Amerisur Resources Plc has signed an agreement with PETROAMAZONAS EP for the construction and use of the pipeline from the Ecuadorian border to the point of connection with the RODA gathering system for the transport of Amerisur's crude oil.
- Agreement signed with PETROAMAZONAS EP which permits the construction and use of the pipeline from the Ecuadorian border to the point of connection with the RODA gathering system.
- Minimum transport volume commitment by PETROAMAZONAS EP to Amerisur of 5,000 BOPD.
- Transport tariff from the point of reception to the point of delivery at Lago Agrio set at US$1.09 per bbl.
- Modification of the PETROAMAZONAS EP environmental permit to allow construction from location VHR 20 to the river Putumayo is underway.
- Civil works within the Victor Hugo Ruales central processing station will commence in the next few days and pipeline and system control construction will begin imminently.
- A number of options for onward transport and commercialization of Amerisur oil from Lago Agrio to the port of Esmeraldas are currently being evaluated.
- The Company expects the pipeline to be in operation in Q4 2015.
The Company has signed an agreement with PETROAMAZONAS EP entitled "Convenio de Cooperacion para el Uso de la Red de Oleoductos del Distrito Amazonico" which permits the construction and operation of the 10" (nominal - 10.8" physical) pipeline from the Ecuadorian border to the point of connection with the RODA gathering system for the transport of Amerisur's crude oil. In addition the agreement includes the definition of construction and responsibilities during use of the system, a minimum volume commitment and transport tariffs applicable to Amerisur crude oil.
The minimum transport volume guaranteed by PETROAMAZONAS EP to Amerisur is 5,000 BOPD. The transport tariff from the point of reception to the point of delivery at Lago Agrio is US$1.09 per bbl.
Amerisur is now initiating operations in the field, beginning with civil works within the Victor Hugo Ruales (VHR) central processing station which is expected to take 3 weeks. Concurrently, pipeline and system control construction works will begin imminently.
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.
In Colombia, as previously reported, the modification of the Platanillo environmental license to include the construction and operation of the pipeline within Colombian territory has been approved. PETROAMAZONAS EP and the Company are currently working with the Ecuadorian Environmental Ministry (MAE) in the modification of the existing environmental license in Ecuador to extend its coverage from Location VHR 20 to the river Putumayo. This process is well advanced and is not expected to cause any delay to the construction works. In the meantime, works can continue within the existing environmental permit area, which extends some 17km from the VHR central processing station to location VHR20 towards the north.
The Company expects the Ecuador-Colombia Interconnector to be in operation in Q4 2015.
Giles Clarke, Chairman of Amerisur 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."
"I want to congratulate the Amerisur team on this fundamentally important milestone for the Company which opens numerous possibilities for our shareholders. As was the case with the Channel Tunnel, international bilateral infrastructure projects are often simple to conceive but incredibly complicated to make reality. I would like to personally thank all parties in both countries, who have worked so diligently to achieve this result, the functionaries of PETROAMAZONAS EP, the relevant ministries and in particular the President of Ecuador, Se?or Rafael Correa and the President of Colombia, Se?or Juan Manuel Santos for their support."