Ecopetrol Continues the Implementation of Hedge Accounting Policy

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) hereby announces that its Board of Directors, in a session held on June 6, 2016, approved the implementation of “Hedge of a net investment in a foreign operation” accounting as established under the International Accounting Standard IAS 39 (paragraph 102) and Decrees 2420 and 2496 of 2015 regarding International Financial Reporting Standards (IFRS).The decision seeks to reduce the volatility within the non-operational results of the Company due to the effects of fluctuations in foreign exchange rates.

The net investment hedge will apply to a portion of the foreign currency investments that the Company owns and whose functional currency is the U.S. dollar, with the hedging instrument being the portion of our dollar-denominated debt that generated a net liability position by the end of May.

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