Fitch Affirms OCENSA Pipeline.

Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 14, 2002

On Jan. 10, 2002, Fitch downgraded Colombia's foreign currency debt rating to 'BB' from 'BB+'. As a result of the sovereign downgrade, the foreign currency rating of Empresa Colombiana de Petroleos (Ecopetrol) was also lowered to 'BB' from 'BB+'. However, Fitch affirms the 'BBB-' rating on the Oleoducto Central S.A. (OCENSA) oil pipeline project. The investment-grade rating applies to OCENSA's US$150 million 9.35% senior debentures due 2005 that are supported by Ecopetrol's tariff payment obligations under its transportation agreement.

Ecopetrol is one of the four initial crude shippers, which all have ownership interest in the oil produced from the Cusiana-Cupiagua fields. Ownership interest in the fields' production are as follows: 60% Ecopetrol, 15.2% BP Colombia Ltd., 15.2% TOTAL and 9.6% Triton Colombia Inc. Under their respective transportation agreement, each initial crude shipper pays their pro rata share of transportation tariffs to OCENSA. OCENSA's pipeline tariff charge to the shipper is designed to cover all of its financial obligations incurred in the transport of the oil production from the fields. Furthermore, as long as oil continues to produce at the fields, the four crude shippers and any other third-party shippers have no other alternative than to transport their crude through OCENSA's pipeline to the Caribbean coast for export.

While repayment of OCENSA's senior debentures rely on the payment obligation of Ecopetrol, Fitch believes provisions of the transportation agreements minimize non-payment event by any of the crude shippers. The provisions specifically grant OCENSA a contractual lien on the oil assets of any non-paying crude shipper. Fitch views this structural feature as a credit enhancement that potentially mitigates the credit risk of a particular shipper. As a result, Fitch believes that OCENSA's debt rating is not constrained by the present rating level of Ecopetrol. However, Fitch believes there remains a link between the credit ratings of Ecopetrol and OCENSA. Further deterioration in the credit quality of Ecopetrol will likely have a detrimental impact on the rating of OCENSA. In addition, OCENSA's rating may also be influenced by project specific risks or events that may not directly impact the ratings of the sovereign or Ecopetrol.

The OCENSA pipeline is a pipeline system of approximately 800 km (497 miles) that transports oil from the Cusiana-Cupiagua fields to the export terminal at the Port of Covenas on the Caribbean coast. Full commercial operation of the entire pipeline system began in August 1997. The OCENSA pipeline is owned 35.3% by Ecopetrol, 17.5% by IPL Enterprises Colombia Inc., 7.2% by IPL Bermuda Ltd. (both subsidiaries of Enbridge), 15.2% each by BP Pipelines and TOTAL Pipeline, and 9.6% by Triton Pipeline Colombia.