The Oleoducto Bicentenario Pipeline has Partners

abarrelfullabarrelfull wrote on 11 May 2012 13:48

November 11 2010

The pipeline will be the largest in the country and will play an essential role in evacuating the growing crude production from Llanos Orientales

The Sociedad Oleoducto Bicentenario de Colombia S.A.S. has as of today seven shareholders following a six-month promotion process by Ecopetrol to enlist producer and exploration companies as investors.

The shareholders of the company are now Ecopetrol, Pacific Rubiales, Petrominerales, Hocol, C&C Energía, Rancho Hermoso S.A. - Canacol Energy Ltd. and Vetra Exploracion & Produccion Colombia S.A.S., with their respective shareholding interest as follows:

  • Ecopetrol S.A. - 275,977.3 - 55.00
  • Pacific OBC - 164,989 - 32.88
  • Petrominerales Colombia Ltd. - 48,427 - 9.65
  • Hocol S.A. - 4,857 - 0.96
  • Rancho Hermoso S.A.- Canacol Energy Ltd. - 2,509 - 0.50
  • C&C Energía - 2,509 - 0.50
  • Vetra Exploracion & Produccion Colombia S.A.S. - 2,509 - 0.50

Today, 225,800 shares were subscribed for a total of US$139.5 million, or 45% of the company, which are in addition to Ecopetrol´s 55%. Also, the partners, including Ecopetrol, committed to contributing additional resources in an amount totaling US$700 million to be allocated to the construction of the initial phase of the pipeline between Araguaney and Banadia.

The process of attracting shareholders began in March 2010 when 58 companies were initially approached. On September 15, 29 were extended invitations after expressing interest in participating in the project. At the close of the process, six confirmed their intent to invest and participate in the company.

About Oleoducto Bicentenario - Bicentennial Oil Pipeline 

The Sociedad Oleoducto Bicentenario de Colombia S.A.S. has as its objective to build and operate a private-use oil pipeline between Casanare and Covenas that will be 960 kilometers long and have a  final  capacity of 450,000 barrels per day. 

The pipeline will be the largest of its kind in Colombia and developed in four phases. The first phase, which will join the Araguaney station in Casanare with Banadia in Arauca, will entail an investment of US$1.031 billion, of which 70% will come from a credit facility to be capitalized by the seven partners and 30% from direct capital contributions. With the partner´s entailment, the execution of the first phase it´s approved. Once the technical and financial studies for subsequent phases will conclude, will be within the company for approval, The total pipeline investment is estimated to be US$4.2 billion and all phases are expected to be finalized by December 2012.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License