(Energy Analytics Institute, Ian Silverman, 3.Jun.2018) – Canada’s Frontera Energy Corporation announced it was notified by Petroperu S.A. of a force majeure event affecting a portion of the NorPeruano pipeline following the identification of oil traces in the Pastaza River, an area outside Block 192.
Force majeure will begin on June 4, 2018 and Frontera is uncertain of when full operation of the pipeline will resume. The company announced that should a portion of the pipeline be inoperative, it will result in Block 192 being declared in force majeure, the company announced in an official statement.
Frontera is working diligently with Petroperu S.A. and the local communities in providing resources in the identification and remediation processes and is hopeful that the period of force majeure will be of limited duration. Should Block 192 be declared in force majeure, the period of time this declaration would be in effect will be added to the end of the contract term for Block 192, currently anticipated to be June 10, 2019.
PRODUCTION IMPACT
If Block 192 is declared in force majeure, the anticipated impact would be approximately 8,600 barrels per day (b/d) of net production.
“We will take advantage of any downtime to undertake necessary maintenance and work-overs on Block 192. Despite the impact on net production, we do not believe that this force majeure event will have an effect on Peru sales volumes for Q2 due to the current build up of inventory in Peru. We also anticipate that our aggregate sales volumes for Q2 will be higher than the previous quarter, as the increase in oil inventory previously disclosed in the first quarter due to the timing of the loading of one cargo of crude oil will be reversed in the second quarter of 2018,” announced Frontera in its official statement.
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