Ecopetrol plans 450,000 b/d crude oil line
Christopher E. Smith
OGJ Pipeline Editor
HOUSTON, Aug. 26 -- Ecopetrol SA incorporated a new special-purpose company, Oleoducto Bicentenario de Colombia SAS, to construct and operate a 960-km, 450,000-b/d oil pipeline to move crude from the Llanos basin to the port of Covenas for export.
Ecopetrol estimates investment costs for the first phase of the line, from Araguaney to Banadia, and system upgrades at the port of Covenas at $1.031 billion. The total estimated cost of the project, including the line’s Phase 2—Banadia to Ayacucho—and Phase 3—Ayacucho to Covenas—is $4.2 billion. Phase 1 construction would begin in October with completion of the entire pipeline expected by yearend 2012.
Ecopetrol Pipelines International Ltd. initially will be the project’s sole shareholder, but Ecopetrol plans to capitalize the project by inviting participation by other producers.
The Llanos basin is one of Colombia’s most prospective with, most recently, Canacol Energy Ltd., Calgary, announcing positive test results from the Ubaque reservoir at its RH-6 development well in the basin’s Rancho Hermoso field (OGJ Online, Aug. 20, 2010).
Ecopetrol assumed direct operation of Llanos’ giant Cupiagua and Cupiagua Sur fields on June 30, following 28 years of joint operation with BP PLC affiliates and others (OGJ Online, July 12, 2010). Other companies active in Llanos include Pacific Rubiales Energy Corp., Talisman Energy Inc., Parax Resources Inc., and Alange Energy Corp.
Contact Christopher E. Smith at [email protected].