Legal And Tax IssuesEcopetrol is facing a US$2.2bn tax claim from Colombia’s tax authority, which adds significant uncertainty and risk to the company’s investment thesis.
Operational ChallengesEcopetrol has struggled in recent years to replenish reserves and increase production, relying on high-risk exploratory projects.
Political And Fiscal EnvironmentColombia’s government has been facing rising public spending demands while aiming to reduce the fiscal deficit, contributing to a very complicated fiscal backdrop.