ECOPETROL S.A. (ifrs-full:DisclosureOfJointOperationsExplanatory)

32.	Joint operations

The Group carries out exploration and production operations through Exploration and Production (E&;P) Contracts, Technical Evaluation (TEA) Contracts and Agreements signed with the National Hydrocarbons Agency or ANH, as well as through Partnership Contracts and other types of contracts. The main joint operations in 2017 are as follows:

32.1

Contracts in which Ecopetrol is not the operator

Partners	Contract	Type	% Participation		Geographic area of operations
	Chipirón			30-40%
	Harvest			30%
Occidental Andina LLC	Cravo Norte	Production		50%	Colombia
	Rondón			50%
Chevron Petroleum Group	Guajira	Production		57%	Colombia
Mansarovar Energy Colombia Ltd	Nare	Production		50%	Colombia
Meta Petroleum Corp	Quifa	Production		40%	Colombia
Equion Energy Limited	Piedemonte	Production		50%	Colombia
	Casanare			64%
	Corocora			56%
Perenco Colombia Limited	Estero	Production		89%	Colombia
	Garcero			76%
	Orocúe			63%
ONGC Videsh Limited	RC-10 Caribbean Round	Exploration		50%	North Caribbean Offshore
Petrobras, Repsol &; Statoil	Tayrona	Exploration		30%	North Caribbean Offshore
Repsol &; Statoil	TEA GUA OFF-1	Exploration		50%	North Caribbean Offshore
Anadarko	Fuerte Norte	Exploration		50%	North Caribbean Offshore
Shell	Deep Rydberg/Aleatico	Exploration		29%	Gulf of Mexico
Repsol - Leon	Lion	Exploration		40%	Gulf of Mexico
Noble Energy	Gunflint	Production		32%	Gulf of Mexico
Murphy Oil	Dalmatian	Production		30%	Gulf of Mexico
Anadarko	K2	Production		21%	Gulf of Mexico
Equion Energia Limited	Niscota	Production		20%	Brazil
Chevron	CE-M-715_R11	Exploration		50%	Brazil

32.2

Contracts in which Ecopetrol is the operator

Partners	Contract	Type	% Participation		Geographic area of operations
	VMM29
ExxonMobil Exploration Colombia	CR2	Exploration		50%	Colombia
	C62
Talisman Colombia Oil	CPO9	Exploration		55%	Colombia
ONGC Videsh Limited Colombia Branch	RC9	Exploration		50%	Colombia
CPVEN Sucursal Colombia	VMM32	Exploration		51%	Colombia
Shell Exploration and Production	CR4	Exploration		50%	Colombia
Hocol S.A.	AMA4	Exploration		100%	Colombia
SK Innovation Co Ltd.	San Jacinto	Exploration		70%	Colombia
Repsol Exploración Colombia S.A.	Catleya	Exploration		50%	Colombia
Emerald Energy PLC Suc. Colombia	Cardon	Exploration		50%	Colombia
Gas Ltd.	CPO9 - Akacias	Production		55%	Colombia
Occidental Andina LLC	La Cira Infantas	Production		58%	Colombia
	Teca			86%	Colombia
Ramshorn International Limited	Guariquies I	Production		50%	Colombia
Equion Energy Limited	Cusiana	Production		98%	Colombia
Perenco Oil And Gas	San Jacinto Rio Paez	Production		18%	Colombia
Cepsa Colombia	San Jacinto Rio Paez	Production		18%	Colombia
Total Colombia	Mundo Nuevo	Exploration		15%	Colombia
Talisman Oil &; Gas	Mundo Nuevo	Exploration		15%	Colombia
Lewis	Clarinero	Exploration		50%	Colombia
Maurel &; Prom Suramerica	CPO17	Exploration		50%	Colombia
Equion Energia Limited	Alto Magdalena Pipeline	OAM		45%	Colombia
Emerald Energy	Alto Magdalena Pipeline	OAM		45%	Colombia
Frontera Energy	Alto Magdalena Pipeline	OAM		45%	Colombia
ONGC Videsh Limited	Block RC-9 Contract- Caribbean Round No. 37-2007	Exploration		50%	Gulf of Mexico
JX Nippon	FAZ-M-320_R11	Exploration		70%	Brazil
JX Nippon	POT-M-567_R11	Exploration		100%	Brazil

32.3

Relevant operations during the period

During 2017 and 2016, the following significant events occurred in respect of our joint operations contracts:

a)	Acquisition of interests in joint operations

On December 11, 2017, Ecopetrol América Inc. acquired the 11.6% interest in the K2 oil field in the Gulf of Mexico MCX Exploration USA LLC (“MCX”), increasing its share from 9.2% to 20.8%.

The acquisition of MCX’s interest was recognized in accordance with policy 4.4 Joint Operations. To determine the fair value of the assets acquired and liabilities assumed, the income approach model was used, using the discounted cash flow and market data to determine the fair values of oil and gas properties. This model incorporated future commodity prices, estimated volumes of oil and gas reserves, future developments, operating costs, future abandonment and packing costs and a risk adjusted discount rate.

The fair value of the consideration transferred in the operation was US$47.6 million (COP$141,950), the fair value of the net assets acquired was US$198.4 million before deferred taxes (US$146 million net of deferred taxes) with recognition of a gain of US$150.8 million before deferred taxes (US$98 million after deferred taxes) in the period’s statement of profit or loss (equivalent to COP$451,095 before deferred taxes), mainly due to the transaction price being fixed before the closing date of the transaction and the fair value of the net identifiable assets acquired having increased during the interim period.

Transaction costs incurred in the operation amounted to US $ 0.2 million, recognized in profit or loss for the year.

b)	Termination of the Rubiales and Pirirí field contracts

On July 1, 2016, Ecopetrol took over the direct operation of the Rubiales and Pirirí fields, which up to that date had been operated by Pacific Rubiales Energy. Upon termination of the contract Ecopetrol gained control over the assets and the obligations associated with the BOMT contracts for US$46 million.

c)	Termination of the Tauramena association agreement

On July 3, 2016, the Tauramena Association Agreement was terminated and for this reason, Ecopetrol began to operate directly the Cusiana field, Casanare. Since its commercialization in 1993, it was operated first by BP and then by Equion. Cusiana represents for Ecopetrol a 98% participation in the Unified Exploitation Plan (PEU) of the field, while Equion and Emerald maintain 2%.

ECOPETROL S.A. | CIK:0001444406 |

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