Ecopetrol S.A. Announces Terms of Local Bond Issuance

    


    
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<p><span class="xn-location">BOGOTA</span>, <span class="xn-location">Colombia</span>, <span class="xn-chron">Dec. 2, 2010</span> /CNW/ -- Ecopetrol S.A. ("Ecopetrol" or the "Company") (NYSE: EC) announces the terms of the local public bond issuance placed today.</p>
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    (Logo: http://photos.prnewswire.com/prnh/20090209/ARM001LOGO )

    --  Total amount allocated : COL$1,000,000,000,000
    --  Amount bidded : COL$ 3,011,200,000,000
    --  Issue date: December 1, 2010
    --  Summary of bond issuance:


    
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               Series A: Peso-denominated variable IPC rate bonds
               --------------------------------------------------
    Maturity date      5 years       7 years      10 years      30 years
    -------------      -------       -------      --------      --------
    Yield            IPC + 2.80%  IPC + 3.30%  IPC + 3.94%  IPC + 4.90%
    -----            -----------   -----------   -----------   -----------
    Amount (Col$
     million)             97,100       138,700       479,900       284,300




    --  Amortization: At maturity.
    --  Coupon payment: payable semi-annually
    --  Objective:  To finance the Company's 2010 Investment Plan.

    
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<p>Ecopetrol is the largest company in <span class="xn-location">Colombia</span> and a vertically integrated oil company, among the 40 largest oil companies in the world and four largest in Latin America. In addition to <span class="xn-location">Colombia</span>, where it generates over 60% of the country's production, it maintains exploration and production operations in <span class="xn-location">Brazil</span>, <span class="xn-location">Peru</span> and the <span class="xn-location">United States</span> (Gulf of <span class="xn-location">Mexico</span>).  Ecopetrol owns the largest refinery in <span class="xn-location">Colombia</span>, the majority of the network of oil pipelines and multi-use pipelines and is increasing significantly its participation in biofuels.</p>
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<p>This release contains forward-looking statements related to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the company and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend on changes in market conditions, regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors, therefore, they are subject to change without prior notice.</p>
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<p>For more information, please contact:</p>
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    Investor Relations
    Alejandro Giraldo
    Telephone: [phone]
    e-mail: [email protected]
    
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    Media Relations (Colombia)
    Mauricio Tellez
    Telephone: [phone]
    Fax: [phone]
    e-mail: [email protected]
    
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    Website: www.ecopetrol.com.co




    

For further information: Investor Relations, Alejandro Giraldo, +011-571-234-5190, [email protected]; or Media Relations (Colombia), Mauricio Tellez, +011-571-234-5377, Fax: [phone], [email protected] Web Site: http://www.ecopetrol.com.co