With the receipt of the permit, Venoco is set to start the construction of the pipeline.
Venoco chairman and CEO Tim Marquez said that once the pipeline is in service and new contracts are in place, the firm expects to realize $5 to $7 per barrel more on about 2,000 barrels per day of production from the South Ellwood field.
"This is due to reduced transportation costs and a greater number of refineries to which we can market our crude oil," Marquez said.
Venoco has also updated its forecast of capital expenditures for 2011 from $200m to $250m which includes costs associated with the construction of the pipeline as well as retaining drilling rigs in its West Montalvo field, Sevier prospect and in the Sacramento Basin for the duration of the year.
