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Amerisur Resources PLC  -  AMER   

Ecuador-Colombia Interconnector Update

Released 07:00 12-Jun-2015

RNS Number : 9805P
Amerisur Resources PLC
12 June 2015
 

 

12 June 2015

 

 

Amerisur Resources Plc

("Amerisur" or the "Company")

 

Ecuador-Colombia Interconnector Update -

Agreement signed with PETROAMAZONAS EP for the construction of the pipeline

 

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce that it has signed an agreement with PETROAMAZONAS EP, the Operator of the Cuyabeño gathering system and the wider Amazonas pipeline network ("RODA"), 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.

 

Highlights:

·      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, Señor Rafael Correa and the President of Colombia, Señor Juan Manuel Santos for their support."

 

 

ENDS

 

Competent person: Technical information in this announcement has been reviewed by John Wardle PhD., the Company's Chief Executive. Dr Wardle has 29 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

 

 

ENQUIRIES:

 

Billy Clegg/Georgia Mann

Tel: +44(0)203 757 4980

Camarco

 


Jeremy Low/Daniel Conti

Tel: +44 (0)207 653 4000

RBC Capital Markets

 


Chris Sim

Tel: +44 (0)207 597 4000

Investec


 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Ecuador-Colombia Interconnector Update - RNS