* Ecopetrol to start pilot project for unconventionalreserves
* Output to remain flat or rise in 2018(Adds details on auctions, domestic market)
By Marianna Parraga
Low crude oil prices had forced Ecopetrol and other oilcompanies in
Last year "was a very good year for us. Analysts wereexpecting a lower profit," Bayon said on the sidelines of theCERAWeek energy conference in
The company expects its oil and gas production to remainflat or to rise slightly this year to 725,000 barrels of oilequivalent per day (boepd), under an investment budget of
Part of that spending will go to projects aimed atreplenishing the firm's energy reserves, including a pilotprogram to explore unconventional resources at the MagdalenaMedio basin, where Ecopetrol estimates there could be up to 7.4billion barrels, more than triple
Another part of the investment plan could go to biddingrounds in the
REFINING MORE, CONSUMING MORE
One of Ecopetrol's main refineries - the recently expanded
The cost of
Ecopetrol is also reducing the volume of imported naphtha itneeds to dilute its heavy crude output by making changes at itstransportation system, according to Bayon.
Using alternative transport has allowed it to avoid frequentdeclarations of force majeure on its crude exports when its CanoLimon-Covenas pipeline is attacked by rebels, which has happened17 times this year alone.
Bayon also said that tighter controls by the Colombiangovernment at the Venezuelan border had cut gasoline imports,increasing the domestic need for gasoline and other fuels inabout 20,000 bpd.
Ecopetrol's Barrancabermeja refinery, where workers recentlywent on strike due to a salary dispute, is expected to restartits cracking unit in seven to 10 days after completingmaintenance work, he said.(Reporting by Marianna Parraga; Editing by Rosalba O'Brien andLisa Shumaker)