The OCP Limited consortium, which is constructing Ecuador’s heavy crude pipeline, could withdraw if the government fails to approve environmental permission, OCP president Hernan Lara told local press.
In recent weeks environmentalists have heavily criticized construction of the pipeline – which has been postponed for more than ten years – because of its proposed route, through the protected Mindo forest on Ruta Norte, 25 km from Quito.
Construction of the 503km pipeline requires an investment of US$1.1bn. The OCP consortium is formed by Argentina’s Perez Companc, Spain’s Repsol-YPF, Canada’s Alberta Energy, Italy’s Agip Petroleum and the US’ Kerr McGee and Occidental.
Argentine engineering company Techint is responsible for construction of the pipeline, which will be 24 to 36 inches in diameter.
The pipeline will help to double Ecuador’s oil production within its first five years to 850,000 barrels per day (bpd) from some 400,000bpd.
