Amerisur Resources has announced the signing of an agreement with Petroamazonas for the construction and use of an Ecuador-Colombia interconnector pipeline for transport of its crude oil.
The pipeline will run from the Ecuadorian border to the point of connection to the wider Amazonas network (RODA) which is operated by Petroamazonas, a company owned by the Ecuadorian state.
Modification of the Petroamazonas environmental permit to extend coverage to the Putumayo river is underway. The process is in its advanced stages and is not expected to cause any construction delays.
With a diameter of 10'', the pipeline will transport a minimum of 5,000 barrels per day, as guaranteed by Petroamazonas. A transport tariff from the point of reception to the point of delivery at Lago Agrio is set at US$1.09 per barrel.
Civil works with the Victor Hugo Ruales central processing station will commence in the next couple of days and is expected to last 3 weeks. Pipeline and control system construction will also begin imminently. Operation is expected in Q4 2015.Amerisur is currently evaluating a number of offers and options for onward transport and commercialization of its oil from Lago Agrio to the port of Esmeraldas.
Chairman of Amerisur, Giles Clarke, has commented:
"Today's news is a very significant step forward as we progress the interconnector pipeline and we are delighted with the support shown in both Ecuador and Colombia towards the project. Civil works within the Victor Hugo Ruales central processing station will begin in the next few days and we are confident that the pipeline will be in operation in Q4 2015."
Amerisur Resources is a U.K. oil & gas producer and explorer focused on South America. Reducing transport costs is key to the firm's business plan.
An existing pipeline which ships crude from the producing area to Colombia's Pacific coast has recently been attacked several times by FARC, raising costs significantly. Once operational, the Ecuador-Colombia pipeline should cut costs to roughly US$5 a barrel from US$23.
In 2014, Ecuador produced an average of approximately 560,000 barrels of crude oil per day, of which about 60% was produced by state-owned companies Petroecuador and Petroamazonas.