Enbridge Inc. plans to sell its indirect 24.7% interest in the OCENSA pipeline to Ecopetrol, the Colombian national oil company, for US$400 million.
Enbridge (then IPL Energy Inc.) became an owner and operator of the OCENSA pipeline company in 1995 and the pipeline was placed into service in 1996. The OCENSA pipeline consists of 515 miles of 30- and 36-inch pipeline, pumping units, tankage and marine loading facilities. The pipeline has capacity to transport 525,000 bpd of crude oil and links the Cuisiana and Cupiagua oilfields in the central interior of Colombia to the port of Covenas on the Caribbean coast.
“We are pleased to have played a constructive role in the development of Colombia’s natural resource infrastructure, and congratulate Ecopetrol on the achievement of their objective for a larger ownership position of OCENSA,” said Patrick D. Daniel, president/CEO, Enbridge Inc. Enbridge anticipates it will receive net after-tax proceeds of $C535 million from the sale.
Enbridge has $C12 billion in commercially secured liquids pipelines growth projects scheduled to come into service prior to the end of 2012, including expansions to Enbridge’s crude oil mainline system connecting western Canada with key markets in eastern Canada, the U.S. Midwest and points beyond; a new pipeline to bring diluent supply from the U.S. Midwest to Alberta; and continued development of regional pipeline infrastructure to support growing oil sands production in Alberta.