) Loss on sale of assets (263,647) (148,021) (93,601) Expense for legal provisions (139,978) (98,020) (68,398) Impairment loss of short–term assets (34,416) (90,441) (105,692) Gain on loss of control (2) 65,695 — — Other income 120,114 344,354 244,301 1,118,166 1,056,796 (35,455) (1) Results in the acquisition of La Guajira: Ecopetrol COP$1,284,372 and Hocol COP$86,026. For Ecopetrol it corresponds to the revaluation of the assets that it already had in the Guajira association and for Hocol it corresponds to the Bargain obtained from the acquisition of the 43% stake. (Note 12 - Business combinations). (2) Recognition of the disposal of net assets due to the loss of control due to the opening of the judicial liquidation process of Bioenergy S.A.S. and Bioenergy Zona Franca S.A.S. COP$65,570 (Note 2.2). Liquidation process of ECP Oil and Gas Germany GmbH COP$125. |
Financial result, net (Tables)
Financial result, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial result, net | |
Schedule of Finance Income Expense Explanatory | 2020 2019 2018 Finance income Results from financial assets and others 665,310 975,245 745,571 Yields and interests 299,246 481,674 383,624 Gain on derivatives valuation 108,838 — — Dividends (1) 44 117,260 — Gain on sale of equity instruments — — 368 Other financial income 27,992 49,157 — 1,101,430 1,623,336 1,129,563 Finance expenses Interest (2) (2,384,342) (1,894,490) (2,399,414) Financial cost of other liabilities (3) (872,987) (757,509) (668,782) Results from financial assets (473,598) (638,767) (381,445) Other financial expenses (198,864) (43,703) (62,520) (3,929,791) (3,334,469) (3,512,161) Foreign exchange gain net 346,774 40,639 372,223 Financial result net (2,481,587) (1,670,494) (2,010,375) (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. (2) As of December 31, 2020, borrowing costs for the financing of developing natural resources and property, plant and equipment of COP$247,501 (2019 – COP$248,139 and 2018 – COP$200,833) were capitalized. Includes the financial expense of the asset retirement obligations and the liabilities for post–employment benefits. |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance of financial assets and liabilities denominated in foreign currency | |
Schedule of The Carrying Values For Financial Assets And Liabilities Denominated In Foreign Currencies | The balance of financial assets and liabilities denominated in foreign currency for the years ended December 31, is presented in the following table: (in USD$Million) 2020 2019 Cash and cash equivalents 197 114 Other financial assets 1,164 1,468 Trade receivables and payables, net 203 81 Loans and borrowings (11,814) (9,429) Other assets and liabilities, net 277 64 Net liability position (9,973) (7,702) |
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, 2020: Scenario / Variation in Effect on income Effect on other the exchange rate before taxes (+/–) comprehensive income (+/–) 1 % (48,866) (293,457) 5 % (244,330) (1,467,286) |
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, 2020 and 2019: (USD$Million) 2020 2019 Hedging instrument at the beginning of the period 1,300 1,300 Reassignment of hedging instruments 1,230 5,551 Realization of exports (1,230) (5,551) Hedging instrument at the end of the period 1,300 1,300 |
Schedule of movement of other comprehensive income by item explanatory | The following is the movement in other comprehensive income for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Opening balance (135,748) (374,079) 159,295 Exchange difference (201,967) (35,607) (704,871) Reclassification to profit or loss 193,374 386,773 (128,404) Ineffectiveness 9,779 5,173 35,617 Deferred income tax (1,908) (118,008) 264,284 Closing balance (136,470) (135,748) (374,079) |
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 2021 (71,358) 21,408 (49,950) 2022 (71,358) 21,408 (49,950) 2023 (52,245) 15,675 (36,570) (194,961) 58,491 (136,470) |
Schedule of Analysis of age of financial assets that are past due but not impaired | An aging analysis of the accounts receivable portfolio in arrears, but not impaired, as of December 31, 2020 and 2019 is as follows: 2020 2019 Less than 3 months overdue 56,144 243,893 Between 3 and 6 months overdue 1,270 136,700 More than 6 months overdue 301,858 267,525 359,272 648,118 |
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 (25,878) 60,577 (557,002) –100 basis points 25,878 (59,459) 557,901 |
Schedule of how entity manages liquidity risk | The following is a summary of the maturity of financial liabilities as of December 31, 2020. 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$3,432.50 per U.S. dollar: Up to 1 year 1–5 years 5–10 years > 10 years Total Loans (payment of principal and interest) 3,585,623 33,051,812 17,701,887 13,750,003 68,089,325 Trade and other payables 8,449,041 21,064 — — 8,470,105 Total 12,034,664 33,072,876 17,701,887 13,750,003 76,559,430 |
Schedule of leverage ratio | The following is the leverage ratio as of December 31, 2020 and 2019: 2020 2019 Loans and borrowings (Note 20) 46,731,754 38,239,139 Cash and cash equivalents (Note 6) (5,082,308) (7,075,758) Other financial assets (Note 9) (3,071,659) (4,979,292) Net financial debt 38,577,787 26,184,089 Equity (Note 24) 53,499,363 58,231,628 Leverage (1) 41.90 % 31.02 % (1) Leverage = Net financial debt / (Net financial debt + Equity) The movement of the net financial debt is detailed in Note 20.7. |
Hedge of a net investment in a foreign operation | |
Balance of financial assets and liabilities denominated in foreign currency | |
Schedule of hedging instruments | The following is the movement in other comprehensive income for the years ended December 31: 2020 2019 2018 Opening balance 1,130,583 1,069,316 97,362 Exchange difference 520,490 87,524 1,381,900 Ineffectiveness — — 378 Deferred income tax (156,147) (26,257) (410,324) Closing balance 1,494,926 1,130,583 1,069,316 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related parties | |
Schedule of associates and joint ventures | Balances with associates and joint ventures as of December 31, 2020 and 2019 are as follows: Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energía Limited (1) 1,950 — 7,093 32,335 1,277,046 1,663 Ecodiesel Colombia S.A. 1,345 — — 35,632 — 1 Offshore International Group Inc (2) — 97,300 — — — — Associates Gas Natural del Oriente S.A. E.S.P. — — — — — Extrucol S.A. — — — — — E2 Energía Eficiente S.A. E.S.P. — — — — Serviport S.A. — — — 948 — — Balance as of December 31, 2020 7,748 97,300 7,093 72,316 1,277,046 1,664 Current 7,748 97,300 7,093 72,316 1,277,046 1,664 Non–current — — — — — — 7,748 97,300 7,093 72,316 1,277,046 1,664 (Nota 7) (Nota 7) (Nota 11) (Nota 21) (Nota 20) Accounts Accounts receivable Other Accounts Other receivable – Loans assets payable Loans liabilities Joint Ventures Equion Energía Limited(1) 25,333 — 57,016 153,501 1,108,403 794 Ecodiesel Colombia S.A. 2,116 — — 29,447 — 1 Offshore International Group Inc.(2) — 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 21) (Note 20) Loans: (1) Resources deposited by Equion in Ecopetrol Capital AG. Accounts receivable – Loans: (2) Offshore International Group: Loan granted by Ecopetrol S.A. 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, 2020 is USD$28 million (2019 - USD$28 million). |
Schedule of transactions between related parties | The main transactions with related parties as of December 31 are detailed as follows: 2020 2019 2018 Sales and Purchases Sales and Purchases Sales and Purchases services and others services and others services and others Joint Ventures Equion Energía Limited 27,595 356,872 317,382 569,105 67,002 846,284 Ecodiesel Colombia S.A 8,268 346,201 8,614 280,649 6,860 267,498 Offshore International Group 4,461 — 3,245 — 2,386 — 40,324 703,073 329,241 849,754 76,248 1,113,782 Associates E2 Energía Eficiente S.A. E.S.P. 49,860 2,849 — — — — Gas Natural del Oriente S.A. E.S.P. — 26,141 — — — — Extrucol S.A. — 1,162 — — — — 90,184 733,225 329,241 849,754 76,248 1,113,782 |
Schedule of key management personnel | As of December 31, 2020, 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 |
Joint operations (Tables)
Joint operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Schedule of interests in joint arrangements | 32.1 Contracts in which Ecopetrol is not the operator % Geographic area of Partners Contract Type Participation operations Occidental de Colombia LLC Chipirón 30-41 % Occidental Andina LLC Cosecha Production % Colombia Cravo Norte % Rondón % Mansarovar Energy Colombia Ltd Nare Production % Colombia Frontera Energy Colombia Corp. Quifa Production % Colombia Casanare % Corocora % Perenco Colombia Limited Estero Production % Colombia Garcero % Orocúe % ONGC Videsh Limited Sucursal Ronda Caribe RC-10 Exploration % Offshore Caribe Colombiana Norte Petrobras, Repsol & Statoil Tayrona Exploration % Offshore Caribe Norte Fuerte Sur Shell EP Offshore Ventures Limited Purple Angel Exploration % Offshore Caribe Col-5 Norte Saturno % Shell Sul de Gato do Mato Exploration % Brazil Gato do Mato % BP Energy Pau Brasil Exploration % Brazil Chevron CE-M-715_R11 Exploration % Brazil Lewis SSJN1 Exploration % Colombia Mana % Interoil Colombia Ambrosia Production % Colombia Rio Opia % Rancho Hermoso-Mirador % Canacol Rancho Hermoso -Otras formaciones Production % Colombia Llanos 86 % Llanos 87 % Geopark Llanos 104 Exploration % Colombia Llanos 123 % Llanos 124 % Fieldwood - Gunflint Gunflint Production % Gulf of Mexico Murphy Oil - Dalmatian Production % Gulf of Mexico Oxy (Anadarko) - K2 K2 Production % Gulf of Mexico Shell Deep Rydberg/Aleatico Exploration % Gulf of Mexico HESS ESOX Production % Gulf of Mexico Pemex Exploración y Producción Bloque 8 Exploration % Gulf of Mexico PC Carigali Mexico Operation SA Bloque 6 Exploration % Gulf of Mexico Talos Palmer Exploration % Gulf of Mexico OXY (Anadarko) Warrior Exploration % Gulf of Mexico Occidental Petroleum Company Rodeo Midland Basin Production % Permian Texas U.S. |
Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Schedule of interests in joint arrangements | 32.2 Contracts in which Ecopetrol is the operator % Geographic area of Partners Contract Type Participation operations VMM29 Exploration % Colombia ExxonMobil Exploration Colombia CR2 C62 Repsol Colombia oil &gas limited CPO9 Exploration % Colombia ONGC Videsh Limited Sucursal Colombia RC9 Exploration % Colombia CPVEN E&P Corp 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 Parex Resources Colombia Ltd. ORC401 CRC-2004-01 Exploration % Colombia Repsol Colombia Oil & Gas Limited CPO9 – Akacias Production % Colombia Occidental Andina LLC La Cira Infantas Production % Teca % Colombia Ramshorn International Limited Guariquies I Production % Colombia Perenco Oil And Gas San Jacinto Rio Paez Production % Colombia Cepsa Colombia Total Colombia Mundo Nuevo Exploration % Colombia Talisman Oil & Gas Equion Energia Limited Emerald Energy Oleoducto Alto Magdalena OAM % Colombia Frontera Energy Lewis Clarinero Exploration % Colombia Talisman Oil & Gas Niscota Production % Colombia Total Colombie ONGC RC-9 Exploration % Colombia |
Information by segments (Tables
Information by segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Information by segments | |
Schedule of operating segments | Below are the consolidated statements of profit or loss by segment for the years ended December 31, 2020, 2019 and 2018: For the year ended on December 31, 2020 Exploration Refining and Transport and and Production Petrochemicals Logistics Eliminations Total Third–party sales 22,854,925 24,804,887 2,563,581 — 50,223,393 Inter–segment sales 13,985,072 1,299,464 9,630,859 (24,915,395) — Total sales revenue 36,839,997 26,104,351 12,194,440 (24,915,395) 50,223,393 Fixed costs (9,479,317) (3,427,211) (2,813,856) 4,062,842 (11,657,542) Variable costs (23,429,102) (22,398,344) (567,501) 20,485,017 (25,909,930) Cost of sales (32,908,419) (25,825,555) (3,381,357) 24,547,859 (37,567,472) Gross profit 3,931,578 278,796 8,813,083 (367,536) 12,655,921 Administrative expenses (2,163,198) (936,175) (533,594) 259,817 (3,373,150) Operation and project expenses (1,511,510) (781,309) (403,657) 110,460 (2,586,016) Impairment of non–current assets (192,693) (781,528) 341,065 — (633,156) Other operating income and expenses net 1,085,114 34,705 1,827 (3,480) 1,118,166 Operating income (expenses) 1,149,291 (2,185,511) 8,218,724 (739) 7,181,765 Financial result net Financial income 1,177,712 67,832 125,677 (269,791) 1,101,430 Financial expenses (2,896,060) (914,534) (389,394) 270,197 (3,929,791) Foreign exchange gain (loss) net 360,409 (447,880) 434,245 — 346,774 (1,357,939) (1,294,582) 170,528 406 (2,481,587) Share of profits of associates and joint ventures (53,037) 131,462 (2,089) — 76,336 Income before tax (261,685) (3,348,631) 8,387,163 (333) 4,776,514 Income tax 43,569 614,269 (2,696,499) — (2,038,661) Net profit (loss) for the period (218,116) (2,734,362) 5,690,664 (333) 2,737,853 Profit (loss) attributable to: Group owners of parent (139,279) (2,848,511) 4,574,800 (333) 1,586,677 Non–controlling interest (78,837) 114,149 1,115,864 — 1,151,176 (218,116) (2,734,362) 5,690,664 (333) 2,737,853 Supplementary information Depreciation depletion and amortization 6,445,812 1,599,780 1,278,946 — 9,324,538 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 (2,151,599) 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 and Refining and Transport Production Petrochemicals and 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) (1,653,858) 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 |
Schedule of products and services | The sales by product for each segment are detailed below for the years ended December 31, 2020, 2019 and 2018: For the year ended on December 31, 2020 Exploration and Refining and Transport and Production Petrochemicals Logistics Eliminations Total Local sales Mid–distillates — 8,871,938 — (11,350) 8,860,588 Gasoline and turbo fuels 6,739 7,880,124 — (1,118,817) 6,768,046 Services 116,485 268,081 12,194,384 (9,719,391) 2,859,559 Natural gas 3,683,018 — — (837,863) 2,845,155 Plastic and rubber — 865,204 — — 865,204 Fuel gas service — 678,396 — (6,826) 671,570 Asphalts 27,043 499,057 — — 526,100 LPG and propane 249,533 133,525 — (7,283) 375,775 Crude oil 13,250,275 — — (13,019,755) 230,520 Aromatics — 155,740 — — 155,740 Polyethylene — 138,035 — — 138,035 Fuel oil 7,758 29,243 — — 37,001 Other income gas contracts 32,190 — — — 32,190 Other products 19,556 417,889 — (115,213) 322,232 17,392,597 19,937,232 12,194,384 (24,836,498) 24,687,715 Foreign sales Crude oil 19,577,898 29 — (79,345) 19,498,582 Diesel — 3,164,068 — — 3,164,068 Plastic and rubber — 1,302,131 — — 1,302,131 Fuel oil — 968,429 — — 968,429 Gasoline and turbo fuels — 179,257 — — 179,257 LPG and propane 18,943 — — — 18,943 Natural gas 17,231 — — — 17,231 Cash flow hedge for future exports – Reclassification to profit or loss (Note 30.3) (193,374) — — — (193,374) Other products 26,702 553,206 56 447 580,411 19,447,400 6,167,120 56 (78,898) 25,535,678 36,839,997 26,104,352 12,194,440 (24,915,396) 50,223,393 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 Production Petrochemicals and 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 |
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, 2020, 2019 and 2018: Exploration Refining and Transport and 2020 and Production Petrochemicals Logistics Total Property, plant and equipment 2,866,600 1,329,181 836,536 5,032,317 Natural and environmental resources 5,994,462 — — 5,994,462 Intangibles 41,002 8,771 40,309 90,082 8,902,064 1,337,952 876,845 11,116,861 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 |
Supplemental information on o_2
Supplemental information on oil and gas producing activities (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental information on oil and gas producing activities (unaudited) | |
Schedule of capitalized costs relating to oil and gas producing activities | 35.1 Capitalized costs relating to oil and gas exploration and production activities 2020 2019 2018 Natural and environmental properties 67,767,005 60,261,025 53,752,436 Wells, equipment and facilities – property, plant and equipment 31,166,804 30,150,268 29,416,081 Exploration and production projects 12,494,665 8,801,630 8,463,584 Accumulated depreciation, depletion and amortization (64,233,572) (60,346,094) (55,689,222) Net capitalized cost 47,194,902 38,866,829 35,942,879 |
Schedule of costs Incurred in oil and gas property acquisition, exploration, and development activities | 35.2 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. 2020 2019 2018 Acquisition of proved properties (1) 507,907 2,668,960 — Acquisition of unproved properties (2) 1,274,660 261,231 81,295 Exploration costs 1,340,898 640,556 1,197,946 Development costs 7,367,020 8,084,283 6,346,276 10,490,485 11,655,030 7,625,517 (1) For 2020, it corresponds mainly to the acquisition of the entire participation in the Guajira Association (43% of the association contract) by Hocol and its position as operator. 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). (2) During 2020, Ecopetrol S.A. through its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda acquired 30% of the interests, rights and obligations in two areas that correspond to the BM-S-54 Concession Contract and the Sul de Gato do Mato Shared Production Contract, located offshore in Santos basin of Brazil, in the discovery of hydrocarbons called "Gato do Mato". Additionally, Ecopetrol Óleo e Gás do Brasil Ltda has recognized the billing related to activities of drilling during the year. 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. |
Schedule of results of operations for oil and gas exploration and production activities | 35.3 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, 2020, 2019 and 2018 are as follows: 2020 2019 2018 Net revenues Sales 30,141,662 42,070,018 39,633,866 Transfers 7,025,839 11,564,358 11,794,014 37,167,501 53,634,376 51,427,880 Production costs(1) 12,753,880 9,336,387 8,337,413 Depreciation, depletion and amortization(2) 6,393,506 6,049,543 5,591,774 Other production costs(3) 14,005,669 21,550,907 18,918,275 Exploration expenses(4) 689,204 763,562 1,387,463 Other expenses(5) 2,227,481 4,163,241 1,036,983 36,069,740 41,863,640 35,271,908 Income before income tax expense 1,097,761 11,770,736 16,155,972 Income tax expense (233,255) (2,107,363) (6,303,251) Results of operations for exploration and production activities 864,506 9,663,373 9,852,721 (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 2020, 2019 and 2018 of COP$213,925, COP$198,394 and COP$187,340, respectively. (2) In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2020, 2019 and 2018 in depreciation, depletion and amortization, were COP$639,123, COP$272,147 and COP$180,193, respectively. (3) Includes 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 | 2020 2019 2018 Oil Gas Total Oil Gas Total Oil Gas Total (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) (Mbls) (Gpc) (Mbe) Proved reserves: Opening balance 1,384 2,906 1,894 1,200 3,002 1,727 1,088 3,254 1,659 Revisions of previous estimates(1) (81) 51 (72) 75 51 84 121 (4) 121 Improved recovery 100 74 113 94 3 94 128 4 129 Purchases — 171 30 142 126 164 — — — Extensions and discoveries 41 8 42 66 2 67 54 18 57 Sales (0.9) (0.3) (1) — — — — — — Production (186) (289) (236) (193) (278) (242) (191) (270) (239) Closing balance 1,257 2,921 1,770 1,384 2,906 1,894 1,200 3,002 1,727 Proved developed reserves: Opening balance 898 2,662 1,365 883 2,882 1,389 818 3,158 1,372 Closing balance 834 2,636 1,297 898 2,662 1,365 883 2,882 1,389 Proved undeveloped reserves: Opening balance 486 244 529 317 119 338 270 96 287 Closing balance 423 285 473 486 244 529 317 119 338 Some values were rounded for presentation purposes. (1) 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. 2020 2019 2018 Future cash inflows 187,210,379 279,722,107 275,046,421 Future costs Production (1) (85,989,384) (93,589,960) (90,176,326) Development (28,752,131) (32,734,702) (21,945,453) Income taxes (13,470,352) (37,077,231) (41,102,015) Future net cash flow 58,998,512 116,320,214 121,822,627 10% discount factor (18,568,308) (36,934,889) (35,518,187) Standardized measure of discounted net cash flows 40,430,204 79,385,325 86,304,440 (1) |
Schedule of principal sources of change in standardized measure of discounted future net cash flows | 2020 2019 2018 Net change in sales and transfer prices and in production cost (lifting) related to future production (44,482,725) 2,411,040 79,632,263 Changes in estimated future development costs (5,401,560) (12,627,361) (13,141,340) Sales and transfer of oil and gas produced, net of production costs (24,413,621) (44,297,989) (43,090,467) Net change due to extensions, discoveries and improved recovery 3,134,469 7,061,712 8,496,249 Net change due to purchase and sales of minerals in place 570,460 213,539 — Net change due to revisions in quantity estimates (3,414,649) 6,756,418 10,163,131 Previously estimated development costs incurred during the period 7,943,239 23,200,357 12,505,421 Accretion of discount 10,468,951 11,542,289 6,771,897 Timing and other 567,027 (4,993,389) (13,633,228) Net change in income taxes 16,073,288 3,814,269 (12,616,331) Aggregate change in the standardized measure of discounted future net cash flows for the year (38,955,121) (6,919,115) 35,087,595 |
Exhibit 1. Consolidated subsi_2
Exhibit 1. Consolidated subsidiaries, associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Exhibit 1 - 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 16,582,279 (1,688,830) 27,321,381 10,739,102 Cenit Transporte y Logística S.A.S. (*) Colombian peso 100 % Storage and transport by pipelines of hydrocarbons Colombia Colombia 16,310,718 4,696,705 18,303,490 1,992,772 Ecopetrol Global Energy S.L.U U.S. dollar 100 % Investment vehicle Spain Spain 9,320,715 (434,773) 9,321,078 363 Ecopetrol USA Inc. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 7,550,468 (294,497) 7,552,294 1,826 Ecopetrol Permian LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 3,566,413 (38,855) 3,590,934 24,521 Hocol Petroleum Limited U.S. dollar 100 % Investment vehicle Bermuda Bermuda 3,444,262 314,057 3,444,326 64 Oleoducto Central S. A. - Ocensa U.S. dollar 72.65 % Transportation by crude oil pipelines Colombia Colombia 3,012,894 2,528,350 6,277,969 3,265,075 Hocol S.A. U.S. dollar 100 % Exploration, exploitation and production of hydrocarbons Cayman Islands Colombia 2,376,723 300,828 3,877,096 1,500,373 Ecopetrol América LLC. U.S. dollar 100 % Exploration and exploitation of hydrocarbons United States United States 2,320,615 (353,806) 2,749,860 429,245 Esenttia S.A. U.S. dollar 100 % Production and commercialization of polypropylene resin Colombia Colombia 1,870,802 263,126 2,445,757 574,955 Ecopetrol Capital AG U.S. dollar 100 % Collection of surpluses from, and providing funds to, companies of the Ecopetrol Business Group. Switzerland Switzerland 1,872,129 176,999 7,482,055 5,609,926 Ecopetrol Oleo é Gas do Brasil Ltda. Brazilian real 100 % Exploration and exploitation of hydrocarbons Brazil Brazil 1,657,410 (95,164) 1,692,673 35,263 Oleoducto Bicentenario de Colombia S.A.S. Colombian peso 55.97 % Transportation by crude oil pipelines Colombia Colombia 1,621,598 214,482 3,577,534 1,955,936 Andean Chemicals Ltd. U.S. dollar 100 % Investment vehicle Bermuda Bermuda 1,268,047 (163,877) 1,268,327 280 Oleoducto de los Llanos Orientales S. A. - ODL Colombian peso 65 % Transportation by crude oil pipelines Panama Colombia 1,047,791 444,625 1,465,305 417,514 Black Gold Re Ltd. U.S. dollar 100 % Reinsurer for companies of the Ecopetrol Business Group Bermuda Bermuda 837,693 54,412 1,079,572 241,879 (*) Includes the effect of unrealized profits from transactions of companies in the transport and logistics segment. 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 Inversiones de Gases de Colombia S.A. Invercolsa S.A. y subsidiarias Colombian peso 51.88 % Holding with investments in natural gas and LPG transportation and distribution companies in Colombia Colombia Colombia 765,720 176,865 1,311,588 545,868 Oleoducto de Colombia S.A. - ODC Colombian peso 73 % Transportation by crude oil pipelines Colombia Colombia 411,180 353,424 640,292 229,112 Esenttia Masterbatch Ltda Colombian peso 100 % Manufacture of polypropylene compounds and masterbatches Colombia Colombia 322,511 166,911 401,404 78,893 ECP Hidrocarburos de México S.A. de C.V. U.S. dollar 100 % Offshore exploration Mexico Mexico 59,279 (44,010) 124,237 64,958 Ecopetrol del Perú S.A. U.S. dollar 100 % Exploration and exploitation of hydrocarbons Peru Peru 53,003 305 55,202 2,199 Bioenergy S.A.S. (1) Colombian peso 99.61 % Production of biofuels Colombia Colombia 26,508 (20,248) 194,257 167,749 Ecopetrol Costa Afuera S.A.S. Colombian peso 100 % Offshore exploration Colombia Colombia 13,356 1,148 32,017 18,661 Ecopetrol Energía S.A.S E.S.P. Colombian peso 100 % Energy supply service Colombia Colombia 12,661 5,256 72,859 60,198 Esenttia Resinas del Perú SAC U.S. dollar 100 % Commercialization polypropylene resins and masterbatches Peru Peru 6,275 1,319 39,833 33,558 Topili Servicios Administrativos S de RL de CV Mexican peso 100 % Specialized management services Mexico Mexico 16 (35) 20 4 Kalixpan Servicios Técnicos S de RL de CV Mexican peso 100 % Specialized services related to oil and gas industry Mexico Mexico 20 (31) 24 4 Bioenergy Zona Franca S.A.S. (1) Colombian peso 99.61 % Production of biofuels Colombia Colombia (92,416) (2,850) 361,769 454,185 |
Disclosure of interests in associates and joint ventures | 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 Joint ventures Equion Energía Limited U.S. dollar 51 % Exploration, exploitation and production of hydrocarbons United Kingdom Colombia 2,499,319 167,727 2,630,351 131,032 Offshore International Group Inc. U.S. dollar 50 % Exploration, exploitation and production of hydrocarbons United States Peru 543,621 (237,752) 1,568,795 1,025,174 Ecodiesel Colombia S.A. (2) Colombian peso 50 % Production, commercialization and distribution of biofuels and oleochemicals Colombia Colombia 103,344 29,188 167,801 64,457 Associates Gases del Caribe S.A. E.S.P. Colombian peso 25.40 % Natural gas distribution and commercialization Colombia Colombia 489,367 278,329 2,132,231 1,642,864 Gas Natural del Oriente S.A. E.S.P. Colombian peso 17.91 % Natural gas distribution and commercialization Colombia Colombia 111,181 52,956 202,644 91,463 Gases de la Guajira S.A. E.S.P. Colombian peso 5.36 % Natural gas distribution and commercialization Colombia Colombia 55,265 18,128 170,937 115,672 Colombiana de Extrusión S.A. -Extrucol S.A. Colombian peso 18.16 % Production of pipes and accessories in polyethylene Colombia Colombia 39,620 7,493 66,110 26,490 E2 Energía Eficiente S. A. E.S.P. Colombian peso 9.92 % Energy services, supply, optimization, development, renewal and innovation of energy resources and infrastructure Colombia Colombia 28,802 4,062 93,736 64,934 Serviport S.A. (3) Colombian peso 49 % Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements Colombia Colombia 17,430 568 45,457 28,027 Sociedad Portuaria Olefinas y Derivados S.A. (2) Colombian peso 50 % Construction, use, maintenance and administration of port facilities, ports, private docks Colombia Colombia 4,432 562 8,196 3,764 (1) Companies in liquidation process. See Note 2.2 Basis for consolidation. (2) Information available as of November 30, 2020. Information available as of September 30, 2020, The investment is 100% impaired. |
Exhibit 2. Conditions of the _2
Exhibit 2. Conditions of the most significant loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Exhibit 2 - Conditions of the most significant debt | |
Disclosure of loans | Outstanding Outstanding balance balance Interest Amortization Payment of Type of debt Company Issue date Maturity date Currency Disbursement Dec 31, 2020 Dec 31, 2019 rate plan interest Dec-10 Dec-40 COP 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 Syndicated commercial loan, domestic currency Oleoducto Bicentenario S.A.S Jul-12 Jul-24 COP 2,100,000 800,450 999,950 Floating Quarterly Quarterly Syndicated commercial loan, domestic currency Oleoducto de los Llanos Orientales S.A. Aug -13 Aug-20 COP 800,000 — 96,000 Floating Quarterly Quarterly Nov-20 Aug-25 COP 110,000 110,000 — Floating Half-yearly Half-yearly Commercial loan Inversiones de Gases de Colombia S.A. Invercolsa S.A. and subsidiaries Aug-20 Aug-21 COP 50,000 43,000 — Floating Bullet Quarterly Sep-19 Jul-25 COP 70,912 21,681 70,912 Floating Half-yearly Half-yearly 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 Ecopetrol S.A. May-14 May-45 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly Bonds, foreign Sep-14 May-25 USD 1,200 1,200 1,200 Fixed Bullet Half-yearly currency 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 Apr-20 Apr-30 USD 2,000 2,000 2,000 Fixed Bullet Half-yearly Oleoducto Central S.A. (1) May-14 May-21 USD 500 500 500 Fixed Bullet Half-yearly Jul-20 Jul-27 USD 500 500 500 Fixed Bullet Half-yearly Committed credit line Ecopetrol S.A. Apr-20 Sep-23 USD 665 665 — Floating Bullet Half-yearly Dec-17 Dec-27 USD 2,001 1,305 1,530 Fixed Half-yearly Half-yearly International Dec-17 Dec-27 USD 76 49 58 Floating Half-yearly Half-yearly commercial Ecopetrol S.A. Dec-17 Dec-27 USD 73 48 56 Fixed Half-yearly Half-yearly loans (2) Dec-17 Dec-27 USD 159 103 121 Floating Half-yearly Half-yearly Dec-17 Dec-25 USD 359 257 288 Floating Half-yearly Half-yearly (1) (2) |
Reporting entity (Details)
Reporting entity (Details) | Dec. 31, 2020 |
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) MMBbls in Millions, $ in Millions, $ in Millions | Nov. 29, 2019 | Dec. 31, 2020USD ($)MMBbls | Dec. 31, 2020COP ($)MMBbls | Dec. 31, 2018 |
Basis for presentation | ||||
Decrease in net assets due to loss of control | $ 65,570 | |||
Percentage of Direct Share Holdings Of Share Capital | 99.00% | |||
Percentage of Indirect Share Holdings Of Share Capital | 1.00% | |||
Expenses for health system to COVID-19 | $ 85,387 | |||
Number Of Barrels | MMBbls | 21.7 | 21.7 | ||
Impairment expenses due to COVID-19 | $ 633,156 | |||
Line Of Credit Member [Member] | ||||
Basis for presentation | ||||
Proceeds from borrowings | $ 665 | |||
Bonds Member [Member] | ||||
Basis for presentation | ||||
Proceeds from borrowings | $ 2,000 | |||
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, 2020 | |
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 | 10 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 | 55 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 | 10 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 | 40 years |
Buildings [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 10 years |
Buildings [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 42 years |
Other [member] | Bottom of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 3 years |
Other [member] | Top of range [member] | |
Disclosure of accounting policies [Line Items] | |
Useful life measured as period of time, property, plant and equipment | 35 years |
Accounting policies - Additiona
Accounting policies - Additional Information (Details) | Dec. 31, 2020 |
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% |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents. | ||||
Banks | $ 4,215,518 | $ 5,813,306 | ||
Short-term investments | 866,606 | 1,262,105 | ||
Cash | 184 | 347 | ||
Cash and cash equivalents | $ 5,082,308 | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 |
Cash and cash equivalents - Cre
Cash and cash equivalents - Credit quality of issuers of investments (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | $ 5,082,308 | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 |
AAA [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 2,578,090 | 3,851,656 | ||
F1+ [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 1,286,310 | 244,547 | ||
A-1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 851,394 | 1,244,462 | ||
F1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 207,773 | 0 | ||
BRC1+ [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 99,923 | 673,342 | ||
AAAf [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 28,552 | 0 | ||
F3 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 12,184 | 0 | ||
A [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 4,319 | 167,404 | ||
BRC 1 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 2,336 | 0 | ||
AA [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 2,162 | 0 | ||
AA Three [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 1,431 | 0 | ||
AA Two [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 546 | 229,473 | ||
BBB [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 121 | 569,514 | ||
AA- [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 22 | 0 | ||
A-2 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 0 | 89,996 | ||
BB [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 0 | 43 | ||
BAA2 [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | 0 | 10 | ||
Other [Member] | ||||
IFRS Statement [Line Items] | ||||
Cash and cash equivalents | $ 7,145 | $ 5,311 |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and cash equivalents. | ||
Restricted cash | $ 11,682 | $ 85,286 |
Average rate of return earned on cash and cash equivalent | 2.20% | 3.20% |
Trade and other receivables, _3
Trade and other receivables, net (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Customers | |||
Foreign | $ 2,021,070 | $ 2,759,993 | |
Domestic | 1,913,106 | 2,015,517 | |
Fuel price stabilization fund | 319,927 | 256,303 | |
Related parties | 105,048 | 27,449 | |
Accounts receivable from employees | 97,723 | 95,693 | |
Industrial services | 39,651 | 47,691 | |
Other | 322,567 | 497,688 | |
Total current | 4,819,092 | 5,700,334 | |
Non-current | |||
Accounts receivable from employees | 474,693 | 508,588 | |
Domestic customers | 51,955 | 52,819 | |
Related parties | 0 | 93,657 | [1] |
Other | 149,959 | 131,732 | |
Total non-current | $ 676,607 | $ 786,796 | |
[1] | Offshore International Group: Loan granted by Ecopetrol S.A. 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, 2020 is USD$28 million (2019 - USD$28 million). |
Trade and other receivables, _4
Trade and other receivables, net - Allowance for doubtful accounts (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other receivables, net | |||
Opening balance | $ 282,791 | $ 268,654 | $ 170,016 |
Additions, net | 16,253 | 14,158 | 107,725 |
Effect of change of control in subsidiaries | (5,517) | 0 | 0 |
Accounts receivable write-off and uses | (2,383) | (21) | (9,087) |
Closing balance | $ 291,144 | $ 282,791 | $ 268,654 |
Trade and other receivables, _5
Trade and other receivables, net - Additional Information (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
IFRS Statement [Line Items] | ||
Stabilization fund paid | $ 208,074 | |
Ecopetrol | ||
IFRS Statement [Line Items] | ||
Stabilization fund paid | $ 50,131 | |
Reficar | ||
IFRS Statement [Line Items] | ||
Stabilization fund paid | $ 157,943 |
Inventories, net (Details)
Inventories, net (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories, net | ||
Crude oil | $ 1,719,426 | $ 1,965,022 |
Fuels and petrochemicals | 1,407,297 | 1,876,247 |
Materials for the production of goods | 1,927,237 | 1,816,830 |
Current inventories | $ 5,053,960 | $ 5,658,099 |
Inventories, net - Changes of t
Inventories, net - Changes of the allowances for losses (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories, net | |||
Opening balance | $ (131,526) | $ (86,938) | $ (194,507) |
Additions, net | (9,748) | (44,191) | |
Reversals, net | 115,778 | ||
Foreign currency translation | (122) | 371 | (9,717) |
Effect of change of control in subsidiaries | 20,075 | ||
Uses, transfers and reclassifications | 11,772 | (768) | 1,508 |
Closing balance | $ (109,549) | $ (131,526) | $ (86,938) |
Inventories, net - Additional I
Inventories, net - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventories, net | ||
Inventories adjustment | $ 9,017 | $ 9,759 |
Other financial assets (Details
Other financial assets (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | $ 2,968,659 | $ 4,971,057 |
Other financial assets | 3,071,659 | 4,979,292 |
Current | 2,194,651 | 1,624,018 |
Non-current | 877,008 | 3,355,274 |
Assets measured at fair value through other comprehensive income [Member] | ||
Assets measured at fair value through profit or loss | ||
Other financial assets | 732 | 0 |
Assets measured at amortized cost [Member] | ||
Assets measured at fair value through profit or loss | ||
Other financial assets | 3,391 | 3,367 |
Hedging instruments [Member] | ||
Assets measured at fair value through profit or loss | ||
Other financial assets | 98,877 | 4,868 |
Local currency | ||
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | 474,535 | 1,630,149 |
Foreign currency | ||
Assets measured at fair value through profit or loss | ||
Financial assets at fair value through profit or loss | $ 2,494,124 | $ 3,340,908 |
Other financial assets - Maturi
Other financial assets - Maturity (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | $ 3,071,659 | $ 4,979,292 |
2021 | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 2,194,651 | 1,624,018 |
2022 | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 101,216 | 983,571 |
Later than two years and not later than five years [member] | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | 573,420 | 1,791,549 |
Later than five years [member] | ||
Disclosure of Other financial assets [Line Items] | ||
Other financial assets. | $ 202,372 | $ 580,154 |
Other financial assets - Other
Other financial assets - Other financial assets by fair value hierarchy level (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | $ 3,068,268 | $ 4,975,925 |
Level 1 | ||
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | 5,273 | 472,547 |
Level 2 | ||
Disclosure of Other financial assets [Line Items] | ||
Financial assets, at fair value | $ 3,062,995 | $ 4,503,378 |
Other financial assets - Credit
Other financial assets - Credit quality of the issuers of other financial assets (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | $ 3,071,659 | $ 4,979,292 |
Financial assets at fair value through profit or loss | 2,968,659 | 4,971,057 |
A-1 [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 1,107,777 | 0 |
BBB- [member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 758,472 | 0 |
F1+ [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 551,626 | 350,325 |
AAA [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 353,939 | 2,707,019 |
A3 [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 127,861 | 0 |
A+ [member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 60,692 | 712,934 |
F1 [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 43,839 | 0 |
AA- [member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 21,263 | 186,325 |
A [member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 21,179 | 186,222 |
AA [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 7,759 | 477,423 |
AA+ [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 5,332 | 155,012 |
A1 [member] | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 0 | 18,168 |
BBB [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | 0 | 159,968 |
Other | ||
IFRS Statement [Line Items] | ||
Other financial assets measured at fair value through profit | 11,044 | 25,896 |
Rating Not Available [Member] | ||
IFRS Statement [Line Items] | ||
Financial assets at fair value through profit or loss | $ 876 | $ 0 |
Other financial assets - Additi
Other financial assets - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Colombian pesos [Member] | ||
Disclosure of Other financial assets [line Items] | ||
Average rate of return on investments | 5.60% | 5.40% |
USD$ Million | ||
Disclosure of Other financial assets [line Items] | ||
Average rate of return on investments | 2.30% | 3.60% |
Taxes - Current and Non-current
Taxes - Current and Non-current tax assets and liabilities (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current tax assets | ||
Current tax assets | $ 3,976,295 | $ 1,518,807 |
Non-current tax assets | 8,071,733 | 6,809,347 |
Current tax liabilities | ||
Current tax liabilities | 1,243,883 | 2,570,779 |
Non current tax liabilities | 1,866,054 | 1,399,374 |
Income tax payable [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 811,197 | 1,967,353 |
Industry and commerce Tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 161,813 | 195,776 |
National tax and surcharge on gasoline [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 137,710 | 145,569 |
Carbon tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 64,091 | 54,586 |
Value added tax [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 5,607 | 33,098 |
Other taxes [Member] | ||
Current tax liabilities | ||
Current tax liabilities | 63,465 | 174,397 |
Deferred tax liabilities [member] | ||
Current tax liabilities | ||
Non current tax liabilities | 1,639,206 | 1,328,831 |
Income Tax credits [Member] | ||
Current tax liabilities | ||
Non current tax liabilities | 226,848 | 70,543 |
Deferred tax assets [Member] | ||
Current tax assets | ||
Non-current tax assets | 7,673,912 | 6,809,347 |
Income tax credits [Member] | ||
Current tax assets | ||
Non-current tax assets | 397,821 | 0 |
Income tax [member] | ||
Current tax assets | ||
Current tax assets | 1,823,027 | 190,605 |
Credit tax balance [Member] | ||
Current tax assets | ||
Current tax assets | 1,311,693 | 614,005 |
Other taxes [Member] | ||
Current tax assets | ||
Current tax assets | $ 841,575 | $ 714,197 |
Taxes - Income tax expense (Det
Taxes - Income tax expense (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about income tax [Line Items] | |||
Current income tax | $ 2,861,606 | $ 7,117,040 | $ 7,539,093 |
Deferred income tax related to Guajira Association contract | (791,824) | (2,365,108) | 783,136 |
Adjustments to prior years' current and deferred tax | (31,121) | (33,519) | (63,744) |
Income tax expenses | 2,038,661 | 4,718,413 | $ 8,258,485 |
Variation in bases for determination of current income taxes | 4,776,521 | $ 19,723,568 | |
Chevron | |||
Disclosure of detailed information about income tax [Line Items] | |||
Deferred income tax related to Guajira Association contract | $ 383,346 |
Taxes - Reconciliation of the i
Taxes - Reconciliation of the income tax expenses (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Net income before income tax | $ 4,776,514 | $ 19,723,568 | $ 20,613,875 |
Statutory rate | 32.00% | 33.00% | 37.00% |
Income tax at statutory rate | $ 1,528,484 | $ 6,508,777 | $ 7,627,134 |
Effective tax rate reconciliation items: | |||
Non-deductible expenses | 289,043 | 295,550 | 379,633 |
Reversal of deferred tax recognized in prior years | 245,508 | 0 | 0 |
Rate differential adjustment | 14,974 | 132,888 | 172,352 |
Impairment of non-current assets | 0 | 57,646 | (128,461) |
Variation in equity accounting method in Invercolsa | 7,002 | (2,943) | 0 |
Non-taxable income | (35,471) | (524,658) | (119,963) |
Prior years' taxes | (50,159) | (33,519) | (63,744) |
Foreign currency translation and exchange difference | 59,852 | (54,319) | 751,210 |
Tax discounts and tax credit | (20,572) | (110,857) | 0 |
Ecopetrol U.S.A. adjustment income tax | 0 | (1,550,152) | 0 |
Effect of tax reform | 0 | 0 | (359,676) |
Income tax expenses | $ 2,038,661 | $ 4,718,413 | $ 8,258,485 |
Effective tax rate | 42.70% | 23.90% | 40.10% |
Current | $ 2,583,832 | $ 7,127,492 | $ 7,416,038 |
Deferred | (545,171) | (2,409,079) | 842,447 |
Income tax expenses | $ 2,038,661 | $ 4,718,413 | $ 8,258,485 |
Taxes - Deferred income tax (De
Taxes - Deferred income tax (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Taxes | ||
Deferred tax assets | $ 7,673,912 | $ 6,809,347 |
Deferred tax liabilities | (1,639,206) | (1,328,831) |
Net deferred income tax | $ 6,034,706 | $ 5,480,516 |
Taxes - Deferred tax assets and
Taxes - Deferred tax assets and liabilities (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | $ 6,034,706 | $ 5,480,516 | $ 2,541,484 | $ 2,682,881 |
Loss carry forwards [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 4,478,606 | 2,550,816 | 1,002,062 | |
Provisions [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 3,187,850 | 2,404,032 | 1,994,762 | |
Employee benefits [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 1,874,242 | 1,875,872 | 1,161,860 | |
Accounts payable [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | (10,626) | 711,503 | 365,646 | |
Loans and borrowings | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 846,019 | 920,203 | 827,452 | |
Accounts receivable [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 183,843 | 139,410 | 79,591 | |
Excess presumptive income | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 61,722 | 298,273 | (37,638) | |
Others [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | 47,269 | (15,189) | (143,717) | |
Goodwill [member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | (366,346) | (363,968) | (404,394) | |
Property, plant and equipment and Natural and environmental resources [Member] | ||||
Disclosure Of Taxes [Line Items] | ||||
Deferred tax assets (liabilities) | $ (4,267,873) | $ (3,040,436) | $ (2,304,140) |
Taxes - Deferred tax (Details)
Taxes - Deferred tax (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Taxes [Line Items] | |||
Opening balance | $ 5,480,516 | $ 2,541,484 | $ 2,682,881 |
Profit or loss | 928,517 | 2,409,079 | (842,447) |
Profit or loss | 848,010 | 2,380,202 | |
OCI | 89,526 | 656,835 | 666,767 |
Increase due to business combinations (Guajira association - Note 12) | (383,346) | (98,005) | 0 |
Closing balance | 6,034,706 | 5,480,516 | 2,541,484 |
Property, plant and equipment and Natural and environmental resources [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (3,040,436) | (2,304,140) | |
Profit or loss | (844,091) | (736,296) | |
OCI | 0 | 0 | |
Increase due to business combinations (Guajira association - Note 12) | (383,346) | 0 | |
Closing balance | (4,267,873) | (3,040,436) | (2,304,140) |
Provisions [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 2,404,032 | 1,994,762 | |
Profit or loss | 783,818 | 409,270 | |
Closing balance | 3,187,850 | 2,404,032 | 1,994,762 |
Employee benefits [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 1,875,872 | 1,161,860 | |
Profit or loss | 39,608 | (57,343) | |
OCI | (41,238) | 771,355 | |
Closing balance | 1,874,242 | 1,875,872 | 1,161,860 |
Loss carry forwards [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 2,550,816 | 1,002,062 | |
Profit or loss | 1,927,790 | 1,548,754 | |
Closing balance | 4,478,606 | 2,550,816 | 1,002,062 |
Accounts payable [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 711,503 | 365,646 | |
Profit or loss | (722,129) | 345,857 | |
Closing balance | (10,626) | 711,503 | 365,646 |
Accounts receivable [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 139,410 | 79,591 | |
Profit or loss | 44,433 | 59,819 | |
OCI | 0 | 0 | |
Increase due to business combinations (Guajira association - Note 12) | 0 | 0 | |
Closing balance | 183,843 | 139,410 | 79,591 |
Goodwill [member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (363,968) | (404,394) | |
Profit or loss | (2,378) | 40,426 | |
OCI | 0 | 0 | |
Increase due to business combinations (Guajira association - Note 12) | 0 | 0 | |
Closing balance | (366,346) | (363,968) | (404,394) |
Others [Member] | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | (15,189) | (143,717) | |
Profit or loss | (68,306) | 341,053 | |
OCI | 130,764 | (114,520) | |
Increase due to business combinations (Guajira association - Note 12) | 0 | (98,005) | |
Closing balance | 47,269 | (15,189) | (143,717) |
Loans and borrowings | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 920,203 | 827,452 | |
Profit or loss | (74,184) | 92,751 | |
Closing balance | 846,019 | 920,203 | 827,452 |
Excess presumptive income | |||
Disclosure Of Taxes [Line Items] | |||
Opening balance | 298,273 | (37,638) | |
Profit or loss | (236,551) | 335,911 | |
Closing balance | $ 61,722 | $ 298,273 | $ (37,638) |
Taxes - Deferred tax detail rec
Taxes - Deferred tax detail recognized (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes | |||
Opening balance | $ 5,480,516 | $ 2,541,484 | $ 2,682,881 |
Deferred tax recognized in profit or loss | 928,517 | 2,409,079 | (842,447) |
Increase due to business combinations (Note 12) | (383,346) | (98,005) | 0 |
Deferred tax recognized in other comprehensive income(a) | 89,526 | 656,835 | 666,767 |
Foreign currency translation | (80,507) | (28,877) | 34,283 |
Closing balance | $ 6,034,706 | $ 5,480,516 | $ 2,541,484 |
Taxes - Income tax recorded in
Taxes - Income tax recorded in other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | $ 303,298 | $ 2,233,149 | $ 2,228,559 |
Deferred tax | (89,526) | (656,835) | (666,767) |
After tax | 213,772 | 1,576,314 | 1,561,792 |
Cash flow hedging for future crude oil exports [member] | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | (1,186) | (356,339) | 797,658 |
Deferred tax | 1,908 | 118,008 | (264,284) |
After tax | 722 | (238,331) | 533,374 |
Hedge of a net investment in a foreign operation | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | 520,490 | 87,524 | 1,382,278 |
Deferred tax | (156,147) | (26,257) | (410,324) |
After tax | 364,343 | 61,267 | 971,954 |
Hedge with derivative instruments | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | (78,547) | (69,220) | 77,872 |
Deferred tax | 23,475 | 22,769 | (25,698) |
After tax | (55,072) | (46,451) | 52,174 |
Actuarial valuation gains (losses) [member] | |||
Disclosure of detailed information about income tax [Line Items] | |||
Pre-tax | (137,459) | 2,571,184 | (29,249) |
Deferred tax | 41,238 | (771,355) | 33,539 |
After tax | $ (96,221) | $ 1,799,829 | $ 4,290 |
Taxes - Additional Information
Taxes - Additional Information (Details) $ in Thousands, $ in Millions | Jan. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) |
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 32.00% | 33.00% | 37.00% | ||||||
Average effective tax rate | 42.70% | 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 32% in 2020 (33% in 2019) income tax rate. | ||||||||
Description of tax losses carry forward | Tax losses generated as of January 1, 2017 may be offset against ordinary net income obtained in the following 12 taxable years. | ||||||||
Deferred tax assets | $ 8,071,733,000 | $ 6,809,347,000 | |||||||
RTA / Deferred tax update | $ 19,038,000 | ||||||||
Description Of Vat Rate And Conditions | 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%. | ||||||||
Description Of Audit Benefit Terms | Additionally, an audit benefit was included for fiscal years 2020 to 2021. Under this benefit, the income tax returns that reflect an increase in the net income tax 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 | Returns filed by taxpayers that have made transactions, subject to the transfer pricing regulations, have a five-year statute of limitations, for the tax returns that are filed as of January 1, 2020. | ||||||||
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 carried forward, the statute of limitations will be 6 years (5 years from 2020) counted as of their filing date. | ||||||||
Description of Extending the Limitation upon the Compliance of Given Conditions | With respect to tax returns where tax losses are calculated, the statute of limitations will be 12 years and if the losses are carried forward within the last 2 years of the 12–year period, the statute of limitations will be extended up to 3 additional years from the year of offsetting. | ||||||||
Description of Change in Effective tax rate | The increase from the previous year is mainly due to: a) the decrease in projected profit at the end of each year, b) the limitation in the use of the tax credits, c) the effect of the adjustment for exchange differences in the companies of the business group that are dollar functional currency, d) the effect of the adjustment of Permian in 2019 and e) the effect of the companies of the group with losses that have a nominal rate different from the parent company. | ||||||||
Description of Consistency in The Return When Increase in Minimum Tax rate | Additionally, an audit benefit was included for fiscal years 2020 to 2021. Under this benefit, the income tax returns that reflect an increase in the net income tax 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 | $ 25,000 | ||||||||
Percentage of gains | 10.00% | ||||||||
Base tax amount | 812,673,000 | ||||||||
Deferred tax assets amount unrecognized | $ 81,267,000 | ||||||||
Percentage of tax discount in the industry and commerce tax | 50.00% | 50.00% | |||||||
Excesses of presumptive income | $ 199,103,000 | ||||||||
Deferred tax asset recognised | 7,673,912,000 | $ 6,809,347,000 | |||||||
Increase in profit due to recognition of deferred tax asset | $ 247,420,000 | ||||||||
Description of deferred tax assets recognized. | The above benefit does not apply to: (i) taxpayers who have access to tax benefits due to their location in a specified geographic region; (ii) if it is demonstrated that the withholding taxes reported are non-existent; (iii) if the net income tax is less than 71 UVT (COP$2,5 for fiscal year 2020). The reduced status of limitation stated is not applicable for withholding tax returns and VAT retuns, which shall follow the general tax rules. | ||||||||
Deferred Tax Liabilities, Net | 1,639,206,000 | 1,328,831,000 | |||||||
Deferred Tax liabilities | 1,866,054,000 | 1,399,374,000 | |||||||
Chevron | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Deferred Tax Liabilities, Net | 383,346,000 | ||||||||
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% | ||||||||
2019 [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 33.00% | 33.00% | |||||||
Percentage Of Net Equity | 1.50% | ||||||||
Presumptive income tax | 1.50% | ||||||||
2020 [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 32.00% | ||||||||
Percentage Of Net Equity | 0.50% | ||||||||
Presumptive income tax | 0.50% | ||||||||
2021 [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 31.00% | 31.00% | |||||||
Presumptive income tax | 0.00% | ||||||||
2022 [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 30.00% | ||||||||
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 | $ 4,540,328,000 | $ 2,849,087,000 | |||||||
Dividend Tax Rate [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 10.00% | 7.50% | |||||||
Refinera de Cartagena | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tax losses | 8,007,852,000 | ||||||||
Deferred tax asset recognised | $ 1,601,570,000 | $ 1,052,848,000 | |||||||
Refinera de Cartagena | Loss carry forwards [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Deferred tax asset recognised | 1,601,570,000 | ||||||||
Refinera de Cartagena And Ecopetrol USA | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tax losses | 9,394,582,000 | 6,385,989,000 | |||||||
Andean Chemicals Ltd. [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Additional Deferred tax asset recognised | 71,305,000 | ||||||||
Deferred tax assets not recognised | 1,912,000 | ||||||||
Reficar | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Excess presumptive income were not recognised | 245,508,000 | ||||||||
Ecopetrol USA | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tax losses | $ 404 | 1,386,730,000 | |||||||
Deferred tax asset recognised | $ 306,172,000 | $ 182,977,000 | |||||||
Tax carry forward term | 20 years | ||||||||
Tax losses as a percentage of taxable income | 80.00% | ||||||||
Ecopetrol USA | Loss carry forwards [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Deferred tax asset recognised | $ 1,663,411,000 | ||||||||
Ecopetrol | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Works for taxes | 94,185,000 | ||||||||
Ecopetrol Group | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Excesses of presumptive income | 61,722,000 | ||||||||
Cenit Transporte y Logistica S.A.S. [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Works for taxes | 39,379,000 | ||||||||
Ecopetrol Group | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 32.00% | ||||||||
Tax losses | 3,953,551,000 | ||||||||
Deferred tax asset recognised | $ 1,189,973,000 | ||||||||
Tax carry forward term | 12 years | ||||||||
Ecopetrol Group | Bioenergy | Loss carry forwards [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Deferred tax asset recognised | $ 1,189,973,000 | ||||||||
Ecopetrol USA Inc | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tax losses | $ 6,532,048,000 | $ 1,904 | $ 6,144,400,000 | ||||||
Deferred tax asset recognised | $ 1,357,239,000 | $ 1,288,249,000 | |||||||
Tax carry forward term | 20 years | ||||||||
Bottom of range [member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tariff Percentage | 30.00% | ||||||||
Top of range [member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Tariff Percentage | 31.00% | ||||||||
Colombia Country [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Withholding Dividend Tax Rate | 7.50% | ||||||||
Free Trade Zone Area [Member] | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 20.00% | ||||||||
Free Trade Zone Area [Member] | Ecopetrol Group | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Presumptive income, percentage on beginning equity | 15.00% | ||||||||
Free trade zone with legal stability contract [Member] | Ecopetrol Group | |||||||||
Disclosure of detailed information about income tax [Line Items] | |||||||||
Applicable tax rate | 15.00% |
Other assets (Details)
Other assets (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Partners in joint operations | [1] | $ 534,145 | $ 921,983 |
Advanced payments to contractors and suppliers | 503,698 | 360,781 | |
Prepaid expenses | 369,979 | 272,007 | |
Trust funds | [2] | 218,158 | 144,798 |
Related parties | 7,093 | 57,016 | |
Other assets | 30,963 | 22,393 | |
Total current | 1,664,036 | 1,778,978 | |
Non-current | |||
Abandonment and pension funds | [3] | 405,376 | 445,457 |
Trust funds | [4] | 338,067 | 171,008 |
Employee benefits | 221,658 | 220,998 | |
Advanced payments and deposits | 54,392 | 56,027 | |
Judicial deposits and attachments | 42,672 | 40,317 | |
Other assets | 27,949 | 8,674 | |
Total non-current | $ 1,090,114 | $ 942,481 | |
[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] | It mainly includes the deposits related to Guajira Association's abandonment fund. | ||
[3] | Mainly 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. | ||
[4] | Mainly includes the resources invested in fiduciary commissions destined to "works for taxes", mechanism of payment of the income tax of 2019 and 2020, constituted in compliance with article 238 of Law 1819 of 2016 - Tax reform. |
Business combinations - Recogni
Business combinations - Recognized for the assets acquired and the liabilities (Details) - Guajira Association $ in Millions | Dec. 31, 2020COP ($) |
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |
Accounts receivable | $ 19,545 |
Property, plant and equipment | 1,190,547 |
Natural resources | 830,494 |
Right-of-use asset | 206 |
Other assets | 258,767 |
Total Assets | 2,299,559 |
Accounts payable | (20,927) |
Deferred tax | (421,957) |
Provisions | (72,032) |
Other liabilities | (136,942) |
Total Liabilities | (651,858) |
Fair value of net assets | 1,647,701 |
Ecopetrol | |
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |
Property, plant and equipment | 829,121 |
Natural resources | 615,642 |
Other assets | 113,107 |
Total Assets | 1,557,870 |
Accounts payable | (585) |
Deferred tax | (383,346) |
Provisions | (37,798) |
Other liabilities | (34,455) |
Total Liabilities | (456,184) |
Fair value of net assets | 1,101,686 |
Hocol S.A. [Member] | |
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |
Accounts receivable | 19,545 |
Property, plant and equipment | 361,426 |
Natural resources | 214,852 |
Right-of-use asset | 206 |
Other assets | 145,660 |
Total Assets | 741,689 |
Accounts payable | (20,342) |
Deferred tax | (38,611) |
Provisions | (34,234) |
Other liabilities | (102,487) |
Total Liabilities | (195,674) |
Fair value of net assets | $ 546,015 |
Business combinations - Effect
Business combinations - Effect on operating results (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |||
Right-of-use assets | $ 377,886 | $ 456,225 | |
Net profit from the acquisition [abstract] | |||
Deferred tax expense | (928,517) | $ (2,409,079) | $ 842,447 |
Guajira Association | |||
Acquisition-date fair value of total consideration transferred [abstract] | |||
Fair value of the net assets | 1,647,701 | ||
Book value of net assets | (200,660) | ||
Consideration paid | 454,630 | ||
Foreign currency translation | (5,359) | ||
Net profit from the acquisition | 987,052 | ||
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |||
Property, plant and equipment (Note 14) | 1,082,096 | ||
Natural and environmental resources (Note 15) | 778,398 | ||
Intangibles (Note 17) | 156 | ||
Accounts receivable | 19,545 | ||
Right-of-use assets | 206 | ||
Other assets | 145,660 | ||
Accounts payable | (20,342) | ||
Deferred tax | (38,611) | ||
Provisions | (34,234) | ||
Other liabilities | (102,487) | ||
Consideration paid | (454,630) | ||
Foreign currency translation | (5,359) | ||
Subtotal | 1,370,398 | ||
Net profit from the acquisition [abstract] | |||
Profit on acquisition before deferred tax | 1,370,398 | ||
Deferred tax expense | (383,346) | ||
Net profit from the acquisition | 987,052 | ||
Guajira Association | Ecopetrol | |||
Acquisition-date fair value of total consideration transferred [abstract] | |||
Fair value of the net assets | 1,101,686 | ||
Book value of net assets | (200,660) | ||
Net profit from the acquisition | 901,026 | ||
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |||
Property, plant and equipment (Note 14) | 720,670 | ||
Natural and environmental resources (Note 15) | 563,546 | ||
Intangibles (Note 17) | 156 | ||
Subtotal | 1,284,372 | ||
Net profit from the acquisition [abstract] | |||
Profit on acquisition before deferred tax | 1,284,372 | ||
Deferred tax expense | (383,346) | ||
Net profit from the acquisition | 901,026 | ||
Guajira Association | Hocol S.A. [Member] | |||
Acquisition-date fair value of total consideration transferred [abstract] | |||
Fair value of the net assets | 546,015 | ||
Consideration paid | 454,630 | ||
Foreign currency translation | (5,359) | ||
Net profit from the acquisition | 86,026 | ||
Amounts recognised for the assets acquired and the liabilities assumed at the date of acquisition | |||
Property, plant and equipment (Note 14) | 361,426 | ||
Natural and environmental resources (Note 15) | 214,852 | ||
Accounts receivable | 19,545 | ||
Right-of-use assets | 206 | ||
Other assets | 145,660 | ||
Accounts payable | (20,342) | ||
Deferred tax | (38,611) | ||
Provisions | (34,234) | ||
Other liabilities | (102,487) | ||
Consideration paid | (454,630) | ||
Foreign currency translation | (5,359) | ||
Subtotal | 86,026 | ||
Net profit from the acquisition [abstract] | |||
Profit on acquisition before deferred tax | 86,026 | ||
Net profit from the acquisition | $ 86,026 |
Business combinations - Additio
Business combinations - Additional Information (Details) - COP ($) $ in Millions | Jan. 01, 2020 | Nov. 29, 2019 | Nov. 22, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill. | $ 1,594,279 | $ 1,159,922 | |||||
Acquisition-related costs | 19,898 | ||||||
Profit (loss) from operating activities | 7,181,765 | 21,027,158 | $ 22,458,414 | ||||
Profit (loss) | 2,737,853 | 15,005,155 | 12,355,390 | ||||
Property, plant and equipment. | 66,508,338 | $ 64,214,822 | $ 62,799,983 | ||||
Hocol S.A. [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Acquisition-related costs | 361,426 | ||||||
Invercolsa [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill. | [1] | 434,357 | |||||
Invercolsa [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of interest acquired | 8.53% | ||||||
Percentage of interest held | 51.88% | ||||||
Guajira Association | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of interest held | 100.00% | ||||||
Profit (loss) from operating activities | 238,955 | ||||||
Profit (loss) | $ 161,423 | ||||||
Operating income, if the business combination took place on January 1 | $ 50,308,407 | ||||||
Net profit, if the business combination took place on January 1 | $ 2,766,398 | ||||||
Period within which the movement on the assets acquired and the liabilities assumed must complete | 180 days | ||||||
Guajira Association | Ecopetrol S.A. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of interest held | 57.00% | ||||||
Guajira Association | Hocol S.A. [Member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of interest held | 43.00% | ||||||
[1] | Corresponds to the value recognized by updating the fair value of Invercolsa S.A. (Note 12). |
Investments in associates and_3
Investments in associates and joint ventures - Composition and movements (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in joint ventures | ||||
Investments in joint ventures | $ 1,383,379 | $ 1,418,315 | ||
Investments in associates | ||||
Investments in associates | 1,791,249 | 1,826,757 | ||
Investments in joint ventures and associates | 3,174,628 | 3,245,072 | $ 1,844,336 | $ 1,330,460 |
Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 2,307,665 | 2,271,033 | ||
Investments in associates | ||||
Investments in associates | 1,799,790 | 1,837,827 | ||
Gases del Caribe S.A. E.S.P. [member] | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 1,512,629 | 1,527,911 | ||
Gas Natural del Oriente S.A. E.S.P. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 143,893 | 166,685 | ||
Gases de la Guajira S.A. E.S.P. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 69,518 | 68,608 | ||
Extrucol S.A. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 26,996 | 32,847 | ||
E2 Energia Eficiente S.A. E.S.P. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 35,614 | 28,501 | ||
Sociedad Colombiana de Servicios Portuarios S.A. - Serviport S.A. | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 8,541 | 11,070 | ||
Serviport S.A | Accumulated impairment [member] | ||||
Investments in associates | ||||
Investments in associates | (8,541) | (11,070) | ||
Sociedad Portuaria Olefinas y Derivados | Gross carrying amount [member] | ||||
Investments in associates | ||||
Investments in associates | 2,599 | 2,205 | ||
Equion Energia Limited | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 2,499,319 | 2,234,067 | ||
Equion Energia Limited | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 1,642,735 | 1,515,067 | ||
Equion Energia Limited | Accumulated impairment [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | (314,460) | (322,388) | ||
Offshore International Group | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 543,620 | 736,847 | ||
Offshore International Group | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | 613,258 | 709,871 | ||
Offshore International Group | Accumulated impairment [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | (609,826) | (530,330) | ||
Ecodiesel Colombia S.A | Gross carrying amount [member] | ||||
Investments in joint ventures | ||||
Investments in joint ventures | $ 51,672 | $ 46,095 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | $ 3,245,072 | $ 1,844,336 | $ 1,330,460 |
Effects of equity method through: | |||
Profit or loss | 76,336 | 366,904 | 165,836 |
Other comprehensive income | (2,923) | (170,460) | 137,562 |
Dividends declared | (157,682) | (79,866) | (90,350) |
Impairment reversal (loss) (Note 18) | (66,512) | (318,820) | 300,828 |
Foreign currency translation and other movements | 80,337 | 1,602,978 | |
Closing balance | 3,174,628 | 3,245,072 | 1,844,336 |
Dividends received | 157,241 | 189,169 | |
Joint ventures | |||
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | 1,418,315 | 1,599,674 | 1,105,282 |
Effects of equity method through: | |||
Profit or loss | (38,443) | 257,366 | 59,928 |
Other comprehensive income | 0 | 4,531 | 135,831 |
Dividends declared | (9,017) | (4,192) | (3,503) |
Impairment reversal (loss) (Note 18) | (69,041) | (318,962) | 302,136 |
Foreign currency translation and other movements | 81,565 | (120,102) | |
Closing balance | 1,383,379 | 1,418,315 | 1,599,674 |
Offshore International Group | |||
Effects of equity method through: | |||
Foreign currency translation and other movements | 2,527 | ||
Associates | |||
Disclosure of Investments in associates and joint ventures [Line Items] | |||
Opening balance | 1,826,757 | 244,662 | 225,178 |
Effects of equity method through: | |||
Profit or loss | 114,779 | 109,538 | 105,908 |
Other comprehensive income | (2,923) | (174,991) | 1,731 |
Dividends declared | (148,665) | (75,674) | (86,847) |
Impairment reversal (loss) (Note 18) | 2,529 | 142 | (1,308) |
Foreign currency translation and other movements | (1,228) | 1,723,080 | |
Closing balance | $ 1,791,249 | $ 1,826,757 | $ 244,662 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of financial position | ||||
Current assets | $ 22,834,374 | $ 23,364,461 | ||
Non-current assets | 114,859,795 | 110,525,835 | ||
Total assets | 137,694,169 | 133,890,296 | ||
Current liabilities | 18,282,443 | 21,742,299 | ||
Non-current liabilities | 65,912,363 | 53,916,369 | ||
Total liabilities | 84,194,806 | 75,658,668 | ||
Equity | 53,499,363 | 58,231,628 | $ 57,107,780 | $ 48,215,699 |
Other complementary information | ||||
Cash and cash equivalents | 5,082,308 | 7,075,758 | 6,311,744 | $ 7,945,885 |
Loans and borrowings | 4,923,346 | 5,012,173 | ||
Non-current Loans and borrowings | 41,808,408 | 33,226,966 | ||
Statement of profit or loss | ||||
Sales revenue | 50,223,393 | 71,488,512 | 68,603,872 | |
Costs | (37,567,472) | (44,972,360) | (41,184,379) | |
Other operating income (expenses), net | (3,373,150) | (2,151,599) | (1,653,858) | |
Financial (expenses) income | (2,481,587) | (1,670,494) | (2,010,375) | |
Income tax | 2,038,661 | 4,718,413 | 8,258,485 | |
Financial year results | 2,737,853 | 15,005,155 | 12,355,390 | |
Other comprehensive income (loss) for the year, net of tax | 1,356,224 | (1,743,107) | 1,037,450 | |
Offshore International Group | ||||
Statement of financial position | ||||
Current assets | 266,240 | 284,591 | ||
Non-current assets | 1,302,555 | 1,481,680 | ||
Total assets | 1,568,795 | 1,766,271 | ||
Current liabilities | 154,086 | 310,561 | ||
Non-current liabilities | 871,089 | 718,863 | ||
Total liabilities | 1,025,175 | 1,029,424 | ||
Equity | 543,620 | 736,847 | ||
Other complementary information | ||||
Cash and cash equivalents | 110,622 | 48,752 | ||
Statement of profit or loss | ||||
Sales revenue | 325,812 | 529,167 | 653,054 | |
Costs | (364,750) | (690,484) | (585,192) | |
Other operating income (expenses), net | (234,597) | (64,115) | (353,010) | |
Financial (expenses) income | (24,034) | (31,288) | (21,227) | |
Income tax | 59,818 | 208,473 | (16,594) | |
Financial year results | (237,751) | (48,247) | (322,969) | |
Other comprehensive income (loss) for the year, net of tax | 0 | 0 | 0 | |
Depreciation and amortization | 205,243 | 226,654 | 243,601 | |
Equion Energia Limited | ||||
Statement of financial position | ||||
Current assets | 2,616,813 | 2,530,453 | ||
Non-current assets | 13,538 | 95,384 | ||
Total assets | 2,630,351 | 2,625,837 | ||
Current liabilities | 81,259 | 315,002 | ||
Non-current liabilities | 49,773 | 76,768 | ||
Total liabilities | 131,032 | 391,770 | ||
Equity | 2,499,319 | 2,234,067 | ||
Other complementary information | ||||
Cash and cash equivalents | 36,601 | 188,820 | ||
Statement of profit or loss | ||||
Sales revenue | 257,066 | 1,285,891 | 1,490,177 | |
Costs | (127,672) | (671,179) | (755,656) | |
Other operating income (expenses), net | 60,852 | (624) | 29,136 | |
Financial (expenses) income | (1,090) | (3,660) | (3,659) | |
Income tax | (45,137) | (214,048) | (338,487) | |
Financial year results | 144,019 | 396,380 | 421,511 | |
Other comprehensive income (loss) for the year, net of tax | 1,223,990 | 1,102,757 | 1,095,090 | |
Depreciation and amortization | $ 41,536 | $ 404,482 | $ 511,615 |
Investments in associates and_6
Investments in associates and joint ventures - Reconciliation of equity (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 1,383,379 | $ 1,418,315 |
Equion Energia Limited | ||
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 2,499,319 | $ 2,234,067 |
% of Ecopetrol's ownership | 51.00% | 51.00% |
Ecopetrol's ownership | $ 1,274,654 | $ 1,139,374 |
Additional value of the investment | 375,693 | 375,693 |
Impairment | (314,460) | (322,388) |
Unrealized gain | (7,612) | |
Carrying amount of the investment | 1,328,275 | 1,192,679 |
Offshore International Group | ||
Disclosure of Investments in associates and joint ventures [Line Items] | ||
Equity of the joint venture | $ 543,620 | $ 736,847 |
% of Ecopetrol's ownership | 50.00% | 50.00% |
Ecopetrol's ownership | $ 271,811 | $ 368,424 |
Additional value of the investment | 341,447 | 341,447 |
Impairment | (609,826) | (530,330) |
Carrying amount of the investment | $ 3,432 | $ 179,541 |
Property, plant and equipment_2
Property, plant and equipment (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | $ 64,214,822 | $ 62,799,983 |
Adjustment on fair value for business combinations (Note 12) | 31,137 | |
Ending Balance | 66,508,338 | 64,214,822 |
Acquisition-related costs | 19,898 | |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 105,498,487 | 100,131,011 |
Additions/capitalizations | 5,032,317 | 4,012,659 |
Effect of control loss in subsidiaries (3) | (1,363,286) | |
Adjustment on fair value for business combinations (Note 12) | 720,670 | 1,338,947 |
Increase (Decrease) in abandonment costs | 203,364 | 256,751 |
Capitalized financial interests | 136,361 | 142,310 |
Exchange differences capitalized | 4,338 | 7,716 |
Disposals | (767,268) | (840,924) |
Foreign currency translation | 1,996,422 | 361,709 |
Transfers/ reclassifications | (498,946) | 88,308 |
Ending Balance | 110,962,459 | 105,498,487 |
Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (41,283,665) | (37,331,028) |
Depreciation expense | (4,384,980) | (4,084,564) |
Reversal (loss) of an impairment | (384,638) | (373,123) |
Disposals | 618,501 | 707,501 |
Effect of control loss in subsidiaries | 1,030,640 | |
Foreign currency translation | (481,516) | (146,685) |
Transfers/ reclassifications | 431,537 | (55,766) |
Ending Balance | (44,454,121) | (41,283,665) |
Plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 28,959,829 | 28,488,953 |
Ending Balance | 29,831,912 | 28,959,829 |
Plant and equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 47,995,471 | 46,474,369 |
Additions/capitalizations | 1,625,316 | 804,570 |
Effect of control loss in subsidiaries (3) | (298,570) | |
Adjustment on fair value for business combinations (Note 12) | 547,965 | 123,436 |
Increase (Decrease) in abandonment costs | 181,318 | 148,764 |
Capitalized financial interests | 42,052 | 77,627 |
Exchange differences capitalized | 1,338 | 4,208 |
Disposals | (491,677) | (500,876) |
Foreign currency translation | 1,336,351 | 244,666 |
Transfers/ reclassifications | 149,217 | 618,707 |
Ending Balance | 51,088,781 | 47,995,471 |
Plant and equipment [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (19,035,642) | (17,985,416) |
Depreciation expense | (2,296,176) | (2,001,116) |
Reversal (loss) of an impairment | (368,754) | 519,835 |
Disposals | 443,259 | 481,384 |
Effect of control loss in subsidiaries | 266,825 | |
Foreign currency translation | (306,506) | (103,365) |
Transfers/ reclassifications | 40,125 | 53,036 |
Ending Balance | (21,256,869) | (19,035,642) |
Pipelines, networks and lines [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 19,735,537 | 19,571,493 |
Ending Balance | 19,583,670 | 19,735,537 |
Pipelines, networks and lines [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 36,370,647 | 34,349,283 |
Additions/capitalizations | 1,179,602 | 765,994 |
Effect of control loss in subsidiaries (3) | (592,885) | |
Adjustment on fair value for business combinations (Note 12) | 44,538 | 1,118,178 |
Increase (Decrease) in abandonment costs | 15,035 | 102,402 |
Capitalized financial interests | 31,511 | 32,630 |
Exchange differences capitalized | 1,002 | 1,769 |
Disposals | (84,184) | (165,936) |
Foreign currency translation | 478,103 | 84,357 |
Transfers/ reclassifications | (301,675) | 81,970 |
Ending Balance | 37,141,694 | 36,370,647 |
Pipelines, networks and lines [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (16,635,110) | (14,777,790) |
Depreciation expense | (1,634,545) | (1,634,783) |
Reversal (loss) of an impairment | 329,743 | (113,860) |
Disposals | 75,150 | 116,769 |
Effect of control loss in subsidiaries | 403,095 | |
Foreign currency translation | (155,927) | (36,341) |
Transfers/ reclassifications | 59,570 | (189,105) |
Ending Balance | (17,558,024) | (16,635,110) |
Work in progress [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 5,145,288 | 4,127,262 |
Ending Balance | 6,490,772 | 5,145,288 |
Work in progress [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 6,259,654 | 4,624,703 |
Additions/capitalizations | 1,573,469 | 2,097,378 |
Effect of control loss in subsidiaries (3) | (775) | |
Adjustment on fair value for business combinations (Note 12) | 0 | 44,876 |
Increase (Decrease) in abandonment costs | 0 | 0 |
Capitalized financial interests | 38,756 | 12,831 |
Exchange differences capitalized | 1,233 | 696 |
Disposals | (79,077) | (78,399) |
Foreign currency translation | 19,804 | 2,691 |
Transfers/ reclassifications | (298,836) | (445,122) |
Ending Balance | 7,514,228 | 6,259,654 |
Work in progress [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (1,114,366) | (497,441) |
Depreciation expense | 0 | 0 |
Reversal (loss) of an impairment | (327,751) | (626,878) |
Disposals | 3,492 | 0 |
Effect of control loss in subsidiaries | 262 | |
Foreign currency translation | 959 | 0 |
Transfers/ reclassifications | 413,948 | 9,953 |
Ending Balance | (1,023,456) | (1,114,366) |
Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 4,701,691 | 4,729,755 |
Ending Balance | 4,783,745 | 4,701,691 |
Buildings [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 8,157,945 | 7,852,278 |
Additions/capitalizations | 390,731 | 243,039 |
Effect of control loss in subsidiaries (3) | (266,526) | |
Adjustment on fair value for business combinations (Note 12) | 54,413 | 9,062 |
Increase (Decrease) in abandonment costs | 3,885 | 1,248 |
Capitalized financial interests | 14,965 | 15,800 |
Exchange differences capitalized | 476 | 857 |
Disposals | (16,390) | (24,050) |
Foreign currency translation | 59,107 | 10,757 |
Transfers/ reclassifications | 13,863 | 48,954 |
Ending Balance | 8,412,469 | 8,157,945 |
Buildings [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (3,456,254) | (3,122,523) |
Depreciation expense | (341,052) | (326,512) |
Reversal (loss) of an impairment | (18,074) | (87,338) |
Disposals | 14,279 | 17,807 |
Effect of control loss in subsidiaries | 221,708 | |
Foreign currency translation | (13,707) | (3,656) |
Transfers/ reclassifications | (35,624) | 65,968 |
Ending Balance | (3,628,724) | (3,456,254) |
Lands [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3,973,856 | 3,950,274 |
Ending Balance | 4,034,278 | 3,973,856 |
Lands [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 4,054,538 | 3,984,576 |
Additions/capitalizations | 18,705 | 20,098 |
Effect of control loss in subsidiaries (3) | (60,341) | |
Adjustment on fair value for business combinations (Note 12) | 0 | 22,924 |
Increase (Decrease) in abandonment costs | 0 | 0 |
Capitalized financial interests | 753 | 1,033 |
Exchange differences capitalized | 24 | 56 |
Disposals | (10,155) | (354) |
Foreign currency translation | 73,181 | 12,869 |
Transfers/ reclassifications | 36,121 | 13,336 |
Ending Balance | 4,112,826 | 4,054,538 |
Lands [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (80,682) | (34,302) |
Depreciation expense | 0 | 0 |
Reversal (loss) of an impairment | 8,799 | (35,533) |
Disposals | 11 | 0 |
Effect of control loss in subsidiaries | 30,669 | |
Foreign currency translation | 3,403 | 0 |
Transfers/ reclassifications | (40,748) | (10,847) |
Ending Balance | (78,548) | (80,682) |
Other [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 1,698,621 | 1,932,246 |
Ending Balance | 1,783,961 | 1,698,621 |
Other [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 2,660,232 | 2,845,802 |
Additions/capitalizations | 244,494 | 81,580 |
Effect of control loss in subsidiaries (3) | (144,189) | |
Adjustment on fair value for business combinations (Note 12) | 73,754 | 20,471 |
Increase (Decrease) in abandonment costs | 3,126 | 4,337 |
Capitalized financial interests | 8,324 | 2,389 |
Exchange differences capitalized | 265 | 130 |
Disposals | (85,785) | (71,309) |
Foreign currency translation | 29,876 | 6,369 |
Transfers/ reclassifications | (97,636) | (229,537) |
Ending Balance | 2,692,461 | 2,660,232 |
Other [member] | Accumulated amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (961,611) | (913,556) |
Depreciation expense | (113,207) | (122,153) |
Reversal (loss) of an impairment | (8,601) | (29,349) |
Disposals | 82,310 | 91,541 |
Effect of control loss in subsidiaries | 108,081 | |
Foreign currency translation | (9,738) | (3,323) |
Transfers/ reclassifications | (5,734) | 15,229 |
Ending Balance | (908,500) | $ (961,611) |
Hocol S.A. [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Acquisition-related costs | $ 361,426 |
Natural and environmental res_3
Natural and environmental resources (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Natural and environmental resources [Line Items] | ||
Adjustment at fair value for business combinations (Note 12) | $ 31,137 | |
Net balance | 29,072,798 | |
Net balance | 31,934,159 | $ 29,072,798 |
Gross carrying amount [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Adjustment at fair value for business combinations (Note 12) | 720,670 | 1,338,947 |
Gross carrying amount [member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 59,822,566 | 53,936,041 |
Additions/capitalizations (1) | 3,659,270 | 5,144,295 |
Increase (decrease) in abandonment costs (Note 23) | 0 | 5,703 |
Disposals | (1,806) | (84,052) |
Withdrawal of exploratory assets and dry wells (2) | 0 | 0 |
Capitalized financial interests (3) | 111,140 | 94,995 |
Exchange differences capitalized | 3,535 | 5,150 |
Adjustment at fair value for business combinations (Note 12) | 563,546 | |
Foreign currency translation | 440,978 | 68,793 |
Transfers | 768,049 | 651,641 |
Balance | 65,367,278 | 59,822,566 |
Gross carrying amount [member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 5,036,884 | 2,919,146 |
Additions/capitalizations (1) | 123,446 | 166,431 |
Increase (decrease) in abandonment costs (Note 23) | 2,075,992 | 1,965,309 |
Disposals | 260 | (9,253) |
Withdrawal of exploratory assets and dry wells (2) | 0 | 0 |
Capitalized financial interests (3) | 0 | 0 |
Exchange differences capitalized | 0 | 0 |
Adjustment at fair value for business combinations (Note 12) | 0 | |
Foreign currency translation | 23,353 | (3,004) |
Transfers | (28,084) | (1,745) |
Balance | 7,231,851 | 5,036,884 |
Gross carrying amount [member] | Exploration and evaluation [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 8,362,719 | 4,806,000 |
Additions/capitalizations (1) | 2,211,746 | 4,487,467 |
Increase (decrease) in abandonment costs (Note 23) | 28,097 | (38,835) |
Disposals | (223,805) | (142,127) |
Withdrawal of exploratory assets and dry wells (2) | (448,132) | (340,271) |
Capitalized financial interests (3) | 0 | 10,834 |
Exchange differences capitalized | 0 | 587 |
Adjustment at fair value for business combinations (Note 12) | 0 | |
Foreign currency translation | (138,809) | (112,917) |
Transfers | (923,922) | (308,019) |
Balance | 8,867,894 | 8,362,719 |
Accumulated amortization and impairment [member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (41,993,097) | (36,806,667) |
Depletion expense | (3,810,349) | (3,836,479) |
Recovery (losses) for impairment (Note 18) | 116,403 | (1,017,061) |
Disposals | 213 | 83,667 |
Foreign currency translation | (310,894) | (61,862) |
Transfers | (108,423) | (354,695) |
Balance | (46,106,147) | (41,993,097) |
Accumulated amortization and impairment [member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (2,156,274) | (1,779,070) |
Depletion expense | (831,909) | (383,360) |
Recovery (losses) for impairment (Note 18) | 0 | 0 |
Disposals | 8,511 | |
Disposals | (40) | |
Foreign currency translation | (14,546) | (2,256) |
Transfers | 21,320 | (99) |
Balance | (2,981,449) | (2,156,274) |
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 18) | (334,112) | 0 |
Disposals | 93,975 | 0 |
Foreign currency translation | 0 | 0 |
Transfers | (205,131) | 0 |
Balance | (445,268) | 0 |
Natural and environmental resources [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 29,072,798 | 23,075,450 |
Net balance | 31,934,159 | 29,072,798 |
Natural and environmental resources [Member] | Oil investments [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 17,829,469 | 17,129,374 |
Net balance | 19,261,131 | 17,829,469 |
Natural and environmental resources [Member] | Asset retirement cost [Member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 2,880,610 | 1,140,076 |
Net balance | 4,250,402 | 2,880,610 |
Natural and environmental resources [Member] | Exploration and evaluation [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Net balance | 8,362,719 | 4,806,000 |
Net balance | 8,422,626 | 8,362,719 |
Natural and environmental resources [Member] | Gross carrying amount [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | 73,222,169 | 61,661,187 |
Additions/capitalizations (1) | 5,994,462 | 9,798,193 |
Increase (decrease) in abandonment costs (Note 23) | 2,104,089 | 1,932,177 |
Disposals | (225,351) | (235,432) |
Withdrawal of exploratory assets and dry wells (2) | (448,132) | (340,271) |
Capitalized financial interests (3) | 111,140 | 105,829 |
Exchange differences capitalized | 3,535 | 5,737 |
Adjustment at fair value for business combinations (Note 12) | 563,546 | |
Foreign currency translation | 325,522 | (47,128) |
Transfers | (183,957) | 341,877 |
Balance | 81,467,023 | 73,222,169 |
Natural and environmental resources [Member] | Accumulated amortization and impairment [member] | ||
Disclosure of Natural and environmental resources [Line Items] | ||
Balance | (44,149,371) | (38,585,737) |
Depletion expense | (4,642,258) | (4,219,839) |
Recovery (losses) for impairment (Note 18) | (217,709) | (1,017,061) |
Disposals | 94,148 | 92,178 |
Foreign currency translation | (325,440) | (64,118) |
Transfers | (292,234) | (354,794) |
Balance | $ (49,532,864) | $ (44,149,371) |
Natural and environmental res_4
Natural and environmental resources - Accounting for suspended exploratory wells (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | $ 908,972 | $ 935,110 | $ 1,146,006 |
Number of projects exceeding 1 year | 16 | 30 | 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 | $ 0 | $ 361,700 | $ 496,871 |
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 | 319,368 | 132,021 | 375,371 |
Later than five years [member] | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | 589,604 | $ 441,389 | 273,764 |
2021 | |||
Disclosure of Natural and environmental resources [Line Items] | |||
Wells under 1 year of suspension | $ 0 | $ 9,511 |
Natural and environmental res_5
Natural and environmental resources - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020COP ($) | |
Natural and environmental resources [Member] | Guajira Association | |
Disclosure of Natural and environmental resources [Line Items] | |
Acquisition-related costs | $ 214,852 |
Right-of-use assets (Details)
Right-of-use assets (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | $ 456,225 | |
Balance at the end | 377,886 | $ 456,225 |
Lease liabilities | ||
Lease Liabilities Rollforward [Abstract] | ||
Balance at the beginning | 1,290,954 | 797,889 |
Additions | 88,503 | 224,493 |
Remeasurements | 76,799 | |
Disposals | (28,916) | (50) |
Effect of control loss in subsidiaries (1) | (102,671) | |
Finance cost | 64,988 | 76,139 |
Repayment of borrowings and interests | (350,539) | (300,326) |
Exchange difference | 16,080 | 2,564 |
Balance at the end | 1,055,198 | 1,290,954 |
Lease liabilities | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Lease Liabilities Rollforward [Abstract] | ||
Balance at the beginning | 490,245 | |
Balance at the end | ||
Lands and buildings | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 218,513 | |
Additions | 41,303 | 26,252 |
Amortization of the period | (52,200) | (43,759) |
Remeasurements | (41,907) | |
Impairment Loss (Note 18) | $ 312 | $ (495) |
Disposals | (13,343) | (4) |
Effect of control loss in subsidiaries (1) | $ (61,044) | |
Exchange difference | 1,838 | |
Balance at the end | 93,472 | $ 218,513 |
Lands and buildings | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 236,519 | |
Balance at the end | ||
Property, Plant and Equipment [Member] | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 97,264 | |
Additions | 14,618 | 123,341 |
Amortization of the period | (29,038) | (66,831) |
Remeasurements | 33,686 | |
Impairment Loss (Note 18) | $ 29,718 | $ (37,601) |
Disposals | (4,321) | (57) |
Effect of control loss in subsidiaries (1) | $ (7,432) | |
Exchange difference | (556) | |
Balance at the end | 133,939 | $ 97,264 |
Property, Plant and Equipment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 78,412 | |
Balance at the end | ||
Vehicles | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 140,448 | |
Additions | 32,582 | 74,900 |
Amortization of the period | (98,726) | (64,764) |
Remeasurements | 69,255 | |
Impairment Loss (Note 18) | 5,844 | (15,392) |
Exchange difference | 1,072 | |
Balance at the end | 150,475 | 140,448 |
Vehicles | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 145,704 | |
Balance at the end | ||
Right-of-use assets | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 456,225 | |
Additions | 88,503 | 224,493 |
Amortization of the period | (179,964) | (175,354) |
Remeasurements | 61,034 | |
Impairment Loss (Note 18) | $ 35,874 | $ (53,488) |
Disposals | (17,664) | (61) |
Effect of control loss in subsidiaries (1) | $ (68,476) | |
Exchange difference | 2,354 | |
Balance at the end | 377,886 | $ 456,225 |
Right-of-use assets | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Right of Use Assets Rollforward [Abstract] | ||
Balance at the beginning | 460,635 | |
Balance at the end | ||
Subleases [Member] | ||
Right of Use Assets, Subleased Rollforward [Abstract] | ||
Balance as of beginning of period | 29,436 | |
Effect of control loss in subsidiaries (1) | $ (29,436) | |
Finance cost | 3,302 | |
Repayment of borrowings and interests | (3,476) | |
Balance as of end of period | 29,436 | |
Subleases [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Right of Use Assets, Subleased Rollforward [Abstract] | ||
Balance as of beginning of period | $ 29,610 | |
Balance as of end of period |
Intangible assets (Details)
Intangible assets (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 483,098 | |
Adjustment at fair value for business combinations (Note 12) | 31,137 | |
Ending Balance | 555,043 | $ 483,098 |
Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 302,382 | 303,391 |
Ending Balance | $ 284,349 | $ 302,382 |
Intangibles, Useful life | 5 years | 5 years |
Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 180,716 | $ 107,356 |
Ending Balance | $ 270,694 | $ 180,716 |
Intangibles, Useful life | 7 years | 7 years |
Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | $ 483,098 | $ 410,747 |
Ending Balance | 555,043 | 483,098 |
Gross carrying amount [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Adjustment at fair value for business combinations (Note 12) | 720,670 | 1,338,947 |
Gross carrying amount [member] | Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 994,599 | 1,015,720 |
Acquisitions | 43,817 | 48,064 |
Effect of control loss in subsidiaries (Note 28) | (10,584) | |
Adjustment at fair value for business combinations (Note 12) | 156 | |
Disposals | (5,430) | (114,187) |
Foreign currency translation | 12,569 | 3,477 |
Exchange differences capitalized | 0 | |
Transfers | 30,892 | 41,525 |
Ending Balance | 1,066,019 | 994,599 |
Gross carrying amount [member] | Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 285,247 | 197,283 |
Acquisitions | 46,265 | 120,225 |
Effect of control loss in subsidiaries (Note 28) | 0 | |
Adjustment at fair value for business combinations (Note 12) | 0 | |
Disposals | 0 | (1,041) |
Foreign currency translation | 5,072 | (3,946) |
Exchange differences capitalized | (14) | |
Transfers | 64,174 | (27,260) |
Ending Balance | 400,758 | 285,247 |
Gross carrying amount [member] | Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | 1,279,846 | 1,213,003 |
Acquisitions | 90,082 | 168,289 |
Effect of control loss in subsidiaries (Note 28) | (10,584) | |
Adjustment at fair value for business combinations (Note 12) | 156 | |
Disposals | (5,430) | (115,228) |
Foreign currency translation | 17,641 | (469) |
Exchange differences capitalized | (14) | |
Transfers | 95,066 | 14,265 |
Ending Balance | 1,466,777 | 1,279,846 |
Accumulated amortization [member] | Licences and software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (692,217) | (712,329) |
Amortization of the period | (93,907) | (88,044) |
Effect of control loss in subsidiaries (Note 28) | 9,877 | |
Recovery -losses for impairment (Note 18) | (176) | 53 |
Disposals | 5,558 | 114,143 |
Foreign currency translation | (8,689) | (2,333) |
Transfers | (2,116) | (3,707) |
Ending Balance | (781,670) | (692,217) |
Accumulated amortization [member] | Other intangibles [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (104,531) | (89,927) |
Amortization of the period | (23,429) | (14,982) |
Effect of control loss in subsidiaries (Note 28) | 0 | |
Recovery -losses for impairment (Note 18) | 5 | 2 |
Disposals | 11 | 1,041 |
Foreign currency translation | (65) | (33) |
Transfers | (2,055) | (632) |
Ending Balance | (130,064) | (104,531) |
Accumulated amortization [member] | Intangible assets [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning Balance | (796,748) | (802,256) |
Amortization of the period | (117,336) | (103,026) |
Effect of control loss in subsidiaries (Note 28) | 9,877 | |
Recovery -losses for impairment (Note 18) | (171) | 55 |
Disposals | 5,569 | 115,184 |
Foreign currency translation | (8,754) | (2,366) |
Transfers | (4,171) | (4,339) |
Ending Balance | $ (911,734) | $ (796,748) |
Impairment of non-current ass_3
Impairment of non-current assets (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | $ (633,156) | $ (1,762,437) | $ (368,634) |
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 | (192,693) | (1,982,044) | 785,940 |
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 | (781,528) | 452,163 | (984,704) |
Transport and logistics [Member] | Impairment by segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | 341,065 | (232,556) | (169,870) |
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 | (384,638) | (373,123) | (1,083,285) |
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 | (217,709) | (1,017,061) | 414,102 |
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 | (66,512) | (318,820) | 300,828 |
Right-of-use assets | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | 35,874 | (53,488) | |
Intangibles [Member] | Financial statement segment [Member] | |||
Disclosure of detailed information about impairment of non-current assets [Line Items] | |||
Total of the impairment charge | $ (171) | $ 55 | $ (279) |
Impairment of non-current ass_4
Impairment of non-current assets - Exploration and production (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (192,693) | $ (1,982,044) | $ 785,940 |
Oilfields [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 | (123,652) | (1,663,082) | 483,803 |
Investment in joint ventures [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 | (69,041) | (318,962) | 302,136 |
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 | $ 0 | $ 1 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Impairment (loss) reversal | $ (192,693) | $ (1,982,044) | $ 785,940 |
Oilfields [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Impairment (loss) reversal | (123,652) | (1,663,082) | 483,803 |
Fields in Colombia [Member] | Oilfields [Member] | Reversal [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 24,845,238 | 3,842,819 | 19,156,326 |
Recoverable amount | 61,224,928 | 6,047,345 | 50,462,080 |
Impairment (loss) reversal | 1,019,395 | 74,577 | 689,665 |
Fields in Colombia [Member] | Oilfields [Member] | Loss [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 2,439,799 | 4,992,462 | 764,808 |
Recoverable amount | 1,423,561 | 3,322,284 | 405,421 |
Impairment (loss) reversal | (1,016,238) | (1,673,258) | (359,387) |
Fields operated abroad | Oilfields [Member] | Reversal [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 200,910 | 1,810,618 | |
Recoverable amount | 539,785 | 2,719,086 | |
Impairment (loss) reversal | 4,391 | 157,709 | |
Fields operated abroad | Oilfields [Member] | Loss [Member] | |||
Detailed information about impairment losses reservals of assets Exploration and Production | |||
Carrying amount | 1,277,609 | 68,792 | 184,375 |
Recoverable amount | 1,150,800 | 180,191 | |
Impairment (loss) reversal | $ (126,809) | $ (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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | $ (69,041) | $ (318,962) | $ 302,136 |
Offshore International Group | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | (76,969) | (184,209) | 193,345 |
Equion Energia Limited | |||
Detailed informations about impairment losses reversals of assets [Line Items] | |||
Investment in associates and joint ventures | $ 7,928 | $ (134,753) | $ 108,791 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (781,528) | $ 452,163 | $ (984,704) |
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 | (440,525) | 911,597 | (770,297) |
Refineria De Cartagana [Member] | Carrying 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 | 24,041,174 | 22,292,788 | 23,411,058 |
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 | 23,600,649 | 23,204,385 | 22,640,761 |
Invercolsa [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 | (3) | ||
Invercolsa [member] | Carrying 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 | 276 | ||
Invercolsa [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 | 273 | ||
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 | (341,000) | (225,094) | |
Refineria de Barrancabermeja (projects) [Member] | Carrying 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 | 676,334 | 901,517 | |
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 | $ 335,334 | 676,423 | |
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) | |
Bioenergy [Member] | Carrying 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 | 575,331 | 774,343 | |
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 | |
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 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 | $ 946 |
Impairment of non-current ass_8
Impairment of non-current assets - Additional information (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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$46.36/barrel for the first year, USD$57.00/barrel for the medium term and USD$67.77/barrel for the long term. | In 2019, the assumptions taken USD$55.61/barrel for the first year, USD$56.50/barrel for the medium term and USD$71.6/barrel as of the year 2030. | In 2018, the assumptions taken USD$81.4/barrel for 2018, USD$67.6/barrel average for the next six years and USD$71.4/barrel as of 2030. |
Cenit Transporte y Logistica S.A.S. [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Reversal of impairment loss recognised in profit or loss, biological assets | $ 341,065 | ||
Recoverable amount of asset or cash-generating unit | 7,049,007 | ||
Cash Generating Unit Carrying Amount | $ 2,153,631 | ||
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 | 5.79% | 8.50% | 8.92% |
Impairment loss | $ 609,826 | $ 530,330 | |
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 | ||
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 | 5.10% | 6.23% | 6.48% |
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 | 3.67 | 6.31 | 7.46 |
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% | |
Impairment loss recognised in profit or loss, biological assets | $ 234,340 | ||
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 | 3.17% | 4.88% | 5.60% |
Impairment loss | $ 232,556 | $ 167,917 | |
Impairment loss relating to South Cash Generating Unit | 106,983 | ||
Impairment Loss Relating to North Cash Generating Unit | $ 125,140 | ||
Refineria de Barrancabermeja (projects) [Member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss recognised in profit or loss, biological assets | $ 341,000 |
Goodwill (Details)
Goodwill (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | $ 1,594,279 | $ 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 | |
Invercolsa [member] | |||
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | [1] | 434,357 | |
Andean chemical limited [Member] | |||
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | 127,812 | 127,812 | |
Propilco S.A. [Member] | |||
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | 108,137 | 108,137 | |
Gross carrying amount [member] | |||
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | 1,891,400 | 1,457,043 | |
Accumulated impairment [member] | Hocol petroleum limited | |||
Goodwill From Acquisitions [Abstract] | |||
Goodwill. | $ (297,121) | $ (297,121) | |
[1] | Corresponds to the value recognized by updating the fair value of Invercolsa S.A. (Note 12). |
Loans and borrowings (Details)
Loans and borrowings (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 46,731,754 | $ 38,239,139 | |
Less short-term | 4,923,346 | 5,012,173 | |
Total long-term | 41,808,408 | 33,226,966 | |
Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 3,044,437 | $ 4,459,807 | |
Local currency | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 6.40% | 8.70% | |
Borrowings | $ 1,084,461 | $ 1,567,598 | |
Local currency | Syndicated Loan [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 5.60% | 8.00% | |
Borrowings | $ 811,079 | $ 1,115,874 | |
Local currency | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [1] | 6.60% | 7.20% |
Borrowings | [1] | $ 836,489 | $ 1,039,303 |
Local currency | Commercial loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 6.30% | 8.30% | |
Borrowings | $ 312,408 | $ 737,032 | |
Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 43,687,317 | $ 33,779,332 | |
Foreign currency | Bonds [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [2] | 6.00% | 5.90% |
Borrowings | [2] | $ 33,944,548 | $ 25,832,740 |
Foreign currency | Lease liabilities | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [1] | 6.10% | 6.20% |
Borrowings | [1] | $ 218,709 | $ 251,651 |
Foreign currency | Commercial loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | [3] | 3.60% | 4.10% |
Borrowings | [3] | $ 8,247,014 | $ 6,586,538 |
Foreign currency | Loans From Related Parties [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 0.80% | 2.40% | |
Borrowings | $ 1,277,046 | $ 1,108,403 | |
[1] | Corresponds 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 - Leases. | ||
[2] | On April 29, 2020, Ecopetrol issued and placed external public debt bonds for an amount of USD$2,000 million, with a 10-year term and a coupon rate of 6.875%. | ||
[3] | Includes contingent credit line for USD$665 million with international banking (Scotiabank and Mizuho Bank). |
Loans and borrowings - Maturity
Loans and borrowings - Maturity of loans and borrowings (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 46,731,754 | $ 38,239,139 |
Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,044,437 | 4,459,807 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 43,687,317 | 33,779,332 |
2021 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,923,346 | 5,012,173 |
2021 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 581,958 | 1,331,337 |
2021 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,341,388 | 3,680,836 |
1 to 5 years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 22,953,532 | 20,274,052 |
1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,547,436 | 2,060,711 |
1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 21,406,096 | 18,213,341 |
2026 and therafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 13,285,454 | 7,563,010 |
2026 and therafter | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 582,133 | 716,446 |
2026 and therafter | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 12,703,321 | 6,846,564 |
>10 years | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,569,422 | 5,389,904 |
>10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 332,910 | 351,313 |
>10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,236,512 | 5,038,591 |
Bonds [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,084,461 | 1,567,598 |
Bonds [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 33,944,548 | 25,832,740 |
Bonds [Member] | 2021 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 65,829 | 571,969 |
Bonds [Member] | 2021 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,905,325 | 1,386,032 |
Bonds [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 354,081 | 403,996 |
Bonds [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 14,692,852 | 13,873,755 |
Bonds [Member] | 2026 and therafter | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 370,900 | 358,976 |
Bonds [Member] | 2026 and therafter | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 12,109,859 | 5,574,713 |
Bonds [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 293,651 | 232,657 |
Bonds [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 5,236,512 | 4,998,240 |
Syndicated loans [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 811,079 | 1,115,874 |
Syndicated loans [Member] | 2021 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 242,660 | 361,545 |
Syndicated loans [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 568,419 | 754,329 |
Syndicated loans [Member] | 2026 and therafter | 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 | 836,489 | 1,039,303 |
Financial leasing [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 218,709 | 251,651 |
Financial leasing [Member] | 2021 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 167,059 | 179,448 |
Financial leasing [Member] | 2021 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 60,424 | 57,284 |
Financial leasing [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 418,938 | 559,337 |
Financial leasing [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 149,381 | 175,962 |
Financial leasing [Member] | 2026 and therafter | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 211,233 | 235,791 |
Financial leasing [Member] | 2026 and therafter | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 8,904 | 18,405 |
Financial leasing [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 39,259 | 64,727 |
Financial leasing [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Commercial loans [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 8,247,014 | 6,586,538 |
Commercial loans [Member] | 2021 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,098,593 | 1,129,117 |
Commercial loans [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,563,863 | 4,163,624 |
Commercial loans [Member] | 2026 and therafter | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 584,558 | 1,253,446 |
Commercial loans [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 40,351 |
Loans From Related Parties [Member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,277,046 | 1,108,403 |
Loans From Related Parties [Member] | 2021 | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 1,277,046 | 1,108,403 |
Loans From Related Parties [Member] | 1 to 5 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Loans From Related Parties [Member] | 2026 and therafter | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Loans From Related Parties [Member] | >10 years | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 0 |
Other [Member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 312,408 | 737,032 |
Other [Member] | 2021 | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 106,410 | 218,375 |
Other [Member] | 1 to 5 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 205,998 | 343,049 |
Other [Member] | 2026 and therafter | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 121,679 |
Other [Member] | >10 years | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 0 | $ 53,929 |
Loans and borrowings - Breakdow
Loans and borrowings - Breakdown by type of interest rate and currency (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 46,731,754 | $ 38,239,139 |
Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 3,044,437 | 4,459,807 |
Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 43,687,317 | 33,779,332 |
Fixed interest rate [member] | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 523,870 | 598,802 |
Fixed interest rate [member] | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 38,706,328 | 31,087,439 |
Floating interest rate | Local currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 2,520,567 | 3,861,005 |
Floating interest rate | Foreign currency | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 4,980,989 | $ 2,691,893 |
Loans and borrowings - Movement
Loans and borrowings - Movement of net financial debt (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of net financial debt explanatory [Line Items] | |||
Cash flow | $ (1,993,450) | $ 764,014 | $ (1,634,141) |
Exchange difference Recognized in profit or loss | 346,774 | 40,639 | 372,223 |
Financial cost registered to projects | (3,929,791) | (3,334,469) | (3,512,161) |
Financial income (expense) recognized in profit or loss | (2,481,587) | (1,670,494) | (2,010,375) |
Effect of loss of control in subordinates | (43,991) | ||
Cash and equivalents [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | 7,075,758 | 6,311,744 | |
Cash flow | (1,971,156) | 505,466 | |
Exchange difference Recognized in profit or loss | (22,294) | 258,548 | |
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 | |
Effect of loss of control in subordinates | 0 | ||
Other movements not generating cash flow | 0 | 0 | |
Ending Balance | 5,082,308 | 7,075,758 | 6,311,744 |
Other financial assets [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | 4,979,292 | 8,147,815 | |
Cash flow | (2,107,856) | (3,117,549) | |
Exchange difference Recognized in profit or loss | 38,701 | 182,396 | |
Exchange difference Recognized in other comprehensive income | 0 | 0 | |
Financial cost registered to projects | 0 | 0 | |
Financial income (expense) recognized in profit or loss | 43,948 | (18,551) | |
Foreign currency translation | 42,529 | (204,441) | |
Effect of loss of control in subordinates | 0 | ||
Other movements not generating cash flow | 75,045 | (10,378) | |
Ending Balance | 3,071,659 | 4,979,292 | 8,147,815 |
Loans and borrowings [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | (38,239,139) | (38,062,645) | |
Cash flow | (6,105,296) | 3,303,303 | |
Exchange difference Recognized in profit or loss | 747,744 | (151,518) | |
Exchange difference Recognized in other comprehensive income | (722,458) | (53,911) | |
Financial cost registered to projects | (255,372) | (261,592) | |
Financial income (expense) recognized in profit or loss | (2,386,537) | (1,894,490) | |
Foreign currency translation | (175,885) | (14,627) | |
Effect of loss of control in subordinates | 528,981 | ||
Other movements not generating cash flow | (123,792) | (1,103,659) | |
Ending Balance | (46,731,754) | (38,239,139) | (38,062,645) |
Net financial debt [Member] | |||
Disclosure of net financial debt explanatory [Line Items] | |||
Begining Balance | (26,184,089) | (23,603,086) | |
Cash flow | (10,184,308) | 691,220 | |
Exchange difference Recognized in profit or loss | 764,151 | 289,426 | |
Exchange difference Recognized in other comprehensive income | (722,458) | (53,911) | |
Financial cost registered to projects | (255,372) | (261,592) | |
Financial income (expense) recognized in profit or loss | (2,342,589) | (1,913,041) | |
Foreign currency translation | (133,356) | (219,068) | |
Effect of loss of control in subordinates | 528,981 | ||
Other movements not generating cash flow | (48,747) | (1,114,037) | |
Ending Balance | $ (38,577,787) | $ (26,184,089) | $ (23,603,086) |
Loans and borrowings - Addition
Loans and borrowings - Additional Information (Details) $ in Millions, $ in Millions | Apr. 29, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings Maximum Borrwing Capacity | $ 13,805,403 | $ 359,876 | $ 517,747 | |||||
Financial instruments designated as hedging instruments, at fair value | $ 7,249 | $ 5,200 | ||||||
Borrowings | 46,731,754 | $ 38,239,139 | ||||||
Bonds issued | $ 2,000 | |||||||
Coupon Interest Rate | 6.875% | |||||||
Ifrs Debt Instrument, Term | 10 years | |||||||
Non-derivative financial liabilities, undiscounted cash flows | $ 76,559,430 | |||||||
Loans Payable Fair Value | $ 52,721,790 | $ 43,261,792 | ||||||
Hedge of a net investment in a foreign operation | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Financial instruments designated as hedging instruments, at fair value | 7,249 | |||||||
Cash flow hedging for future crude oil exports [member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | 3.7 | |||||||
Financial instruments designated as hedging instruments, at fair value | 1,300 | |||||||
Local Borrowings [Member] | Hedge of a net investment in a foreign operation | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Financial instruments designated as hedging instruments, at fair value | 8,549 | $ 7,331 | ||||||
Contingent Line of Credit with Scotiabank and Mizuho Bank [Member] | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 665 |
Trade and other payables (Detai
Trade and other payables (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Trade and other payables | ||||
Suppliers | $ 6,491,909 | $ 8,115,015 | ||
Partners' advances | 497,898 | 925,761 | ||
Withholding tax | 462,429 | 673,204 | ||
Insurance and reinsurance | 240,803 | 136,041 | ||
Dividends payable | [1] | 223,571 | 157,181 | |
Deposits received from third parties | 85,545 | 44,826 | ||
Related parties (Note 31) | 72,316 | 187,616 | ||
Agreements in transport contracts | [2] | 37,941 | 71,239 | |
Hedging operations | 6,405 | 0 | ||
Various creditors | 351,288 | 402,808 | ||
Trade and other payables | 8,470,105 | 10,713,691 | ||
Current | 8,449,041 | 10,689,246 | ||
Non-current | 21,064 | 24,445 | ||
Trade and other payables | 8,470,105 | 10,713,691 | ||
Paid dividends | $ 8,734,351 | $ 13,867,029 | $ 4,427,701 | |
[1] | During 2020, the Group paid dividends to its shareholders in the amount of COP$8,734,351 (2019 - COP$13,867,029 and 2018 - COP$4,427,701) net of withholdings when applicable. | |||
[2] | Corresponds to the value of the debt for agreements in the pipelines transportation contracts, calculated in the volumetric compensation for quality and other inventory management agreements. |
Provisions for employees' ben_3
Provisions for employees' benefits (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Post-employment benefits | ||
Post-employment benefits | $ 12,423,667 | $ 11,481,064 |
Current | 2,022,137 | 1,929,087 |
Non-current | 10,401,530 | 9,551,977 |
Healthcare [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 7,193,527 | 6,908,799 |
Pension [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 2,819,985 | 2,853,718 |
Education and severance [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 485,792 | 458,441 |
Bonds [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 342,669 | 352,917 |
Other plans [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 102,632 | 98,729 |
Termination benefits - Voluntary retirement plan [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 713,407 | 124,186 |
Post employment and termination benefits [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 11,658,012 | 10,796,790 |
Other Employment Benefts [Member] | ||
Post-employment benefits | ||
Post-employment benefits | 91,575 | 96,678 |
Social benefits and salaries [Member] | ||
Post-employment benefits | ||
Post-employment benefits | $ 674,080 | $ 587,596 |
Provisions for employees' ben_4
Provisions for employees' benefits - Net of post-employment benefits (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Employee benefits liabilities | |||
Opening balance | $ 23,509,643 | $ 20,344,061 | |
Current service cost | 118,035 | 76,478 | |
Past service cost | [1] | 631,761 | |
Interest expense | 1,322,467 | 1,339,175 | |
Actuarial (losses) gains | 505,498 | 3,028,709 | |
Benefits paid | (1,256,427) | (1,278,780) | |
Closing balance | 24,830,977 | 23,509,643 | |
Plan assets | |||
Opening balance | 12,712,853 | 12,352,511 | |
Return on assets | 700,304 | 801,282 | |
Contributions to funds | 370,090 | 83,071 | |
Benefits paid | (1,255,260) | (975,636) | |
Actuarial (losses) gains | 644,978 | 451,625 | |
Closing balance | 13,172,965 | 12,712,853 | |
Net post-employment benefits liability | 11,658,012 | 10,796,790 | |
Pension and pension bonds [Member] | |||
Employee benefits liabilities | |||
Opening balance | [2] | 15,916,472 | 14,131,943 |
Current service cost | [2] | 0 | 0 |
Past service cost | [2] | 0 | 0 |
Interest expense | [2] | 882,785 | 920,622 |
Actuarial (losses) gains | [2] | 418,187 | 1,755,300 |
Benefits paid | [2] | (897,061) | (891,393) |
Closing balance | [2] | 16,320,383 | 15,916,472 |
Plan assets | |||
Opening balance | [2] | 12,709,838 | 12,348,557 |
Return on assets | [2] | 700,168 | 801,065 |
Contributions to funds | [2] | 0 | 0 |
Benefits paid | [2] | (897,061) | (891,393) |
Actuarial (losses) gains | [2] | 644,784 | 451,609 |
Closing balance | [2] | 13,157,729 | 12,709,838 |
Net post-employment benefits liability | [2] | 3,162,654 | 3,206,634 |
Other [Member] | |||
Employee benefits liabilities | |||
Opening balance | 7,593,171 | 6,212,118 | |
Current service cost | 118,035 | 76,478 | |
Past service cost | [1] | 631,761 | |
Interest expense | 439,682 | 418,553 | |
Actuarial (losses) gains | 87,311 | 1,273,409 | |
Benefits paid | (359,366) | (387,387) | |
Closing balance | 8,510,594 | 7,593,171 | |
Plan assets | |||
Opening balance | 3,015 | 3,954 | |
Return on assets | 136 | 217 | |
Contributions to funds | 370,090 | 83,071 | |
Benefits paid | (358,199) | (84,243) | |
Actuarial (losses) gains | 194 | 16 | |
Closing balance | 15,236 | 3,015 | |
Net post-employment benefits liability | $ 8,495,358 | $ 7,590,156 | |
[1] | It includes the new voluntary retirement plan. | ||
[2] | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Recognized in profit or loss | |||
Interest expense, net | $ 622,163 | $ 537,893 | $ 485,842 |
Current service cost | 118,035 | 76,478 | 77,373 |
Past service cost | 0 | 0 | 50,489 |
Remedies | 0 | 10,213 | 503 |
Benefits plan costs recognized in profit or loss | 740,198 | 624,584 | 614,207 |
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | 137,459 | (2,571,184) | 29,249 |
Deferred tax | (41,238) | 771,355 | (33,539) |
Other comprehensive income, net of taxes | 96,221 | (1,799,829) | (4,290) |
Pension and pension bonds [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | 226,597 | (1,303,693) | 1,003 |
Healthcare [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | (33,324) | (1,268,379) | (17,356) |
Education and severance [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | (55,693) | 922 | 45,509 |
Termination benefits - Voluntary retirement plan [Member] | |||
Recognized in other comprehensive income | |||
Recognized in other comprehensive income | $ (121) | $ (34) | $ 93 |
Provisions for employees' ben_6
Provisions for employees' benefits - Plan assets of pension and pension (Details) - Pension Trust - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of defined benefit plans [line items] | ||
Assets of benefit plan | $ 13,172,965 | $ 12,712,853 |
Floating interest rate | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 679,448 | 823,977 |
Foreign currency | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 1,992,800 | 870,859 |
Local currency | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 1,502,349 | 1,899,787 |
Bonds issued by the national government | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 4,958,612 | 4,301,961 |
Bonds of private entities | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 3,177,531 | 3,122,630 |
Other public bonds | ||
Disclosure of defined benefit plans [line items] | ||
Debt instruments, amount contributed to fair value of plan assets | 777,562 | 1,082,815 |
Bonds of foreign entities | ||
Disclosure of defined benefit plans [line items] | ||
Cash and cash equivalents, amount contributed to fair value of plan assets | $ 84,663 | $ 610,824 |
Provisions for employees' ben_7
Provisions for employees' benefits - Credit ratings of the issuers and counterparties in assets (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 13,172,965 | $ 12,712,853 |
Nation [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 5,102,222 | 4,448,221 |
AAA [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 4,369,805 | 5,138,279 |
AA+ [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 570,716 | 837,009 |
BBB- [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 458,273 | 455,201 |
BBB [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 201,163 | 319,514 |
AA [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 134,454 | 6,679 |
F1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 61,192 | 56,728 |
BRC1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 52,296 | 68,313 |
A3 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 11,633 | 17,267 |
BBB+ [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 10,328 | 22,113 |
AA- [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 4,014 | 16,067 |
BAA3 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 0 | 219,830 |
SP1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 0 | 84,933 |
A-1+ [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 0 | 78,156 |
BAA1 [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 0 | 15,538 |
A [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 5,307 | 11,841 |
Other credit ratings [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 297,048 | 30,129 |
Not available ratings [member] | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 1,894,514 | $ 887,035 |
Provisions for employees' ben_8
Provisions for employees' benefits - Actuarial assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Pension [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 5.50% | 5.75% |
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 | 4.75% | 5.25% |
Expected inflation rate | 3.00% | 3.00% |
Healthcare [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Expected inflation rate | 3.00% | 3.00% |
Cost trend - Short-term rate | 6.67% | 7.00% |
Cost trend - Long-term rate | 4.00% | 4.00% |
Education and severance [Member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Discount rate | 5.00% | 5.50% |
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 | 4.09% | 4.83% |
Salary growth rate | 4.70% | |
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 | 4.70% | 5.50% |
Other benefits [Member] | Bottom of range [member] | ||
Disclosure of detailed information about provision for employee benefits [Line Items] | ||
Salary growth rate | 4.70% |
Provisions for employees' ben_9
Provisions for employees' benefits - Maturity of benefit obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020COP ($) | |
2021 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 1,450,763 |
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 | 967,810 |
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 | 482,953 |
2022 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,490,660 |
2022 | 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 | 996,869 |
2022 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 493,791 |
2023 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,526,388 |
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 | 1,019,379 |
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 | 507,009 |
2024 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,546,599 |
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 | 1,034,972 |
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 | 511,627 |
2025 | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 1,583,808 |
2025 | 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 | 1,069,252 |
2025 | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 514,556 |
2026 and therafter | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | 8,209,947 |
2026 and therafter | 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 | 5,607,391 |
2026 and therafter | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 2,602,556 |
Provisions for employees' be_10
Provisions for employees' benefits - Sensitivity analysis (Details) $ in Millions | Dec. 31, 2020COP ($) |
Discount rate [Member] | Pension [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | $ 16,139,465 |
+50 basis points | 14,368,856 |
Discount rate [Member] | Bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 1,147,350 |
+50 basis points | 1,072,868 |
Discount rate [Member] | Education and severance [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 515,004 |
+50 basis points | 464,394 |
Discount rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 846,709 |
+50 basis points | 812,726 |
Discount rate [Member] | Health [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 7,798,461 |
+50 basis points | 6,715,899 |
Inflation rate [Member] | Pension [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 14,314,193 |
+50 basis points | 16,193,316 |
Inflation rate [Member] | Bonds [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 1,072,094 |
+50 basis points | 1,147,825 |
Inflation rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 717,069 |
+50 basis points | 740,501 |
Salary growth rate [Member] | Other plans [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 96,530 |
+50 basis points | 105,392 |
Cost trend [Member] | Education and severance [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 464,319 |
+50 basis points | 514,849 |
Cost trend [Member] | Health [Member] | |
Disclosure of defined benefit plans [line items] | |
-50 basis points | 6,720,777 |
+50 basis points | $ 6,720,777 |
Provisions for employees' be_11
Provisions for employees' benefits - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($)employee | |
Disclosure of defined benefit plans [line items] | ||
Number of workers utilized voluntary retirement plan | employee | 125 | 132 |
Termination benefits - Voluntary retirement plan [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Termination benefits expense | $ | $ 713,407 | $ 124,186 |
Level 1 | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of plan assets | 23.30% | 26.60% |
Level 2 | ||
Disclosure of defined benefit plans [line items] | ||
Percentage of plan assets | 76.70% | 73.40% |
Accrued liabilities and provi_3
Accrued liabilities and provisions (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | $ 9,918,288 | $ 7,754,012 | $ 6,537,449 |
Increase in abandonment costs | 2,307,453 | 2,188,928 | 1,062,280 |
Additions (reversals) | 412,609 | 262,253 | 307,646 |
Uses | (429,950) | (515,288) | (396,992) |
Financial cost | 258,464 | 226,806 | 186,518 |
Effect of loss of control in subordinates (Note 28) | (43,991) | ||
Adjustment at fair value for business combinations | 31,137 | ||
Foreign currency translation | 43,143 | (3,950) | 63,225 |
Transfers | (69,423) | 5,527 | (6,114) |
Balance End Period | 12,427,730 | 9,918,288 | 7,754,012 |
Current | 1,221,109 | 789,297 | 814,409 |
Non-current | 11,206,621 | 9,128,991 | 6,939,603 |
Asset retirement obligation [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 8,835,420 | 6,719,275 | 5,527,324 |
Increase in abandonment costs | 2,307,453 | 2,188,928 | 1,062,280 |
Additions (reversals) | 143,320 | 112,486 | 71,015 |
Uses | (291,793) | (410,191) | (182,130) |
Financial cost | 258,464 | 226,803 | 186,518 |
Effect of loss of control in subordinates (Note 28) | (23,874) | ||
Adjustment at fair value for business combinations | 31,137 | ||
Foreign currency translation | 37,239 | (5,240) | 54,610 |
Transfers | (58,041) | 3,359 | (342) |
Balance End Period | 11,239,325 | 8,835,420 | 6,719,275 |
Current | 949,638 | 589,411 | 549,678 |
Non-current | 10,289,687 | 8,246,009 | 6,169,597 |
Litigation [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 137,429 | 127,945 | 182,966 |
Increase in abandonment costs | 0 | 0 | 0 |
Additions (reversals) | 32,108 | 58,913 | 61,851 |
Uses | (31,709) | (45,342) | (114,647) |
Financial cost | 0 | 0 | 0 |
Effect of loss of control in subordinates (Note 28) | (20,117) | ||
Foreign currency translation | 428 | 79 | (2,368) |
Transfers | (4,166) | 143 | |
Balance End Period | 118,139 | 137,429 | 127,945 |
Current | 46,844 | 28,662 | 88,623 |
Non-current | 71,295 | 108,767 | 39,322 |
Environmental contingencies provision [Member] | |||
Disclosure of accrued liabilities and provisions [Line Items] | |||
Balance Beginning period | 945,439 | 906,792 | 827,159 |
Increase in abandonment costs | 0 | 0 | 0 |
Additions (reversals) | 237,181 | 90,854 | 174,780 |
Uses | (106,448) | (59,755) | (100,215) |
Financial cost | 0 | 3 | 0 |
Effect of loss of control in subordinates (Note 28) | 0 | ||
Adjustment at fair value for business combinations | 0 | ||
Foreign currency translation | 5,476 | 1,211 | 10,983 |
Transfers | (11,382) | 6,334 | (5,915) |
Balance End Period | 1,070,266 | 945,439 | 906,792 |
Current | 224,627 | 171,224 | 176,108 |
Non-current | $ 845,639 | $ 774,215 | $ 730,684 |
Accrued liabilities and provi_4
Accrued liabilities and provisions - Legal proceedings not recognised (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020COP ($)item | Dec. 31, 2019COP ($)item | |
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 1,143 | 974 |
Proceedings amount | $ | $ 16,601,417 | $ 16,541,802 |
Constitutional Action [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 20 | 16 |
Proceedings amount | $ | $ 15,810,719 | $ 15,689,778 |
Ordinary Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 156 | 162 |
Proceedings amount | $ | $ 714,606 | $ 781,686 |
Ordinary Labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 659 | 614 |
Proceedings amount | $ | $ 54,030 | $ 51,029 |
Ordinary Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 54 | 54 |
Proceedings amount | $ | $ 6,363 | $ 17,956 |
Special labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 15 | 13 |
Proceedings amount | $ | $ 3,106 | $ 720 |
Penal [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 2 | 1 |
Proceedings amount | $ | $ 595 | $ 595 |
Executive Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 2 | 1 |
Proceedings amount | $ | $ 11,951 | $ 28 |
Guardianship [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 234 | 112 |
Proceedings amount | $ | $ 47 | $ 10 |
Executive Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes | 1 | 1 |
Accrued liabilities and provi_5
Accrued liabilities and provisions - Details of contingent assets (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020COP ($)item | Dec. 31, 2019COP ($)item | |
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 568 | 452 |
Proceedings amount | $ | $ 696,108 | $ 610,529 |
Ordinary Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 99 | 37 |
Proceedings amount | $ | $ 402,380 | $ 384,215 |
Ordinary Labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 48 | 50 |
Proceedings amount | $ | $ 3,129 | $ 3,295 |
Ordinary Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 114 | 75 |
Proceedings amount | $ | $ 82,572 | $ 86,363 |
Arbitration [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 2 | 1 |
Proceedings amount | $ | $ 138,386 | $ 67,232 |
Special labor [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 84 | 57 |
Proceedings amount | $ | $ 426 | $ 307 |
Penal [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 149 | 156 |
Proceedings amount | $ | $ 61,466 | $ 60,177 |
Executive Administrative [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 10 | 11 |
Proceedings amount | $ | $ 2,450 | $ 4,028 |
Guardianship [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 5 | 4 |
Executive Civil [Member] | ||
Disclosure of accrued liabilities and provisions [Line Items] | ||
Number of processes of contingent assets | 57 | 61 |
Proceedings amount | $ | $ 5,299 | $ 4,912 |
Accrued liabilities and provi_6
Accrued liabilities and provisions - Additional information (Details) $ in Millions, $ in Millions | Jun. 28, 2019USD ($) | Mar. 16, 2018USD ($) | Jun. 30, 2017 | May 25, 2016COP ($) | Mar. 08, 2016COP ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019 | Dec. 31, 2020COP ($) | Jun. 28, 2019COP ($) | Mar. 16, 2018COP ($) | Apr. 28, 2017USD ($) | Apr. 28, 2017COP ($) |
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Mandatory investments, natural resources | 1.00% | 1.00% | 1.00% | 1.00% | |||||||||
Legal proceedings in process, damages sought, value | $ 213 | ||||||||||||
Frontera Energy [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Income that cannot be recognized | $ 114,075 | ||||||||||||
Amount owed by counterparty | $ 334,583 | ||||||||||||
Refinera de Cartagena SA [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Legal proceedings in process, claims made, value | $ 2,000 | ||||||||||||
Contingent asset claim | $ 129 | $ 432,303 | |||||||||||
Contingent asset claim invoices provisionally paid | $ 137 | $ 139 | $ 122 | ||||||||||
Legal proceedings in process, claims made, value updated including interest | $ 137 | $ 503,241 | |||||||||||
Contingent asset non detailed counterclaim | $ 116 | $ 387,558 | |||||||||||
Contingent Asset Compliance Letter Of Credit | $ 70 | ||||||||||||
Cenit Transporte y Logistica S.A.S. [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Contingent provision accounts receivable and payable | 99,734 | ||||||||||||
Cenit Transporte y Logistica S.A.S. [Member] | Frontera Energy [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Amount owed by counterparty | $ 9,663 | ||||||||||||
Bicentenario, Cenit And Frontera Settlement Agreement [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Description of new transportation contracts | Frontera will transfer to Cenit its 43.03% stake in Bicentenario´s shareholdings. The new ship or pay commitment is projected to be approximately 3,900 bbls/day, based on the current oil price, for a term of five years subject to adjustments, at a current fee of $11.5/bbl. | Frontera will transfer to Cenit its 43.03% stake in Bicentenario´s shareholdings. The new ship or pay commitment is projected to be approximately 3,900 bbls/day, based on the current oil price, for a term of five years subject to adjustments, at a current fee of $11.5/bbl. | |||||||||||
Exploration and Production [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Discount rate applied to cash flow projections | 2.65% | 3.01% | 2.65% | ||||||||||
Transport and logistics [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Discount rate applied to cash flow projections | 2.71% | 2.61% | 2.71% | ||||||||||
Refining and petrochemicals [Member] | |||||||||||||
Disclosure of accrued liabilities and provisions [Line Items] | |||||||||||||
Discount rate applied to cash flow projections | 3.67% | 3.94% | 3.67% |
Equity - Ecopetrol Business Gro
Equity - Ecopetrol Business Group's reserves (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of changes in equity [Line Items] | ||
Other reserves | $ 9,635,136 | $ 3,784,658 |
Legal reserve [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | 4,568,980 | 3,243,832 |
Fiscal and statutory reserves [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | 509,082 | 509,082 |
Occasional reserves [member] | ||
Disclosure of changes in equity [Line Items] | ||
Other reserves | $ 4,557,074 | $ 31,744 |
Equity - Movement of equity res
Equity - Movement of equity reserves (Details) - COP ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of changes in equity [Line Items] | ||
Opening balance | $ 58,231,628 | $ 57,107,780 |
Closing balance | 53,499,363 | 58,231,628 |
Equity reserves [Member] | ||
Disclosure of changes in equity [Line Items] | ||
Opening balance | 3,784,658 | 5,138,895 |
Release of reserves | (540,826) | (3,050,703) |
Allocation to reserves | 6,391,304 | 5,355,852 |
Dividends declared | (3,659,386) | |
Closing balance | $ 9,635,136 | $ 3,784,658 |
Equity - Other comprehensive in
Equity - Other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of changes in equity [Line Items] | ||||
Equity | $ 53,499,363 | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 |
Other comprehensive income | ||||
Disclosure of changes in equity [Line Items] | ||||
Foreign currency translation | 11,794,201 | 10,265,398 | 10,235,891 | |
Cash flow hedge with derivative instruments | 44,132 | 3,689 | (30,962) | |
Cash flow hedges for future exports | (136,470) | (135,748) | (374,079) | |
Actuarial gain on defined benefit plans | (2,260,989) | (2,357,210) | (557,381) | |
Hedge of a net investment in a foreign operation | (1,494,926) | (1,130,583) | (1,069,316) | |
Others | 1,114 | 1,114 | 176,608 | |
Equity | $ 7,947,062 | $ 6,646,660 | $ 8,380,761 | $ 7,399,015 |
Equity - Earnings per share (De
Equity - Earnings per share (Details) - COP ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity | |||
Profit attributable to Ecopetrol's shareholders | $ 1,586,677 | $ 13,744,011 | $ 11,381,386 |
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) | $ 38.6 | $ 334.3 | $ 276.8 |
Equity - Additional information
Equity - Additional information (Details) - COP ($) $ / shares in Units, $ in Millions | Apr. 22, 2021 | Mar. 26, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | 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 | ||||
Amount of decreed dividends | $ 7,401,005 | $ 9,251,256 | |||
Percentage of decreed dividends | 100.00% | 100.00% | |||
Dividends approved for distribution | $ 698,984 | ||||
Dividends approved for distribution, per share | $ 17 | ||||
Percentage of shareholders for dividend payment | 100.00% | ||||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 50,223,393 | $ 71,488,512 | $ 68,603,872 |
Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 24,687,715 | 34,305,108 | 33,022,600 |
Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 25,535,678 | 37,183,404 | 35,581,272 |
Mid-distillates [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 8,860,588 | 15,041,883 | 14,039,638 |
Gasoline and turbo fuels [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 6,768,046 | 9,658,180 | 9,334,939 |
Gasoline and turbo fuels [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 179,257 | 1,085,392 | 1,782,194 |
Services [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 2,859,559 | 4,115,626 | 3,531,404 |
Natural Gas [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 2,845,155 | 2,256,123 | 1,885,846 |
Natural Gas [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 17,231 | 27,255 | 27,899 |
Plastic and rubber [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 865,204 | 834,133 | 899,410 |
Plastic and rubber [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 1,302,131 | 1,249,189 | 1,308,685 |
Asphalts [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 526,100 | 544,200 | 335,426 |
L.P.G. and propane [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 375,775 | 372,916 | 574,639 |
L.P.G. and propane [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 18,943 | 13,591 | 20,212 |
Other products [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 322,232 | 431,201 | 651,874 |
Other products [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 580,411 | 408,427 | 310,708 |
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 | (193,374) | (386,773) | 128,404 |
Crude Oil [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 230,520 | 356,857 | 550,479 |
Crude Oil [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 19,498,582 | 28,523,596 | 26,898,737 |
Diesel [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 3,164,068 | 4,391,798 | 3,050,839 |
Fuel oil [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 37,001 | 97,907 | 509,482 |
Fuel oil [Member] | Foreign sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 968,429 | 1,870,929 | 2,053,594 |
Fuel gas services[Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 671,570 | 72,249 | |
Aromatics | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 155,740 | 228,552 | 282,545 |
Polyethylene [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | 138,035 | 192,436 | 270,887 |
Other Income Gas Contracts [Member] | Domestic sales [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue from sale of goods | $ 32,190 | $ 102,845 | $ 156,031 |
Sales revenue from contracts _4
Sales revenue from contracts with customers - Sales by geographic area (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 50,223,393 | $ 71,488,512 | $ 68,603,872 |
Percentage of entitys revenue | 100.00% | 100.00% | 100.00% |
Colombia Country [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 24,687,715 | $ 34,305,108 | $ 33,022,600 |
Percentage of entitys revenue | 49.20% | 48.00% | 48.10% |
United States Of America Country [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 11,365,218 | $ 17,371,173 | $ 14,765,674 |
Percentage of entitys revenue | 22.60% | 24.30% | 21.50% |
Asia continent [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 9,497,498 | $ 13,529,151 | $ 12,271,225 |
Percentage of entitys revenue | 18.90% | 18.90% | 17.90% |
Central America And Caribbean [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 2,581,644 | $ 3,472,665 | $ 4,449,033 |
Percentage of entitys revenue | 5.10% | 4.90% | 6.60% |
South America And Others [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 1,296,370 | $ 1,502,815 | $ 2,968,038 |
Percentage of entitys revenue | 2.60% | 2.10% | 4.30% |
Europe continent [Member] | |||
Disclosure of detailed information about sales revenue [Line Items] | |||
Revenue | $ 794,948 | $ 1,307,600 | $ 1,127,302 |
Percentage of entitys revenue | 1.60% | 1.80% | 1.60% |
Sales revenue from contracts _5
Sales revenue from contracts with customers - Additional information (Details) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | |
Disclosure of detailed information about sales revenue [Line Items] | ||||||
Recognition of price differential | $ 142,723 | $ 1,785,277 | $ 3,835,533 | |||
Hedges with derivative instruments | $ 7,249 | $ 5,200 | ||||
Percentage of entitys revenue | 100.00% | 100.00% | 100.00% | |||
Crude Oil [Member] | ||||||
Disclosure of detailed information about sales revenue [Line Items] | ||||||
Hedges with derivative instruments | $ (587,591) | |||||
Fuel oil [Member] | ||||||
Disclosure of detailed information about sales revenue [Line Items] | ||||||
Hedges with derivative instruments | $ (76,382) | |||||
Terpel [Member] | ||||||
Disclosure of detailed information about sales revenue [Line Items] | ||||||
Percentage of entitys revenue | 15.00% | 16.00% | 14.00% | |||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about cost of sales of non current assets [line Items] | ||||
Total Variable Costs | $ 25,909,931 | $ 32,699,443 | $ 29,838,341 | |
Total Fixed Costs | 11,657,541 | 12,272,917 | 11,346,038 | |
Cost of sales | (37,567,472) | (44,972,360) | (41,184,379) | |
Varible Costs [Member] | ||||
Disclosure of detailed information about cost of sales of non current assets [line Items] | ||||
Imported products | [1] | 7,592,489 | 12,639,710 | 11,809,529 |
Depreciation, amortization and depletion | 6,069,903 | 5,523,306 | 5,064,518 | |
Purchases of crude in association and concession | 4,281,661 | 5,466,496 | 3,820,746 | |
Purchases of hydrocarbons - ANH | [2] | 2,798,432 | 5,437,177 | 5,667,567 |
Electric energy | 1,098,621 | 829,543 | 662,297 | |
Hydrocarbon transport services | 874,632 | 821,654 | 696,964 | |
Taxes and economic rights | 841,443 | 788,924 | 441,207 | |
Process materials | 827,464 | 1,016,617 | 968,884 | |
Purchases of other products and gas | 598,015 | 584,507 | 632,509 | |
Services contracted in associations | 269,637 | 267,778 | 260,207 | |
Others | [3] | 657,634 | (676,269) | (186,087) |
Fixed Costs [Member] | ||||
Disclosure of detailed information about cost of sales of non current assets [line Items] | ||||
Hydrocarbon transport services | 253,752 | 268,572 | 261,237 | |
Services contracted in associations | 1,121,010 | 1,211,510 | 1,040,221 | |
Depreciation and amortization | 2,930,120 | 2,781,446 | 2,555,176 | |
Labor costs | 2,299,761 | 2,316,567 | 2,105,803 | |
Maintenance | 2,257,370 | 2,497,002 | 2,260,984 | |
Services contracted | 1,623,375 | 1,841,009 | 1,796,354 | |
Taxes and contributions | 593,041 | 516,933 | 393,690 | |
Materials and operating supplies | 508,037 | 574,678 | 565,601 | |
General costs | $ 71,075 | $ 265,200 | $ 366,972 | |
[1] | Imported products correspond mainly to diesel 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 valuation of the inventory, product of the costing process, ii) the valuation at Net Realizable Value, and iii) the agreements of inventories by transport and iv) capitalizable costs to projects. |
Administrative, operations an_3
Administrative, operations and project expenses (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
Administrative expenses | $ (3,373,150) | $ (2,151,599) | $ (1,653,858) | |
Exploration costs | [1] | 689,204 | 763,562 | 1,387,463 |
Operations and project expenses | (2,586,016) | (2,631,754) | (2,903,132) | |
Administrative expenses [Member] | ||||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
Labor expenses | (1,658,613) | (759,324) | (662,258) | |
General expenses | (1,424,348) | (1,140,975) | (911,645) | |
Taxes | (60,397) | (48,753) | (39,117) | |
Depreciation and amortization | (229,792) | (202,547) | (40,838) | |
Operations and project expenses [Member] | ||||
Disclosure of detailed information about general and administration expense [Line Items] | ||||
Labor expenses | (309,972) | (402,531) | (316,386) | |
Taxes | (428,608) | (483,330) | (433,506) | |
Exploration costs | (689,087) | (763,452) | (1,387,379) | |
Commissions fees freights and services | (656,432) | (558,370) | (466,862) | |
Fee for regulatory entities | (142,695) | (94,785) | (98,794) | |
Depreciation and amortization | (83,909) | (60,952) | (44,318) | |
Maintenance | (78,181) | (56,333) | (50,846) | |
Right-of-use assets amortization | (10,814) | (14,532) | 0 | |
Others | $ (186,318) | $ (197,469) | $ (105,041) | |
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other operating income (expenses), net | ||||
Gain on revaluation of assets in Guajira association | [1] | $ 1,284,372 | $ 0 | $ 0 |
Gain (loss) on acquisition of participations and interests | [1] | 86,026 | 1,048,924 | (12,065) |
Loss on sale of assets | (263,647) | (148,021) | (93,601) | |
Expense for legal provisions | (139,978) | (98,020) | (68,398) | |
Impairment loss of short-term assets | (34,416) | (90,441) | (105,692) | |
Gain on loss of control | [2] | 65,695 | 0 | 0 |
Other income | 120,114 | 344,354 | 244,301 | |
Other operating income (expense) | $ 1,118,166 | $ 1,056,796 | $ (35,455) | |
[1] | Results in the acquisition of La Guajira: Ecopetrol COP$1,284,372 and Hocol COP$86,026. For Ecopetrol it corresponds to the revaluation of the assets that it already had in the Guajira association and for Hocol it corresponds to the Bargain obtained from the acquisition of the 43% stake. (Note 12 - Business combinations). | |||
[2] | Recognition of the disposal of net assets due to the loss of control due to the opening of the judicial liquidation process of Bioenergy S.A.S. and Bioenergy Zona Franca S.A.S. COP$65,570 (Note 2.2). Liquidation process of ECP Oil and Gas Germany GmbH COP$125. |
Other operating income (expen_4
Other operating income (expenses), net - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of associates [line items] | ||||
Adjustments for gain loss on Acquisition of investments in subsidiaries, joint ventures and associates | [1] | $ 86,026 | $ 1,048,924 | $ (12,065) |
Guajira Association Contract [Member] | ||||
Disclosure of associates [line items] | ||||
Percentage of interest acquired | 43.00% | |||
Gases de la Guajira S.A. E.S.P. | ||||
Disclosure of associates [line items] | ||||
Adjustments for gain loss on Acquisition of investments in subsidiaries, joint ventures and associates | $ 1,284,372 | |||
Hocol petroleum limited | ||||
Disclosure of associates [line items] | ||||
Adjustments for gain loss on Acquisition of investments in subsidiaries, joint ventures and associates | 86,026 | |||
Bioenergy S.A.S. and Bioenergy Zona Franca S.A.S | ||||
Disclosure of associates [line items] | ||||
Gain (Loss) on Disposal of Oil and Gas Assets | 65,570 | |||
Ecopetrol Germany Gmbh | ||||
Disclosure of associates [line items] | ||||
Gain (Loss) on Disposal of Oil and Gas Assets | $ 125 | |||
[1] | Results in the acquisition of La Guajira: Ecopetrol COP$1,284,372 and Hocol COP$86,026. For Ecopetrol it corresponds to the revaluation of the assets that it already had in the Guajira association and for Hocol it corresponds to the Bargain obtained from the acquisition of the 43% stake. (Note 12 - Business combinations). |
Financial result, net (Details)
Financial result, net (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Finance income | ||||
Results from financial assets and others | $ 665,310 | $ 975,245 | $ 745,571 | |
Yields and interests | 299,246 | 481,674 | 383,624 | |
Gain on derivatives valuation | 108,838 | 0 | 0 | |
Dividends | [1] | 44 | 117,260 | 0 |
Gain on sale of equity instruments | 0 | 0 | 368 | |
Other financial income | 27,992 | 49,157 | 0 | |
Finance income | 1,101,430 | 1,623,336 | 1,129,563 | |
Finance expenses | ||||
Interest | [2] | (2,384,342) | (1,894,490) | (2,399,414) |
Financial cost of other liabilities | [3] | (872,987) | (757,509) | (668,782) |
Results from financial assets | (473,598) | (638,767) | (381,445) | |
Other financial expenses | (198,864) | (43,703) | (62,520) | |
Finance costs | (3,929,791) | (3,334,469) | (3,512,161) | |
Foreign exchange gain, net | 346,774 | 40,639 | 372,223 | |
Financial result, net | $ (2,481,587) | $ (1,670,494) | $ (2,010,375) | |
[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. | |||
[2] | As of December 31, 2020, borrowing costs for the financing of developing natural resources and property, plant and equipment of COP$247,501 (2019 - COP$248,139 and 2018 - COP$200,833) were capitalized. | |||
[3] | Includes the financial expense of the asset retirement obligations and the liabilities for post-employment benefits. |
Financial result, net - Additio
Financial result, net - Additional Information (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial result, net | |||
Interest costs capitalised | $ 247,501 | $ 248,139 | $ 200,833 |
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, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) |
Balance of financial assets and liabilities denominated in foreign currency | ||||||
Cash and cash equivalents | $ 5,082,308 | $ 7,075,758 | $ 6,311,744 | $ 7,945,885 | ||
Other financial assets | 3,071,659 | 4,979,292 | ||||
Trade receivables and payables, net | 7,748 | 27,449 | ||||
Trade payables | $ (6,491,909) | $ (8,115,015) | ||||
USD$ Million | ||||||
Balance of financial assets and liabilities denominated in foreign currency | ||||||
Cash and cash equivalents | $ 197 | $ 114 | ||||
Other financial assets | 1,164 | 1,468 | ||||
Trade receivables and payables, net | 203 | 81 | ||||
Loans and borrowings | (11,814) | (9,429) | ||||
Other assets and liabilities, net | 277 | 64 | ||||
Net liability position | $ (9,973) | $ (7,702) |
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, 2020COP ($) | |
Disclosure of detailed information about financial risk management [Line Items] | |
One Percent variations in exchange rate, Effect on income before income taxes | $ (48,866) |
One percent variations in exchange rate, effect on other comprehensive income | (293,457) |
Five Percent variations in exchange rate, Effect on income before income taxes | (244,330) |
Five Percent variations in exchange rate, effect on other comprehensive income | $ (1,467,286) |
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, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial risk management [Line Items] | ||
Hedging instrument at the beginning of the period | $ 1,300 | $ 1,300 |
Reassignment of hedging instruments | 1,230 | 5,551 |
Realization of exports | (1,230) | (5,551) |
Hedging instrument at the end of the period | $ 1,300 | $ 1,300 |
Risk management - Cash flow hed
Risk management - Cash flow hedge for future exports - Movement in other comprehensive income (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Risk management | |||
Opening balance | $ (135,748) | $ (374,079) | $ 159,295 |
Exchange difference | (201,967) | (35,607) | (704,871) |
Reclassification to profit or loss | 193,374 | 386,773 | (128,404) |
Ineffectiveness | 9,779 | 5,173 | 35,617 |
Deferred income tax | (1,908) | (118,008) | 264,284 |
Closing balance | $ (136,470) | $ (135,748) | $ (374,079) |
Risk management - Expected recl
Risk management - Expected reclassification of the cumulative exchange difference from other comprehensive income to profit or loss (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020COP ($) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | $ (194,961) |
Taxes | 58,491 |
After taxes | (136,470) |
2021 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (71,358) |
Taxes | 21,408 |
After taxes | (49,950) |
2022 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (71,358) |
Taxes | 21,408 |
After taxes | (49,950) |
2023 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Before taxes | (52,245) |
Taxes | 15,675 |
After taxes | $ (36,570) |
Risk management - Hedge recogni
Risk management - Hedge recognised in other comprehensive income (Details) - Hedge of a net investment in a foreign operation - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial risk management [Line Items] | |||
Hedging instrument at the beginning of the period | $ 1,130,583 | $ 1,069,316 | $ 97,362 |
Exchange difference | 520,490 | 87,524 | 1,381,900 |
Ineffectiveness | 0 | 0 | 378 |
Deferred income tax | (156,147) | (26,257) | (410,324) |
Hedging instrument at the end of the period | $ 1,494,926 | $ 1,130,583 | $ 1,069,316 |
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, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | $ 359,272 | $ 648,118 |
Less than 3 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | 56,144 | 243,893 |
Between 3 and 6 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | 1,270 | 136,700 |
More than 6 months overdue [member] | ||
Disclosure of detailed information about financial risk management [Line Items] | ||
Financial assets | $ 301,858 | $ 267,525 |
Risk management - Risk manageme
Risk management - Risk management - Sensitivity in income and other comprehensive income to variations in interest rate (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020COP ($) | |
Increase in floating interest (+100 basis points) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Financial assets (Financial expenses) | $ (25,878) |
Financial liabilities (Financial income) | 60,577 |
Plan assets (Other comprehensive income) | (557,002) |
Decrease in floating interest (-100 basis points) | |
Disclosure of detailed information about financial risk management [Line Items] | |
Financial assets (Financial income) | 25,878 |
Financial liabilities (Financial expenses) | (59,459) |
Plan assets (Other comprehensive income) | $ 557,901 |
Risk management - Maturity of f
Risk management - Maturity of financial liabilities (Details) $ in Millions | Dec. 31, 2020COP ($) |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | $ 68,089,325 |
Trade and other payables | 8,470,105 |
Total | 76,559,430 |
2021 | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 3,585,623 |
Trade and other payables | 8,449,041 |
Total | 12,034,664 |
1 to 5 years | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 33,051,812 |
Trade and other payables | 21,064 |
Total | 33,072,876 |
2026 and therafter | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 17,701,887 |
Trade and other payables | 0 |
Total | 17,701,887 |
>10 years | |
Disclosure of detailed information about financial risk management [Line Items] | |
Loans (payment of principal and interest) | 13,750,003 |
Trade and other payables | 0 |
Total | $ 13,750,003 |
Risk management - Leverage rati
Risk management - Leverage ratio (Details) - COP ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Risk management | |||||
Loans and borrowings (Note 20) | $ 46,731,754 | $ 38,239,139 | |||
Cash and cash equivalents (Note 6) | (5,082,308) | (7,075,758) | $ (6,311,744) | $ (7,945,885) | |
Other financial assets (Note 9) | (3,071,659) | (4,979,292) | |||
Net financial debt | 38,577,787 | 26,184,089 | |||
Equity (Note 24) | $ 53,499,363 | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 | |
Leverage | [1] | 41.90% | 31.02% | ||
[1] | Leverage = Net financial debt / (Net financial debt + Equity) |
Risk management - Additional In
Risk management - Additional Information (Details) $ in Millions, $ in Millions | Oct. 01, 2015USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018COP ($) | Dec. 31, 2017COP ($) |
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Closing foreign exchange rate | 3,432.50 | 3,432.50 | 3,277.14 | |||||||
Amount in wich the company expanded the hedge of a net investment in a foreign operation | $ 7,249 | $ 5,200 | ||||||||
Open position forward non-delivery operations | $ (62,911) | $ (60,740) | ||||||||
Other comprehensive gains (losses) on hedges of derivative instruments net of tax | 51,486 | $ 43,141 | ||||||||
Hedging Instruments Foreign Currency Debt | $ 5,440 | |||||||||
Net position of assets and liabilities different functional currency | 185 | |||||||||
Ecopetrol Business Group | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Open position forward non-delivery operations | $ 91,305 | |||||||||
Colombian Peso [Member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Net liabilities of companies in the Group with a different functional currency | 10,158 | |||||||||
Valuation recognized in other comprehensive income in companies | 1,609 | |||||||||
USD$ Million | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Valuation recognized in other comprehensive income in companies | 8,549 | |||||||||
Hedge of a net investment in a foreign operation | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Amount in wich the company expanded the hedge of a net investment in a foreign operation | 7,249 | |||||||||
Hedging instrument, assets | $ 1,494,926 | $ 1,130,583 | $ 1,069,316 | $ 97,362 | ||||||
Hedge of a net investment in a foreign operation | Ecopetrol Business Group | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Amount in wich the company expanded the hedge of a net investment in a foreign operation | 2,049 | 2,049 | ||||||||
Strategic Hedges [Member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Notional amount | 30 | |||||||||
Gain (Loss) On Effective Hedges | 42.7 | |||||||||
Cash flow hedging for future crude oil exports [member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Amount in wich the company expanded the hedge of a net investment in a foreign operation | 1,300 | |||||||||
Notional amount | 3.7 | |||||||||
Gain (Loss) On Effective Hedges | 25.5 | |||||||||
Hedging instrument, assets | 1,300 | $ 1,300 | $ 1,300 | |||||||
Cash flow hedging for future crude oil exports [member] | Swap contract [member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Notional amount | 18 | |||||||||
Gain (Loss) On Effective Hedges | $ 15 | |||||||||
Hedging instrument, assets | 7,572 | |||||||||
Cash flow hedging for future crude oil exports [member] | Forward contract [member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Hedging instrument, assets | $ 91,305 | |||||||||
Floating interest rate | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Borrowings, interest rate linked to floating interest rates | 16.00% | 16.00% | 17.00% | 17.00% | 17.00% | 17.00% | ||||
Credit risk in Peso portfolio | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Maximum percentage of cash investment held in portfolio | 10.00% | 10.00% | ||||||||
Credit risk in U.S. dollar portfolio | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
Maximum percentage of cash investment held in portfolio, current | 5.00% | 5.00% | ||||||||
Maximum percentage of cash investment held in portfolio, non current | 1.00% | 1.00% | ||||||||
Currency risk [member] | ||||||||||
Disclosure of detailed information about financial risk management [Line Items] | ||||||||||
The increase (Decrease) in Foreign exchange Rate | 4.70% | 4.70% |
Related parties (Details)
Related parties (Details) - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | $ 7,748 | $ 27,449 | ||
Accounts receivable-Loans | 0 | 93,657 | [1] | |
Other assets | 7,093 | 57,016 | ||
Accounts payable | 72,316 | 187,616 | ||
Loans | [2] | 1,277,046 | 1,108,403 | |
Other liabilities | 1,664 | 795 | ||
Accounts receivable, Current | 7,748 | 27,449 | ||
Accounts receivable, Non-current | 0 | 0 | ||
Accounts receivable - Loans, Current | 97,300 | 0 | ||
Accounts receivable - Loans, Non-current | 0 | 93,657 | ||
Other assets, Current | 7,093 | 57,016 | ||
Other assets, Non-current | 0 | 0 | ||
Accounts payable, Current | 72,316 | 187,616 | ||
Accounts payable, Non-current | 0 | 0 | ||
Loans, Current | 1,277,046 | 1,108,403 | ||
Loans, Non-current | 0 | 0 | ||
Other liabilities, Current | 1,664 | 795 | ||
Other liabilities, Non-current | 0 | 0 | ||
Gas Natural del Oriente S.A. E.S.P. | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 0 | |||
Accounts receivable-Loans | 0 | |||
Other assets | 0 | |||
Accounts payable | 1,858 | |||
Loans | 0 | |||
Other liabilities | 0 | |||
Extrucol S.A. | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 0 | |||
Accounts receivable-Loans | 0 | |||
Other assets | 0 | |||
Accounts payable | 279 | |||
Loans | 0 | |||
Other liabilities | 0 | |||
E2 Energia Eficiente S.A. E.S.P. | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 4,453 | |||
Accounts receivable-Loans | 0 | |||
Other assets | 0 | |||
Accounts payable | 1,264 | |||
Loans | 0 | |||
Other liabilities | 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 | 948 | 4,668 | ||
Loans | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Equion Energia Limited | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 1,950 | 25,333 | ||
Accounts receivable-Loans | 0 | 0 | ||
Other assets | 7,093 | 57,016 | ||
Accounts payable | 32,335 | 153,501 | ||
Loans | [2] | 1,277,046 | 1,108,403 | |
Other liabilities | 1,663 | 794 | ||
Ecodiesel Colombia S.A | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 1,345 | 2,116 | ||
Accounts receivable-Loans | 0 | 0 | ||
Other assets | 0 | 0 | ||
Accounts payable | 35,632 | 29,447 | ||
Loans | 0 | 0 | ||
Other liabilities | 1 | 1 | ||
Offshore International Group | ||||
Investments in joint ventures and associates [abstract] | ||||
Accounts receivable | 0 | 0 | ||
Accounts receivable-Loans | [1] | 97,300 | 93,657 | |
Other assets | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Loans | 0 | 0 | ||
Other liabilities | $ 0 | $ 0 | ||
[1] | Offshore International Group: Loan granted by Ecopetrol S.A. 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, 2020 is USD$28 million (2019 - USD$28 million). | |||
[2] | Resources deposited by Equion in Ecopetrol Capital AG. |
Related parties - Transactions
Related parties - Transactions with related parties (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | $ 40,324 | $ 329,241 | $ 76,248 |
Purchases And Other Assets, Related Party Transactions | 703,073 | 849,754 | 1,113,782 |
Associates | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 90,184 | 329,241 | 76,248 |
Purchases And Other Assets, Related Party Transactions | 733,225 | 849,754 | 1,113,782 |
E2 Energia Eficiente S.A. E.S.P. | Associates | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 49,860 | 0 | 0 |
Purchases And Other Assets, Related Party Transactions | 2,849 | 0 | 0 |
Gas Natural del Oriente S.A. E.S.P. | Associates | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 0 | 0 | 0 |
Purchases And Other Assets, Related Party Transactions | 26,141 | 0 | 0 |
Extrucol S.A. | Associates | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 0 | 0 | 0 |
Purchases And Other Assets, Related Party Transactions | 1,162 | 0 | 0 |
Equion Energia Limited | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 27,595 | 317,382 | 67,002 |
Purchases And Other Assets, Related Party Transactions | 356,872 | 569,105 | 846,284 |
Ecodiesel Colombia S.A | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 8,268 | 8,614 | 6,860 |
Purchases And Other Assets, Related Party Transactions | 346,201 | 280,649 | 267,498 |
Offshore International Group | Joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Sales And Services, Related Party Transactions | 4,461 | 3,245 | 2,386 |
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, 2020 | |
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 |
Related parties - Additional In
Related parties - Additional Information (Details) $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | Dec. 31, 2017USD ($) | |
Disclosure of transactions between related parties [line items] | ||||||||
Cancellation of fees | $ 3,102 | $ 1,847 | ||||||
Payment of key management personnel compensation | $ 24,068 | $ 22,632 | $ 21,580 | |||||
Provisions for employee benefits | $ 12,423,667 | $ 11,481,064 | ||||||
Ownership Interest Held By Government | 88.49% | |||||||
Description of any retirement benefit plan termination terms | five years (2016-2021) | |||||||
Executive officers [Member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Provisions for employee benefits | $ 5,491 | $ 13,413 | $ 18,740 | |||||
Offshore International Group | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Loans and receivables | $ 28 | $ 28 | $ 57 | |||||
Loans And Receivable Interest Rate | 4.99% |
Joint operations - Contracts in
Joint operations - Contracts in which Ecopetrol is not the operator (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Talisman Oil Gas [Member] | |
Disclosure of joint operations [line items] | |
Contract | Niscota |
% Participation | 20.00% |
Geographic area of operations | Colombia |
Chipiron Contract [Member] | Occidental de Colombia LLC [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Chipirón |
Type | Production |
Chipiron Contract [Member] | Occidental de Colombia LLC [Member] | Contract where entity not operator | Bottom of range [member] | |
Disclosure of joint operations [line items] | |
% Participation | 30.00% |
Chipiron Contract [Member] | Occidental de Colombia LLC [Member] | Contract where entity not operator | Top of range [member] | |
Disclosure of joint operations [line items] | |
% Participation | 41.00% |
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% |
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 |
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] | Frontera Energy Colombia 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 |
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 | 50.00% |
Geographic area of operations | Offshore Caribe Norte |
Fuerte Sur Contract [Member] | Shell EP Offshore Ventures Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Fuerte Sur |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Offshore Caribe Norte |
Purple Angel Contract [Member] | Shell EP Offshore Ventures Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Purple Angel |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Offshore Caribe Norte |
Col-5 Contract [Member] | Shell EP Offshore Ventures Limited [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Col-5 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Offshore Caribe Norte |
Sul de Gato do Mato Contract [Member] | Shell [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Sul de Gato do Mato |
Type | Exploration |
% Participation | 30.00% |
Geographic area of operations | Brazil |
Gato do Mato Contract [Member] | Shell [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Gato do Mato |
Type | Exploration |
% Participation | 30.00% |
Geographic area of operations | Brazil |
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] | Fieldwood Gunflint [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] | OXY (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] | Talos [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% |
Geographic area of operations | Gulf of Mexico |
ESOX Contract [Member] | HESS [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | ESOX |
Type | Production |
% 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] | PC Carigali Mexico Operations SA [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 | Permian Texas U.S. |
Pau Brasil Contract [Member] | BP Energy [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 [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 | 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 Mirador Contract [Member] | Canacol [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Rancho Hermoso-Mirador |
Type | Production |
% Participation | 100.00% |
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 |
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 |
Llanos 123 Contract [Member] | Geopark [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Llanos 123 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Llanos 124 Contract [Member] | Geopark [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Llanos 124 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Ronda Caribe RC-10 Contract [Member] | ONGC Videsh Limited Sucursal Colombiana [Member] | Contract where entity not operator | |
Disclosure of joint operations [line items] | |
Contract | Ronda Caribe RC-10 |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Offshore Caribe Norte |
Joint operations - Contracts _2
Joint operations - Contracts in which Ecopetrol is the operator (Details) | 12 Months Ended |
Dec. 31, 2020 | |
ONGC Videsh Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | RC-9 |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Talisman Oil Gas [Member] | |
Disclosure of joint operations [line items] | |
Contract | Niscota |
% Participation | 20.00% |
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] | Repsol Colombia Oil & Gas limited [Member] | 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 Sucursal Colombiana [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 E&P Corp 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] | Repsol Colombia Oil & Gas limited [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 | Production |
% Participation | 58.00% |
Geographic area of operations | Colombia |
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% |
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] | |
Type | Exploration |
Clarinero Contract [Member] | Lewis [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Clarinero |
Type | Exploration |
% Participation | 50.00% |
Geographic area of operations | Colombia |
Alto Magdalena Pipeline Contract [Member] | Emerald Energy [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Oleoducto Alto Magdalena |
Type | OAM |
% Participation | 45.00% |
Geographic area of operations | Colombia |
Alto Magdalena Pipeline Contract [Member] | Equion Energia Limited [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Oleoducto Alto Magdalena |
Type | OAM |
% Participation | 45.00% |
Geographic area of operations | Colombia |
Alto Magdalena Pipeline Contract [Member] | Frontera Energy [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Oleoducto Alto Magdalena |
Type | OAM |
% Participation | 45.00% |
Geographic area of operations | Colombia |
Niscota Contract [Member] | Talisman Oil Gas [Member] | Contract where Entity is operator | |
Disclosure of joint operations [line items] | |
Contract | Niscota |
Type | Production |
% Participation | 20.00% |
Geographic area of operations | Colombia |
Joint operations - Additional I
Joint operations - Additional Information (Details) | Dec. 31, 2020 | Feb. 07, 2020 |
Bottom of range [member] | ||
Disclosure of joint operations [line items] | ||
Percentage of interest acquired | 20.00% | |
Top of range [member] | ||
Disclosure of joint operations [line items] | ||
Percentage of interest acquired | 50.00% | |
Ecopetrol reported agreement with shell [member] | ||
Disclosure of joint operations [line items] | ||
Percentage of interest acquired | 50.00% |
Information by segments (Detail
Information by segments (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 50,223,393 | $ 71,488,512 | $ 68,603,872 |
Cost of sales | (37,567,472) | (44,972,360) | (41,184,379) |
Gross profit | 12,655,921 | 26,516,152 | 27,419,493 |
Other operating income (expenses), net | (3,373,150) | (2,151,599) | (1,653,858) |
Operation and projects expenses | (2,586,016) | (2,631,754) | (2,903,132) |
Impairment of non-current assets | (633,156) | (1,762,437) | (368,634) |
Other operating income and expenses net | 1,118,166 | 1,056,796 | (35,455) |
Operating income (expenses) | 7,181,765 | 21,027,158 | 22,458,414 |
Financial result net | |||
Financial income | 1,101,430 | 1,623,336 | 1,129,563 |
Finance expenses | (3,929,791) | (3,334,469) | (3,512,161) |
Foreign exchange gain (loss), net | 346,774 | 40,639 | 372,223 |
Financial result, net | (2,481,587) | (1,670,494) | (2,010,375) |
Share of profits of associates and joint ventures | 76,336 | 366,904 | 165,836 |
Income before tax | 4,776,514 | 19,723,568 | 20,613,875 |
Income tax | (2,038,661) | (4,718,413) | (8,258,485) |
Net profit (loss) for the period | 2,737,853 | 15,005,155 | 12,355,390 |
Profit (loss) attributable to: | |||
Group owners of parent | 1,586,677 | 13,744,011 | 11,381,386 |
Non-controlling interest | 1,151,176 | 1,261,144 | 974,004 |
Net income | 2,737,853 | 15,005,155 | 12,355,390 |
Supplementary information | |||
Depreciation depletion and amortization | 9,324,538 | 8,582,783 | 7,704,850 |
Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (11,657,542) | (12,272,918) | (11,346,037) |
Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (25,909,930) | (32,699,442) | (29,838,342) |
Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 50,223,393 | 71,488,512 | 68,603,872 |
Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 0 | 0 | 0 |
Operating segments [member] | Exploration and Production [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 36,839,997 | 52,667,990 | 50,372,764 |
Cost of sales | (32,908,419) | (36,373,865) | (32,239,184) |
Gross profit | 3,931,578 | 16,294,125 | 18,133,580 |
Other operating income (expenses), net | 2,163,198 | 1,284,560 | 889,293 |
Operation and projects expenses | (1,511,510) | (1,475,710) | (1,993,054) |
Impairment of non-current assets | (192,693) | (1,982,044) | 785,940 |
Other operating income and expenses net | 1,085,114 | 49,673 | (137,836) |
Operating income (expenses) | 1,149,291 | 11,601,484 | 15,899,337 |
Financial result net | |||
Financial income | 1,177,712 | 1,440,440 | 1,099,893 |
Finance expenses | (2,896,060) | (2,311,133) | (2,038,312) |
Foreign exchange gain (loss), net | 360,409 | 287,286 | 868,479 |
Financial result, net | (1,357,939) | (583,407) | (69,940) |
Share of profits of associates and joint ventures | (53,037) | 227,401 | 135,265 |
Income before tax | (261,685) | 11,245,478 | 15,964,662 |
Income tax | 43,569 | (1,925,798) | (6,096,591) |
Net profit (loss) for the period | (218,116) | 9,319,680 | 9,868,071 |
Profit (loss) attributable to: | |||
Group owners of parent | (139,279) | 9,382,129 | 9,930,519 |
Non-controlling interest | (78,837) | (62,449) | (62,448) |
Net income | (218,116) | 9,319,680 | 9,868,071 |
Supplementary information | |||
Depreciation depletion and amortization | 6,445,812 | 5,892,822 | 5,248,364 |
Operating segments [member] | Exploration and Production [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (9,479,317) | (9,587,961) | (8,871,709) |
Operating segments [member] | Exploration and Production [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (23,429,102) | (26,785,904) | (23,367,475) |
Operating segments [member] | Exploration and Production [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 22,854,925 | 31,295,118 | 30,112,900 |
Operating segments [member] | Exploration and Production [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 13,985,072 | 21,372,872 | 20,259,864 |
Operating segments [member] | Refining and petrochemicals [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 26,104,351 | 38,770,806 | 37,011,373 |
Cost of sales | (25,825,555) | (37,856,219) | (35,658,753) |
Gross profit | 278,796 | 914,587 | 1,352,620 |
Other operating income (expenses), net | 936,175 | 496,155 | 443,880 |
Operation and projects expenses | (781,309) | (743,378) | (668,177) |
Impairment of non-current assets | (781,528) | 452,163 | (984,704) |
Other operating income and expenses net | 34,705 | 1,014,988 | (13,652) |
Operating income (expenses) | (2,185,511) | 1,142,205 | (757,793) |
Financial result net | |||
Financial income | 67,832 | 229,297 | 147,689 |
Finance expenses | (914,534) | (996,790) | (1,295,528) |
Foreign exchange gain (loss), net | (447,880) | (179,936) | (517,410) |
Financial result, net | (1,294,582) | (947,429) | (1,665,249) |
Share of profits of associates and joint ventures | 131,462 | 17,091 | 27,730 |
Income before tax | (3,348,631) | 211,867 | (2,395,312) |
Income tax | 614,269 | (83,504) | 420,224 |
Net profit (loss) for the period | (2,734,362) | 128,363 | (1,975,088) |
Profit (loss) attributable to: | |||
Group owners of parent | (2,848,511) | 117,708 | (1,973,075) |
Non-controlling interest | 114,149 | 10,655 | (2,013) |
Net income | (2,734,362) | 128,363 | (1,975,088) |
Supplementary information | |||
Depreciation depletion and amortization | 1,599,780 | 1,398,948 | 1,307,216 |
Operating segments [member] | Refining and petrochemicals [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (3,427,211) | (3,523,948) | (3,204,791) |
Operating segments [member] | Refining and petrochemicals [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (22,398,344) | (34,332,271) | (32,453,962) |
Operating segments [member] | Refining and petrochemicals [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 24,804,887 | 36,393,470 | 34,947,948 |
Operating segments [member] | Refining and petrochemicals [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,299,464 | 2,377,336 | 2,063,425 |
Operating segments [member] | Transport and logistics [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 12,194,440 | 13,070,736 | 11,354,167 |
Cost of sales | (3,381,357) | (3,738,194) | (3,402,087) |
Gross profit | 8,813,083 | 9,332,542 | 7,952,080 |
Other operating income (expenses), net | 533,594 | 372,942 | 320,498 |
Operation and projects expenses | (403,657) | (434,904) | (263,104) |
Impairment of non-current assets | 341,065 | (232,556) | (169,870) |
Other operating income and expenses net | 1,827 | 74,607 | 118,905 |
Operating income (expenses) | 8,218,724 | 8,366,747 | 7,317,513 |
Financial result net | |||
Financial income | 125,677 | 273,613 | 110,898 |
Finance expenses | (389,394) | (306,878) | (407,589) |
Foreign exchange gain (loss), net | 434,245 | (66,711) | 21,154 |
Financial result, net | 170,528 | (99,976) | (275,537) |
Share of profits of associates and joint ventures | (2,089) | 138 | 2,841 |
Income before tax | 8,387,163 | 8,266,909 | 7,044,817 |
Income tax | (2,696,499) | (2,709,111) | (2,582,118) |
Net profit (loss) for the period | 5,690,664 | 5,557,798 | 4,462,699 |
Profit (loss) attributable to: | |||
Group owners of parent | 4,574,800 | 4,244,860 | 3,424,234 |
Non-controlling interest | 1,115,864 | 1,312,938 | 1,038,465 |
Net income | 5,690,664 | 5,557,798 | 4,462,699 |
Supplementary information | |||
Depreciation depletion and amortization | 1,278,946 | 1,291,013 | 1,149,270 |
Operating segments [member] | Transport and logistics [Member] | Fixed Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (2,813,856) | (3,039,452) | (2,805,516) |
Operating segments [member] | Transport and logistics [Member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | (567,501) | (698,742) | (596,571) |
Operating segments [member] | Transport and logistics [Member] | Third Party Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 2,563,581 | 3,799,924 | 3,543,024 |
Operating segments [member] | Transport and logistics [Member] | Inter-Segment Sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue | 9,630,859 | 9,270,812 | 7,811,143 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Revenue | (24,915,395) | (33,021,020) | (30,134,432) |
Cost of sales | 24,547,859 | 32,995,918 | 30,115,645 |
Gross profit | (367,536) | (25,102) | (18,787) |
Other operating income (expenses), net | (259,817) | (2,058) | 187 |
Operation and projects expenses | 110,460 | 22,238 | 21,203 |
Impairment of non-current assets | 0 | 0 | 0 |
Other operating income and expenses net | (3,480) | (82,472) | (2,872) |
Operating income (expenses) | (739) | (83,278) | (643) |
Financial result net | |||
Financial income | (269,791) | (320,014) | (228,917) |
Finance expenses | 270,197 | 280,332 | 229,268 |
Foreign exchange gain (loss), net | 0 | 0 | 0 |
Financial result, net | 406 | (39,682) | 351 |
Share of profits of associates and joint ventures | 0 | 122,274 | 0 |
Income before tax | (333) | (686) | (292) |
Income tax | 0 | 0 | 0 |
Net profit (loss) for the period | (333) | (686) | (292) |
Profit (loss) attributable to: | |||
Group owners of parent | (333) | (686) | (292) |
Non-controlling interest | 0 | 0 | 0 |
Net income | (333) | (686) | (292) |
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 | 4,062,842 | 3,878,443 | 3,535,979 |
Elimination of intersegment amounts [member] | Variable Costs [Member] | |||
Disclosure of operating segments [line items] | |||
Cost of sales | 20,485,017 | 29,117,475 | 26,579,666 |
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 | $ (24,915,395) | $ (33,021,020) | $ (30,134,432) |
Information by segments - Sales
Information by segments - Sales by product (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Recognition of price differential | $ 142,723 | $ 1,785,277 | $ 3,835,533 |
Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 24,687,715 | 34,305,108 | 33,022,600 |
Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 8,860,588 | 15,041,883 | 14,039,638 |
Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 6,768,046 | 9,658,180 | 9,334,939 |
Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,859,559 | 4,115,626 | 3,531,404 |
Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,845,155 | 2,256,123 | 1,885,846 |
Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 865,204 | 834,133 | 899,410 |
Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 375,775 | 372,916 | 574,639 |
Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 230,520 | 356,857 | 550,479 |
Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 155,740 | 228,552 | 282,545 |
Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 138,035 | 192,436 | 270,887 |
Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 37,001 | 97,907 | 509,482 |
Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 32,190 | 102,845 | 156,031 |
Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 25,535,678 | 37,183,404 | 35,581,272 |
Foreign sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 179,257 | 1,085,392 | 1,782,194 |
Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 17,231 | 27,255 | 27,899 |
Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,302,131 | 1,249,189 | 1,308,685 |
Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 18,943 | 13,591 | 20,212 |
Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 19,498,582 | 28,523,596 | 26,898,737 |
Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,164,068 | 4,391,798 | 3,050,839 |
Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 968,429 | 1,870,929 | 2,053,594 |
Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (193,374) | (386,773) | 128,404 |
Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 50,223,393 | 71,488,512 | 68,603,872 |
Operating segments [member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 24,687,715 | 32,519,831 | 29,187,067 |
Recognition of price differential | 1,785,277 | 3,835,533 | |
Total sales revenue | 34,305,108 | 33,022,600 | |
Operating segments [member] | Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 8,860,588 | 13,541,756 | 11,586,192 |
Operating segments [member] | Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 6,768,046 | 9,373,030 | 7,952,852 |
Operating segments [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,859,559 | 309,353 | 239,410 |
Operating segments [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 2,845,155 | 2,305,543 | 1,885,846 |
Operating segments [member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 865,204 | 760,301 | 822,367 |
Operating segments [member] | Domestic sales [Member] | Fuel gas service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 671,570 | ||
Operating segments [member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 526,100 | 544,200 | 335,426 |
Operating segments [member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 375,775 | 372,916 | 574,639 |
Operating segments [member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 230,520 | 356,857 | 550,479 |
Operating segments [member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 155,740 | 228,552 | 282,545 |
Operating segments [member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 138,035 | 190,133 | 270,887 |
Operating segments [member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 37,001 | 97,907 | 509,482 |
Operating segments [member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 32,190 | 102,845 | 156,031 |
Operating segments [member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 322,232 | 507,336 | 489,507 |
Operating segments [member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,829,102 | 3,531,404 | |
Operating segments [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 25,535,678 | 37,183,404 | 35,581,272 |
Operating segments [member] | Foreign sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 179,257 | 1,085,392 | 1,782,194 |
Operating segments [member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 17,231 | 27,255 | 27,899 |
Operating segments [member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,302,131 | 1,200,668 | 1,268,582 |
Operating segments [member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 18,943 | 13,591 | 20,212 |
Operating segments [member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 19,498,582 | 28,523,596 | 26,898,737 |
Operating segments [member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,164,068 | 4,391,798 | 3,050,839 |
Operating segments [member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 968,429 | 1,870,929 | 2,053,594 |
Operating segments [member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 580,411 | 456,948 | 350,811 |
Operating segments [member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (193,374) | (386,773) | 128,404 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | (24,915,396) | (33,021,022) | (30,134,433) |
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 | (24,836,498) | (33,021,022) | (30,134,433) |
Recognition of price differential | 0 | 0 | |
Total sales revenue | (33,021,022) | (30,134,433) | |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (11,350) | (31,251) | (77,009) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (1,118,817) | (1,896,767) | (1,737,261) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (9,719,391) | (309,036) | (319,783) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (837,863) | (653,647) | (649,812) |
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] | Fuel gas service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (6,826) | ||
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 | (7,283) | 0 | (805) |
Elimination of intersegment amounts [member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (13,019,755) | (20,699,247) | (19,592,048) |
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] | 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 Income Gas Contracts [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 | (115,213) | (297,286) | (126,507) |
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) | |
Elimination of intersegment amounts [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (78,898) | 0 | 0 |
Elimination of intersegment amounts [member] | Foreign sales [Member] | Gasoline and turbo fuels [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 | (79,345) | 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] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 447 | 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 |
Exploration and Production [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 36,839,997 | 52,667,990 | 50,372,764 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 17,392,597 | 24,526,007 | 23,279,898 |
Recognition of price differential | 0 | 0 | |
Total sales revenue | 24,526,007 | 23,279,898 | |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 725 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 6,739 | 0 | 0 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 116,485 | 169,062 | 103,522 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,683,018 | 2,909,770 | 2,535,658 |
Exploration and Production [Member] | Operating segments [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] | Operating segments [member] | Domestic sales [Member] | Fuel gas service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | ||
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 27,043 | 24,690 | 26,406 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 249,533 | 179,541 | 245,875 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 13,250,275 | 21,056,104 | 20,142,527 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 7,758 | 1,464 | 20,391 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 32,190 | 102,845 | 156,031 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 19,556 | 25,215 | 11,484 |
Exploration and Production [Member] | Operating segments [member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 57,316 | 37,279 | |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 19,447,400 | 28,141,983 | 27,092,866 |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 17,231 | 27,255 | 27,899 |
Exploration and Production [Member] | Operating segments [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] | Operating segments [member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 18,943 | 13,591 | 20,212 |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 19,577,898 | 28,461,601 | 26,898,737 |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Exploration and Production [Member] | Operating segments [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] | Operating segments [member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 26,702 | 26,309 | 17,614 |
Exploration and Production [Member] | Operating segments [member] | Foreign sales [Member] | Cash flow hedging - Reclassification to profit or loss [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | (193,374) | (386,773) | 128,404 |
Refining and petrochemicals [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 26,104,352 | 38,770,807 | 37,011,374 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 19,937,232 | 27,944,164 | 24,687,531 |
Recognition of price differential | 1,785,277 | 3,835,533 | |
Total sales revenue | 29,729,441 | 28,523,064 | |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 8,871,938 | 13,573,007 | 11,662,476 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 7,880,124 | 11,269,797 | 9,690,113 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 268,081 | 232,407 | 190,612 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 49,420 | 0 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 865,204 | 760,301 | 822,367 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Fuel gas service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 678,396 | ||
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 499,057 | 519,510 | 309,020 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 133,525 | 193,375 | 329,569 |
Refining and petrochemicals [Member] | Operating segments [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] | Operating segments [member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 155,740 | 228,552 | 282,545 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 138,035 | 190,133 | 270,887 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 29,243 | 96,443 | 489,091 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 417,889 | 779,407 | 604,530 |
Refining and petrochemicals [Member] | Operating segments [member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 51,812 | 36,321 | |
Refining and petrochemicals [Member] | Operating segments [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 6,167,120 | 9,041,366 | 8,488,310 |
Refining and petrochemicals [Member] | Operating segments [member] | Foreign sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 179,257 | 1,085,392 | 1,782,194 |
Refining and petrochemicals [Member] | Operating segments [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] | Operating segments [member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 1,302,131 | 1,200,668 | 1,268,582 |
Refining and petrochemicals [Member] | Operating segments [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] | Operating segments [member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 29 | 61,995 | 0 |
Refining and petrochemicals [Member] | Operating segments [member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 3,164,068 | 4,391,798 | 3,050,839 |
Refining and petrochemicals [Member] | Operating segments [member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 968,429 | 1,870,929 | 2,053,594 |
Refining and petrochemicals [Member] | Operating segments [member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 553,206 | 430,584 | 333,101 |
Refining and petrochemicals [Member] | Operating segments [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 |
Transport and logistics [Member] | Operating segments [member] | |||
Disclosure of operating segments [line items] | |||
Total sales revenue | 12,194,440 | 13,070,737 | 11,354,167 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue From Sale Of Goods And Rendering Of Services Before Price Differential Adjustment | 12,194,384 | 13,070,682 | 11,354,071 |
Recognition of price differential | 0 | 0 | |
Total sales revenue | 13,070,682 | 11,354,071 | |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Mid-distillates [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Services [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 12,194,384 | 216,920 | 265,059 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Fuel gas service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | ||
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Asphats [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Aromatics | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Polyethylene [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Other Income Gas Contracts [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Domestic sales [Member] | Transport Service [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 12,853,762 | 11,089,012 | |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 56 | 55 | 96 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Gasoline and turbo fuels [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Natural Gas [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Plastic and rubber [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | L.P.G. and propane [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Crude Oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Diesel [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Fuel oil [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Transport and logistics [Member] | Operating segments [member] | Foreign sales [Member] | Other products [Member] | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 56 | 55 | 96 |
Transport and logistics [Member] | Operating segments [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 |
Information by segments - Capit
Information by segments - Capital expenditures by segments (Details) - Operating segments [member] - COP ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | |||
Investment property | $ 11,116,861 | $ 13,979,141 | $ 8,460,426 |
Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 5,032,317 | 4,012,659 | 3,302,929 |
Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 5,994,462 | 9,798,193 | 5,051,828 |
Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 90,082 | 168,289 | 105,669 |
Exploration and Production [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 8,902,064 | 11,975,162 | 7,180,187 |
Exploration and Production [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 2,866,600 | 2,151,194 | 2,071,604 |
Exploration and Production [Member] | Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 5,994,462 | 9,798,193 | 5,051,828 |
Exploration and Production [Member] | Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 41,002 | 25,775 | 56,755 |
Refining and petrochemicals [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 1,337,952 | 518,081 | 722,450 |
Refining and petrochemicals [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 1,329,181 | 497,512 | 702,247 |
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 | 8,771 | 20,569 | 20,203 |
Transport and logistics [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 876,845 | 1,485,898 | 557,789 |
Transport and logistics [Member] | Property, plant and equipments [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 836,536 | 1,363,953 | 529,078 |
Transport and logistics [Member] | Natural and environmental resources [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | 0 | 0 | 0 |
Transport and logistics [Member] | Intangibles [Member] | |||
Disclosure of operating segments [line items] | |||
Investment property | $ 40,309 | $ 121,945 | $ 28,711 |
Subsequent events (Details)
Subsequent events (Details) - COP ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 19, 2021 | Jan. 27, 2021 | Jan. 19, 2021 | |
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Revenue | $ 50,223,393 | $ 71,488,512 | $ 68,603,872 | ||||
Net income | 2,737,853 | 15,005,155 | 12,355,390 | ||||
Total assets | 137,694,169 | 133,890,296 | |||||
ISA | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Revenue | $ 2,400,000 | ||||||
Net income | 483,800 | ||||||
Total assets | $ 52,300,000 | ||||||
Market Capitalization | $ 25,500,000 | ||||||
Offshore International Group | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Revenue | 325,812 | 529,167 | 653,054 | ||||
Net income | (237,751) | (48,247) | $ (322,969) | ||||
Total assets | $ 1,568,795 | $ 1,766,271 | |||||
Sale of stake in Offshore International Group | Offshore International Group | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Sale of ownership interests | 50.00% | ||||||
Non-binding offer to acquire participation in ISA | ISA | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Percentage of ownership interest acquired | 51.40% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental information on oil and gas producing activities (unaudited) | |||
Natural and environmental properties | $ 67,767,005 | $ 60,261,025 | $ 53,752,436 |
Wells, equipment and facilities - property, plant and equipment | 31,166,804 | 30,150,268 | 29,416,081 |
Exploration and production projects | 12,494,665 | 8,801,630 | 8,463,584 |
Accumulated depreciation, depletion and amortization | (64,233,572) | (60,346,094) | (55,689,222) |
Net capitalized cost | $ 47,194,902 | $ 38,866,829 | $ 35,942,879 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Supplemental information on oil and gas producing activities (unaudited) | ||||
Acquisition of proved properties | [1] | $ 507,907 | $ 2,668,960 | $ 0 |
Acquisition of unproved properties | [2] | 1,274,660 | 261,231 | 81,295 |
Exploration costs | 1,340,898 | 640,556 | 1,197,946 | |
Development costs | 7,367,020 | 8,084,283 | 6,346,276 | |
Total costs incurred | $ 10,490,485 | $ 11,655,030 | $ 7,625,517 | |
[1] | For 2020, it corresponds mainly to the acquisition of the entire participation in the Guajira Association (43% of the association contract) by Hocol and its position as operator. 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). | |||
[2] | During 2020, Ecopetrol S.A. through its subsidiary Ecopetrol Óleo e Gás do Brasil Ltda acquired 30% of the interests, rights and obligations in two areas that correspond to the BM-S-54 Concession Contract and the Sul de Gato do Mato Shared Production Contract, located offshore in Santos basin of Brazil, in the discovery of hydrocarbons called "Gato do Mato". Additionally, Ecopetrol Óleo e Gás do Brasil Ltda has recognized the billing related to activities of drilling during the year. On July 17, 2019, the Ministry of Mines and Energy of Brazil authorized the transfer of 10% of the Saturn block for USD$85 million, located in the Santos basin, to Ecopetrol Óleo e Gás do Brasil, this percentage of which Shell Brasil Petróleo Ltda and Chevron Brasil Óleo e Gas Ltda. were equal holders. In the new shareholding structure, Ecopetrol retains 10% of the interests of the block, while Shell (operator) and Chevron each retain 45% of the total. |
Supplemental information on o_5
Supplemental information on oil and gas producing activities - Results of operations for oil and gas exploration and production activities (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Net revenues | ||||
Sales | $ 30,141,662 | $ 42,070,018 | $ 39,633,866 | |
Transfers | 7,025,839 | 11,564,358 | 11,794,014 | |
Total | 37,167,501 | 53,634,376 | 51,427,880 | |
Production cost | [1] | 12,753,880 | 9,336,387 | 8,337,413 |
Depreciation, depletion and amortization | [2] | 6,393,506 | 6,049,543 | 5,591,774 |
Other production costs | [3] | 14,005,669 | 21,550,907 | 18,918,275 |
Exploration expenses | [4] | 689,204 | 763,562 | 1,387,463 |
Other expenses | [5] | 2,227,481 | 4,163,241 | 1,036,983 |
Total | 36,069,740 | 41,863,640 | 35,271,908 | |
Income before income tax expense | 1,097,761 | 11,770,736 | 16,155,972 | |
Income tax expense | (233,255) | (2,107,363) | (6,303,251) | |
Results of operations for exploration and production activities | $ 864,506 | $ 9,663,373 | $ 9,852,721 | |
[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 2020, 2019 and 2018 of COP$213,925, COP$198,394 and COP$187,340, respectively. | |||
[2] | In accordance with IAS 37, the expense related to asset retirement obligations that were recognized during 2020, 2019 and 2018 in depreciation, depletion and amortization, were COP$639,123, COP$272,147 and COP$180,193, respectively. | |||
[3] | Includes 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||
Opening balance | 1,894 | 1,727 | 1,659 | |
Proved reserves, Revisions of previous estimates | [1] | (72) | 84 | 121 |
Proved reserves, Improved recovery | 113 | 94 | 129 | |
Proved reserves, Purchases | 30 | 164 | 0 | |
Proved reserves, Extensions and discoveries | 42 | 67 | 57 | |
Proved reserves, Sales | (1) | 0 | 0 | |
Proved reserves, Production | (236) | (242) | (239) | |
Closing balance | 1,770 | 1,894 | 1,727 | |
Proved developed reserves: Opening balance | 1,365 | 1,389 | 1,372 | |
Proved developed reserves: Closing balance | 1,297 | 1,365 | 1,389 | |
Proved undeveloped reserves: Opening balance | 529 | 338 | 287 | |
Proved undeveloped reserves: Closing balance | 473 | 529 | 338 | |
Gas [Member] | ||||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||
Opening balance | 2,906 | 3,002 | 3,254 | |
Proved reserves, Revisions of previous estimates | [1] | 51 | 51 | (4) |
Proved reserves, Improved recovery | 74 | 3 | 4 | |
Proved reserves, Purchases | 171 | 126 | 0 | |
Proved reserves, Extensions and discoveries | 8 | 2 | 18 | |
Proved reserves, Sales | (0.3) | 0 | 0 | |
Proved reserves, Production | (289) | (278) | (270) | |
Closing balance | 2,921 | 2,906 | 3,002 | |
Proved developed reserves: Opening balance | 2,662 | 2,882 | 3,158 | |
Proved developed reserves: Closing balance | 2,636 | 2,662 | 2,882 | |
Proved undeveloped reserves: Opening balance | 244 | 119 | 96 | |
Proved undeveloped reserves: Closing balance | 285 | 244 | 119 | |
Oil [Member] | ||||
Reserve Quantities Proved Developed and Undeveloped Oil and Gas Reserve Quantities [Line Items] | ||||
Opening balance | 1,384 | 1,200 | 1,088 | |
Proved reserves, Revisions of previous estimates | [1] | (81) | 75 | 121 |
Proved reserves, Improved recovery | 100 | 94 | 128 | |
Proved reserves, Purchases | 0 | 142 | 0 | |
Proved reserves, Extensions and discoveries | 41 | 66 | 54 | |
Proved reserves, Sales | (0.9) | 0 | 0 | |
Proved reserves, Production | (186) | (193) | (191) | |
Closing balance | 1,257 | 1,384 | 1,200 | |
Proved developed reserves: Opening balance | 898 | 883 | 818 | |
Proved developed reserves: Closing balance | 834 | 898 | 883 | |
Proved undeveloped reserves: Opening balance | 486 | 317 | 270 | |
Proved undeveloped reserves: Closing balance | 423 | 486 | 317 | |
[1] | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental information on oil and gas producing activities (unaudited) | ||||
Future cash inflows | $ 187,210,379 | $ 279,722,107 | $ 275,046,421 | |
Future costs | ||||
Production | [1] | (85,989,384) | (93,589,960) | (90,176,326) |
Development | (28,752,131) | (32,734,702) | (21,945,453) | |
Income taxes | (13,470,352) | (37,077,231) | (41,102,015) | |
Future net cash flow | 58,998,512 | 116,320,214 | 121,822,627 | |
10% discount factor | (18,568,308) | (36,934,889) | (35,518,187) | |
Standardized measure of discounted net cash flows | $ 40,430,204 | $ 79,385,325 | $ 86,304,440 | |
[1] | Production future costs include the estimated costs related to assets retirement obligations in the amount of $12,545,574; $10,665,315 and $10,164,941 as of December 31, 2020, 2019, and 2018, respectively. |
Supplemental information on o_8
Supplemental information on oil and gas producing activities - discounted net cash flows (Details) - COP ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (44,482,725) | $ 2,411,040 | $ 79,632,263 |
Changes in estimated future development costs | (5,401,560) | (12,627,361) | (13,141,340) |
Sales and transfer of oil and gas produced, net of production costs | (24,413,621) | (44,297,989) | (43,090,467) |
Net change due to extensions, discoveries and improved recovery | 3,134,469 | 7,061,712 | 8,496,249 |
Net change due to purchase and sales of minerals in place | 570,460 | 213,539 | 0 |
Net change due to revisions in quantity estimates | (3,414,649) | 6,756,418 | 10,163,131 |
Previously estimated development costs incurred during the period | 7,943,239 | 23,200,357 | 12,505,421 |
Accretion of discount | 10,468,951 | 11,542,289 | 6,771,897 |
Timing and other | 567,027 | (4,993,389) | (13,633,228) |
Net change in income taxes | 16,073,288 | 3,814,269 | (12,616,331) |
Aggregate change in the standardized measure of discounted future net cash flows for the year | $ (38,955,121) | $ (6,919,115) | $ 35,087,595 |
Supplemental information on o_9
Supplemental information on oil and gas producing activities - Additional Information (Details) $ in Millions, $ in Millions | Jul. 17, 2019USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019COP ($) | Dec. 31, 2018COP ($) |
Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||
Provisions for asset retirement obligations included in cost capitalized to natural and enviromental properties | $ 3,936,494 | $ 2,336,236 | $ 1,076,116 | |
Percentage of interest, rates and obligatios acquired - Gato do Mato" | 30.00% | |||
Expense related to the asset retirement obligations | $ 213,925 | 198,394 | 187,340 | |
Depreciation, depletion and amortization related to asset retirement obligations | $ 639,123 | $ 272,147 | $ 180,193 | |
Percentage of transferred crude oil and gas production based on value to intercompany units | 18.90% | 21.60% | 22.90% | |
Percentage of transferred crude oil and gas production based on volume to intercompany units | 45.90% | 51.50% | 51.80% | |
Percentage of interest of the block Saturn | 10.00% | |||
Percentage of estimated reserve specialized firms | 99.00% | |||
Interest rate on acquisition of block Saturn | 10.00% | |||
Estimated costs related to assets retirement obligations | $ 12,545,574 | $ 10,665,315 | $ 10,164,941 | |
Guajira Association Contract [Member] | ||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||
Percentage of interest acquired | 43.00% | |||
Ecopetrol Oleo e Gas do Brasil Ltda. [Member] | ||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||
Cash transferred for Saturn Block | $ 85 | |||
Shell and Chevron [Member] | ||||
Exploration For And Evaluation Of Mineral Resources [Line Items] | ||||
Proportion of ownership interest in join operation by Shell and Chevron each | 45.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Equity | $ 53,499,363 | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 |
Profit (loss) of the year | 2,737,853 | 15,005,155 | $ 12,355,390 | |
Total assets | 137,694,169 | 133,890,296 | ||
Total liabilities | $ 84,194,806 | $ 75,658,668 | ||
Refineria de Cartagena S.A.S. [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 | $ 16,582,279 | |||
Profit (loss) of the year | (1,688,830) | |||
Total assets | 27,321,381 | |||
Total liabilities | $ 10,739,102 | |||
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 | $ 16,310,718 | |||
Profit (loss) of the year | 4,696,705 | |||
Total assets | 18,303,490 | |||
Total liabilities | $ 1,992,772 | |||
Oleoducto Central S. A. - Ocensa [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 | $ 3,012,894 | |||
Profit (loss) of the year | 2,528,350 | |||
Total assets | 6,277,969 | |||
Total liabilities | $ 3,265,075 | |||
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 | $ 9,320,715 | |||
Profit (loss) of the year | (434,773) | |||
Total assets | 9,321,078 | |||
Total liabilities | $ 363 | |||
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 | $ 3,444,262 | |||
Profit (loss) of the year | 314,057 | |||
Total assets | 3,444,326 | |||
Total liabilities | $ 64 | |||
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 | $ 2,320,615 | |||
Profit (loss) of the year | (353,806) | |||
Total assets | 2,749,860 | |||
Total liabilities | $ 429,245 | |||
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 | $ 2,376,723 | |||
Profit (loss) of the year | 300,828 | |||
Total assets | 3,877,096 | |||
Total liabilities | $ 1,500,373 | |||
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 | $ 1,870,802 | |||
Profit (loss) of the year | 263,126 | |||
Total assets | 2,445,757 | |||
Total liabilities | $ 574,955 | |||
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 | $ 1,872,129 | |||
Profit (loss) of the year | 176,999 | |||
Total assets | 7,482,055 | |||
Total liabilities | $ 5,609,926 | |||
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 | $ 1,268,047 | |||
Profit (loss) of the year | (163,877) | |||
Total assets | 1,268,327 | |||
Total liabilities | $ 280 | |||
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 | $ 1,621,598 | |||
Profit (loss) of the year | 214,482 | |||
Total assets | 3,577,534 | |||
Total liabilities | $ 1,955,936 | |||
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 | $ 1,047,791 | |||
Profit (loss) of the year | 444,625 | |||
Total assets | 1,465,305 | |||
Total liabilities | $ 417,514 | |||
Inversiones de Gases de Colombia S.A. - Invercolsa S.A. (1) | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol | 51.88% | |||
Activity | Holding with investments in natural gas and LPG transportation and distribution companies in Colombia | |||
Country/Domicile | Colombia | |||
Geographic area of operations | Colombia | |||
Equity | $ 765,720 | |||
Profit (loss) of the year | 176,865 | |||
Total assets | 1,311,588 | |||
Total liabilities | $ 545,868 | |||
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 | $ 837,693 | |||
Profit (loss) of the year | 54,412 | |||
Total assets | 1,079,572 | |||
Total liabilities | $ 241,879 | |||
Oleoducto de Colombia S.A. - 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 | $ 411,180 | |||
Profit (loss) of the year | 353,424 | |||
Total assets | 640,292 | |||
Total liabilities | $ 229,112 | |||
Bioenergy S.A.S. [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 | $ 26,508 | |||
Profit (loss) of the year | (20,248) | |||
Total assets | 194,257 | |||
Total liabilities | $ 167,749 | |||
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 | $ 322,511 | |||
Profit (loss) of the year | 166,911 | |||
Total assets | 401,404 | |||
Total liabilities | $ 78,893 | |||
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 | $ 1,657,410 | |||
Profit (loss) of the year | (95,164) | |||
Total assets | 1,692,673 | |||
Total liabilities | $ 35,263 | |||
Bioenergy Zona Franca S.A.S. [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 | $ (92,416) | |||
Profit (loss) of the year | (2,850) | |||
Total assets | 361,769 | |||
Total liabilities | $ 454,185 | |||
Ecopetrol del Peru 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 and exploitation of hydrocarbons | |||
Country/Domicile | Peru | |||
Geographic area of operations | Peru | |||
Equity | $ 53,003 | |||
Profit (loss) of the year | 305 | |||
Total assets | 55,202 | |||
Total liabilities | $ 2,199 | |||
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 | $ 59,279 | |||
Profit (loss) of the year | (44,010) | |||
Total assets | 124,237 | |||
Total liabilities | $ 64,958 | |||
Ecopetrol Costa Afuera S.A.S. [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 | $ 13,356 | |||
Profit (loss) of the year | 1,148 | |||
Total assets | 32,017 | |||
Total liabilities | $ 18,661 | |||
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 | $ 6,275 | |||
Profit (loss) of the year | 1,319 | |||
Total assets | 39,833 | |||
Total liabilities | $ 33,558 | |||
Ecopetrol Energia S.A.S E.S.P. [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 | $ 12,661 | |||
Profit (loss) of the year | 5,256 | |||
Total assets | 72,859 | |||
Total liabilities | $ 60,198 | |||
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 | $ 7,550,468 | |||
Profit (loss) of the year | (294,497) | |||
Total assets | 7,552,294 | |||
Total liabilities | $ 1,826 | |||
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 | $ 3,566,413 | |||
Profit (loss) of the year | (38,855) | |||
Total assets | 3,590,934 | |||
Total liabilities | $ 24,521 | |||
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 | $ 16 | |||
Profit (loss) of the year | (35) | |||
Total assets | 20 | |||
Total liabilities | $ 4 | |||
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 | $ 20 | |||
Profit (loss) of the year | (31) | |||
Total assets | 24 | |||
Total liabilities | $ 4 |
Exhibit 1. Consolidated subsi_4
Exhibit 1. Consolidated subsidiaries, associates and joint ventures - Consolidated subsidiaries (Details) - COP ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Equity | $ 53,499,363 | $ 58,231,628 | $ 57,107,780 | $ 48,215,699 |
Profit (loss) of the year | 2,737,853 | 15,005,155 | 12,355,390 | |
Total assets | 137,694,169 | 133,890,296 | ||
Total liabilities | $ 84,194,806 | $ 75,658,668 | ||
Equion Energia Limited | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Ownership interest Ecopetrol, joint venture | 51.00% | 51.00% | ||
Equity | $ 2,499,319 | $ 2,234,067 | ||
Profit (loss) of the year | 144,019 | 396,380 | 421,511 | |
Total assets | 2,630,351 | 2,625,837 | ||
Total liabilities | $ 131,032 | $ 391,770 | ||
Equion Energia Limited | Joint ventures | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | U.S. dollar | |||
Ownership interest Ecopetrol, joint venture | 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 | $ 2,499,319 | |||
Profit (loss) of the year | 167,727 | |||
Total assets | 2,630,351 | |||
Total liabilities | $ 131,032 | |||
Offshore International Group | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Ownership interest Ecopetrol, joint venture | 50.00% | 50.00% | ||
Equity | $ 543,620 | $ 736,847 | ||
Profit (loss) of the year | (237,751) | (48,247) | $ (322,969) | |
Total assets | 1,568,795 | 1,766,271 | ||
Total liabilities | $ 1,025,175 | $ 1,029,424 | ||
Offshore International Group | Joint ventures | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | U.S. dollar | |||
Ownership interest Ecopetrol, joint venture | 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 | $ 543,621 | |||
Profit (loss) of the year | (237,752) | |||
Total assets | 1,568,795 | |||
Total liabilities | $ 1,025,174 | |||
Ecodiesel Colombia S.A | Joint ventures | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, joint venture | 50.00% | |||
Activity, joint venture | Production, commercialization and distribution of biofuels and oleochemicals | |||
Country/Domicile, joint venture | Colombia | |||
Geographic area of operations, joint venture | Colombia | |||
Equity | $ 103,344 | |||
Profit (loss) of the year | 29,188 | |||
Total assets | 167,801 | |||
Total liabilities | $ 64,457 | |||
Gases del Caribe S.A. E.S.P. [member] | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 25.40% | |||
Activity, associate | Natural gas distribution and commercialization | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 489,367 | |||
Profit (loss) of the year | 278,329 | |||
Total assets | 2,132,231 | |||
Total liabilities | $ 1,642,864 | |||
Gas Natural del Oriente S.A. E.S.P. | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 17.91% | |||
Activity, associate | Natural gas distribution and commercialization | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 111,181 | |||
Profit (loss) of the year | 52,956 | |||
Total assets | 202,644 | |||
Total liabilities | $ 91,463 | |||
Gases de la Guajira S.A. E.S.P. | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 5.36% | |||
Activity, associate | Natural gas distribution and commercialization | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 55,265 | |||
Profit (loss) of the year | 18,128 | |||
Total assets | 170,937 | |||
Total liabilities | $ 115,672 | |||
E2 Energa Eficiente S. A. E.S.P. | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 9.92% | |||
Activity, associate | Energy services, supply, optimization, development, renewal and innovation of energy resources and infrastructure | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 28,802 | |||
Profit (loss) of the year | 4,062 | |||
Total assets | 93,736 | |||
Total liabilities | $ 64,934 | |||
Colombiana de Extrusion S.A. -Extrucol S.A. | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 18.16% | |||
Activity, associate | Production of pipes and accessories in polyethylene | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 39,620 | |||
Profit (loss) of the year | 7,493 | |||
Total assets | 66,110 | |||
Total liabilities | $ 26,490 | |||
Serviport S.A | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 49.00% | |||
Activity, associate | Services for the support of loading and unloading of oil ships, supply of equipment, technical inspections and load measurements | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 17,430 | |||
Profit (loss) of the year | 568 | |||
Total assets | 45,457 | |||
Total liabilities | $ 28,027 | |||
Sociedad Portuaria Olefinas y Derivados S.A. [Member] | Associates | ||||
Disclosure of consolidated subsidiaries, associates and joint ventures [Line Items] | ||||
Functional currency | Colombian peso | |||
Ownership interest Ecopetrol, associate | 50.00% | |||
Activity, associate | Construction, use, maintenance and administration of port facilities, ports, private docks | |||
Country/Domicile, associate | Colombia | |||
Geographic area of operations, associate | Colombia | |||
Equity | $ 4,432 | |||
Profit (loss) of the year | 562 | |||
Total assets | 8,196 | |||
Total liabilities | $ 3,764 |
Exhibit 2 . Conditions of the m
Exhibit 2 . Conditions of the most significant loans (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020COP ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019COP ($) | ||
Conditions of the most significant debt | |||||
Borrowings | $ 46,731,754 | $ 38,239,139 | |||
Bonds domestic currency One [Member] | |||||
Conditions of the most significant debt | |||||
Company | Ecopetrol S.A. | ||||
Issue date | 2010-12 | ||||
Expiry date | 2040-12 | ||||
Currency | COP | ||||
Disbursement | 479,900 | ||||
Borrowings | 479,900 | ||||
Interest rate | Floating | ||||
Amortization of the principal | Bullet | ||||
Payment of interest | Half-yearly | ||||
Bonds domestic currency Two [Member] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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 | ||||
Syndicated commercial loan, domestic currency One [Member] | |||||
Conditions of the most significant debt | |||||
Company | Oleoducto Bicentenario S.A.S | ||||
Issue date | 2012-07 | ||||
Expiry date | 2024-07 | ||||
Currency | COP | ||||
Disbursement | 2,100,000 | ||||
Borrowings | 800,450 | 999,950 | |||
Interest rate | Floating | ||||
Amortization of the principal | Quarterly | ||||
Payment of interest | Quarterly | ||||
Syndicated commercial loan, domestic currency Two [Member] | |||||
Conditions of the most significant debt | |||||
Company | Oleoducto de los Llanos Orientales S.A. | ||||
Issue date | 2013-08 | ||||
Expiry date | 2020-08 | ||||
Currency | COP | ||||
Disbursement | 800,000 | ||||
Borrowings | 96,000 | ||||
Interest rate | Floating | ||||
Amortization of the principal | Quarterly | ||||
Payment of interest | Quarterly | ||||
Inversiones de Gases de Colombia S.A. Invercolsa S.A. and subsidiaries [Member] | |||||
Conditions of the most significant debt | |||||
Issue date | 2020-11 | ||||
Expiry date | 2025-08 | ||||
Currency | COP | ||||
Disbursement | 110,000 | ||||
Borrowings | 110,000 | ||||
Interest rate | Floating | ||||
Amortization of the principal | Half-yearly | ||||
Payment of interest | Half-yearly | ||||
Commercial Loan One [Member] | |||||
Conditions of the most significant debt | |||||
Company | Inversiones de Gases de Colombia S.A. Invercolsa S.A. and subsidiaries | ||||
Issue date | 2020-08 | ||||
Expiry date | 2021-08 | ||||
Currency | COP | ||||
Disbursement | 50,000 | ||||
Borrowings | 43,000 | ||||
Interest rate | Floating | ||||
Amortization of the principal | Bullet | ||||
Payment of interest | Quarterly | ||||
Commercial Loan Two [Member] | |||||
Conditions of the most significant debt | |||||
Company | Inversiones de Gases de Colombia S.A. Invercolsa S.A. and subsidiaries | ||||
Issue date | 2019-09 | ||||
Expiry date | 2025-07 | ||||
Currency | COP | ||||
Disbursement | 70,912 | ||||
Borrowings | $ 21,681 | $ 70,912 | |||
Interest rate | Floating | ||||
Amortization of the principal | Half-yearly | ||||
Payment of interest | Half-yearly | ||||
Bonds Foreign currency One [Member] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
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] | |||||
Conditions of the most significant debt | |||||
Company | Ecopetrol S.A. | ||||
Issue date | 2020-04 | ||||
Expiry date | 2030-04 | ||||
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 Eight [Member] | |||||
Conditions of the most significant debt | |||||
Company | [1] | Oleoducto Central S.A. | |||
Issue date | 2014-05 | ||||
Expiry date | 2021-05 | ||||
Currency | USD | ||||
Disbursement | $ 500 | ||||
Borrowings | $ 500 | 500 | |||
Interest rate | Fixed | ||||
Amortization of the principal | Bullet | ||||
Payment of interest | Half-yearly | ||||
Bonds Foreign currency Nine [Member] | |||||
Conditions of the most significant debt | |||||
Company | Oleoducto Central S.A. | ||||
Issue date | 2020-07 | ||||
Expiry date | 2027-07 | ||||
Currency | USD | ||||
Disbursement | $ 500 | ||||
Borrowings | $ 500 | 500 | |||
Interest rate | Fixed | ||||
Amortization of the principal | Bullet | ||||
Payment of interest | Half-yearly | ||||
Committed Line Of Credit [Member] | |||||
Conditions of the most significant debt | |||||
Company | Ecopetrol S.A. | ||||
Issue date | 2020-04 | ||||
Expiry date | 2023-09 | ||||
Currency | USD | ||||
Disbursement | $ 665 | ||||
Borrowings | $ 665 | ||||
Interest rate | Floating | ||||
Amortization of the principal | Bullet | ||||
Payment of interest | Half-yearly | ||||
International commercial loans Reficar One [Member] | |||||
Conditions of the most significant debt | |||||
Company | [2] | Ecopetrol S.A. | |||
Issue date | [2] | 2017-12 | |||
Expiry date | [2] | 2027-12 | |||
Currency | [2] | USD | |||
Disbursement | [2] | $ 2,001 | |||
Borrowings | [2] | $ 1,305 | 1,530 | ||
Interest rate | [2] | Fixed | |||
Amortization of the principal | [2] | Half-yearly | |||
Payment of interest | [2] | Half-yearly | |||
International commercial loans Reficar Two [Member] | |||||
Conditions of the most significant debt | |||||
Company | [2] | Ecopetrol S.A. | |||
Issue date | [2] | 2017-12 | |||
Expiry date | [2] | 2027-12 | |||
Currency | [2] | USD | |||
Disbursement | [2] | $ 76 | |||
Borrowings | [2] | $ 49 | 58 | ||
Interest rate | [2] | Floating | |||
Amortization of the principal | [2] | Half-yearly | |||
Payment of interest | [2] | Half-yearly | |||
International commercial loans Reficar Three [Member] | |||||
Conditions of the most significant debt | |||||
Company | [2] | Ecopetrol S.A. | |||
Issue date | [2] | 2017-12 | |||
Expiry date | [2] | 2027-12 | |||
Currency | [2] | USD | |||
Disbursement | [2] | $ 73 | |||
Borrowings | [2] | $ 48 | 56 | ||
Interest rate | [2] | Fixed | |||
Amortization of the principal | [2] | Half-yearly | |||
Payment of interest | [2] | Half-yearly | |||
International commercial loans Reficar Four [Member] | |||||
Conditions of the most significant debt | |||||
Company | [2] | Ecopetrol S.A. | |||
Issue date | [2] | 2017-12 | |||
Expiry date | [2] | 2027-12 | |||
Currency | [2] | USD | |||
Disbursement | [2] | $ 159 | |||
Borrowings | [2] | $ 103 | 121 | ||
Interest rate | [2] | Floating | |||
Amortization of the principal | [2] | Half-yearly | |||
Payment of interest | [2] | Half-yearly | |||
International commercial loans Reficar Five [Member] | |||||
Conditions of the most significant debt | |||||
Company | [2] | Ecopetrol S.A. | |||
Issue date | [2] | 2017-12 | |||
Expiry date | [2] | 2025-12 | |||
Currency | [2] | USD | |||
Disbursement | [2] | $ 359 | |||
Borrowings | [2] | $ 257 | $ 288 | ||
Interest rate | [2] | Floating | |||
Amortization of the principal | [2] | Half-yearly | |||
Payment of interest | [2] | Half-yearly | |||
[1] | This bond was redeemed early in 2020. | ||||
[2] | Debt originally obtained by Reficar for the Refinery modernization and voluntarily assumed by Ecopetrol. |