Spain's CEPSA announced Wednesday that it has agreed to sell its share in the OCENSA oil pipeline in Colombia to private equity company Advent International.
CEPSA said the deal will allow it to keep its right to transport oil through the pipeline. OCENSA handles 60-percent of crude oil transportation from Colombia. The pipeline has a transport capacity of 590,000 barrels per day and runs for some 500 miles between the Los Llanos and the Atlantic Ocean.
CEPSA's interest in the pipeline is its strategic location: the pipeline starts near a CEPSA oil production site in the Los Llanos basin.
"Our involvement with OCENSA and its other shareholders has been a great experience. However, CEPSA is now focusing its efforts on hydrocarbon exploration and production in the company and we are sure that the new shareholders, Colombian pension funds Porvenir, Protección and Advent, will drive the transport business in Colombia. This is still a strategic installation for us, which is why we are keeping our right over transport," CEPSA CEO Pedro Miró said in a company statement.
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