ECOPETROL, Pacific Rubiales And Petrominerales Announce Closing Of COP$ 2.1 Billion Debt Facility For The Araguaney To Banadia P

abarrelfullabarrelfull wrote on 11 May 2012 14:01
Tags: colombia ecopetrol pacific petrominerales pipeline rubiales s-america

Latest News

{"module":"feed\/FeedModule","params":{"src":"http:\/\/\/feed\/pages\/pagename\/blog%3A_start\/category\/blog\/limit\/10\/t\/My+Blog","limit":"3","module_body":"* %%linked_title%%"}}
  • Want a weekly review of refining news?

ECOPETROL (BVC: ECOPETROL; NYSE: EC; TSX: ECP), Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) and Petrominerales (TSX: PMG; BVC: PMGC) are pleased to announce that Oleoducto Bicentenario S.A. (Bicentenario) has closed a debt facility for approximately US$1.2 billion, the equivalent of COP$2,100,000 million in Colombian Pesos. The loan has been provided by a syndicate of ten Colombian Banks. Bicentenario is a specialpurpose vehicle owned 55.97% by Ecopetrol S.A., 32.88 % by Pacific Rubiales Energy, 9.65% by Petrominerales, and the remainder owned by other E&P companies operating in Colombia.

The credit facility will be drawn down by Bicentenario mainly for the following purposes: (i) advanced payment of part or total of the subordinated shareholders loans; (ii) to finalize the completion of Phase 1 of the project; (iii) working capital and financial costs; and (iv) general costs and expenses.

The facility has an interest rate of DTF (Colombian base rate for fixed rate deposits over
3 months) + 4.54%, a maturity of 12 years with a 1 year grace period. The loan is nonrecourse to the sponsors. Bicentenario shareholders will be signing ship-or-pay
contracts for the transportation of their own production.

This facility ensures funding for the completion of Phase 1 of the Bicentenario pipeline project. The project financing structure aims at a debt/equity ratio of 70/30% for the
company. Further phases of the project will seek a similar structure once the final
investment decision is made.

Phase 1

Phase 1 of the project is expected to be operational
in the fourth quarter of 2012. Phase 1 will see the Los Llanos prolific oil basin connected to the Caño Limón Colombian oil transportation system and on to the Port of Coveñas. Sponsor transportation costs will be significantly reduced, thus allowing increased production from the area. Phase 1 scope includes a 240 km x 42 inch pipeline from Araguaney Station to Banadía Station. This will enable transport capacity to be expanded by 120,000 bbls/day.The debt facility has been structured by Corporación Financiera Colombiana S.A. (CORFICOLOMBIANA) and Bicentenario has been advised by Nexus Banca de Inversión throughout the financing of the project. The Lead Agent was Bancolombia S.A.

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