traducir ENERGY FOR THE FUTURE Investor Presentation Cartagena, Abril de 2012 Seminario Oportunidades de Inversión 2012 - Larrainvial

1 Disclaimer

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.

2 Agenda : a relevant player in O&G Ecopetrol´s performance and 2012-2020 strategic plan Ecopetrol's solid financial results lever future growth

Ecopetrol: a great investment opportunity

3 Colombia: a relevant player in O&G

4 Colombia reaches record oil production 2011 1.000 Total Oil Production in Colombia* and Milestones 914 mbod 900 (thousand barrels per day) 800 8 700 4 7 600 5 6 3 500

400

300

200 2

100 1

0

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) *Total country (Ecopetrol + other companies) Source: Revista Semana , National Hydrocarbon Agency (ANH), Colombian Association (ACP) 5 Colombia´s exploration area increased 8X since 2003

2003 2008 2011 12.5 million hectares* 61.7 million hectares* 102.0 million hectares* Total contracted and reserved Total contracted and reserved Total contracted and reserved area 8% area 38% area 63%

Colombia 2011 (Sep): Area under exploration • 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 6 Source: ANH Increasing E&P activity in Colombia

Exploration wells and success rates in Colombia 250 70%

56% 58% 60% 48% 200 48% 48% 50% 46% 40% 40% 150 41% Rate 39% wells 33% 108 30%

98 Success

. . No. of No. 100 21% Tech 70 64 20% 56 45 73 14% 51 35 10% 50 28 21 41 28 38 18 14 34 10 63 0% 19 47 22 11 29 36 35 12 12 6 16 22 0 6 2 4 6 10 -10% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Producer Dry Tech Success Rate

Source: ANH 7 Colombia´s O&G sector supports economic growth

Foreign direct investment O&G Oil and products exports (USD bn) (USD bn)

16% 11% 30% 37% 32% 34% 42% 40% 30 60%

6,0 25 50% 4,3 5,0 20 40% 4,0 3,3 3,4 2,8 15 30% 3,0 2,4 2,0 2,0 10 20% 1,1 1,0 0,5 5 10% - 0 0% 2004 2005 2006 2007 2008 2009 2010 Jan-Sep 2011 2005 2006 2007 2008 2009 2010 Jan-Nov 2011 Exports of petroleum and its products

% of total FDI % of total country´s exports

P: preliminary

Source: Central Bank of Colombia 8 Ecopetrol´s performance and 2012-2020 strategic plan: Overview

9 Ecopetrol´s transformation 2007 - 2011

Ownership 100% Government •12% market float owned •Listed in BVC, NYSE and TSX •Dow Jones Sustainability Index

Business NOC business model • Diversified Corporate Group across all segments with Model operations in Colombia • 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)

10 Capex growth accross all segments with focus on E&P Capex per year Capex per segment 2008-2012 (USD billion) 2008-2011

5% 10% 8.5 7.2 11% 6.3 6.0 4.8 US$ 25.7 bn 43% 14%

1.8

16%

2007 2008 2009 2010 2011 2012 Production Refining & Petroch. (e) Acquisitions Exploration Transportation Other * e: estimated

Source: Ecopetrol 11 Ecopetrol beyond Colombia Ecopetrol Corporate Group

E&P:

Refining & Petrochems. : E&P: Transportation:

Biofuels: E&P:

E&P:

Source: Ecopetrol 12 Strategic plan 2012 - 2020 Goal year 2020 Capex 2012 - 2020 Other 2% Biofuels Transportation 1% 1.31.3 mmmillion boed boed 5% Refining “Clean barrels” 7%

• No accidents • No environmental US$ 80 bn incidents Exploration • Harmonious labor 25% relations Production • Delivering commitments 60% to stakeholders • 17% ROCE • 85% allocated to E&P • 90% in Colombia

Source: Ecopetrol 13 Ecopetrol´s performance and 2012-2020 strategic plan: Exploration & Production

14 Remarkable rise in production

Corporate Group: Average production / year (thousand barrels of crude oil and gas per day) 724

616 108 521 104 447 97 399 336 85 72 289 270 253 246 280 224 153 81 109

2007 2008 2009 2010 2011 Heavy oil Light and medium oil Natural gas

Strategic partnerships adds 51% of total production

Source: Ecopetrol 15 Main fields by region in Colombia

2011 Region Share Main fields 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

Source: Ecopetrol 16 Corporate Group 1P Reserves: 2008 - 2020 (e)

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

5,836 164% 193% IRR ** 351% 1,857 1,714 1,538 46% 1.473 1,137

2008 2009 2010 2011 2008 - 2011 2012 - 2020 ( e )

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

Source: Ecopetrol 17 Sources of production growth 2011 - 2015 Incremental production by source: 2011-2015 (thousands of equivalent barrels of oil per day) 1,000 106 27 20 123 724

2011 (e) Current fields Expl.Colombian National UnconventionalUnconventional InternationalExpl. 20152015 ( e ) Exploration in Colombia ExplorationInternational

(e) : estimated

Source: Ecopetrol 18 Breakdown of production 2020 Production by source: 2020 (thousands of equivalent barrels of oil per day)

50 1,300 110 300

840

Current fields Expl.Colombian Colombia InternationalInternational Expl. UnconventionalUnconventional Total 2020 Exploration Exploration in Colombia

Source: Ecopetrol 19 Secondary recovery and EOR

• Potential for EOR/IOR: 17% of Ecopetrol´s OOIP is subject to be Breakdown by source recovered through EOR/IOR projects. In field Gas Drilling • Screening process: 12% 27% 94% of OOIP had gone through a screening WO & process to select the best technology stimulation 1% applicable.

• Insitu combustion: By Dec. 2012 Ecopetrol might start a combustion in situ project at Chichimene In situ combustion field. Optimization 34% & new Secondary Steam Polymers & projects • 15% Waterflood: 1% CO2 5% • 21 fields implemented 5% • 21 fields new pilots/projects in progress • 93 fields with possible implementation

Source: Ecopetrol 20 Additional gas capacity 2011-2012

Main projects:

Current Future Prod. Fields production production increase (mmcf) (mmcf) Gibraltar 36 mmcf Cusiana LTO II 200 270 +70

Gibraltar 0 36 + 36 Cupiagua Allowing for: Cupiagua 140 mmcf 0 140 +140 • Supply increases in demand

Source: Ecopetrol 21 Higher exploration activity and geological success

16 22

International exploration wells 5 6 Colombian 11 exploration wells 10 6 Stratigraphic wells 37 3 6 2 1 28 Successful wells 11 12 13 16 13 5 5 4 2 2007 2008 2009 2010 2011* 2012 (e ) Geological Success * 16% 33% 26% 26% 48%**

* 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 Ecopetrol´s Oil & Gas discoveries in Colombia 2008-2011 Discoveries in Colombia 2008-2011*: 2008 Arrayan-1 Lisama Norte

Pachaquiaro norte-1 Saman Tempranillo-1

Quifa-5 Rio Zulia West 3 Lisama 2009 Quiriyana-1 Norte 1P Oripaya Quifas 7,8,9 Rumbero Tempranillo norte

2010 Akacias-1 Pacha- Azabache-1 Oripaya-1 quiaro Guarrojo E-1 Akacias Norte Pinocho Quifa9 Tinkhana-1 Quifa6 CSE-8 Quifa 5 Mito Fauno Quifa 7Quifa 8 Quifa-6 Tempranillo Norte Opalo-1 CSE 8ST 2011 Pinocho Tempranillo-1 TRASGO Rumbero Arrayan Nunda Nunda Fauno-1 Mito-1 Quriyana CSE-8 Tinkhana CSE 8ST1 Trasgo-1 Azabache-1 Opalo-1 Bonga-1 Guarrojo Este-1

* Includes only A3 and A2 wells. Source: Ecopetrol 23 Growing and diversified exploration portfolio

Exploration Area Million hectares Colombia International

21.3 exploration 5.2 Assets

16.1 exploration Assets 9 hectares

2002 2011 Colombia hectares International *Includes: Ecopetrol S.A., Hocol, and Equion

Source: Ecopetrol 24 Exploration assets in Colombia Exploration Area Blocks in Colombia 13.4 million Ha

20% 9% Atlantic Ocean Venezuela

71%

Leverage Sustainability Growth

Early production Pacific Proven basins Ocean Offshore Caribbean Heavy oil

Foothills 53 blocks 53

Geologic frontier Brazil • 41 E&P Contracts Ecuador • 6 Agreements with ANH • 6 Association contracts • 53 exploration assets Peru

Source: Ecopetrol 25 International exploration assets

Ecopetrol America Inc. 0.3 mm Has Miocene Paleogene Jurassic Exploration Area GOM

9.6 mm Has

GoM Miocene

Brazil post-salt pre-salt

Peru marañón Ecopetrol Peru 4.8 mm Has Para Maranhao Peru offshore Marañón Marañón Ecopetrol Brasil Sustainability Ucayali Sechura Ucayali 0.1 mm Has Salaverry Huallaga Campos Lima Santos Espiritu Santo Para-Maranhao Campos Savia Peru Santos 4.3 mm Has*

* Ecopetrol’s interest of 50% of the 8,664,213 Has of Savia Peru Source: Ecopetrol 26 Unconventional resource potential in Colombia

120 - 1200 TCF (Karson, 1994) Methane hydrates MH - CARIBE 32 TCF CBM(Arthur - GUAJIRA D little, 2010) Gas in Situ 434.2 TCF

CBM - CESAR Shales 31.7 TCF (Higher potential in VMM 29 TCF)

SH - CATATUMBO CBM - MONTERIA Coal Bed Methane 7.5 TCF (Higher potential SH - VMM in Cesar 2.4 TCF and Guajira 3.4 TCF) CBM - CORDILLERA

Tight Sands SH- CORDILLERA MH - PACIFICO 1.2 TCF

SH - VSM Tar Sands Potential 23,762 MMBOE

SH - PUT

Source: Arthur D´Little INC 27 Gas shale in : Initial steps for Ecopetrol

Drivers

 Regional geological knowledge

 Land positioning SH - CATATUMBO

 Access to infrastructure and Focus area to start Shale social - environmental Unconv. strategy Mid Magdalena knowledge Valley

SH- CORDILLERA  Access to potential markets for gas and liquids to be produced SH - VSM

 High potential

SH - PUT

Source: Arthur D´Little INC,Ecopetrol 28 Ecopetrol´s performance and 2011-2020 strategic plan: Downstream Sustained growth in revenues driven by exports

Total Sales 857 719 547 650 475 494 Local sales 302 356 216

& gas & 148 oil

327 331 348 363 363 Exports crude

of of 2007 2008 2009 2010 2011 day

per per Exports Crude oil 494 25 55 Products

barrels 356 7 302 20 37 Natural gas 216 49 148 16 414 51 312 53 233 149 Thousand 95

2007 2008 2009 2010 2011

30 Crude references and export destinations

Europe

Canada

U.S. West Coast U.S. Gulf Coast Destinations Caribbean and other Far East

Africa South America

2% 2011 58% 16% 24% Crude 3% References 2010 85% 12%

WTI Maya Brent Otros

31 Ecopetrol´s performance and 2011-2020 strategic plan: Refining Strong commitment to air quality

Diesel Sulfur content (parts per million)

Colombia 4,500 3,000 Medellín 2,500 1,200 Bogota and Public 500 500 500 Transportation 50 50 Systems 20012007 2008 2009 2010 2012

Gasoline 1,000 727 700 231

2008 2009 2010 2011

Source: Ecopetrol 33 Main refining projects Cartagena Reficar Estimated Investment Billion +/- 10% Capacity of 165MBD Modernization Barrancabermeja Estimated Billion +/- 11% Investment Capacity of 250MBD

34 Cartagena - expansion and upgrading

Lower cost of crude Premium quality products

Conversion <75% >95%

7% 16% 36% 45% 23% 36% 93% 51% 61%

28% 4%

2010 2013 2010 2013 Heavy Medium Light Fuel & Coke Med. distill. Gasolines & LPG's 3 5

35 Barrancabermeja modernization

Lower cost of crude Value added products

Conversion <75% >95% 1% 1% 7% 8% 10% 24% 21% 34% 41%

55% 41% 69% 46%

21% 18% 4%

2010 2016 2010 2016 Fuel &Coke Medium dist. Heavy Medium Light Gasolines LPG´s Petrochem.

36 Projected margin improvement from investment projects

Process heavier crudes Optimize Process heavier crudes and produce higher operating costs and produce more quality fuels value added products

Barranca Utilities Project modernization project

Reficar Project

2012 2013 2014 2015 2016 2020

Reficar Ebitda Barranca Ebitda

37 Ecopetrol´s performance and 2011-2020 strategic plan: Biofuels

38 Growth through current and new projects

Biodiesel Production of Biofuels (thousand tons per year ) • Max. Capacity : 100,000 tons/yr (2,000 bls/day) • Production Jan-Sep 2011: 2,140 MBOED 450 • Blending of 2% biodiesel at Barranca refinery 380 • Ecopetrol´s interest: 50% 280 180 100 Ethanol 2011 2013 2016 2018 2020

• Total Capex US$282 millions Ecodiesel Bioenergy Ecodiesel 2 Etanol Bioenergy 2 • Start of operations: 2012 • Max. Capacity: 480,000 liters/day Subject to further approvals • Future blending of 10% through wholesalers • Ecopetrol ´s interest : 88%

39 Ecopetrol´s performance and 2011-2020 strategic plan: Transportation and Logistics

40 Capacity increase Transported volumes (mbod) 1,205 1,036 289 800 710 752 265 70% 223 194 209 2007-2011 916 771 517 542 576

2007 2008 2009 2010 2011 Crude oil Products Crude transportation capacity (mbod) 1.105 991 872 887 910 27% 2007-2011

2007 2008 2009 2010 2011

41 Open business model for developing infrastructure

Cartagena Transported crude volume daily average: Coveñas • 2010: 771 MBOD Retiro Orú Tibú • 2011: 916 MBOD Ayacucho

Caucasia Río Zulia

Payoa Toledo B/Bermeja Banadia Caño Limón Samoré ECOPETROL 100% Sebastopol Vasconia Santa Rosa Velásquez Santa Sofía El Morro ECOPETROL + PARTNERS Dorada Miraflores Araguaney Guaduas Cusiana THIRD PARTIES Tocancipá Porvenir Monterrey Santiago Gualanday PIPELINES FOR Toldado Guandó NAFTA Chicoral Apiay Chichimene Rubiales Purificación Saldaña Castilla

Tenay

YaguaraTello Ecopetrol Ecopetrol Third Total System Tumaco 100% and partners parties Country Alisales Crude Pipelines (Kms) 2,886 2,203 386 5,475 Guamues Mansoya Churuyaco Orito Stations 24 - 15 39 San Miguel 42 Transportation projects 2011-2013 Projects 2011-2013 (Capex USD 3.8 bn):

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

2. Pozos Colorados – Galán (+ 60 MBOD) Jun. 12 Pozos Colorados Cartagena 3. Caño Limón – Coveñas optimization to 220 MBOD (+60MBOD) Jun. 12 2 Coveñas 4. Orito – Tumaco (+ 40 MBOD) Apr. 12 11 6 5. OBC Phase 1: Pipeline Casanare – Coveñas (+ 120 MBOD) Jun. 12

8 3 Caño Banadia Limón 6. Magdalena Medio (+25MBOD) Jul. 12 Vasconi 10 5 a Araguaney 7. Diluent Pipeline 90 MBOD (+ 37 MBOD) Jul. 12 7 9 Santiago Rubiales 8. ODC Vasconia – Coveñas (+ 35 MBOD) Dic. 11 1 ODC Vasconia – Coveñas (+ 30 MBOD) Nov. 12

9. San Fernando – Monterrey – Cusiana (+ 390 MBOD) May. 14 4 Orito 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 Secondary Lines Multipurpose lines Storage 310 MBOD 570 MBOD 37 MBOD 1,800 MB

43 Pipeline capacity increase 2010-2016

Increase in capacity of pipeline systems (mbod)

1.747 1.765 1.765 1.765 1.765 1.765

1.446 1.288 1.168

2012 2013 2014 2015 2016 2017 2018 2019 2020

2011 2013 2015 – 2020 • Ocensa (Seg. III): from 340 to 400 mbod • ODC: from 180 to 240 mbod • Pipeline to Pacific Ocean: Key • Bicentenario: phase 1: 140, Phase 2: 240, Phase 3: 450 mbod 0 to 450 mbod Projects • Magdalena Medio: from 52 to 100 and then to 140 mbod • Caño Limón: from 110 to 220 mbod •OTA: From 45 to 85 mbod

Source: Ecopetrol 44 Ecopetrol´s solid financial results lever future growth

45 Financial 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 8.6 3.5 4.5 6.4 4.8 2006 2007 2008 2009 2010 2011

Ebitda Ebitda Margin

Source Ecopetrol S.A., 46 Does not include subsidiaries ROCE 2008-2011 is above the 17% hurdle rate

ROCE 2009 - 2011

42,1%

36,2% 32,9% 33,7%

2009 2010 2011 2009-2011

ROCE= After tax operational income / Average Capex

47 Capex plan of US$80 billion between 2012-2020 Uses Sources 1% 2%

5% 9% 7% 16%

25% USD 80 USD 80 bn 60% bn

75%

Production Exploration Cash generation Refining Transportation Debt Other Biofuels Equity offering

Source Ecopetrol 48 Capex plan of USD8.5 billion for 2012

Breakdown of Capex 2012 Capex per segment 2012

• 42 exploratory wells 4% • 37 in Colombia Exploration • 5 International

24% • Average Production • Corporate group: 800 mboed Production • Ecopetrol: 750 mboed USD 8.5 48% • Focus in the bn

7% • Modernization of B/bermeja and Refinning Cartagena facilities

17% • Increase crude transportation Transport capacity by 600 mbod

Production Exploration • Research and development + Other Refining Transportation organizational consolidation Other

Source Ecopetrol 49 Diversified shareholder base Primary Equity Offerings of Ecopetrol Ecopetrol´s ownership (as of December 31-2011*) USD 2.8 bn Other Foreign ADRs Instit. 20.0% 10.1% 1.4% Instit. inv. in ord. 1.4% Inv.** shares (Colombia) 0.4% 4.1% US$1.3 Retail inv. bn* 4.2%

1.6%* 8.3%

507 thousand stockholders

Rep. Of Total Authorized Round 1 (2007) Round 2 (2011) Round 3 Colombia, Law 1118 (TBD) 88.5% Proceeds (USD bn)

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

Source Ecopetrol 50 Increased trading and liquidity of ADRs

Total daily traded volume (USD million) 29.3 Ordinary Trading 25.1 21.8 Shares 15,0 ADRs 24,2 12.7 15,5 11,6 14,3 0,9 1,1 6,3 2008 2009 2010 2011 % of ADRs in Ecopetrol´s ownership 1,4% ADRs % 0,6%

0,1% 0,2%

2008 2009 2010 2011 Number of institutional investors in ADRs Institutional 161 92 Investors in 58 ADR 14

2008 2009 2010 2011 Source: JP Morgan, Bloomberg 51 Dividend payout ratio of ~ 70%

Dividend per share (COP) and payout ratio

Extraordinary dividend

$ 37 Ordinary dividend $ 105 $ 263 Payout ratio $ 145 $ 115 $ 115 $ 91 Dividend yield 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 52 Investor Relations

• Phone + 571 234 5190

• Email [email protected]

• Website www.ecopetrol.com.co

53 Sep

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.

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