BOGOTA, Colombia, March 4, 2011 /PRNewswire/ -- Ecopetrol S.A. (NYSE : EC ; BVC: ECOPETROL; BVL: EC; TSX: ECP) and Occidental de Colombia have reached an agreement giving Ecopetrol control of the Cano Limon-Covenas oil pipeline. The conditions in the association contract pertaining to the field remain unchanged.
The operation will grant Ecopetrol access to the pipeline's surplus capacity, once transport requirements for Cano Limon crude have been met, allowing for the transportation of the highest crude production from the Eastern Plains (Llanos Orientales).
The transaction was submitted for the approval of the National Hydrocarbons Agency because it modifies the conditions stipulated in the association contract for operating the oil pipeline.
The operation is in line with other projects that Ecopetrol has undertaken to increase crude transportation in order to meet Colombia's growing oil production.
The Cano Limon-Covenas Oil Pipeline, the second in length in the country, is approximately 771 kilometers long and has a maximum capacity of 220 thousand barrels per day. It is the pipeline by which crude oil from Cano Limon field in the province of Arauca is transported to the Covenas maritime and tanker terminal in the province of Sucre.
Ecopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 50 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and it is entering into the biofuels business.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
SOURCE Ecopetrol S.A.