SOUTH AMERICA: Ecopetrol, Petro Rubiales to build heavy oil pipeline in Colombia

Colombia's state-owned oil company Ecopetrol and the Vancouver-based Petro Rubiales Energy Corp. signed a memorandum of understanding to pipe heavy oil from the Rubiales and Piriri fields in Meta, Colombia.

The 143-mile pipeline is expected to cost $300 million and be operational by the end of 2009, Canada's London Free Press reports.

Ecopetrol would have a 65-percent stake in the pipeline project, with 35 percent for Petro Rubiales, according to a company release. The 24-inch line would have a 170,000 barrels per day capacity to start and could expand to 260,000 bpd.

It would connect to the Monterrey Station in Casanare, Colombia, and then to the rest of the pipeline network.

The pipeline would also be available to send production from future discoveries into the state's network.

Via: United Press International | By BEN LANDO

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