00

Colombian National Oil Company

“Energy for the Future”

Ecopetrol S.A.

Investors PresentationJanuary 2009

1

Disclaimer

This document was prepared by Ecopetrol S.A. with the purpose of providing the market and interested parties certain

financial and other information of the Company

This document may include strategy discussions and forward-looking statements regarding the probable development of

Ecopetrol’s Business. Projections and statements include references to estimates or expectations of the Company

regarding its future and operational results. Potential investors and the market in general should be aware that the

information provided herein does not constitute any guarantee of its performance, risks or uncertainties that may occur or

materialize. Real results may fluctuate and differ from those provided herein due to several factors outside of the control

of the Company. Neither Ecopetrol nor its advisors, officers, employees, directors or agents, make any representation nor

shall assume any responsibility in the event actual performance of the company differs from what is provided herein.

Moreover, Ecopetrol, its advisors, officers, employees, directors or agents shall not have any obligation whatsoever to

update, correct, amend or adjust this presentation based on information attained or events occurred after its disclosure

This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in

conjunction with, the oral briefing provided by Ecopetrol. Neither this presentation nor any of its contents may be used

for any other purpose without the prior written consent of Ecopetrol

Amounts stated in US Dollars for 2007 and previous years have been translated at the rate of COP$2,014.76 per US$ 1.00,

which was the official exchange rate (”Tasa Representativa de Mercado”) as of December 31, 2007, the last business day of

the year, and at a rate of COP$2,359.52 per US$ 1.00, which was the official exchange rate (”Tasa Representativa de

Mercado”) as of October 31, 2008, as reported and certified by the Superintendence of Finance of Colombia. All figures

stated in Colombian GAAP, unless noted.

2

Competitive Landscape

• Ecopetrol is one of the top four oil and gas companies in Latin America. Since 2003, the Company has undergone significant change, transforming itself into an important player that is competitive with the world’s most important oil companies, both domestically and internationally.

• Ecopetrol’s operations are primarily in Colombia, a country that offers favorable investment climate and a competitive regulatory framework that is attractive to the oil industry.

Current Operations

• In Colombia, Ecopetrol is the market leader in each of the company’s business areas. The upstream segment shows the most dynamic growth, specifically exploration intended to increase oil and natural gas reserves. In the area of production, the focus is on developing mature fields with an emphasis on heavy crude oil. The Company continues to meet the highest standards of operational efficiency and to comply with environmental and safety norms.

Growth Plan Strategy

• In keeping with Ecopetrol’s mission to transform itself into a global company, management has set ambitious growth objectives to be achieved as of 2015. In order to meet these goals, the Company’s strategic plan contemplates investment of US$60 billion between 2008 and 2015. In 2009, capital expenditure is expected to climb to US$6.2 billion, a 35% increase as compared to the total investment in 2008, almost 10 times the amount invested in 2003. 60% of 2009 Capex spending will be in the areas of exploration and production.

1

2

3

Highlights – Ecopetrol S.A. (1/2)

3

Financial Performance

- Ecopetrol’s revenues have consistently increased during the last five years due to increased production and higher market prices. Thanks to cost control measures, profitability has risen. Currently, the Company’s balance sheet has no financial debt. As of December 31st, 2008, pension liabilities and related assets (portfolio investments) totaling US$4.4bn were spun off from the balance sheet and transferred to 6 trusts that will manage 100% of the funds from now on.

Corporate Governance and Executive Management

- Under the laws of Colombia, capital control of Ecopetrol is considered “mixed”; the Nation of Colombia is the principal shareholder with an ownership stake of 89.9%, while private investors, both domestic and international, hold the remaining 10.1% of shares. The Company’s corporate governance policies comply with the highest international standards, guaranteeing independent management and representation of all shareholders.

- Ecopetrol relies on an seasoned team of executives that is well recognized for its industry experience and record of accomplishment.

Highlights – Ecopetrol S.A. (2/2)

4

5

4

Financial performance

Growth Strategy

Agenda

Corporate Governance and Senior Management

Context

Company Overview

5

Real GDP (% change) and credit rating

Foreign direct investment (USD$bn)

The Colombian economy has experienced strong growth,

increasing foreign investment, and greater investor confidence

35%11% 28%

38%

17%18%

BB+

BBB-

BB-

BB

BBB-

BB+

BB

BB+

Credit ratingInvestment grade

Consumer Price Index (%)

Devaluation (% COP/USD)

Source: Central Bank, DANE, S&P

6

In 2003, Ecopetrol began to transform itself into a

global energy player

From a local oil & gas company…

2003 200620052004 2007 2008

1905: De mares and Barco concession

1951: Ecopetrol’s incorporation

1960: First crude oil discovered in

Colombia by Ecopetrol (Llanito field)

1961: Ecopetrol assumes

Barrancabermeja refinery operation

1970: Beginning Joint Venture

contracts

1983: Caño Limon field discovery

1985: Instituto Colombiano de

Petroleo (“ICP”) was founded

1989: Cusiana field discovery

1992: Cupiagua field discovery

Internal transformation

2003 Decree

1760/03:

New Ecopetrol

ANH creation

Hydrocarbon

sector new

regulation

2004: ANH new

contractual

framework

Implement

Corporate

Governance

standards

2006 Law

1118/06:

Authorization

for public listing

Ecopetrol Brazil

2007: US$2.8bn

Initial Public

Offering (10.1%)

New corporate

image

March 2008: Propilco

acquisition

Acquisition of a

minority stake in K2

in the Gulf of Mexico

Ecopetrol Peru

ADR listing

Internationalization

Key milestones

1951

…. To a global energy player

Source: Ecopetrol

7

Financial performance

Growth Strategy

Agenda

Corporate Governance and Senior Management

Context

Company Overview

8

• Exploration

Reserves (gross)

• Production (gross)

• Transport

Crude oil

and

Products Pipelines

• Sales and

trading

Ecopetrol has a leading market share in most segments

of the oil and gas chain in Colombia

Portfolio highlights

P1: 1,499 MMBOE

• Oil: 70.1%

• Gas: 29.9%Dec 07

Market Share

62%

Total: 446 MBOED

• Oil: 358 MBOED

• Gas: 85 MBOED

Oil: 57%

Gas: 56%

Refining

Total: 330 MBOD

• Barranca: 250 MBOD

• Cartagena* 80 MBOD

Petrochemicals

•Propílco 405 M Tons/yr

88%

Total: 8,407Km 79%

Sales: 542 MBOED

• Local: 331 MBOED

• Exports: 211 MBOED

Local: 89%

Export: 48%

Ecopetrol has a 49% interest in the refinery

Source: Ecopetrol

Jan – Oct 08

Oct 08

Jan – Oct 08

Jan – Oct 08

Business Area Current levels

• Refining and

Petrochemicals

Propilco 95%

9

Ecopetrol’s exploratory activity (No. of wells and Km of seismic)

Ecopetrol s exploratory activity also increased as of 2003

Ecopetrol’s exploratory success

3 16 3 4 5

3

1

8

43.470 6.767

2.668

4.584

3.081 3.517

2003 2004 2005 2006 2007 Up to Oct.-2008

Ecopetrol Direct Ecopetrol Joint Venture Ecopetrol and partners seismic (Equivalent km)

912

4

Developed and Undeveloped gross reserves as of December 2007

Crude Oil Natural Gas

Proved developed

Proved undeveloped

Proved developed

Proved undeveloped

Source: Ecopetrol

9

10

Local Exploration Projects International Exploration Projects

Ecopetrol is diversifying its portfolio with new

opportunities abroad, balancing its exposure to risk

Caribbean Round

Peru

Brasil

Ecuador

FoothillsVenezuela

Platanillo

Gibraltar

Offshore

Fuerte

Caribbean Round

Tayrona

Cóndor

Tierra Negra

Caño Sur

Zeus

PERU

3 Blocks

6 TEA

BRASIL

7 Blocks

GULF OF

MEXICO

K2

7 Blocks and 9

new prospects

TEA s Heavy Oil Round

Source: Ecopetrol

11

Gross production evolution (MBOED)

CAGR 2003-08: 4.0%

Ecopetrol’s production increased during the last

five years and significantly in 2008

46 46 60 69 81 106

246 260 251 247 246 253

75 61 65 69 7286

367 367 376 385 399446

645 638 641 649 661738

2003 2004 2005 2006 2007 Up to Oct. 08

EC Heavy crude oilEC Light and medium crude oilEC Natural gas

Total production in Colombia

1. Development of heavy oil fields (25)

2. Brown fields

3. Gas exports to Venezuela: 90.2 MMCFD

4. New gas plants (Cupiagua & Cusiana ): add 70

MMCFD in 2010 y 140 MMCFD in 2011 to current

capacity of 200 MMCFD

5. Direct operation in 107 fields and Joint Venture in

168 fields

Catatumbo

Orinoquía75 mboed (17%)

Tibú-Garcero-

Petrolea-Cravo Norte

Middle Magdalena70 mboed (16%)

Casabe-La Cira-

Yarigui

South60 mboed (13%)

Boquerón-

Palermo-

Occidente-Orito

Central120 mboed (27%)

Castilla-Rubiales-

ChichimeneMature

fields

Heavy

crude

Gas

GasK2: 0.3 mboed (0.1%)

Northeast121 mboed (27%)

Guajira-Cusiana-

Cupiagua

Production highlights

Production regional breakdown

Mature

fields

Mature

fields

Mature

fields

Source: Ecopetrol

12

Ecopetrol’s growth strategy is mainly focused on

the upstream business

Organic and acquisition growth

• Further development of existing asset base

• Enhance recovery factor in brown fields (La Cira-

Infantas and Cantagallo)

• Heavy crude projects (Castilla, San Fernando, Rubiales

and Nare)

• Acquisition of new areas for exploration

• Local and international

• Mainly off-shore and frontier areas

• Acquisition of producing assets

Brown field gross production (MBOED) Heavy crude gross production (MBOED)

Upstream Capex (USD million)

Source: Ecopetrol

CAGR 2003-08: 24% CAGR 2003-08: 16%

13

Refinery runs and utilization (MBOD and utilization%)

Product breakdown – September 2008Refining margin (USD per barrel)

Ecopetrol continues to improve its refining

performance while meeting the local demand for

oil products

223

(89%)

227

(91%)224

(90%)

232

(93%)

230

(92%)232

(100.7%)

77(96%) 78(98%) 72(91%) 80(100%) 80(100%) 77(97%)

34%

33%

21%

8%

1%4%

Barrancabermeja refinery Cartagena refinery

33%

35%

25%

7%

Gasoline Med. Dest. Fuel oil LPG and butane

Petroch. Other products

Source: Ecopetrol

14

Ecopetrol’s natural gas business offers attractive

opportunities due to market dynamics

Natural Gas gross production (MMCFD)

Sales of Natural Gas (MMCFD) Selected natural gas projects

CAGR 2007-08: 18.7%

• Sales contract subscription of natural gas for

Gibraltar field, 30 Mcfd

• Expansion of Cusiana plant in 70 Mcfd. Additional 140

MCFD expected in the new Cupiagua plant

• Approximately 273,848 vehicles converted to natural

gas

• Exports to Venezuela (since January 2008). Colombia

exports an average of 136.9 MMCFD (65.8%

corresponds to Ecopetrol)

Source: Ecopetrol

Export sales 90 (15%)

Local sales 498 (85%)

15

Price paid to producer, 62%

Taxes, 22%

Distribution, 11%

Transportation, 5%

Price paid to producer

55%

Taxes31%

Distribution9%

Transportation5%

Price definition for gasoline, diesel and natural gas in

Colombia

Gaso

line a

nd D

iese

l

Regulation Sales to public price – Dec 2008 (Bogota)

Natu

ral G

as

Price definition•Defined by the Ministry of Mines & Energy•Gasoline: Resolution 8-2438 of 1998• Diesel: Resolution 8-2439 of 1998

• Adjusted monthly by the Ministry

Taxes: • National: VAT (“IVA”) y Global•Regional: Surcharge (“Sobretasa”)

Subsidies:•The Ministry transfers subsidies to producerswhen international price parity is greater than thesale price to the public in Colombia• The Ministry anounced in December 2008 thecreation of a fund for the stabilization of gasolineprices that achieves savings when internationalprice parity is lower than sales prices in Colombia.

• Gasoline: USD $3.38/gl*

• Diesel: USD $2.82 /gl*

• Natural Gas: USD 8.4/ mn btu

Price definition•Defined by CREG for the fields of Guajira y Opón (Resolution CREG 119 of 2005)• Adjusted every 6 months per the variation of the New York Harbor Fuel Oil 1% Sulfur• All other fields are permitted free pricing to the public

Taxes: • Transportation• Fuel Quota• “Factor de contribución de solidaridad”* Regular gasoline

Price paid to producer 32%

Taxes 10%

Transportation14%

Distribution 45%

Source: Ecopetrol and Ministry of Mines & Energy

16

Ecopetrol has been able to keep its operational

costs below the industry average …

Lifting costs (USD/BOE)Finding and development costs* (US$/Bl)

* Three years average

Refining costs (US$/Bl) Transportation costs (US$ Cents/Bl-Km)

Source: Ecopetrol

17

Financial performance

Growth Strategy

Agenda

Corporate Governance and Senior Management

Context

Company Overview

18

Current

2008

Goal

2015

Increase

2008-15

• Production MBOED 446 1,000 2.2 X

• Refining capacity MBOD 290 650 2.2 X

• Gas Sales GBTUD 588 1,100 1.9 X

(includes auotconsumption)

• Petrochemical sales M Tons/yr 406 2,700 6.7 X

(includes Propilco)

• Biofuels Sales M Tons/yr - 450 na

“Mega Plan” defines ambitious production targets

for 2015 that call for Capex investment of US$ 60

billion during 2008-2015

Capex investment 2008-15 of USD 60bn“Mega Plan” From … ….To

* Target for 2012

Source: Ecopetrol

• Upstream

• Downstream

• Internal Consolidation

19

2003 2004 2005 2006 2007 Py. 2008 Sol. 2009

Exploration 75 117 86 114 220 531 1.049

Production 397 515 613 822 1.020 1.995 2.715

Refining 212 153 138 210 244 498 814

Transportation 51 37 36 57 108 510 598

Other 26 27 49 52 168 208 178

Acquisitions 0 0 0 0 0 879 870

19

4.621

6.224

9221.255

1.760

36%40%

163%

35%

98%

36%

63%

17%

-14%

09’/08’

-1%

Ecopetrol has increased its yearly Capex investment

by almost 10X since 2003

849762

9%12%

Source: Ecopetrol

Capex in

USD million

CAGR 2003-09: 42%

20

Exploration Capex of USD$ 1.0 bn for 2009,

a 98% increase vs. 2008

24

4

8

3

2

Local International

Explotatory drilling

Initiating exploratory drilling

Drilling delimitation

No

. o

f w

ells

Drilling

USD$732 mn

7

34

Seismic , G&G

USD$ 218 mn

6.274

1.527

Local International

KM

Eq

uiv

.

Local International

67% 33%

732

186

32

Drilling

Seismic

G&G**

* Exploration in Capex in subsidiaries for USD$51 mn not included

** G&G: Geology and Geophysic

Source: Ecopetrol

Exploration *

USD$998 mn

21

Production Capex 2009

Investment (USD$mn) Direct Partnerships

Main fields (60%) 890 567

• Casabe 227 -

• Rubiales - 270

• Castilla 259 -

• Yarigui Cantagallo 219 -

• La Cira Infantas - 185

• Llanito Lisama 67 -

• Apiay 118 -

• Cupiagua - 112

Other fields (40%) 637 621

Total 1.527 1.188

23%

32%9%

32%

4% In progress

Plants and

facilities

Seismic

33%

51%

14%

2%

Gas

Heavy

crude

Mature

fields

Workovers

Drilling

Developing

fields

Acti

vit

yProduction Capex of USD 2.7bn for 2009 represents a

36% increase vs. 2008

Str

ate

gic

busi

ness

Source: Ecopetrol

Capex breakdown per field

22

Northeast US$ 391mnGuajira-Cusiana-Cupiagua

Catatumbo Orinoquía

US$ 110mnTibú-Garcero-Petrolea-Cravo Norte

Middle Magdalena

US$ 909mnCasabe/La Cira/Yarigui

South US$ 247mnBoquerón/Palermo/Occidente/Orito

Central US$ 841mnCastilla-Rubiales-Chichimene

Mature

Fields

Mature

Fields

Mature

Fields

Heavy

Gas

Gas

Mature

Fields

Production Capex in Colombia for 2009

23

Financial performance

Growth Strategy

Agenda

Corporate Governance and Senior Management

Context

Company Overview

24

Revenues by market (local and exports) (USD billion)

CAGR 2003-08: 17.0%

36%

64%

Source: Ecopetrol

1,7 1,62,8 4,8

0,7 0,50,64,0 4,3 4,8 5,6 6,4 5,0 7,0

2003 2004 2005 2006 2007 Up to Oct.07 Up to Oct.08

Fixed costs Operating Expenses

Costs and expenses (USD billion)

Consistent revenue growth together with improving

operating margins and cash generation …

EBITDA (USD billion)

2,2 2,8 3,4 4,1 5,2 4,5

6,1

39%44% 44% 45%

46% 52% 49%

2003 2004 2005 2006 2007 Up to Oct.07 Up to Oct.08

EBITDA Ebitda Margin

CAGR 2003-08: 12%

28%

72%

CAGR 2003-08: 25%

25

… with higher levels of profitability, and an

attractive dividend policy

Dividends declared per share (USD cents)

Source: Ecopetrol

Net income (USD billion)

Note: In 2006 USD$ 706 million retained earnings were distributed

0.8 1.0 1.6 1.72.6 2.2

4.5

2003 2004 2005 2006 2007 Up to Oct. 07 Up to Oct. 08

CAGR: 150%CAGR 2003-07: 34.4%

Dividends declared per share Payout ratio

26

Balance sheet (USD billion)

Source: Ecopetrol

Ecopetrol has a strong balance sheet with no

financial debt, and sufficient capacity to fund

growth through optimization of its capital structure

Liabilities through Oct.08 (USD billion) Assets through Oct. 08 (USD billion)

2003 2004 2005 2006 2007 Oct. 07 Oct. 08

13,0

13,9

16,2 20,9

23,9

21,5 26,0

4,6 5,0 6,6 10,3

13,3

10,5

14,38,4 8,9 9,6 1

0,6 10,6

10,9 11,7 Assets

Liabilities

Equity

2,4

2,5

2,6

2,6

3,5

4,1

4,2

22.1

2,4

2,5

2,6

2,8

3,5

3,9

4,1

4,2Investments

Cash, Equivalents and short term inv.Pension plan assets

Other assets

Valuations

PP&E

Natural and Environmental propertiesReceivables

26.0

0,9

1,9

2,1

2,3

0,9

1,9

2.1

2,3

4,4

Pension Liabilities

Estimated Liabilities and Provisions

11.7

7.2

After pension

liabilities transferOn Dec 29/08, Ecopetrol was authorized to transfer pension

liabilities of COP 9.84 bn (USD 4.4 bn) to a separate trust

After pension

liabilities transfer

CAGR 2003-08: 14.9%

27

Financial performance

Growth Strategy

Agenda

Corporate Governance and Senior Management

Context

Company Overview

28

Ecopetrol has high-standards of corporate governance

practices driven by an independent Board of Directors

Unilateral Statement of the principal shareholder (The

Nation – 89.9%)

Corporate Governance Code

In compliance with IFC, OCDE

and local standards

Board of directors best

practices

6 of 9 independent members

3 Board committees:

- Audit

- Nominating and

Compensation

- Corporate Governance

All members of the Audit

committee must be

independent and at least

one member of the other

two committees is

independent

Material information

disclosure policy in

accordance with Colombian

and SEC standards

Clear policy for the

negotiation of shares by

Ecopetrol’s employees

Clear dividend policy: minimum 70% of the certified

company s profits after subtracted: (i) the clearing of

losses from previous periods, which have an effect over

the Company's capital, that is, when on account of said

losses, the net equity is reduced below the amount of

the outstanding capital (if any), (ii) the legal and

statutory reserves (if any), (iii) the appropriations for

the payment of the income tax;

Selection of candidates to become members of the

Company’s Board of Directors

Matters regarding the General Stockholders Assembly

Withdrawal right in favor of minority shareholders

The Statement will be valid until 2017

Board of directors

Name Position

Minister of Mines and Energy (Hernan

Martínez) Director

Minister of Finance (Oscar I. Zuluaga) Director

Director of the National Planning Agency (Carolina Rentería)

Director

Fabio Echeverri Independent Director

Joaquin Moreno Independent Director Ignacio Sanin Independent Director Maria E. Velasquez Independent Director Omar A. Baquero Independent Director Mauricio Cárdenas Independent Director

Source: Ecopetrol

Ownership structure – Oct 08

Colombian

Government

89.9%

Local retail

5.4%

Local

Institutional

3.8%

Local

Companies 0.8%

Foreign

Institutional

0.1%

ADR Program

< 0.1%

29

An experienced senior management team, with an

average of 13 years of industry service, leads

Ecopetrol’s 6,500+ employees

Source: Ecopetrol

Javier G. Gutierrez P.

President-CEO

2 years

Adriana Echeverri

Chief Financial Officer

14 years

Mauricio Echeverri

General Counsel

9 years

Alvaro Vargas

Vice-President of Strategy

13 years

Nelson Navarrete

E&P Executive Vice-President

22 years

Pedro A. Rosales

Downstream Executive Vice president

19 years

Oscar Villadiego

Vice-President of Services and Technology

22 years

Core business unit

Corporate

30

Presentation will be available at

www.ecopetrol.com.co/investors

31

ADDENDA

32

Source: Ecopetrol.

*Volumes correspond to Proved reserves reported by Ecopetrol and partners

International players in Colombia Colombia’s total exploration activity

Colombia’s gross reserves evolution (MMBOE)* Colombia’s gross production evolution (MBOED)

Source: ANH

Source: ANH.

Strong E&P metrics continue attracting key

international players; Ecopetrol the preferred partner

Dry Seismic KilometersProducer Testing

70

2821

35

76

56

33

Colombia has a transparent and stable regulatory and

institutional framework for the oil and gas sector

Source: ANH, Ministerio de Minas y Energia and Agencia Nacional de Hidrocarburos

Institutional Structure Regulatory and legal framework

Policies

Administration &

regulation

Favorable and stable contractual system

• All companies compete under the same

terms and conditions

Modern and profitable E&P contracts

• Contractor assumes all risks and costs

and is the sole owner of all production

Competitive royalty structure

• Royalties are set and collected by ANH

and range from 6% to 25% of production

Beneficial tax incentives

• Statutory income tax rate of 33%

• Effective tax rate for Ecopetrol of 27.81%

in the first ten months of 2008.

Windfall Profit

• Economic right for ANH when prices

exceed set levels (prices related to API

grade, average of 30 USD/Bl )

Exploration and Production

Supervision & Control

34

Some of our Partners:

Upstream

BP

BHPBILLITON

CEPSA

CHEVRON

EXXONMOBIL

HESS GROUP

HOCOL- MAUREL ET PROM

LUKOIL

MANSAROVAR

NEXEN

ONGC

OXY

PETROBRAS

PERENCO

REPSOL-YPF

SHELL

TALISMAN ENERGY

TOTALFINAELF

TURKISH PETROLEUM

• 27 partners in exploration

• 51 partners in production

• 6 associations in transportation

and 1 in refining

First class partners are part of our

strategy

Downstream

GLENCORE

OCENSA

OLEODUCTO DE

COLOMBIA

DownstreamUpstream

35

Vision

Mission

MEGA

A solid foundation supports our strategy to

capture growth opportunities – Mega Plan

Achieve international

standards of performance

and efficiency

Enforce innovation,

technology development and

ensure knowledge transfer

Enhance Corporate Social

Responsibility

Strategy map

An Organization to

support growth

Execute an excellence model in

entrepreneurial management

quality

Mainly focused on the upstream

business

Organic and acquisition

growth strategy

Strengthening position

locally, while

diversifying abroad

Selectively capture

downstream opportunities

Clean fuels and biodiesel

development

Reliable transportation and

logistics

Rely on world-class

human talent

DownstreamUpstream

36

As a result of important regulatory changes, Colombia

entered a new exploratory cycle in 2003

High Impact Discoveries

GUANDO

GIBRALTAR

APIAY

CAÑO LIMON

CUSIANA

CUPIAGUA

SAN FRANCISCO

Equiv

ale

nt

seis

mic

kilom

ete

rs

No. o

f explo

rato

ry w

ells

Source: Ecopetrol, ANH

Key regulatory changes 2000-04

• 2000: variable royalty scheme

• 2003: creation of ANH

• 2004: new rules for contracting

2003: Beggining

of a new

exploratory

cycle

37

AccidentsEnvironmental incidents

CAGR 2005-08 (-26%)

CAGR 2005-08: (-32%)

Stolen products (BPD) Attacks to the transport infrastructure

CAGR 2003-08: (-43%) CAGR 2003-08: (-30%)

… while improving its environmental, safety and

security performance

Source: Ecopetrol

38

Sliding Scale Royalties

Hydrocarbon production for field (kbpd) % of royalties

Prod. <= 5 8%

5 < Prod. <= 125 8 + (Prod. kbpd - 5 kbpd)* (0.10)

125 < Prod. <= 400 20%

400 < Prod. <= 600 20 + (Prod. kbpd - 400 kbpd)* (0.025)

Prod. > 600 25%

Discount relative to light crude rates

1. Onshore, and offshore natural gas fields depth less than or equal to 1000 feet, 20%

2. Offshore natural gas field s depth greater than 1000 feet, 40%3. Heavy crude : 25%

* 5,700 cubic feet of natural gas is equivalent to 1 barrel of oil

Applicable where gross cumulative oil production has exceeded 5 million barrels, and price is in excess of Po, andaccording to API grades.For natural gas: after 5 years from start of production, and where gas is for export, and where Henry Hub benchmarkexceeds base price (Po)

Windfall profit clause

39

QVcPaymentM Pr:QVcAmount

QVcPaymentM

:

Pr:

%30P

PoPQ S

P

PoPQ

M

(economic

rights of

ANH)

Q (%)

Pr: Price at delivery point (US$/BL) Vc: Volume of contractor (kbpd) Q: Take of ANH (%)

P: WTI or Henry Hub (for natural gas exported)

Po: Reference Price

Po °API Po - 2008 US$/BL

10 15 44.77

15 22 31.35

22 29 30.22

> 29 29.10

Offshore >300 meters

35.82

°API Po - 2009 US$/BL

10 15 46.50

15 22 32.56

22 29 31.39

> 29 30.22

Offshore >300 meters

37.20

Contracts 2003-2008 New Contracts

S30%

WTI Price (P) S

Po <=P< 2Po 30%

2Po <=P< 3Po 35%

3Po <=P< 4Po 40%

4Po <=P< 5Po 45%5Po <=P 50%S: % taken by ANH when prices (P) exceed reference price (Po)

Windfall profit clause

Straight-line distance between delivery point and point of receipt in destination country (kms)

Po US$/MMBtu

2009

>0 and <= 500 6.98

>500 and < =1000 8.13

>1000 or LNG plant 9.30