Colombian oil pipeline nearing completion

The pipeline is being built and will be operated by Oleoducto de los Llanos Orientales S.A., a joint venture vehicle organised by Pacific Rubiales Energy and Exopetrol S.A. for the pipeline project.

This project will enable the companies to substantially reduce the transportation costs for Rubiales crude to the export port of Covenas while ensuring that there will be adequate throughput capacity to bring the Rubiales field to its full production potential.

The pipeline transport system, which has been under construction since late 2008, consists of a 24 inch diameter pipeline as well as all the associated pumping and storage facilities.

The pipeline is expected to begin operations in September this year. In a recent investor briefing, Pacific Rubiales Energy said that 234.3 km of pipeline had been constructed and 134 km had successfully completed hydrostatic testing.

The company said that line filling is set to start during the second half of August 2009.

The initial capacity of the pipeline will be 170,000 bbl/d of blended Rubiales heavy oil and can be upgraded to 260,000 bbl/d of blended oil by adding booster pump stations.

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