Colombia to construct $3.5 billion oil pipeline

20 March 2010

The government of Colombia is planning to construct a $3.5 billion pipeline, to transport oil from the eastern lowlands to a Caribbean port.

Colombian minister for mines and energy, Hernan Martinez was reported stating that state-controlled Ecopetrol will look to join hands with other firms due to the size of the project. The country’s crude is tied up in storage due to absence of pipeline capacity from the Eastern Plains to the coast, where the refineries are, present. Oil production at wells nationwide is expected to shoot up to 800,000 barrels per day(bpd) by year’s end and to more than one million bpd with in next year, from the current output of close to 760,000 bpd. The proposed pipeline is expected to begin in the town of Ariguaney, in the southeastern province of Meta, and run northwest to the port town of Coveñas, in the Caribbean province of Sucre. A new pipeline was considered necessary because another oil duct inaugurated last year no longer has sufficient capacity.