BOGOTA, Colombia, May 11, 2012 /CNW/ - Ecopetrol (NYSE: EC; BVC: ECOPETROL;TSX: ECP) announces the financial closing of the phase 1 of the Bicentenario Pipeline. The financing was completed with a syndicated loan from Colombian banks in the amount of $2.1 trillion pesos. The financial terms include an interest rate of DTF + 4.54%, and a term of 12 years with a 1-year grace period.
The loan does not include any financial guarantee from the partners. However, there are “ship or pay” transport commitments from the partners which are intended to ensure the necessary revenues to meet the debt service payments of the syndicate loan.
Seven oil companies with operations in Colombia are partners in the Bicentenario Pipeline (including Ecopetrol with a 55% stake). The pipeline will transport oil from the Llanos Orientales region to the port of Covenas on the Colombian Caribbean coast. Phase 1 of the pipeline will connect the stations of Araguaney and Banadia.
Ecopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 50 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and is entering into the biofuels business.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
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Media Relations (Colombia)
Phone: + 571-2345377
SOURCE Ecopetrol S.A.
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