Ecopetrol to take control of Colombian pipeline

Ecopetrol has entered into an agreement to take over control of the Cano Limon-Covenas oil pipeline from Occidental de Colombia.

The pipeline was formerly under the dual ownership of Ecopetrol and Occidental de Colombia. Ecopetrol is to assume complete control of the pipeline and will be given access to the pipeline’s crude surplus capacity once transport requirements have been met for Cano Limon crude oil, thus allowing the transportation of crude production form the Eastern Plains.

The pipeline used to be plagued with supply problems arising from deliberate sabotage by Colombian rebel groups, FARC and the ELN, but with the civil war at an end, plans are being set in motion to increase oil exports and increase foreign revenue streams.

Currently the pipeline has a capacity of 220 000 bpd of crude oil; the agreement is part of a plan to increase the export of crude oil from the region to over one million bpd of oil by 2013.

The 780 km pipeline runs from the Cano Limon oil field in Arauca Department near the border with Venezuela all the way to the Colombian coast at the Covenas maritime and tanker terminal where it is exported.

Read the article online at: https://www.worldpipelines.com/business-news/08032011/ecopetrol_to_take_control_of_colombian_pipeline/