Ecopetrol, Colombia's oil company, plans to cut costs as the price of crude drops

Ecopetrol, Colombia's state-owned oil company, plans to reduce costs by 232 million pesos (about 1 trillion pesos) and show more flexibility with its investment plan this year. Chief Executive Ricardo Roa announced the news on Wednesday.

Roa spoke with analysts in a conference call as the oil company faces falling oil costs that have eaten into its first quarter profits.

Ecopetrol's 2025 investment plan could reduce its planned expenditure of $5.9 to $6.8 billion, or by about half a million dollars.

Rafael Guzman, vice-president of hydrocarbons at Ecopetrol, said that the planned production cuts will not affect the company.

Finance chief Camilo barco stated that the proposed spending cuts would be around $500 million based on current expectations.

Barco said that, "considering the degree to which prices are still low, we'll be able take more drastic steps to protect production and reserve."

Ecopetrol reported on Tuesday a 22% drop in its net profit for the three-month period of 2025, citing the geopolitical tensions that are affecting global oil prices. This includes the economic slowdown occurring in China, and the United States' wide-ranging tariff threats.

The share price of Ecopetrol rose slightly during the morning trade on Wednesday. The share price has risen by nearly 1.2% in the first half of this year.

(source: Reuters)