The new subsidiary has already reached trade volumes of close to 8 million barrels of crude oil per month and secured sales exceeding forecasts by 55 per cent.
The Ecopetrol Group, Colombia’s largest company and one of the leading energy groups in Latin America, officially launched their office in Singapore during APPEC 2022, the premier oil and gas industry meeting in the Asia-Pacific region.
In four months since operations began, the subsidiary has secured sales that surpass initially forecasted plans by 55 per cent. This has been possible thanks to a specialised regional on-site team that has allowed the Company to seize opportunities in real-time, develop close relationships with current and potential clients, as well as gain a better understanding of the local environment.
“We are pleased to continue moving forward with Ecopetrol Group’s international operations plan through the opening of this new office in Singapore. Asia is our main export destination, and a physical presence here allows us to develop closer relationships with our customers and capture more and better opportunities,” announced Felipe Bayón, CEO of the Ecopetrol Group, during the first customer relations event organised by the company in Asia.
Asia, Ecopetrol’s Main Market
Currently, 60 per cent of Ecopetrol Group’s crude oil sales are exported to Asia.
Ecopetrol Trading Asia markets a volume of approximately 6 to 8 million barrels of crude oil per month, mostly of the crude blends Ecopetrol Castilla Blend®, Ecopetrol Mares Blend® and Ecopetrol Apiay Blend® from the Llanos and Mid-Magdalena production fields, which have garnered an exceptional positioning in international markets.
Sales to this continent have doubled over the last five years. During the first semester of 2022, 153,000 barrels per day were exported mainly to China, India, and Brunei. Key challenges that the Singapore office face are their entry into new markets in the region and the ambition to increase sales volumes to new alliances, such as Japan and South Korea.
Ecopetrol also plans to venture into marketing third-party barrels and crude oil from sources other than Colombia, for example, from operations in the Brazilian offshore and the Permian Basin in the United States.
Another goal set for the Singapore office is to contribute to the decarbonisation of the Ecopetrol Group’s commercial activity through the sale of carbon offset crude oil cargoes. This is consistent with the Group’s energy transition goals and eight commitments to achieve net zero emissions by 2050 (scopes 1 and 2). To date, the Group has sold two cargoes of carbon offset crude oil out of the four planned for 2022.
Ecopetrol Trading Asia has also closed several contracts with well-known companies in India and China, owing to an extensive networking agenda seeking new business opportunities with state organisations and various clients in core Asian markets.