LONDON (Alliance News) - Amerisur Resources PLC has received the thumbs up to start exporting oil from elsewhere through its OBA pipeline in South America, it said Tuesday.
The OBA pipeline, 100%-owned by Amerisur, runs from southern Colombia into neighbouring Ecuador.
Amerisur has been given approvals to buy oil from third-party producers, then sold in a back-to-back agreement.
Amerisur has agreed a contract with a fellow producer in Colombia's Putumayo basin, with first oil to come later in May. This will build to around 2,000 barrels a day through the pipeline by the second half of 2019.
Amerisur's Chief Executive John Wardle said: "These approvals create a consistent revenue generating opportunity from the OBA, further to material cost savings delivered since operations started in fourth quarter 2016.
"In addition, the ability to transport additional volumes, including third-party oil through the Ecuadorian network was a significant factor in securing the Occidental farm-in deal. This represents a major step forward in the profile of the Putumayo basin."
Amerisur signed a USD93 million farm-out with an affiliate of Occidental Petroleum Corp in November, covering exploration blocks in Putumayo.
Shares were 2.3% higher on Tuesday morning at 13.06 pence each.