Veolia awarded 73-million-dollar contract by Ecopetrol America Inc. to provide water treatment equipment and services

Veolia (Paris:VIE) has been awarded a contract by Ecopetrol America Inc., the U.S. subsidiary of Ecopetrol S.A. (the national Colombian oil company), to provide equipment and services that will be used to treat the produced water from Ecopetrol S.A.'s Castilla oil fields in Colombia's Llanos Basin, southeast of Bogota. This contract, worth approximately 73 million dollars (around 60 million euros), further confirms Veolia's leadership in technologies for water recycling in the oil and gas industry.

In the framework of this contract, Veolia will design and supply the equipment and material, supervise installation and commissioning, start-up, pre-operate and assist in the operations.

The technologies implemented by Veolia were selected for their efficiency and robust design, intended for heavy duty remote areas where high reliability and low maintenance are required. Furthermore, their very low energy and chemical consumption will contribute to building environmentally sound water treatment facilities while enabling Ecopetrol S.A to continue its expansion of the Castilla site, thereby increasing production of oil.

Produced water is separated from the oil at the wellhead but it must go through a process to eliminate oil residue, suspended solids, chemicals and other contaminants before it can be reintroduced into the ecosystem. Veolia will provide an integrated system to remove and recover oil from the produced water, treat sludge and cool the water prior to discharge. The project is divided into three trains, each with 8 Corrugated Plate Interceptor units, 15 AutoFlot(TM) Induced Gas Flotation Units and 13 PowerClean(TM) walnut shell filters, followed by cooling towers in the final step. Veolia will provide engineering and raw materials to interconnect the treatment equipment and automation systems for control. Sludge will be treated by specialized equipment designed to recover liquid and reduce sludge volume.

Antoine Frérot, Chairman and CEO of Veolia Environnement: "This contract further demonstrates that with its more than 350 proprietary water treatment technologies and unrivaled experience in providing solutions for the oil and gas industry, Veolia offers prominent clients, such as Ecopetrol, America Inc. solutions that maximize production and improve economic performance while reducing environmental footprint. After our recent contracts in Taiwan and Canada, the potential and perspectives that the oil and gas industry offers to Veolia are confirmed."

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