Ecopetrol announces that two production facilities began operations today at the Rubiales and Quifa fields
November 17, 2010 at 17:11 PM EST
PUERTO GAITAN, Colombia, Nov. 17, 2010 /PRNewswire/ -- Meta Petroleum Ltd., a subsidiary of Pacific Rubiales Energy, and Ecopetrol S.A. ("Ecopetrol" or the "Company") (NYSE: EC; BVC: ECOPETROL; BVL: EC; TSX: ECP) have begun operating a CPF2 crude treatment facility at the Rubiales field and a CPF treatment facility at Quifa field, allowing for an increase in crude processing in the Meta province of Colombia.
The start-up of operations at the Rubiales CPF2 facility is expected to result in an increase in crude production of 70,000 barrels, reaching a production of 170,000 barrels per day by the end of the year, while the opening of the new CPF plant at Quifa will allow for the processing of 30,000 barrels per day.
The opening of the two facilities is important as it will help increase the country's crude extraction by some 100,000 barrels a day, or more than 12% of national production, confirming this region as having one of the highest level of growth today.
The Rubiales field is located in the eastern part of Meta province, in the municipality of Puerto Gaitan. Through the field's partnership contract, Ecopetrol's stake is 57%, with Meta Petroleum holding the other 43%, after royalties.
The Rubiales field has 105 active production wells. The goal by year end is to drill some 158 wells, which will help boost heavy crude production levels.
The increased production at the field is the result of the efforts and human resource commitment of partner companies, and investments which since 2007 have amounted to approximately US$1.0 billion.
The Quifa field is located in the municipality of Puerto Gaitan, next to the Rubiales field. Through the field's partnership contract, Ecopetrol's stake is 40% of the field's production, with Meta Petroleum, the operator, holding the other 60%, after royalties.
The Quifa Association Contract has an exploration area of 152,743 hectares, with its development plan calling for an average daily increase in production of 30,000 barrels per day in 2011.
The increased crude production by Rubiales and Quifa will be transported through the Los Llanos oil pipeline (ODL), which went into operation last year and will raise its capacity from 160,000 barrels a day to 340,000 barrels a day by May 2011.
Ecopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 40 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and it is entering into the biofuels business.
This release contains forward-looking statements relating 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 business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
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SOURCE Ecopetrol S.A.