Ecopetrol's fully-owned subsidiary, Hocol Petroleum, has formed a new company called Ecopetrol Costa Afuera Colombia, which will now be responsible for offshore exploration and production activities off Colombia.
These activities are currently being carried out by Ecopetrol as operator and non-operator. The move was approved by Hocol's board.
Ecopetrol Costa Afuera Colombia will benefit from the tax, tariff and other benefits of Decree 2682 of 2014, as recently modified by Decree 2129 of 2015, which establishes the conditions and requirements for forming Permanent Offshore Free Trade Zones in Colombia.
Ecopetrol Costa Afuera Colombia is an indirect subsidiary of Ecopetrol with an authorized capital of US$595,000 (COP$2 billion) and subscribed capital of $119,000 (COP $400 million).