Great expectations

4 June 2012 By Raul Gallegos

Colombia’s Ecopetrol is jockeying to surpass Brazil’s Petrobras as the region’s biggest oil producer by market value. Solid management has lured billions in capital away from rivals in meddling nearby states. But Ecopetrol may struggle to live up to the high hopes for its reign.

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The market value of Colombia’s national oil company Ecopetrol reached almost $127 billion on May 15, exceeding for the first time that of Brazilian peer Petroleo Brasileiro, or Petrobras, at about $124 billion, though they subsequently reversed places. Petrobras’ proven oil reserve base is seven times larger than that of Ecopetrol and its revenue quadruple that of its South American rival. Ecopetrol’s U.S.-listed shares are up 30 percent so far in 2012, while Petrobras’ ADRs have fallen 20 percent.

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