Canada's Pacific Rubiales Energy (TSX: PRE) plans large investments in Colombian infrastructure projects to avoid bottlenecks that will hold up production, announced CEO Ronald Pantin.
The company aims to reach 500,000b/d in production from its Colombian assets in the next three to five years.
"We can only reach this goal by dealing with the bottlenecks that will affect our production," Pantin said during a presentation.
As part of this investment, Pacific Rubiales will plough some US$300mn into state oil company Ecopetrol's US$1bn Bicentenario pipeline project.
The Calgary-based firm also will participate in the construction of a new port terminal near the town of Covenas.
Pacific Rubiales will acquire an 18% share in the project JV, Pacific Infrastructure, after donating 10ha for the new terminal.
Other JV participants will include Colombian and Canadian private oil firms, with total project investment pegged at US$250mn-300mn, added Pacific Rubiales president Jose Francisco Arata.