PacificMidstream

completed

PRE is an independent producer of crude oil and natural gas, listed in Toronto, Bogota, and Sao Paulo stock exchanges, and operating in Colombia, Peru and Guatemala. PMis planning to raise US $340-400 million in a private equity placement. IFC has been invited to participate in the private placement with an investment of up to US $100 million for its own account. The PEL transmission line connects the Chivor substation, in Boyacá, through Casanare to the Rubiales field, in Meta, to meet the energy demand for oil projects in the Department of Meta. PEL became operational in the first quarter of 2014. PEL is the first private initiative in Colombia for energy transmission. The transmission line consists of 552 towers and in some areas run parallel with the ODL pipeline right-of-way (RoW) sharing partly the same area of influence. CT is an 18 inch gas pipeline to be constructed running from the gas field La Creciente located in the province of San Pedro to an offshore floating liquefaction storage unit (FLSU) facility which will be permanently moored off Colombia’s North coast, at approximately 4 km off the coast of Tolu in the Gulf of Morrosquillo (Caribbean Sea). Although PM does not currently hold any ownership of the FLSU (owned by EXMAR NV) it is considered an associated facility and was included in the scope of this assessment. The LNG facility is managed by EXMAR Shipmanagement the EXMAR affiliate responsible for the asset management. PM currently holds minority interests in ODL and OB. ODL is a 24 inch oil pipeline crossing the provinces of Meta and Casanare running from the Rubiales field to Monterey and Cusiana where the heavy crude is diluted and transported to Coveñas at the Caribbean coast through the OCENSA pipeline or the Bicentenario Pipeline. ODL was developed by Ecopetrol, the Colombian national oil company, in collaboration with PRE and was in 2012 transferred to Cenit, a subsidiary of Ecopetrol, created to manage all Ecopetrol infrastructure projects for oil and gas transportation. ODL has been operational since 2008 and has not had any environmental or security incidents to date and is located in an area with relative low security risk. The first phase of the OB was operational in 2013 and runs from Araguaney in the provinces of Meta and Casanare to Banadía in the Arauca province, where it connects with the existing Caño Limon-Coveñas pipeline. The OB pipeline is the first 42-inch pipeline in Colombia. There are plans for a second and a third phase which will take the pipeline all the way to the Coveñas port on the Caribbean coast and make it the second longest pipeline in Colombia after OCENSA. The first phase of the OB pipeline has been built with significant security measures due to the presence of non-governmental armed forces in the province of Arauca. Security measures include burial of the pipeline 3 meters underground covered by a metallic plate and fiber optic cable to detect any anomalies. Throughout the pipeline 31 security valves have been installed which can be operated remotely so that the pipeline can be shut off in case of any incidents. To date there have been 12 attacks of which one has led to a minor oil spill which was adequately mitigated and reported to the relevant national and local authorities.