- PetroTal (TAL) says the civil unrest previously affecting the Northern Oil Pipeline (ONP) in Peru has now been resolved
- As a result, the company has resumed oil deliveries to Saramuro for sales into the ONP, which is operated by PetroPeru
- The ONP had been impacted for a period of 85 days, largely off the back of public dissatisfaction with the Peruvian Government
- Once the ONP resumes full operations, PetroTal expects to increase its daily oil production to roughly 10,000 barrels per day
- PetroTal is currently up 13.95 per cent to C$0.24 per share at 10:57am EST
PetroTal (TAL) says the civil unrest previously affecting the Northern Oil Pipeline (ONP) in Peru has now been resolved.
As a result, the Calgary-based company has resumed oil deliveries to Saramuro, or Pump Station 1, for sales into the ONP, which is operated by Petroperu.
The unrest came from a dispute between indigenous communities in the region and the Peruvian Government, largely as a result of public dissatisfaction with the government’s handling of the COVID-19 pandemic.
PetroTal was forced to shut down its operations after the situation culminated in a violent clash between protestors and police in August, resulting in dozens of injuries and a number of deaths. However, production was recommenced in late September.
With a resolution now in place, Petroperu has begun pumping oil from Pump Station 1 to Pump Station 5, allowing the waiting barges to unload PetroTal’s oil.
Petroperu has said it will also inspect a portion of the ONP beyond Pump Station 5, which may have recently been damaged by heavy rains and landslides.
In the meantime, PetroTal says it will regulate its oil production according to storage availability and refinery capacity. Once the ONP has fully resumed its operations – expected by mid-january next year – the company plan to increase its production to roughly 10,000 barrels per day.
“We are pleased that the Peruvian government and indigenous communities have reached resolution on the social concerns, and that PetroTal will be able to again rely on continued availability of the ONP by Petroperu,” said Manuel Pablo Zuniga-Pflucker, President and CEO of PetroTal.
“The ONP serves an important role for all oil producers in the jungle area of Peru and having continuous, reliable operations is a necessity for continued production, development and expansion of Peru’s oil resources,” he added.
PetroTal is currently up 13.95 per cent to C$0.24 per share at 10:57am EST.
