Amerisur Resources PLC Ecuador-Colombia Interconnector Update (9805P)
June 12 2015 - 2:00AM
UK Regulatory
TIDMAMER
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 Tel: +44(0)203 757 4980
Mann
Camarco
Jeremy Low/Daniel Tel: +44 (0)207 653 4000
Conti
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
END
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