The Oleoducto Bicentenario Pipeline Now Has 7 Partners

BOGOTA, Colombia, Nov. 11, 2010 /PRNewswire-FirstCall/ -- The Sociedad Oleoducto Bicentenario de Colombia S.A.S. has as of today seven shareholders following a six-month promotion process by Ecopetrol (NYSE: EC; BVC: ECOPETROL; BVL: EC; TSX: ECP)  to enlist producer and exploration companies as investors.  

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

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.

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Ecopetrol is the largest company in Colombia and a vertically integrated oil company, among the 40 largest oil companies in the world and four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it maintains exploration and production operations in Brazil, Peru and the United States (Gulf of Mexico).  Ecopetrol owns the largest refinery in Colombia, the majority of the network of oil pipelines and multi-use pipelines and is increasing significantly its participation in biofuels.

This release contains forward-looking statements related 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 company and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend on changes in market conditions, 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.