Colombian oil line to link Rubiales field

A contract has been awarded for construction of a 24-in., 235-km pipeline to connect Rubiales heavy oil field in east-central Colombia to the OCENSA pipeline.

By OGJ editors
HOUSTON, Sept. 3 -- A contract has been awarded for construction of a 24-in., 235-km pipeline to connect Rubiales heavy oil field in east-central Colombia to the OCENSA pipeline.

Pacific Rubiales Energy Corp., Toronto, and Ecopetrol SA awarded the contract to Consorcio Rubiales-Monterrey, a joint venture of Spiecapag and Ismocol. The pipeline is to be called Oleoducto de los Llanos Orientales.

The line will extend from Rubiales field on the Rubiales and Piriri association contract areas in Meta Province to the OCENSA Monterrey station in Casanare Province. Completion is set for Sept. 30, 2009.

Capital commitments for the project so far include $320 million, including $190 million for the lump-sum fixed-price contract, the pipe, and procurement of long lead time items. Contract for the Rubiales pump station is to be awarded separately.

The local partner Ismocol de Columbia has 20 years of experience in the Colombia oil and gas industry.

Pacific Rubiales, which will own 35% of the pipeline, said the project will "leverage the future development of the very prospective Los Llanos heavy oil basin."

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