The Ecopetrol Group consolidates its position in Asia, having sold over 72 million barrels of crude oil in the continent
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The Ecopetrol Group consolidates its position in Asia, having sold over 72 million barrels of crude oil in the continent
Jun 16, 2023
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Sales exceeded the Company's initial projection by 15%.
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This result is largely due to the efforts and outstanding performance of the Singapore office.
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The purpose of Ecopetrol Trading Asia, a subsidiary established in July 2021, is to increase the Group’s presence in the Asian market, one of its main export destinations.
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The subsidiary recently became the first Colombian company to join the Singapore government's Global Trading Program, which promotes foreign investment.
The Ecopetrol Group, through its subsidiary Ecopetrol Trading Asia, has commercialized more than 72 million barrels of crude oil in the Asian market, a figure that exceeds by 15% the initial sales forecast set back in July 2021, when the Company was incorporated. The opening of the Singapore-based office has provided a better understanding of the local market, resulting in a positive performance and enabling the office to close deals at peak liquidity times, promptly identify marketing opportunities, develop a greater understanding of the needs of regional clients and access companies that solely present in Asia.
“Operating live from Asia’s business hub has allowed us to strengthen our commercial relationships in the region. We have been able to adapt to our customers’ logistics and refining needs and eliminated intermediaries, generating greater value for the Ecopetrol Group. Our goal continues to be to develop and attract new customers and markets,” said Pedro Manrique, Ecopetrol's Vice President of Sales and Marketing.
Currently, more than half of the Ecopetrol Group's crude oil is being shipped to Asia. The main market is China, followed by India, Brunei and Singapore. One of the Groups’ main goals for 2023 is to attract a new customer base in South Korea, Malaysia, Japan and Thailand.
In addition to achieving record sales, Ecopetrol Trading Asia has also been able to trade carbon-offset crude oil cargoes, which is in keeping with the Company's TESG agenda. In addition, it began marketing products such as fuel oil, closed new deals with independent refiners and mega refineries in China, and signed term contracts with major industry players. These achievements stem from fostering a robust relationship agenda, not only with current and potential customers but also with Asian governments and different organizations that support foreign investment. Recently, the subsidiary became the first Colombian company to join the Singapore government's Global Trading Program, earning it a place among the major oil and gas companies operating in the region.
Internationalization strategy
The Singapore office is a key player in the Ecopetrol Group's internationalization strategy, which aims to increase value in the marketing of crude oil, products and petrochemicals by eliminating intermediaries and diversifying customers and markets.
In the coming months, Ecopetrol plans to open its second international trading company, which will be located in Houston, another of the Company's main markets for products and crude oil. The new subsidiary, Ecopetrol US Trading, will focus on developing new customers and suppliers for crude oil, refined products, petrochemicals and natural gas, primarily in the Americas and Europe.
Singapore, June 16, 2023
