Brazilian Government Approves Ecopetrol Oleo E Gas do Brasil LTDA's Participation in Block BM-S-73 in Santos Basin

BOGOTA, Colombia, Dec. 22, 2010 /PRNewswire/ -- With the issuance of resolution 1078/2010 on December 16, 2010, by the National Oil, Gas and Biofuel Agency – ANP, Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL; BVL: EC; TSX: ECP), through its affiliate Ecopetrol Oleo E Gas do Brasil LTDA, confirms its participation in the offshore concession for Block BM-S-73 in Brazil. The request for approval of the concession came as a result of the signing of the participation agreement with ONGC Campos Ltda. and Petroleo Brasileiro S.A. - Petrobras - which also included an exchange of a portion of interests in Block BM-S-74, with these two companies.

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The offshore concession is located in Santos Basin, Block S-M-1413, and covers an area of 160.04 square kilometers. The concession is part of Brazil's Ninth Licensing Round and is currently in exploratory phase.

The agreement calls for Ecopetrol Oleo E Gas do Brasil LTDA to have a 13% stake in the block; Petroleo Brasileiro S.A. - Petrobras -, 43.5%; and ONGC Campos Ltda, which will be the operator, the remaining 43.5%.

The agreement represents a further step in Ecopetrol's international expansion, specifically in Brazil, and is part of its strategy to attain a production level of 1.0 million clean barrels of oil equivalent a day by 2015, and 1.3 million clean barrels per day in 2020.

Ecopetrol is the largest company in Colombia and a vertically integrated oil company, among the 40 largest oil companies in the world and four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it maintains exploration and production operations in Brazil, Peru and the United States (Gulf of Mexico).  Ecopetrol owns the largest refinery in Colombia, the majority of the network of oil pipelines and multi-use pipelines and is increasing significantly its participation in biofuels.

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.

SOURCE Ecopetrol S.A.