Peru, Ecuador sign pipeline prefeasibility agreement

Peru and Ecuador have taken another step forward in discussions on a possible joint pipeline project linking their oil transport systems. The two countries' energy ministers signed an agreement May 23 to undertake joint studies on the linking of Ecuador�s southeastern oil fields with the 200,000 b/d North Peruvian Pipeline.


LIMA�Peru and Ecuador have taken another step forward in discussions on a possible joint pipeline project linking their oil transport systems. The two countries' energy ministers signed an agreement May 23 to undertake joint studies on the linking of Ecuador�s southeastern oil fields with the 200,000 b/d North Peruvian Pipeline. They had discussed the possibility previously (OGJ Online, Apr. 30, 2000).

The study will examine the feasibility of either interconnecting trunklines or directly linking oil fields near the countries' common border with spurs. One option is for Ecuador to use excess pipeline capacity to move oil to Bayovar on Peru's northern coast for shipment to Guayaquil.

A work committee formed by two members of Petroperu and two members of Petroecuador will supervise and coordinate a prefeasibility study to be performed by three Canadian companies: Alberta Energy Co. and SNC Lavalin Group Inc. on the technical side and Agra Earth & Environmental Ltd. on the environmental side.

The ministers, Jorge Chamot of Peru and Pablo Teran of Ecuador, reached agreement on the prefeasibility study during meetings of the binational technical committee for frontier integration and development formed as part of the 1998 Peru-Ecuador peace agreement. The study will be financed by the Peru-Canada cooperation program.

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