Ecopetrol, Petro Rubiales ink MOU for US$300mn pipeline

Friday, December 21, 2007

Colombia's state oil company Ecopetrol reported it has signed an MOU with Canadian oil and gas firm Petro Rubiales Energy (TSX-V: PEG) to build a 230km pipeline.

The 24-inch pipeline will transport crude from the Rubiales and Pirirí fields in Meta department to the Monterrey pumping station in Casanare department, Ecopeotrol said in a statement. The station is part of the Ocensa central pipeline system.

The project will cost an estimated US$300mn-plus and could begin operations in the second half of 2009.

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Initial transport capacity will be roughly 170,000b/d, which could increase to 280,000b/d.

Ecopetrol will have a 65% stake in the project and Petro Rubiales the remainder.