Ecopetrol, Colombia's state-run oil company, said it plans to boost investments on capital projects to $7 billion to $7.5 billion per year in the coming years in an effort to increase Colombia's oil output. The country is the fourth-largest oil producer in Latin America behind Brazil, Mexico and Venezuela.
Those spending projections do not include mergers and acquisitions, the company said. Ecopetrol (EC) plans to spend $6.9 billion this year as it boosts production by 15%. The company pumped 521,000 barrels of crude per day last year and wants to pump about 1 million barrels per day by 2015.
The company is acquiring assets in Brazil and on the U.S. side of the Gulf of Mexico as part of its long-term expansion plans, according to Bloomberg News. Ecopetrol purchased a 30% stake in an offshore Brazil block last week and earlier this week said its crude exports for April reached a record. The U.S. and Asia are primary destinations for Colombian oil.
The company is also in talks to expand its presence in Mexico, though it appears those discussions are in their early stages. Ecopetrol said in February it will borrow as much as $3.5 billion this year to help fund investment, Bloomberg reported.