Peru and Ecuador to study interconnection of oil pipelines

Jun 16, 1999 02:00 AM

Peru and Ecuador will begin feasibility studies on a possible interconnection of oil pipelines between both countries, Peru's state oil refiner Petroperu chairman Jorge Kawamura said.
Results of the studies should be presented in September, he said, after which Petroperu and its Ecuadorian counterpart Petroecuador will decide whether to conduct the work in-house or offer contracts to other companies.
The plan would connect Peru's Norperuano pipeline with Ecuador's Trans-Ecuadorian Pipeline System (Sote), and allow Ecuador to export oil through Peru. Minimum investment for the project would be $ 392mn.
Peru would charge a tariff for the export of Ecuador's oil. Currently some 20 % of the Norperuano's transport capacity is not used, Kawamura said. The final pipeline would have an extension of 410 km, 150 km on the Ecuadorian side and 210 km in Peru.

Source: BNA via Iinoil
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