Colombian oil company Ecopetrol has slashed its investment plan for 2016, in the wake of low oil prices.
In a statement on Wednesday, Ecopetrol said it was cutting its investment plan from $4.8 billion to a range between $3 billion and $3.4 billion.
The company said the move was a part of the measures taken to navigate the low crude oil price environment, ensure capital discipline and focus on cash generation and the financial stability of the Ecopetrol Group.
“2016 is a year of transition for the Ecopetrol Group, during which investments will be made to finish transportation projects and complete the start up the new Cartagena Refinery. Starting in 2017, the Company will dedicate a larger portion of its investments to the exploration and production segments,” Ecopetrol said in a statement.
Of the funds earmarked for exploration and production, 93 percent will be invested into Colombian operations, and the remaining 7 percent overseas.
Ecopetrol will obtain he resources required for the investment plan from internal cash generation, divestment of non-strategic assets and financing. Financing needs for 2016 remain within the range of US$1.5 billion and US$1.9 billion for the Ecopetrol Group, the company said.