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April 14, 2008 |
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ECOPETROL: Closes Propilco Acquisition Deal Ecopetrol has closed the deal to acquire Propilco for US$690 million. Business News Americas relates that Propilco produces some 380,000 tons per year of polypropylene. Ecopetrol told BNamericas that expansion plans would increase its capacity to 500,000 tons per year in 2010. According to BNamericas, Ecopetrol gets 30% of its raw material from its refineries in Cartagena and Barrancabermeja and that supply could increase in the coming years. Ecopetrol told BNamericas that the Propilco acquisition deal is important to its long-term strategy of exporting crude and adding value to its oil with expanded refining and petrochemical operations. About Propilco Propilco is the largest petrochemical company in Colombia and is the biggest resin producer in the Andean region, Central America and the Caribbean. It is the main supplier of polypropylene in Colombia. Propilco was previously owned by the Stanford Group's Andean Chemicals and Valorem Group's PrimeFinanzas and PrimeOther. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America 's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia 's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A. 's foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. |
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