Interview with:
Mr Bernardo Tobar,
Executive President
HISTORY OF THE OCP
OCP Ecuador S.A. has built the Heavy Crude Oil
(OCP) Pipeline, the most important project
developed in Ecuador since the 1980s.
In conjunction with OCP are six of the world's
largest oil companies and one of the world's most
prestigious construction companies. OCP Ecuador
S.A.'s goal is to transport crude oil from Nueva Loja
and Baeza to the OCP Marine Terminal in
Esmeraldas.
The pipeline transports oil belonging to the state of
Ecuador (at a preferential rate) as well as oil
belonging to its partner companies and to third
parties, in accordance with the unused transport
capacity of the pipeline.
THE OIL PIPELINE
The OCP is a transport system constituted by an oil
pipeline with an approximate length 503 km that will
connect the oil receiving Amazons Terminal, located
in Nuega Loja with the OCP maritime terminal in the
Esmeraldas Province.
The installation includes the installations necessary
for all storing, measuring, heating, pumping,
OCP ECUADOR S.A.
Executive President:
Mr Bernardo Tobar
Address:
Av. Amazonas y N.N.U.U
Edificio Banco La previsora Torre A-3er Piso
Quito-Ecuador
Telephone: 00593-2 297-3200 00593-2 297-3200
Fax: 00593-2 297-3382
E-Mail: iortiz@ocp-ec.com
Internet: www.ocpecuador.com
The oil pipeline roue starts in lago Agrio and runs parallel to
the trans-Ecuadorian Oil Pipeline System (SOTE), up to the
village of Cachauco in the Pifo Parrish. The Heavy Crude Oil
Pipeline has been designed and constructed in accordance
with applicable international standards. The basic concept of
the project is to build the OCP under the heart of the land
surface, so that it will not affect the surrounding area and is
safer in the event of an eventual emergency.
T H E E N V I R O N M E N T AL
M AN AG E M E N T P L AN
Environmental responsibility obligates the company to
comply with legal norms applicable to native communities,
rural communities and the rights of populations that may be
affected by the company activities.
In order to comply with the contract and the legal
environmental framework of Ecuador, and prior to granting of
the Environmental Licence by the Ministry of the
Environment, the environmental Impact Study was prepared.
This study also includes the Management plan for the
Phases of transport, Storage and Civil Work of the Project.
OCP has fully complied with the observance of all
environmental procedures and norms as contemplated in the
Environmental Management Plan (EMP). There are three
parties involved in the execution of the EMP, OCP, ENTRIX
AND TECHINT.
pressure reducing operations and the loading of the
heavy crude oil to vessels. Four pumping stations
are required to transport the heavy crude, crossing
the mountain range at an elevation of 4.064 meter
The OCP will operate as an independent system
with 4 storage tanks of 300.000 barrels each and an
initial pumping station, at the Amazonas Terminal.
There 3 intermediate pumping stations, an injection
system into the trunk in the pipeline at the Sardinas-
Beaza Station, two pressure reducing stations, an
automatic blocking station and five storage tanks of
750.000 barrels each, as well as facilities for the
loading of oil tankers, located at the OCP Maritime
Terminal in Esmeraldas.
trunk in the pipeline at the Sardinas-Beaza Station,
two pressure reducing stations, an automatic
blocking station and five storage tanks of 750.000
barrels each, as well as facilities for the loading of
oil tankers, located at the OCP Maritime Terminal in
Esmeraldas.
The contract signed between OCP Ecuador SA and
the Ecuadorian State, clearly and precisely,
regulates the planning, construction and operation
of the Heavy Crude Oil Pipeline. Throughout the
terms of the agreements, the company shall
continue to keep its condition as an Ecuadorian
nationality corporation.
OIL PIPELINE FOR
DEVELOPMENT
The construction and operation of an oil pipeline
represents a great benefits to the national economy,
since it will reactivate productive mechanisms and
stabilize the financial system. The construction of
the OCP will generate approximately 7000 new
direct jobs and some 300 direct jobs by OCP.
Additionally, the investment of capital for the
construction of the OCP will generate resources for
the State, which can be reinvested in infrastructure
and social development works.
The EMP can be divided in two main activities:
1. Control and follow-up, performed on a daily basis to verify
compliance with all the environmental specifications and
standards that must be met by the construction contractors
along the Right of Way during the construction phase of the
project
2. Permanent supervision of different plans and programs
contemplated in EMP.
Some of these plans are:
Botanical Monitoring or flower inventory
This is a specific program for sensitive and protected areas,
which due to the high bio-wealth of the flora for the areas
involved merits the implementation of special conservation
programs. The OCP monitoring team carries out the program
jointly with Ecuadorian corporations and conservation
programs that contain three basic aspects:
a. Preparation of a floristic inventory before the removal of
vegetation in sensitive areas
b. Gathering of plants and seed and delivery of these to the
national Herbarium
c. Re-planting with native species, in the case of high
sensitive zones.
Fauna Monitoring
In occasion, along with the National Polytechnic School, the
OCP monitoring teams evaluates the impact of construction
works on animal communities such us mammals, reptiles,
birds and fishes.
Rescue Monitoring
Rescue Monitoring is another activity developed within this
program. This consists in providing protection to animals
found during the opening of the Right of Way. In the event
that the animals found are wounded, these are sent to the
recovery center that the Polytechnic school has in Tumbaco
until they improve their condition. Within this monitoring of
fauna there is an important aspect, which is the special
Ornithological Monitoring. This carried out in Mindo where the
OCP monitoring team in coordination with Cecia and Birdlife
 evaluate an a monthly basis the impact produced upon birds
as a result of the construction of the OCP.

T H E E N V I R O N M E N T AL
I M P AC T S T U D Y

In order to evaluate the environmental impact of OCP

construction and operation, an Environmental Impact Study
(EIS) was undertaken by an interdisciplinary group and
approved by the Undersecretary of Environmental Protection
of the Ministry of Energy and Mines and by the Ministry of
Environment.

The main objectives of the environmental study of the

OCP project were:

-Assess the impact of each phase of the project.

-Ensure that all proposed stages of development comply with
accepted national and International environmental
management practices.
-Identify applicable environmental rules and regulations.
-Identify socio-economic implications of the project and
involve the population to take into account their concerns and
complaints.
-Recommend environmental protection and control
Likewise, in order to fill the new oil pipeline, oil measures.
companies will make important investments to
develop new oil fields to improve the production of
oil fields. The exploitation and marketing of heavy OCP CONTRIBUTION
crude oils opens a new source of important
revenues for the State budget. An increase in
T O T H E E C O N OM Y O F
production implies a greater revenue from royalties, THE COUNTRY
taxes and import duties, as well as the opening of
new export markets.
Along with the direct impact in reactivating production and
providing a dynamic quality to employment opportunities, the
Increased Exports
OCP generates multiplying effects upon a variety of
economic sectors that are related to the construction of the
Along with the fall in national oil production, exports project.
of crude oil also decreased. Exports constituted a
daily average of 246 thousand barrels in 2001
compared to 230 thousand barrels in 2002.
However, new oil production in 2003 is planned to
coincide with the inauguration of the OCP pipeline,
thereby promoting the increase of exploration and
crude oil exports.

O C P P AR T N E RS

Nominal Effect Upon Goss Domestic Product (GDP)

One of the ways in which we can visualize the economic

Agip Oil Ecuador BV is part of ENI benefits of the construction of the OCP on production in
Group, one of the most important integrated energy Country is through the direct effect that this project has had in
companies in the world. ENI operates in oil, natural the construction sector and on the Gross Domestic Product
gas, electricity generation and petrochemical
industries, as well as oil field services and
engineering. It has a strong competitive edge and
leading market positions in these businesses.
EnCana is one of the world's
leading independent oil and gas companies, with an
enterprise value of approximately C$30 billion. It is
North America's largest independent natural gas
producer and gas storage operator.
Repsol YPF is an integrated oil
and gas company operating in oil and natural gas
exploration, development, production and
transportation, as well as in the refining and
marketing of petrochemical products, derivatives
and gas.
The Techint Group comprises more
than 100 companies operating worldwide, with a
workforce of experienced. Areas of activity among
others include: engineering and construction,
production of flat steel and steel tubes, oil and gas
exploration and production, telecommunications and
service companies.
OXY Occidental Petroleum
Corporation (Oxy) is a large, U.S.-based
multinational company with worldwide interests in oil
and gas exploration and production and the
manufacture and marketing of basic chemicals such
as chlorine, caustic soda, vinyl and petrochemicals
PETROBAS ECUADOR is a regional Latin
American company for integrated energy, whose
operations are concentrated in the exploration and
production of oil and gas, refining and
petrochemical, electricity generation, transmission
and distribution and marketing and transport of
hydrocarbons.
PERENCO is French Oil Company
operating in 11 different countries throughout the
(GDP). According to the Central bank of Ecuador in 2002,
Ecuador received from OCP S.A. an investment of 756$
million, an amount that represents a 40% of the total spent in
of the construction sector($ 1.891 million) , and 3,1% of GDP
which reached $24. 417 million during the previous years
OCP imports are reflected in Trade Balance.
The construction of the OCP involved the importation of
diverse types of materials such as: pipes, pumps, equipment
for storage tanks and replacement parts among others. This
great volume of purchases made abroad has no doubt had
an impact upon the trade balance of the country.
According to BCE, between January a November 2002 only
OCP S.A imported a total of $257 million, which represents a
15 % of the total imports of capital goods of the country,
which reached $1.762 million as of those months. Naturally,
this effect would be considerably increased if we include the
imports that have been made by Techint Sub-contractors.
Generation of direct Employment
In term of employment, the project has exceeded all
expectations. Initially had been estimated that the project
would incorporate 7000 workers. During the peak of
activities, through OCP, Techint and subcontractors, there
were more than 10.700 people working, 91% of which are
Ecuadorians.
If we consider that on the average there are four members
per family we can project the fact that the construction of the
oil pipeline during the moments of the most intense activity,
provided direct benefits to 43.000 fellow citizens, the majority
of which belong to sectors of limited economic resources. On
a geographic basis, the greatest benefits in terms of direct
employment, took place in the four regions of the area of
influence of the project: Esmeralda, Pichincha, Napo and
sucumbios. It is important to point out that 94% of the labour
force includes skilled and semi-skilled workers such as
thousands of helpers, operators, labourers, welders,
carpenters, grinders, etc.
Geographic distribution of the 8.159 Ecuadorians that
have been hired by Techint and its Subcontractors.
January 12, 2003.
world, Gabon, Cameroon, Democratic Republic of
Congo, Popular Republic of Congo, Colombia, and
Venezuela. Guatemala, Ecuador, Tunisia, Turkey
and the United States.

N AT U R E AN D
SOCIETY

Every construction project implies a transformation

of materials, which to a certain degree, effects the
environment. Therefore, OCP strives for a
sustainable development. The objective which is to
keep a balance between human needs and the
protection of nature, while taking into consideration
that nature must always be at the service of the
men, women and children that live in it.
At OCP we believe that a nation that has available
the material goods and services that are
indispensable for a life with dignity will be a nation
that respects and loves nature.
OCP RESPECTS THE
E N V I R O N E M E NT
Multiplying effect
In addition contributing to the dynamic of the construction
sector, which achieved real rates of expansion in the area of
10.5% in 2002, the OCP Project has generated a multiplying
effect in several economic areas such as agriculture,
livestock, fishing, cement production, transport, mechanical
services, spare parts, fuels, textiles, hotels, restaurants
among others. According to Central Bank survey among 192
companies that are representative of the various economic
sectors, between January and October 2002, there was a
215 % growth in their sales, when compared to the same
period of the year before.

In Order to define the routes of the Heavy Crude Oil

Pipeline, several environmental and technical
variables were analysed with the objective of
determining the most adequate route.