#1ecopeTROL ENERGY FOR THE FUTURE Investor Presentation Cartagena, Abril de 2012 Seminario Oportunidades de Inversión 2012 - Larrainvial BVCO BOLSA DE VALORES DE COLOMBIA EC LISTED NYSE TMX Dow Jones Sustainability Indexes Member 2011/12 1#2Disclaimer 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. 60 Years 2#3Agenda 1. Colombia: a relevant player in O&G 2. 3. Ecopetrol's performance and 2012-2020 strategic plan Ecopetrol's solid financial results lever future growth 4. Ecopetrol: a great investment opportunity 60M Years 3#41 Colombia: a relevant player in O&G 4#52011 914 mbod 800 Colombia reaches record oil production 1.000 900 Total Oil Production in Colombia* and Milestones (thousand barrels per day) ecopeTROL 8 7 2011 2010 ΑΝΗΞ 4 AGENCIA NACIONAL DE HIDROCARBUROS COLOMBIA 56 2009 2008 2007 2006 2005 2004 3 2001 700 600 500 400 ECOPETROL 300 2 200 1 100 2000 1990 1980 1970 1960 1950 1940 1930 1922 2. Ecopetrol's incorporation (1951) Key milestones: 1. Beginning of oil production in Colombia (1922) 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) *Total country (Ecopetrol + other companies) Source: Revista Semana, National Hydrocarbon Agency (ANH), Colombian Petroleum Association (ACP) 2003 2002 60% Years 5#6Colombia's exploration area increased 8X since 2003 2003 12.5 million hectares* Total contracted and reserved 2008 61.7 million hectares* Total contracted and reserved 2011 102.0 million hectares* Total contracted and reserved CARIBBEAN SEA PANAMA PACIFIC OCEAN area 8% VENEZU D area 38% area 63% Colombia 2011 (Sep): • • 25.2 million hectares under exploration Exploration activity on 294 blocks • 100+ companies in E&P * Area includes: production, exploration, TEA's and in preparation Source: ANH ☐ Area under exploration 60% Years 6#7No. of wells Increasing E&P activity in Colombia Exploration wells and success rates in Colombia 250 200 48% 46% 70% 56% 58% 60% 48% 48% 50% 40% 40% 150 33% 41% 39% 108 30% 98 100 21% 14% 56 70 10 20% 64 45 56 73 51 10% 28 35 38 50 21 41 28 18 14 34 10 63 0% 19 47 22 11 36 35 12 29 12 10 16 22 0 -10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Producer Dry -Tech Success Rate Source: ANH 60% Years Tech. Success Rate 7#8Colombia's O&G sector supports economic growth Foreign direct investment O&G (USD bn) Oil and products exports (USD bn) 16% 11% 30% 37% 32% 34% 42% 40% 30 60% 09 6,0 5,0 4,0 3,0 2,0 2,0 1,1 1,0 0,5 10X 25 5X 4,3 20 20 3,3 3,4 2,8 15 2,4 10 5 il 0 2004 2005 2006 2007 2008 2009 2010 Jan-Sep 2011 2005 2006 2007 2008 2009 % of total FDI P: preliminary Source: Central Bank of Colombia 2010 Jan-Nov 2011 Exports of petroleum and its products -% of total country's exports 50% 40% 30% 20% 10% 0% 60% Years 8#92 Ecopetrol's performance and 2012-2020 strategic plan: Overview 9#10Ecopetrol's transformation 2007 - 2011 From Ownership 100% Government owned To •12% market float Listed in BVC, NYSE and TSX •Dow Jones Sustainability Index BVC ● BOLSA DE VALORES DE COLOMBIA EC LISTED NYSE TMX Dow Jones Sustainability Indexes Member 2011/12 Business Model NOC business model with operations in Colombia • Diversified Corporate Group across all segments • Internationalization: Colombia, Peru, Brazil, and US Gulf Coast Production 399 mboed in 2007 . 724 mboed in 2011 Market Cap USD 27 bn (Nov. 27/07) • USD 115 bn (Feb 27/12) 60%the Years 10 10#11Capex growth accross all segments with focus on E&P Capex per year 2008-2012 (USD billion) 372% Capex per segment 2008-2011 5% 10% 1.8 8.5 7.2 11% 6.3 6.0 4.8 43% US$ 25.7 bn 14% 2007 2008 2009 2010 2011 2012 Production e: estimated Source: Ecopetrol (e) 16% Refining & Petroch. Exploration Acquisitions Transportation Other 60% Years 11#12Ecopetrol beyond Colombia Ecopetrol Corporate Group E&P: eCPETROL AMERICA E&P: U.S.A. ecoPETROL PERÚ Source: Ecopetrol SAVIA PERU Colombia E&P: ecoPETROL HOCOL equion Refining & Petrochems. reficar Refineria de Cartagma SA PROPILCO Transportation: OGENSA ODL Dlwoducto Central S.A OLECDUCTO DE COLOME Code Mana OSLA bicentenario petroles por Colombia Biofuels: Brasil BIOENERGY ecodiesel Peru colombias E&P: eCPETROL BRASIL 60% Years 12#13Strategic plan 2012 - 2020 Goal year 2020 1.3 mm boed "Clean barrels❞ • No accidents No environmental incidents • Harmonious labor relations Delivering commitments to stakeholders 17% ROCE Source: Ecopetrol Capex 2012 - 2020 Other 2% Biofuels Transportation. 5% 1% Refining 7% US$ 80 bn Exploration 25% Production 60% • 85% allocated to E&P • 90% in Colombia 60% Years 13#142 Ecopetrol's performance and 2012-2020 strategic plan: Exploration & Production 14 14#15Remarkable rise in production Corporate Group: Average production / year (thousand barrels of crude oil and gas per day) + 81% 724 108 616 521 104 447 399 85 72 97 336 289 270 253 246 280 224 153 109 81 2007 2008 2009 Heavy oil Light and medium oil Strategic partnerships adds 51% of total production Source: Ecopetrol 2010 Natural gas 2011 60 Years 15#16Main fields by region in Colombia Source: Ecopetrol Region Share Main fields 2011 Avg. Production (mboed) Central 42% Castilla 110 Chichimene 32 Rubiales + Quifa 113 Northeast 29% Guajira Cusiana 64 36 Mid Magdalena 12% La Cira Infantas Nare 17 736 16 Catatumbo 8% Tibú 2 South 9% Orito Tenay Tello 323 60% Years 16#17Corporate Group 1P Reserves: 2008 - 2020 (e) IRR ** 1P Reserves* (million barrels of oil & gas equivalent) 63% Reserves Addition (million barrels of oil & gas) 164% 193% 351% 1,857 1,714 1,538 46% 1.473 1,137 5,836 2008 2009 2010 2011 2008 - 2011 2012-2020 (e) * According to SEC prices and methodology **RRI: Reserve replacement index Source: Ecopetrol 60% Years 17#18Sources of production growth 2011 - 2015 Incremental production by source: 2011-2015 (thousands of equivalent barrels of oil per day) 106 123 724 2011 Current fields Colombian Exploration (e) : estimated Source: Ecopetrol 27 Unconventional in Colombia 1,000 20 International Exploration 2015(e) 60e Years 18#19Breakdown of production 2020 Production by source: 2020 (thousands of equivalent barrels of oil per day) 840 110 300 50 1,300 Current fields Colombian Exploration International Exploration Unconventional Total 2020 in Colombia Source: Ecopetrol 60 Years 19#20Secondary recovery and EOR • 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 Chichimene field. Waterflood: In situ combustion 34% . 21 fields implemented • • 21 fields new pilots/projects in progress 93 fields with possible implementation Source: Ecopetrol Breakdown by source Gas 12% In field Drilling 27% WO & stimulation 1% Optimization & new Steam 1% Polymers & CO2 Secondary 15% projects 5% 5% 60%the Years 20 20#21Additional gas capacity 2011-2012 Main projects: Source: Ecopetrol Fields Current production (mmcf) Future production (mmcf) ▲ Prod. increase Gibraltar 36 mmcf Cusiana LTO II 200 270 +70 Gibraltar 0 36 +36 Cupiagua 140 mmcf Cupiagua 0 140 +140 60% Years 21 21#22Higher exploration activity and geological success International exploration wells Colombian exploration wells Stratigraphic wells 22 16 60 11 10 6 3 5 37 60 2 Successful wells 1 28 11 16 12 13 13 5 5 4 2 2007 2008 2009 2010 2011* 2012 (e) Geological Success * 16% 33% 26% 26% 48%** 60 Years * 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%) 22 22#23Ecopetrol's Oil & Gas discoveries in Colombia 2008-2011 Discoveries in Colombia 2008-2011*: 2008 Arrayan-1 Lisama Norte Pachaquiaro norte-1 Tempranillo-1 Quifa-5 Saman 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 *Includes only A3 and A2 wells. Source: Ecopetrol Rio Zulia West 3 Lisama Norte Oripaya Rumbero Pacha- Azabache-1 quiaro Guarrojo E-1 Akacias Norte Pinocho Quifa9 CSE-8 Quifa6, Quifa 5 Mito Tempranillo Norte Fauno Quifa Quifa 8 Opalo-1 CSE 8ST Tempranillo-1 TRASGO Arrayar Nunda Quriyana Tinkhana 60% Years 23#24Growing and diversified exploration portfolio Exploration Area Million hectares +134% 21.3 5.2 16.1 9 2002 Source: Ecopetrol 2011 Colombia International Colombia 70 exploration Assets 16.1 million* hectares International 137 exploration Assets 5.2 million hectares *Includes: Ecopetrol S.A., Hocol, and Equion 60 Years 24 24#25Exploration assets in Colombia Exploration Area 13.4 million Ha Blocks in Colombia 9% 20% 71% Leverage Sustainability Growth Early production Proven basins Offshore Caribbean Heavy oil Foothills Geologic frontier • 41 E&P Contracts . • • 6 Agreements with ANH 6 Association contracts 53 exploration assets Source: Ecopetrol 53 blocks Pacific Ocean Atlantic Ocean Ecuador Peru Venezuela Brazil 60% Years 25#26International exploration assets Exploration Area 9.6 mm Has GoM Miocene USA GOM Brazil post-salt pre-salt Peru marañón Peru offshore Ecopetrol Peru 4.8 mm Has Sustainability Leverage Growth Sustainability Ecopetrol America Inc. 0.3 mm Has Miocene Paleogene Jurassic Marañón Marañón Sechura Ucayali Ucayali Brasil Huallaga Salaverry Lima Perú Savia Peru 4.3 mm Has* Ecopetrol's interest of 50% of the 8,664,213 Has of Savia Peru Source: Ecopetrol Espiritu Santo Campos Santos Para Maranhao Ecopetrol Brasil 0.1 mm Has Campos Santos Para-Maranhao 60 Years 26#27Unconventional resource potential in Colombia MH PACIFICO Source: Arthur D'Little INC MH CARIBE CBM GUAJIRA CBM CESAR SH CATATUMBO CBM - MONTERIA SH - VSM SH-PUT SH-VMM CBM CORDILLERA SH CORDILLERA Methane hydrates Gas in Situ 434.2 TCF Shales 31.7 TCF (Higher potential in VMM 29 TCF) Coal Bed Methane 7.5 TCF (Higher potential in Cesar 2.4 TCF and Guajira 3.4 TCF) Tight Sands 1.2 TCF Tar Sands Potential 23,762 MMBOE 60% Years 27 22#28Gas shale in Middle Magdalena Valley: Initial steps for Ecopetrol 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 Source: Arthur D'Little INC,Ecopetrol SH CATATUMBO Focus area to start Unconv. strategy Shale Mid Magdalena Valley SH CORDILLERA SH-VSM SH-PUT 28#292 Ecopetrol's performance and 2011-2020 strategic plan: Downstream#30Sustained growth in revenues driven by exports Thousand barrels per day of crude oil & gas Total Sales 80% 857 719 650 547 Local sales 475 494 356 302 216 148 327 331 348 363 363 Exports 2007 2008 2009 2010 2011 Exports 233% 494 25 55 356 302 7 20 216 49 148 16 414 51 312 53 233 149 95 Crude oil Products Natural gas 2007 2008 2009 2010 2011 60% Years 30#31Crude references and export destinations Europe Canada 5% U.S. West Coast Destinations 8% 1% U.S. Gulf Coast 52% Caribbean and other South America 5% 2011 58% Crude References 2010 WTI Maya 15% 85% Africa 1% 2% 16% 24% 3% 12% Brent Otros Far East 13% 60 Years 31#322 Ecopetrol's performance and 2011-2020 strategic plan: Refining#33Strong commitment to air quality Diesel Colombia Medellín Bogota and Public Transportation Systems 4,500 1,200 Sulfur content (parts per million) 3,000 2,500 500 500 500 50 50 2007 2008 2009 2010 Gasoline 1,000 727 700 231 2008 2009 2010 Source: Ecopetrol 2012 20160 Years 33#34Main refining projects Cartagena Reficar Estimated US$4.0 Investment Billion +/- 10% Capacity of 165 MBD Modernization Barrancabermeja Estimated US$3.4 Billion +/- 11% Investment Capacity of 250MBD 60 Years 34 =4#35Cartagena - expansion and upgrading Lower cost of crude Premium quality products 7% H 93% 16% 23% 61% 2010 2013 Heavy Medium Light Conversion <75% >95% 36% 45% 36% 51% 28% 4% 2010 2013 Fuel & Coke Med. distill. Gasolines & LPG's 60 Years 35#36Barrancabermeja modernization Lower cost of crude Value added products Conversion <75% 10% 24% 21% >95% 1% 1% 7% 8% 34% 41% 55% 41% 69% 46% 18% 21% 4% 2010 2016 Heavy Medium Light 2010 2016 Fuel &Coke Medium dist. Gasolines LPG's Petrochem. 60% Years 36#37Projected margin improvement from investment projects Process heavier crudes and produce higher quality fuels Reficar Project Optimize operating costs Process heavier crudes and produce more value added products Utilities Project Barranca modernization project 2012 2013 2014 2015 2016 2020 Reficar Ebitda Barranca Ebitda 60%M Years 37 32#382 Ecopetrol's performance and 2011-2020 strategic plan: Biofuels 38#39Growth through current and new projects Biodiesel ecodiesel colombia s.a. • 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% Ethanol Production of Biofuels (thousand tons per year) 450 380 280 180 100 BIOENERGY 2011 2013 2016 2018 2020 Ecodiesel Bioenergy Ecodiesel 2 Etanol Bioenergy 2 • 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% Subject to further approvals 60% Years 39#402 Ecopetrol's performance and 2011-2020 strategic plan: Transportation and Logistics 40 40#41Capacity increase Transported volumes (mbod) 1,205 1,036 289 800 752 265 710 209 223 194 916 771 517 542 576 2007 2008 2009 2010 2011 Crude oil Products Crude transportation capacity (mbod) 1.105 872 887 910 991 2007 2008 2009 2010 2011 70% 2007-2011 27% 2007-2011 60% Years 41#42Open business model for developing infrastructure Cartagena Coveñas Transported crude volume daily average: • 2010: 771 MBOD • 2011: 916 MBOD ECOPETROL 100% Retiro Orú Tibú Ayacucho Caucasia Río Zulia Payoa Toledo B/Bermeja Banadia Caño Limón Samoré Sebastopol ECOPETROL + PARTNERS Dorada Santa Rosa Vasconia Velásquez Santa Sofía Miraflores Cusiana El Morro Araguaney Guaduas THIRD PARTIES Tocancipá Porvenir Monterrey Santiago PIPELINES FOR NAFTA Gualanday Toldado D Chicoral Guandó Chichimene Apiay Rubiales Purificación Saldaña Castilla Tenay YaguaraTello System Tumaco Ecopetrol 100% Ecopetrol Third Total and partners parties Country Alisales Crude Pipelines (kms) 2,886 2,203 386 5,475 Guamues Mansoya Churuyaco, Orito San Miguel Stations 24 15 39 42#43Transportation projects 2011-2013 Pozos Colorados Cartagena Coveñas 11 4 Vasconi a 7 Orito 2 3 Caño Limón Banadia 10 5 Araguaney Santiago Rubiales Projects 2011-2013 (Capex USD 3.8 bn): 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. 11 ODC 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 Increased Capacity: Main Lines 310 MBOD Secondary Lines Multipurpose lines Storage 570 MBOD 37 MBOD 1,800 MB 60% Years 43 33#44Pipeline capacity increase 2010-2016 Increase in capacity of pipeline systems (mbod) 1.446 1.288 1.168 1.747 1.765 1.765 1.765 1.765 1.765 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2013 . Key Projects Source: Ecopetrol • 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 60 Years 44#453 Ecopetrol's solid financial results lever future growth 45 45#46Financial results driven by rising production, higher prices and cost saving initiatives (2/2) Net Income and Net Margin (USD bn) 36% 23% 27% 23% 18% 19% 8,4 5,0 4,3 1,5 2,2 2,4 2006 2007 2008 2009 2010 2011 Net income Net margin Ebitda & Ebitda Margin (USD bn) 45% 50% 44% 47% 45% 38% 15,1 6.4 8.6 3.5 4.5 4.8 2006 2007 2008 2009 2010 2011 Source Ecopetrol S.A., Does not include subsidiaries Ebitda Ebitda Margin 60 Years 46 46#47ROCE 2008-2011 is above the 17% hurdle rate 32,9% 33,7% 2009 ROCE 2009 - 2011 42,1% 36,2% 2010 2011 2009-2011 ROCE=After tax operational income / Average Capex 60% Years 47#48Capex plan of US$80 billion between 2012-2020 Uses 1% 2% 5% 7% USD 80 25% bn 60% Production Refining Other Exploration Transportation Biofuels Source Ecopetrol 16% Sources 9% USD 80 bn 75% Cash generation Debt Equity offering 60%the Years 48#49Capex plan of USD8.5 billion for 2012 Breakdown of Capex 2012 4% Capex per segment 2012 Exploration • 42 exploratory wells • 37 in Colombia • 5 International 24% USD 8.5 7% 17% bn Production 48% Refinning · Average Production . . Corporate group: 800 mboed • Ecopetrol: 750 mboed Focus in the Llanos basin . Modernization of B/bermeja and Cartagena facilities Transport • Increase crude transportation capacity by 600 mbod Production Refining Other Exploration Transportation Other Source Ecopetrol • Research and development + organizational consolidation 60% Years 49 49#50Diversified shareholder base Primary Equity Offerings of Ecopetrol USD 2.8 bn 10.1% 20.0% US$1.3 bn* 1.6%* 8.3% Total Authorized Round 1 (2007) Round 2 (2011) Law 1118 Round 3 (TBD) Proceeds (USD bn) * Includes 2nd round of primary share offering; ** Mainly pension funds Source Ecopetrol Ecopetrol's ownership (as of December 31-2011*) Other ADRs Foreign Instit. Instit. inv. in ord. 1.4% 1.4% Inv.** shares (Colombia) 0.4% 4.1% Retail inv. 4.2% 507 thousand stockholders Rep. Of Colombia, 88.5% 60 Years 50 50#51Increased trading and liquidity of ADRs Total daily traded volume (USD million) Trading 25.1 % ADRs Institutional Investors in ADR 29.3 21.8 Ordinary Shares 15,0 ADRs 12.7 24,2 15,5 11,6 14,3 0,9 1,1 6,3 2008 2009 2010 % of ADRs in Ecopetrol's ownership 2011 1,4% 0,1% 0,2% 2008 2009 Source: JP Morgan, Bloomberg 10 X 0,6% 2010 Number of institutional investors in ADRs 10 X 92 22 2011 161 58 14 60% Years 2008 2009 2010 2011 51#52Dividend payout ratio of ~70% Dividend per share (COP) and payout ratio Extraordinary dividend $37 Ordinary dividend $ 105 $ 263 Payout ratio $ 115 $ 115 $ 145 $ 91 Dividend 2008 2009 2010 2011 2012* 89.9% 76.5% 70.1% 70.3% 79.9% 5.0% 9.2% 2.9% 3.7% 6.1% *Pending shareholder meeting approval yield 52 52#53Investor Relations Phone + 571 234 5190 Email [email protected] • Website www.ecopetrol.com.co 60% Years 53#54ECOPETROL ENERGY FOR THE FUTURE Ecopetrol S.A. All rights reserved. The re production of this presentation is forbidden without the written authorization of Ecopetrol S.A. 54 54