Pacific Rubiales Energy Corp. has announced the closing of the previously announces sale of its 5% interest and transportation rights in the Oleoducto Central SA (Ocensa) oil pipeline in Colombia for a total cash consideration of US$ 385 million to a consortium led by Darby Private Equity (Darby), the private equity arm of Franklin Templeton Investments.
The investment was made by Darby's Fondo de Infraestructura de Transporte de Colombia (FINTRA) and includes three co-investors. The Ocensa pipeline interest and transportation rights were acquired by the Company as part of its previously announced acquisition of Petrominerales Ltd., which closed on 28th November, 2013.
The transaction included the sale of the 5% equity interest in the Ocensa pipeline, along with the accompanying transportation capacity rights, including current and future capacity expansions. The company has entered into a ten year agreement to secure transportation capacity for a take-or-pay incremental charge in addition to the regulated tariff on the pipeline.
Ronald Pantin, the Company's Chief Executive Officer, commented: "We are pleased to have closed this important transaction as it further illustrates the underlying value of the Petrominerales acquisition, in addition to reserves and production. The Company is also advancing the negotiations and sale process of approximately a 38% interest in its 100% wholly owned Pacific Midstream Holding Corp., which currently holds the Company's ODL and Bicentenario oil pipeline interests as well as the PEL power transmission line assets. Proceeds from the sale of these assets will be used to pay down debt and buy-back stock. Additional midstream asset sales are expected in the future, allowing the Company to generate unrecognised cash value while retaining the strategic value of these assets, through long-term capacity agreements."
Adapted from press release by Hannah Priestley-Eaton