The pipeline was constructed by and will be operated by Oleoducto de los Llanos Orientales S.A., jointly owned by Pacific Rubiales Energy and Ecopetrol S.A. The two companies signed a Memorandum of Understanding in 2007 to establish the joint venture company and develop the project.
Pacific Rubiales Energy Chief Executive Officer Ronald Pantin said “We remain focused on executing our internal growth strategy as the pipeline is completed on time and on budget, which will allow us to take the Rubiales field to its full potential.”
The 235 km, 24 inch diameter pipeline will provide a cheaper way for the company to transport crude oil from the field to the Monterrey pumping station, where it will connect to the existing Oleoducto Central Pipeline that transports oil to the Covenas port for export. Currently oil is trucked, and the pipeline will reduce transportation costs by approximately 50 per cent.
Initial capacity of the pipeline will be 170,000 bbl/d of blended heavy oil, with a potential for expansion to 260,000 bbl/d with the addition of booster pump stations.
Article continues below…The project, includes the construction of pumping and storage facilities.
Pacific Rubiales Energy has said that the pipeline was mechanically completed and was in the final stages of hydrostatic testing in early August 2009, and line filling would begin following testing completion.
The Rubiales Oil Field encompasses the Rubiales and Piriri producing concessions. Located in the Llanos Basin, 465 km from Bogotá, the blocks have a combined area of 569 sq km.
In mid-March 2008, average production from the Rubiales Oil Field was approximately 30,253 bbl/d. Now, the production and processing capacity at the Rubiales field is on track to fulfil the production goal of 100,000 bbl/d by the end of 2009.
The Rubiales Oil Pipeline is a key element of Pacific Rubiales Energy’s master plan for the Rubiales Oil Field. It is expected to cost approximately $US397 million.
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