Alberta Energy Co. Ltd., (AEC) Calgary, says it has completed a $68 million (US) purchase of a 36% interest in the Trans-Andean crude oil pipeline between the Neuquen Basin in Argentina and Concepcion on the Chilean coast.
The 266-mile Oleoducto Transandino line has capacity of up to 115,000 b/d. Other partners in the line are Unocal Corp., Repsol-YPF SA of Spain, and Empresa Nacional de Petroleo (ENAP) of Chile.
AEC acquired its interest from Repsol-YPF, which had held a 54% interest in the project. The deal is expected to close in November.
AEC is also the lead partner in an international consortium that wants to build a $850 million (US) crude oil line over the Andes in Ecuador. Partners in that project are Occidental Petroleum Corp., Kerr-McGee Corp., Repsol-YPF and Agip Petroli SpA, of Italy.
AEC has joined a growing list of senior companies reporting record third quarter earnings. AEC reported third quarter earnings of $241 million (Can.), a 225% increase over the same period in 1999.
Imperial Oil Ltd., Toronto, and PanCanadian Petroleum Ltd., Calgary, have also reported record earnings and strong performance is also expected from other producers and integrated companies.
AEC said earnings for the first nine months of 2000 were $478.8 million. The company attributed its success to high commodity prices and strategic investments at a time of low commodity prices and inadequate industry returns.
The company said third quarter natural gas production increased 27% to 1.1 bcfd, and production of oil and liquids rose 10% to 120,000 b/d.
Cash flow increased 107% in the third quarter to $566 million from $273 million for the same period in 1999. Net revenue rose 71% to $1.31 billion.
