Ecopetrol signs Mustang to double oil line capacity

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Aug. 17 -- Ecopetrol SA awarded Wood Group's Mustang a 2-year master service agreement to increase Colombia's oil and gas transmission capacity while also improving its safety.

Initial efforts will focus on doubling transportation capacity for Colombian crude to refineries and terminals in country. Mustang will provide hydraulic system modeling, project management, procurement, environmental permitting, geospatial information systems, survey, drafting, and construction management-inspection support.

Following work on Colombia’s oil pipelines, Mustang will focus on developing infrastructure to support Colombia’s petrochemical operations and on enhancing the country’s pipeline leak detection capabilities. Mustang is also providing conceptual engineering services to Ecopetrol for its downstream petrochemical operations.

The agreement includes an optional 2-year extension.

Mustang previously assisted Ecopetrol in developing value improving practices programs implemented on numerous projects in Colombia.

Ecopetrol moved 576,200 b/d of crude on its pipelines in 2009 while running at roughly 60% of capacity. Ecopetrol’s pipelines include:

• Cano Limon-Covenas Oil Pipeline, 770 km, transporting crude from the Cano Limon field to the terminal at the port of Covenas.

• Oleoducto Central SA (Ocensa), 790 km, primarily moving crude from Cusiana-Cupiagua to Covenas.

• Colombia Pipeline, 481 km, connecting the Vasconia pump station to Covenas.

• Transandino Oil Pipeline, 306 km, transporting Ecuadoran crude to the Pacific port of Tumaco.

• Upper Magdelana Oil Pipeline.

Ecopetrol earlier this month expanded both its crude reserves and pipeline assets through acquisition of 51% of BP Exploration Co. (Colombia) Ltd. Its partner in the acquisition is Talisman Energy Inc.

Assets acquired in the transaction include five producing fields in four association contracts, four pipeline interests, two offshore exploration blocks, and the Cusiana gas processing facility. (OGJ Online, Aug. 3, 2010). The pipelines acquired totaled 1,600 km of crude line, including BP’s 24.8% interest in Ocensa, and 400 km of gas line.

Contact Christopher E. Smith at chriss@ogjonline.com.



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