Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide an update on the project to connect the Platanillo field in Colombia with the oil pipeline system in Ecuador, named Oleoducto Binacional Amerisur (OBA).
The Company is pleased to announce the award by the Ecuadorian Ministry of the Environment of the environmental license to Petroamazonas EP, operator of the Amazonas Oil Pipeline System (Red de Oleoductos Amazonas -RODA) for the construction and operation of the 3.9 km of 10.8" (nominal) pipeline from the VHR-20 production location to the landfall of the horizontally drilled under river crossing from Colombia. Additionally the license approves the construction and operation of the under river crossing within Ecuadorian territory. The drilling of the under river connection in Colombian territory is approved under a license held by Amerisur Exploracion Colombia Ltda.
The Company has begun the drilling of the under river crossing and the installation of the under river pipeline. These operations are expected to take approximately 35 days. Concurrently, the Company and its contractors have commenced the construction, corrosion proofing, testing and burial of the line from the VHR-20 location to the point of landfall of the under river crossing.
The civil works at the OBA reception station within the VHR facilities are complete and the 5,000bbl reception tank is completed, tested and calibrated. The other piping and instrumentation is 72% completed. In Platanillo, the export equipment is moving to site and will be positioned once the drilling of the under river crossing is completed.
The Company expects to perform operational testing and commissioning of the pipeline, measurement and export pumping systems during March, followed thereafter by first transport.
John Wardle, CEO of Amerisur commented:
"The delivery of the OBA has been a key strategic priority for the Company and I am delighted to announce that all of the approvals have now been granted to allow us to complete its construction, which is expected to take approximately 35 days. This is a transformational project for the Company and I look forward to updating shareholders following testing of the pipeline."
Giles Clarke, Chairman of Amerisur commented:
"I would like to congratulate the executive on this remarkable achievement. The Amerisur shareholders will benefit tremendously from this pipeline in the years ahead as we significantly reduce our operating costs per barrel in the short term and as we grow production in the Putumayo region from multiple blocks in the medium term. Significant value will be unlocked through this, benefiting both our shareholders and the two nations involved. Bi-lateral infrastructure projects between two countries are extremely complicated as the building of the Channel Tunnel between the UK and France demonstrated. Both President Correa and President Santos have shown visionary leadership, and both governments have worked closely to create this major project. Amerisur is proud to play its part".