Venoco Inc. said Monday that a subsidiary has received final approval to build a pipeline in California.

The Denver energy company said the pipeline will reduce transportation costs from the South Ellwood field and reach more refineries. That will allow the company to realize $5 to $7 more per barrel of oil it produces.

Venoco also said capital spending will range between $200 million and $250 million this year. That amount includes the construction of the pipeline and retaining rigs for various drilling projects.

Venoco’s stock fell 11 cents to $10.59 in morning trading.