Agreements are substantially in place for a $2 billion crude oil pipeline construction project in Colombia.
Oleoducto Central SA (Ocensa), a combine of state owned Empresa Colombiana de Petroleos (Ecopetrol) and foreign companies, proposes the 800 km system of expansion and upgrade of an existing line carrying oil from Cusiana and Cupiagua fields in the eastern foothills of the Andes Mountains.
Destination is an export terminal at Covenas (see map, OGJ, Oct. 3, 1994, p. 32.).
Canada's TransCanada PipeLines Ltd. and IPL Energy Inc., the main foreign partners in the project, said all shareholder, operating, and transportation agreements are substantially complete.
Ultimate capacity of the system will be at least 500,000 b/d, productive capacity of the two fields. Cusiana light crude likely will be separated from other crudes in the pipeline for increased marketability.
The route will parallel the Central Llanos and Oleoducto de Colombia pipelines.
First pipe for the new system, to consist of 30-36 in. line, was ordered late last year. Deliveries are to begin in the second quarter, with construction to get under way in the second half of this year. Completion is due in 1997.
Construction bids are being sought.
Ocensa plans to fund construction with a combined capital structure of 70% debt, 30% equity. The combine now is positioned to seek debt financing.
TransCanada and IPL, each with a 17.5% interest in the project, will provide management personnel and technical support for the new system. Their partners are Ecopetrol 25%, BP Colombia Pipeline Ltd. and Total Pipeline Colombie 15.2% each, and Triton Pipeline Colombia Inc. 9.6%.
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