Frontera Energy stops production after pipeline rupture in Peru

Canada-based Frontera Energy has stopped oil production at its largest oilfield in Peru following a rupture in a 1,100km pipeline operated by state-owned Petroperu.

Caused by indigenous protesters, the rupture occurred 200km in the Morona district from the Block 192 oilfield. Local authorities are working to resolve a dispute with the indigenous community.

It is estimated that the suspended production may lead to losses of $200,000 a day, reported Reuters.

Frontera expects to resume production at the field ‘shortly’ once the pipeline is restored. The recent daily net production at the oilfield stood at an average of 8,950 barrels.

The NorPeruano pipeline transports crude oil from the oilfields in the jungle to the Petroperu refining facility, which is located on the Pacific coast.

According to Petroperu, the rupture may have led to the spilling of 8,000 barrels of oil, although the spillage has not contaminated water sources.

This oilfield is located in the Loreto region, which is estimated to have reserves of 100 million barrels. Frontera’s contract will expire in March 2019.

This pipeline has been operational for the last 40 years. Almost 20,000 barrels of oil have spilled from the pipeline since 2016 due to at least 15 attacks. Mechanical failures and corrosion have caused spillage of another 5,600 barrels.

Frontera Energy is crude oil and natural gas supplier and has its operations focused on Latin America. It has interests in more than 30 exploration and production blocks in Colombia and Peru.

In October, Frontera announced a light oil discovery from its Acorazado-1 exploration well on its fully owned and operated Llanos-25 block in Colombia.