Colombia to acquire Enbridge's share of crude pipeline

Colombia's Ecopetrol has entered into an agreement with Enbridge to buy the latter's 24.7% interest in the Ocensa oil pipeline, which extends from the country's interior to the Caribbean coast, for $417.8 million.

March 17, 2009

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Mar. 17 -- Colombia's Ecopetrol has entered into an agreement with Enbridge Inc. to buy the latter's 24.7% interest in the Oleoducto Central SA (Ocensa) oil pipeline, which extends from the country's interior to the Caribbean coast, for $417.8 million.

The transaction increases Ecopetrol's stake in Ocensa to 60%. The company says the deal will allow it to more readily increase oil production in Colombia's Eastern Plains region.

Enbridge became an owner and operator of Ocensa in 1995, with the pipeline entering service in 1996. The 525-mile Ocensa system can transport as much as 650,000 b/d of crude through 30-in. and 36-in. OD pipe from Cuisiana and Cupiagua fields to the port of Covinas. The system also includes five pumping stations, tankage, and marine loading facilities.

Other initial stakeholders in Ocensa were BP Pipelines 15.2%, Total Pipeline 15.2%, and Triton Pipeline Colombia 9.6%.

The agreement follows Ecopetrol's announcement that it would acquire producer Hocol Petroleum Ltd. from Maurel & Prom, Paris, for $748 million (OGJ Online, Mar. 10, 2009).

Contact Christopher E. Smith at [email protected].