Ecopetrol opens its office in Singapore
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Ecopetrol opens its office in Singapore
Sep 26, 2022
- Ecopetrol Trading Asia, a subsidiary of the Ecopetrol Group, began operations during the second quarter of 2022 seeking to extend its presence in the Asian market, the Group's main export destination.
- The new subsidiary has already reached trades volumes of close to 8 million barrels of crude oil per month, and secure sales exceeding those forecast by 55%.
- Sales to Asia have doubled in the past 5 years and represent 60% of the Group's crude oil exports.
The Ecopetrol Group, Colombia's largest company and one of the leading energy groups in Latin America, officially launched its office in Singapore during APPEC 2022, the largest oil and gas industry meeting in the Asia-Pacific region.
Only four months after starting operations, the subsidiary has already secured sales that surpass the forecasted sales plan by 55%. This has been possible thanks to a specialized regional on-site team that has allowed the Company to take advantage of the opportunities offered by the Asian market in real time, develop close relationships with current and potential clients, as well as gain a better understanding of the local environment.
"We are pleased to continue moving forward with Ecopetrol Group’s international operations plan through the opening of this new office in Singapur. Asia is our main export destination and a physical presence here allows us to develop closer relationships with our customers and capture more and better opportunities," announced Felipe Bayón, CEO of the Ecopetrol Group, during the first customer relations event organized by the company in Asia.
Currently, Ecopetrol Trading Asia markets a volume of approximately 6 to 8 million barrels of crude oil per month, mostly of the crude blends Ecopetrol Castilla Blend®, Ecopetrol Mares Blend® and Ecopetrol Apiay Blend® from the Llanos and Mid-Magdalena production fields, which have garnered an exceptional positioning in international markets.
The subsidiary has also closed several contracts with well-known companies in India and China as a result of an extensive networking agenda with state organizations and client visits in the main Asian markets, seeking new business opportunities.
Regional Outlook
Some of the main challenges the Singapore office faces is the entry to new markets in the region and the ambition to increase sales volumes to new markets, such as Japan and South Korea. Additionally, the plan is to venture into marketing third-party barrels and crude oil from sources other than Colombia, such as from operations in the Brazilian offshore and the Permian basin in the United States.
Another of the goals set for this new agency is to contribute to the decarbonization of the Ecopetrol Group’s commercial activity through the sale of carbon offset crude oil cargoes, consistent with the Group's energy transition goals and 8 commitment to achieve net zero emissions by 2050 (scopes 1 and 2). To date, the Group has sold two cargoes of carbon offset crude oil out of the four planned for 2022.
Asia, Ecopetrol’s main market
Currently, 60% of Ecopetrol Group's crude oil sales are exported to Asia.
Sales to this continent have doubled over the last five years. During the first semester of this year, 153,000 barrels per day were exported, mainly to China, India and Brunei.
Singapur, 26 september 2022
