Ecopetrol incorporated a new special purpose company - Oleoducto Bicentenario de Colombia - to construct and operate a private pipeline which will run from the Casanare Department to the port of Coveñas. The new 960-km pipeline will facilitate oil exports from the Llanos region to the port of Covenas, with a capacity of 450,000 bbl/d. Ecopetrol Pipelines International Limited will be the sole shareholder of the new company, but following incorporation it will be capitalized by other oil producers interested in participating in the project.
Investment costs for phase 1 of the project (from Araguaney to Banadia) and new infrastructure upgrades at the port of Coveñas are estimated to be $1bn. The total cost of the project, including phase 2 (from Banadía to Ayacucho) and phase 3 (from Ayacucho to Coveñas), is estimated at $4.2bn. Phase 1 construction would begin in October with completion of the entire pipeline expected by end-2012.