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Cartagena, Abril de 2012

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ENERGY FOR THE FUTURE

Investor Presentation

Seminario Oportunidades de Inversión 2012 - Larrainvial

This document was prepared by Ecopetrol S.A. with the purpose of providing the market and interested parties

certain financial and other information of the Company.

This document may include strategy discussions and forward-looking statements regarding the probable

development of Ecopetrol’s Business. Said projections and statements include references to estimates or

expectations of the Company regarding its future and operational results. Potential investors and the market in

general should be aware that the information provided herein does not constitute any guarantee of its

performance, risks or uncertainties that may occur or materialize. Real results may fluctuate and differ from

those provided herein due to several factors outside of the control of the Company. Neither Ecopetrol nor its

advisors, officers, employees, directors or agents, make any representation nor shall assume any responsibility

in the event actual performance of the company differs from what is provided herein. Moreover, Ecopetrol, its

advisors, officers, employees, directors or agents shall not have any obligation whatsoever to update, correct,

amend or adjust this presentation based on information attained or events occurred after its disclosure.

This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed

solely in conjunction with, the oral briefing provided by Ecopetrol. Neither this presentation nor any of its

contents may be used for any other purpose without the prior written consent of Ecopetrol.

Disclaimer

2

Agenda

Ecopetrol´s performance and 2012-2020 strategic plan

Colombia: a relevant player in O&G

Ecopetrol's solid financial results lever future growth

Ecopetrol: a great investment opportunity

3

Colombia:a relevant player in O&G

4

0

100

200

300

400

500

600

700

800

900

1.000 Total Oil Production in Colombia* and Milestones(thousand barrels per day)

1

2

3

45 6

7

*Total country (Ecopetrol + other companies)Source: Revista Semana , National Hydrocarbon Agency (ANH), Colombian Petroleum Association (ACP) 5

Colombia reaches record oil production

Key milestones:1. Beginning of oil production in Colombia (1922)2. Ecopetrol’s incorporation (1951)3. Discovery of Caño Limón field (1983)4. Discovery of Cusiana and Cupiagua fields (1988) 5. New hydrocarbon regulation: royalties and contracts (2002-03)6. Incorporation of the National Hydrocarbon Agency - ANH (2003)7. Ecopetrol´s IPO (2007)8. Ecopetrol’s second round of primary share offering (2011)

2011914 mbod

8

Area under exploration

Colombia´s exploration area increased 8X since 2003

200312.5 million hectares*

Total contracted and reserved area 8%





* Area includes: production, exploration, TEA´s and in preparationSource: ANH

Colombia 2011 (Sep):

• 25.2 million hectares under exploration

• Exploration activity on 294 blocks

• 100+ companies in E&P

6

7

Exploration wells and success rates in Colombia

Increasing E&P activity in Colombia

7Source: ANH

No

. of

we

lls

Tech

. Su

cce

ssR

ate

6 2 4 6 10 16 22 2947

36

63

3512 12 6

22 1119

3441

51

28

45

38

33%

14%

40%

21%

48%

46%

39%41%

48%

56% 58%

48%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Producer Dry Tech Success Rate

18 14 10

28 2135

5670 64

98 108

73

Colombia´s O&G sector supports economic growth

Foreign direct investment O&G(USD bn)

0%

10%

20%

30%

40%

50%

60%

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 Jan-Nov 2011

Exports of petroleum and its products

% of total country´s exports

Oil and products exports(USD bn)

0,5

1,1

2,0

3,3 3,4

2,4 2,8

4,3

-

1,0

2,0

3,0

4,0

5,0

6,0

2004 2005 2006 2007 2008 2009 2010 Jan-Sep 2011

16% 11% 30% 37% 32% 34% 42%

% of total FDI

Source: Central Bank of Colombia 8

P: preliminary

40%

Ecopetrol´s performance and 2012-2020 strategic plan:

Overview

9

10

Ownership 100% Governmentowned

•12% market float

•Listed in BVC, NYSE and TSX

•Dow Jones Sustainability Index

BusinessModel

NOC business model

withoperations in Colombia

• Diversified Corporate Group across all segments

• Internationalization: Colombia, Peru, Brazil , and US

Gulf Coast

Production • 724 mboed in 2011399 mboed in 2007

Market Cap USD 27 bn (Nov. 27/ 07) • USD 115 bn (Feb 27/12)

Ecopetrol´s transformation 2007 - 2011

11

Capex per year 2008-2012

Capex growth accross all segments with focus on E&P

Capex per segment2008-2011

US$ 25.7 bn

Production

Acquisitions

Transportation

Refining & Petroch.

Exploration

Other

1.8

4.8

6.3 6.07.2

8.5

2007 2008 2009 2010 2011 2012 (e)

* e: estimated

(USD billion)

Source: Ecopetrol

43%

16%

14%

11%

10%5%

Ecopetrol beyond Colombia

E&P:

E&P:

E&P:

E&P:

Refining & Petrochems. :

Biofuels:

Transportation:

Ecopetrol Corporate Group

12Source: Ecopetrol

Production 60%

Exploration 25%

Refining 7%

Transportation 5%

Other 2% Biofuels

1%

Strategic plan 2012 - 2020

1.3 million boed

13Source: Ecopetrol

US$ 80 bn

Capex 2012 - 2020 Goal year 2020

• No accidents• No environmental

incidents• Harmonious labor

relations• Delivering commitments

to stakeholders• 17% ROCE

“Clean barrels”

• 85% allocated to E&P• 90% in Colombia

1.3 mm boed


Exploration & Production

14

Corporate Group: Average production / year(thousand barrels of crude oil and gas per day)

15Source: Ecopetrol

Remarkable rise in production

Strategic partnerships adds 51% of total production

81 109 153224

280

246253

270

289

336

7285

97

104

108

2007 2008 2009 2010 2011

Heavy oil Light and medium oil Natural gas

399

521

616

724

447

Region Share Main fields

2011

Avg. Production

(mboed)

Central 42% Castilla 110

Chichimene 32

Rubiales + Quifa 113

Northeast 29% Guajira 64

Cusiana 36

Mid Magdalena 12% La Cira 17

Infantas 3

Nare 16

Catatumbo 8% Tibú 2

South 9% Orito 3

Tenay 2

Tello 3

Main fields by region in Colombia

16Source: Ecopetrol

1P Reserves*(million barrels of oil & gas equivalent)

* According to SEC prices and methodology** RRI: Reserve replacement index

1.473

5,836

2008 - 2011 2012 - 2020 ( e )

Reserves Addition(million barrels of oil & gas)

Corporate Group 1P Reserves: 2008 - 2020 (e)

17Source: Ecopetrol

1,137

1,538 1,714

1,857

2008 2009 2010 2011

46%

351%

193%

IRR **

164%

2011 (e) Current fields Expl. National Unconventional Expl. International

2015International Exploration

18

Sources of production growth 2011 - 2015

724

1,000

123106 27 20

(e) : estimated

Incremental production by source: 2011-2015(thousands of equivalent barrels of oil per day)

Source: Ecopetrol

2015 ( e )ColombianExploration

Unconventionalin Colombia

19

Breakdown of production 2020

Production by source: 2020(thousands of equivalent barrels of oil per day)

Source: Ecopetrol

840

1,300

300110

50

Current fields Expl. Colombia International Expl. Unconventional Total 2020International Exploration

ColombianExploration

Unconventionalin Colombia

Drilling27%

WO & stimulation

1%

Optimization & new

projects5%

Secondary15%

Polymers & CO25%

Steam1%

In situ combustion

34%

Gas12%

• Potential for EOR/IOR:17% of Ecopetrol´s OOIP is subject to be recovered through EOR/IOR projects.

• Screening process:94% of OOIP had gone through a screening process to select the best technology applicable.

• Insitu combustion: By Dec. 2012 Ecopetrol might start a combustion in situ project at Chichimenefield.

• Waterflood:• 21 fields implemented• 21 fields new pilots/projects in

progress• 93 fields with possible

implementation

Breakdown by source

Secondary recovery and EOR

20Source: Ecopetrol

In field

Gibraltar

Cupiagua

21

Additional gas capacity 2011-2012

36 mmcf

140 mmcf• Supply increases in demand

Allowing for:

FieldsCurrent

production(mmcf)

Futureproduction

(mmcf)

Prod. increase

Cusiana LTO II200 270 +70

Gibraltar 0 36 + 36

Cupiagua0 140 +140

Main projects:

Source: Ecopetrol

International explorationwells

Colombianexploration wells

Successful wells

Stratigraphic wells

Geological Success * 16% 33% 26% 26%

Higher exploration activity and geological success

22

12 13 16 13

2837

23 6

11

5

10

22

2007 2008 2009 2010 2011* 2012 (e )

25 5 4

1

6

11

6

48%**

16

* Success rate for A3/A2 wells; ** Does not include 4 wells under evaluation (as of Dec 31/11) in the calculation of success rate (17/35= 48%)

Ecopetrol´s Oil & Gas discoveries in Colombia 2008-2011Discoveries in Colombia 2008-2011*:

23* Includes only A3 and A2 wells. Source: Ecopetrol

Arrayan

Pacha-quiaroNorte

Tempranillo Norte

Quriyana

Tinkhana

Rumbero

Oripaya

Akacias

Nunda

Pinocho

Mito Fauno

Tempranillo-1

Lisama Norte 1P

Rio Zulia West 3

Quifa6

Quifa 7Quifa 8

Quifa9

Quifa 5CSE-8

CSE 8ST

TRASGO

2008 Arrayan-1

Lisama Norte

Pachaquiaro norte-1

Tempranillo-1

Quifa-5

2009 Quiriyana-1

Quifas 7,8,9

Tempranillo norte

2010 Akacias-1

Oripaya-1

Tinkhana-1

Quifa-6

2011 Pinocho

Rumbero

Nunda

Fauno-1

Mito-1

CSE-8

CSE 8ST1

Trasgo-1

Azabache-1

Opalo-1

Bonga-1

Guarrojo Este-1

Saman

Opalo-1

Azabache-1Guarrojo E-1

hectares*Includes: Ecopetrol S.A., Hocol, and Equion

Assetsexploration

hectares

Colombia InternationalExploration Area

9

16.1

5.2

2002 2011Colombia

International

Million hectares

21.3

Growing and diversified exploration portfolio

Assetsexploration

24Source: Ecopetrol

9%

71%

20%

• 41 E&P Contracts• 6 Agreements with ANH• 6 Association contracts• 53 exploration assets

53

blo

cks

Offshore Caribbean

Heavy oil

Foothills

Proven basins

Early production

Geologic frontier

13.4 million Ha

Leverage Sustainability Growth

Exploration Area Blocks in Colombia

Exploration assets in Colombia

Venezuela

AtlanticOcean

Pacific Ocean

Ecuador

Peru

Brazil

25Source: Ecopetrol

Santos

Campos

Espiritu Santo

Para Maranhao

Marañón

Ucayali

Ecopetrol Peru

4.8 mm Has

GOM

Marañón

Ucayali

Huallaga

Ecopetrol Brasil

0.1 mm Has

Campos

Santos

Para-Maranhao

Ecopetrol America Inc.

0.3 mm Has

Miocene

Paleogene

JurassicExploration Area

9.6 mm Has

Peru marañón

Brazil post-salt pre-salt

Sustainability

GoM Miocene

Peru offshore

Sechura

Salaverry

Lima

* Ecopetrol’s interest of 50% of the 8,664,213 Has of Savia Peru

Savia Peru

4.3 mm Has*

International exploration assets

26Source: Ecopetrol

27

120 - 1200 TCF (Karson, 1994)

32 TCF (Arthur D little, 2010)CBM - GUAJIRA

CBM - CESAR

CBM - MONTERIA

CBM - CORDILLERA

MH - CARIBE

MH - PACIFICO

SH - CATATUMBO

SH - VMM

SH- CORDILLERA

Methane hydratesGas in Situ 434.2 TCF

Shales31.7 TCF (Higher potentialin VMM 29 TCF)

Coal Bed Methane7.5 TCF (Higher potentialin Cesar 2.4 TCF and Guajira 3.4 TCF)

Tight Sands1.2 TCF

Tar SandsPotential 23,762 MMBOE

SH - VSM

SH - PUT

Source: Arthur D´Little INC

Unconventional resource potential in Colombia

SH - CATATUMBO

Shale

Mid Magdalena Valley

SH- CORDILLERA

SH - VSM

SH - PUT

Focus area to startUnconv. strategy

Drivers

Regional geological knowledge

Land positioning

Access to infrastructure and social - environmental knowledge

Access to potential markets for gas and liquids to be produced

High potential

Gas shale in Middle Magdalena Valley: Initial steps for Ecopetrol

28Source: Arthur D´Little INC,Ecopetrol


Downstream

327 331 348 363 363

148 216302 356

494475547 650

719857

2007 2008 2009 2010 2011

Local sales

Exports

95 149233

312414

5351

4937

55

16

20

25

148216

302356

494

2007 2008 2009 2010 2011

7

Crude oil

Products

Natural gas

Exports

Total Sales

Tho

usa

nd

bar

rels

per

day

of

cru

de

oil

& g

as

Sustained growth in revenues driven by exports

30

U.S. Gulf Coast

Far EastCaribbean and other

South America

U.S. West Coast

Canada

Crude references and export destinations

Destinations

Crude References

31

85%

58%

12%

16% 24%

3%

2%

2010

2011

WTI Maya Brent Otros

Africa

Europe


Refining

Strong commitment to air quality

4,500

3,0002,500

5005050

1,200500 500

2001 2008 2009 2010 2012

Colombia

Bogota and PublicTransportationSystems

Medellín

Diesel

2007

Gasoline 1,000727 700

231

2008 2009 2010 2011

Sulfur content (parts per million)

Source: Ecopetrol

33

Cartagena

Estimated

Reficar

Billion +/- 10%Investment

165MBDCapacity of

BarrancabermejaModernization

250MBDCapacity of

Billion +/- 11%Investment

Estimated

Main refining projects

34

35

Lower cost of crude

2010 2013

61%

93%

23%

7%16%

Heavy Medium Light

Premium quality products

2010 2013

28% 4%

36%

51%

36% 45%

Fuel & Coke

Med. distill.

Gasolines & LPG's

Conversion <75% >95%

Cartagena - expansion and upgrading

35

Lower cost of crude

2010 2016

21%

69%

55%

21%

24%10%

Heavy Medium Light

Value added products

2010 2016

18% 4%

41%46%

34% 41%

7% 8%

1% 1%

Fuel &Coke Medium dist.Gasolines LPG´sPetrochem.

Conversion <75% >95%

Barrancabermeja modernization

36

2012 2013 2014 2015 2016 2020

Reficar Ebitda Barranca Ebitda

Projected margin improvement from investment projects

Utilities ProjectBarranca

modernization project

Reficar Project

Process heavier crudes and produce higher

quality fuels

Optimize operating costs

Process heavier crudes and produce more

value added products

37


Biofuels

38

Biodiesel

Ethanol

• Total Capex US$282 millions • Start of operations: 2012• Max. Capacity: 480,000 liters/day • Future blending of 10% through wholesalers• Ecopetrol ´s interest : 88%

• Max. Capacity : 100,000 tons/yr (2,000 bls/day)• Production Jan-Sep 2011: 2,140 MBOED• Blending of 2% biodiesel at Barranca refinery • Ecopetrol´s interest: 50%

Growth through current and new projects

Subject to further approvals

39

100

180

280

380450

2011

Ecodiesel

2013

Bioenergy

2016

Ecodiesel 2

2018

Etanol

2020

Bioenergy 2

Production of Biofuels(thousand tons per year )


Transportation and Logistics

40

Transported volumes(mbod)

517 542 576771

916

194 209 223

265

289

710 752 800

1,036

1,205

2007 2008 2009 2010 2011

Crude oil Products

Crude transportation capacity(mbod)

Capacity increase

872 887 910 9911.105

2007 2008 2009 2010 2011

70%

2007-2011

27%

2007-2011

41

Open business model for developing infrastructure

B/Bermeja

Ayacucho

Cartagena

Orú

Coveñas

Vasconia

Cusiana

Porvenir

ChichimeneApiay

Caño LimónSamoré

Toledo

Río Zulia

Tibú

Caucasia

Araguaney

Monterrey

Payoa

Banadia

Velásquez

Miraflores

Santiago

Castilla

Tumaco

Alisales

Guamues

OritoMansoya

San Miguel

Churuyaco

Dorada

ToldadoGualanday

Tenay

Tello

Guandó

Purificación

Yaguara

Saldaña

Guaduas

Rubiales

Santa Rosa

Santa Sofía

Tocancipá

El Morro

Sebastopol

Retiro

Chicoral

ECOPETROL 100%

ECOPETROL + PARTNERS

THIRD PARTIES

PIPELINES FOR NAFTA

• 2010: 771 MBOD• 2011: 916 MBOD

Transported crude volume daily average:

SystemEcopetrol

100%Ecopetrol

and partnersThird

partiesTotal

Country

Crude Pipelines (Kms) 2,886 2,203 386 5,475

Stations 24 - 15 39

42

1. ODL Rubiales – Monterrey (+ 180 MBOD) Dec. 11

2. Pozos Colorados – Galán (+ 60 MBOD) Jun. 12

3. Caño Limón – Coveñas optimization to 220 MBOD (+60MBOD) Jun. 12

4. Orito – Tumaco (+ 40 MBOD) Apr. 12

5. OBC Phase 1: Pipeline Casanare – Coveñas (+ 120 MBOD) Jun. 12

6. Magdalena Medio (+25MBOD) Jul. 12

7. Diluent Pipeline 90 MBOD (+ 37 MBOD) Jul. 12

8. ODC Vasconia – Coveñas (+ 35 MBOD) Dic. 11ODC Vasconia – Coveñas (+ 30 MBOD) Nov. 12

9. San Fernando – Monterrey – Cusiana (+ 390 MBOD) May. 14

10. Vasconia – GRB – Galán 220 MBOD (+ 60 MBOD) Jul. 13

11. Coveñas – Additional Storage (OBC – Ecopetrol ) (+ 1.800 KB) Feb. 13

Cartagena

Coveñas

Vasconia

Banadia

Santiago

Rubiales

Araguaney

Pozos Colorados

8Caño

Limón

Orito

6

1

3

4

9

5

Transportation projects 2011-2013

Increased Capacity:Secondary Lines

570 MBOD310 MBOD

Main Lines

Projects 2011-2013 (Capex USD 3.8 bn):

2

11

7

Storage

1,800 MB37 MBOD

Multipurpose lines

43

10

Increase in capacity of pipeline systems(mbod)

2011 2013

• Ocensa (Seg. III): from 340 to 400 mbod• ODC: from 180 to 240 mbod• Bicentenario: phase 1: 140, Phase 2: 240, Phase 3: 450 mbod• Magdalena Medio: from 52 to 100 and then to 140 mbod• Caño Limón: from 110 to 220 mbod•OTA: From 45 to 85 mbod

2015 – 2020

• Pipeline to Pacific Ocean: 0 to 450 mbod

44Source: Ecopetrol

Key

Projects

Pipeline capacity increase 2010-2016

1.1681.288

1.446

1.747 1.765 1.765 1.765 1.765 1.765

2012 2013 2014 2015 2016 2017 2018 2019 2020

45

Ecopetrol´ssolid financial results lever future growth

3.5 4.5 6.4 4.88.6

15,1

44% 47% 45%38%

45% 50%

2006 2007 2008 2009 2010 2011

Ebitda Ebitda Margin

Source Ecopetrol S.A.,

Does not include subsidiaries

Ebitda & Ebitda Margin(USD bn)

1,5 2,25,0

2,44,3

8,418%

23%

36%

19%23%

27%

2006 2007 2008 2009 2010 2011

Net income Net margin

Net Income and Net Margin (USD bn)

46

Financial results driven by rising production, higher prices and cost saving initiatives (2/2)

ROCE 2008-2011 is above the 17% hurdle rate

32,9% 33,7%

42,1%

36,2%

2009 2010 2011 2009-2011

ROCE= After tax operational income / Average Capex

ROCE 2009 - 2011

47

75%

16%

9%

Sources

Cash generation

Debt

Equity offering

Capex plan of US$80 billion between 2012-2020

60%

25%

7%5%

2%1%

Uses

Production ExplorationRefining TransportationOther Biofuels

USD 80bn

USD 80bn

48Source Ecopetrol

48%

17%

7%

24%

4%

Production ExplorationRefining TransportationOther

Capex plan of USD8.5 billion for 2012

Breakdown of Capex 2012

USD 8.5bn

49Source Ecopetrol

Exploration

Refinning

Transport

Other

• 42 exploratory wells• 37 in Colombia• 5 International

• Average Production• Corporate group: 800 mboed• Ecopetrol: 750 mboed

• Focus in the Llanos basin

Production

• Modernization of B/bermeja and Cartagena facilities

• Increase crude transportationcapacity by 600 mbod

• Research and development + organizational consolidation

Capex per segment 2012

Diversified shareholder base

20.0%

1.6%*

10.1%

8.3%

Total Authorized Law 1118

Round 1 (2007) Round 2 (2011) Round 3 (TBD)

USD 2.8 bn

US$1.3 bn*

*Includes 2nd round of primary share offering; ** Mainly pension funds

Primary Equity Offerings of Ecopetrol

50Source Ecopetrol

Foreign inv. in ord.

shares 0.4%

ADRs1.4%

Other Instit.1.4%

Instit. Inv.**

(Colombia)4.1%

Retail inv. 4.2%

Rep. Of Colombia,

88.5%

Ecopetrol´s ownership(as of December 31-2011*)

507 thousand stockholders

Proceeds (USD bn)

Increased trading and liquidity of ADRs

0,9 1,1 6,3 14,3

24,2

11,6

15,5

15,0

2008 2009 2010 2011

Total daily traded volume (USD million)

Ordinary Shares

ADRs

14

58 92

161

2008 2009 2010 2011

Number of institutional investors in ADRs

0,1% 0,2%

0,6%

1,4%

2008 2009 2010 2011

% of ADRs in Ecopetrol´s ownership

25.1

12.7

21.8

29.3Trading

% ADRs

Institutional

Investors in ADR

51Source: JP Morgan, Bloomberg

$ 115 $ 115 $ 91$ 145

$ 263$ 105

$ 37

2008 2009 2010 2011 2012*

89.9%

Payout ratio

Extraordinarydividend

Ordinarydividend

76.5% 70.1% 70.3%

Dividend per share (COP) and payout ratio

Dividend payout ratio of ~ 70%

52

5.0% 9.2% 2.9% 3.7%

Dividendyield

79.9%

6.1%

*Pending shareholder meeting approval

Investor Relations

• Phone + 571 234 5190

• Email [email protected]

• Website www.ecopetrol.com.co

53

mailto:[email protected]

http://www.ecopetrol.com.co/

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