Colombia's Pacific Rubiales to sell Petrominerales crude via tenders

Tue Oct 1, 2013 5:32pm EDT
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HOUSTON Oct 1 (Reuters) - Colombia's Pacific Rubiales will offer more Colombian crude on the open market by December after it takes over the production of Petrominerales, the Canadian oil company it is buying, two sources with knowledge of the deal said.

Pacific Rubiales, Colombia's largest private oil producer, currently offers four to six tenders of Vasconia and Castilla crude cargoes on the open market, which account for as many as 4.5 million barrels per month.

The oil is frequently picked up by U.S. refiners and big trading companies.

"Petrominerales is currently producing some 24,000 barrels per day (bpd) of crude oil, including medium and light crudes. Around 15,000 bpd will be used for blending Vasconia crude," a senior source at Pacific Rubiales told Reuters.

"When the purchase finishes, Pacific will manage all the Petrominerales exports. That will take place in December, if everything goes fine," the source added.

Petrominerales currently sells all of its crude domestically to Colombia's state-run Ecopetrol, the second source said.

Pacific Rubiales will pay $1.55 billion for Petrominerales' assets in Colombia and Peru.

The company, which will use the medium and light Petrominerales crudes to mix with its heavy crudes, said the deal will bring it synergies worth $160 million a year.

Pacific Rubiales extracts around 210,000 bpd of crude, or about a fifth of the 944,000 bpd Colombia produced this year. The Andean nation is aiming for average output of 1.1 million bpd by the end of the year, with the help of foreign companies.