Page 4 - LatAmOil Week 32 2021

COMMENTAR
LatAmOil COMMENTARY Y LatAmOil

(Photo: Ecopetrol)
Ecopetrol’s $3.6bn bet

on the energy transition

Colombia’s NOC has acquired a majority stake in the country’s TSO and hopes

the deal will help it accelerate the pace of expansion into renewable energy

COLOMBIA’S national oil company (NOC) Felipe Bayon, the CEO of Ecopetrol, told
Ecopetrol announced early this year that it reporters at a press conference on August 11 that
WHAT: hoped to buy a majority stake in Interconexion his company had to finalise the acquisition of the
Ecopetrol has struck Electrica SA (ISA), the country’s transmission ISA stake by December 6 but said that parties
an agreement on the system operator (TSO). Since then, it has sub- might be able to close the transaction in as little
purchase of a 51.4% mitted a non-binding offer and entered into as three to four weeks. He also indicated that the
stake in ISA. negotiations with the government, ISA’s major- NOC had taken out a loan to finance the pur-
ity owner. It has also considered various options chase and said Ecopetrol would reveal further
WHY: for financing the deal, which was expected to details of this credit deal later.
The announcement carry a price tag of $3.5-4.0bn. Additionally, Bayon asserted that the compa-
comes in the wake of The NOC’s efforts have now come to frui- ny’s performance was robust enough to support
news that the NOC’s tion. On August 11, Ecopetrol revealed that it the acquisition. “Ecopetrol has the financial
net profits soared in had entered into an agreement with the govern- strength to access this type of resource,” he said.
Q2-2021.
ment on the purchase of a 51.4% holding in ISA.
It said it had agreed to buy 569,472,561 shares Economic boost
WHAT NEXT: in the TSO for a price of COP25,000 ($6.35) per He was speaking shortly after the NOC reported
The deal aims to ensure
that the company is not share, putting the total price at COP14.2 tril- that its net profits had soared to COP3.72 trillion
left behind by efforts to lion ($3.604bn). This represents a premium of ($944.234bn) in the second quarter of 2021, up
phase out fossil fuels. about 16% on ISA’s share prices, which closed by five orders of magnitude on the year-ago fig-
at COP21,500 ($5.46) apiece on the same day. ure of COP25bn ($6.346mn).

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