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Gas industry

Triton Energy Corp. Announces Completion of Agreements for Colombian Pipeline Company

Strategic Insights

— 1 min read

Triton Energy Corp. has announced the substantial completion of all shareholder, operating, and transportation agreements for Oleoducto Central S.A. (OCENSA), a new Colombian pipeline company. The partnership, which includes Triton Energy, Ecopetrol, IPL Enterprises, TCPL International Investments, BP Colombia Pipelines Limited, and TOTAL Pipeline Colombie, will own, expand, finance, and operate the pipeline, related transportation infrastructure, and port facilities to carry oil from the Cusiana and Cupiagua Fields to the Caribbean port of Covenas.

Key Takeaways:

  • The pipeline will transport at least 500 thousand barrels of oil per day (mbod) from the Cusiana and Cupiagua Fields to the port of Covenas.
  • The pipeline will be 30 to 36 inches in diameter, stretch 800 kilometers, and cost approximately $2 billion, including construction and financing costs.
  • Triton Energy's 9.6% equity interest in OCENSA will allow the company to transport its full share of oil production from the two fields.
  • The pipeline's capital structure will be 70% debt and 30% equity, significantly reducing Triton Energy's direct capital spending requirements.
  • The initial pipe order is expected to be delivered in the second quarter of 1995, with construction beginning in the second half of 1995 and completion scheduled for early 1997.
  • The partnership will fund construction of pipeline and transportation facilities with a combined capital structure of 70% debt and 30% equity.
  • The project will provide Triton Energy with greater flexibility to meet its capital program over the next few years.
  • The Cusiana Light crude oil will be segregated from other crudes in the pipeline for increased marketability.

Statistics:

  • The pipeline will have an estimated capacity of at least 500 mbod.
  • The project's initial capital expenditure is estimated at approximately $2 billion.
  • Triton Energy's equity investment in OCENSA is 9.6%.
  • The pipeline's capital structure will consist of 70% debt and 30% equity.
  • The initial pipe order is expected to be delivered in the second quarter of 1995.
  • Construction will begin in the second half of 1995 and completion is scheduled for early 1997.

Sources:

  • Triton Energy Corp.
  • Business Wire
  • Oleoducto Central S.A. (OCENSA) Fact Sheet

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