Gran Tierra defers spending, cites prices, disruptions

By OGJ editors

Busy Colombia operator Gran Tierra Energy Inc., Calgary, is targeting $60 million of capital expenditure deferments from its previously announced 2012 budget of $440 million in connection with curtailed production and lower commodity prices experienced this year.

Gran Tierra said the deferred expenditures are expected to be from areas that do not impact production capacity or near-term, high-value reserve addition projects.

Meanwhile, Gran Tierra said its production in the quarter ended June 30 averaged 12,350 b/d of oil equivalent in Colombia, 3,800 boe/d in Argentina, and 150 boe/d in Brazil, 96% of overall volumes being light oil.

Production and sales have been affected by oil delivery restrictions due to disruptions on the Ecopetrol-operated Oleoducto Transandino pipeline in Colombia, the latest of which occurred on July 3.  Gran Tierra Energy continued production at a reduced rate while the OTA pipeline was down, selling part of its crude via trucking and storing the excess. The OTA pipeline continues to be offline with production expected to return to normal levels early next week.

Gran Tierra expects its 2012 exit production rate to remain at 20,000-21,000 boe/d net after royalties, but due to the repeated OTA pipeline disruptions that have occurred to date the company does not expect to attain that level of average production for 2012.

Related Articles

Sinopec reveals Fuling field production capacity goals

03/25/2014 Sinopec plans to develop Fuling shale gas field in southwestern China to a production capacity of 10 billion cu m (bcm)/year by 2017, the company s...

IEA: Global oil demand revised upward on stronger data

03/24/2014 Global oil demand in 2013 rose by 1.3 million b/d year-over-year to 91.3 million b/d, according to the latest, near-complete set of demand data for...

Santos brings Peluang gas development on stream

03/24/2014

Santos Ltd., Adelaide, has started natural gas production from its Peluang development offshore the Indonesian island of Java.

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected