Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Sept. 17 -- Pacific Rubiales Energy Corp. announced the start of operations of the Oleoductos de Los Llanos (ODL) pipeline, which connects the Rubiales heavy oil field with the Oleoducto Central (Ocensa) pipeline for onward transmission to the Caribbean export terminal of Covenas.
“With the coming on line of the ODL pipeline and the associated infrastructure field, we enter into a new phase of the development of Rubiales reducing significantly our transport costs and eliminating the road transport restrictions,” said Pacific Rubiales Chief Executive Ronald Pantin.
The initial capacity of the 235-km, 24-in. line is 60,000 b/d, which is expected to increase to 160,000 b/d by first-quarter 2010. According to Pacific Rubiales, the ODL line may eventually transport up to 260,000 b/d with further investment.
The pipeline was built and will be operated by ODL, a special purpose vehicle structured for the project, in which Colombia’s state-owned Ecopetrol holds a 65% stake and Pacific Rubiales holds the remaining 35% interest.
According to Eduardo Lima, Pacific Rubiales' vice-president for the pipeline, this week’s start-up will allow the Canadian firm to produce 100,000 b/d by yearend, rising to as much as 160,000 b/d by yearend 2010—more than twice the current 72,000 b/d.
Lima said the heavy crude produced at the project in Colombia's Meta province will be shipped to Mexico, the Caribbean, and the US.
Rubiales’ proven reserves stood at 341 million bbl of crude at the end of June, while the proven and probable reserves were estimated at 397 million bbl, according to Colombia’s Mines and Energy Minister Hernan Martinez, who said the field will still have 199 million bbl of reserves after 2016.
Martinez was citing reserve figures provided by Pacific Rubiales earlier this month after hiring Petrotech Engineering Ltd. to conduct an independent reserve evaluation of the Colombian field as of the end of June.
“The reserve evaluation update was prepared to take into consideration the drilling of 48 horizontal and vertical wells, as well as production of 10.26 million bbl of heavy oil in the first 6 months of this year,” Pacific Rubiales said.
“According to the Petrotech statement of reserves data, the Rubiales-Piriri field had proved reserves of 341.3 million bbl at June 30 compared with 286.4 million bbl at December 31, 2008; and proved plus probable reserves of 397.4 million bbl at June 30…compared with 361.5 million bbl at Dec. 31, 2008,” Pacific Rubiales Energy said.
Pacific Rubiales also said an additional 199.1 million bbl may be classified as probable and possible reserves if production should go beyond May 2016, when the company is currently obligated to revert the fields back to Ecopetrol.
Contact Eric Watkins at [email protected].
Map from Canada Energy Regulator.
