BOGOTA, April 27 (Reuters) - Colombia’s state-run oil company Ecopetrol will make cuts to its 2016 investment plan totaling between $1.4 billion and $1.8 billion, the company said in a statement late on Tuesday.
Investments in exploration, production, transport and other areas will fall from the $4.8 billion approved by the board of directors in December last year to between $3 billion and $3.4 billion because of low global prices for crude.
“2016 is a transition year for the company,” Ecopetrol said in a statement. “From 2017 the company will dedicate a larger proportion of its investments toward exploration and production.”
Ecopetrol said it expects to produce an average of 715,000 barrels of crude per day based on the new investment levels. The company will continue to divest from non-oil assets to raise funds, the statement said.
Ecopetrol, Colombia’s largest company, produces some 60 percent of the country’s oil output and also has interests in Brazil, Peru and the United States. (Reporting by Julia Symmes Cobb; Editing by Andrea Ricci)