Lifting of Colombia blockade frees up oil flow

US independent Vetra is in the process of restoring oil production of around 17,000 b/d from its Suroriente block in southern Colombia after a deal was reached to lift a 70-day community blockade.

Vetra told Argus that Suroriente output fell to around 7,500 b/d because of the blockade, and that production levels will likely return to normal within a week.

Output at the block was impacted on 13 July amid a series of regional blockades. An agreement to lift the blockade in the area of the Suroriente oil fields was ratified by local and national government and community representatives on 19 September, Vetra´s Canadian partner Petroamerica said in a 25 September statement.

The Suroriente block accounts for about 30pc of some 50,000 b/d of total oil production in restive Putumayo province. Operator Vetra and Petroamerica together hold a 52pc stake. Colombia´s state-controlled Ecopetrol holds the remaining 48pc stake.

Protests and community blockades at the Puerto Vega-Teteye road corridor in Puerto Asis municipality reduced Suroriente oil production for around two months as part of a province-wide strike. Local community leaders contend that oil development has exacerbated Colombia´s armed conflict and harmed the environment with little socio-economic benefit for communities.

Routine rebel attacks on oil infrastructure, including pipelines and tanker truck convoys, have caused oil spills and environmental damage in Putumayo, which in turn has contributed to community discontent.

The 19 September agreement stipulates that energy, environment and interior ministry officials, farmers and indigenous leaders will review a 2010 decree that permits the development of the Quinde, Cohembí and Quillasinga oil fields, which make up the Suroriente block.

Community groups have recently appealed to local courts to try to block further oil development in Putumayo.

Petroamerica said expanded development of the Suroriente block faced such an appeal of its environmental permit, but the court action was unsuccessful and the new project permit was ratified on 5 September.

But legal risk remains a concern for oil companies in the province. Early this month, a high administrative court, Colombia's State Council, ruled to indefinitely suspend government decree 934, which permits federal courts to review and overturn local rulings on oil and gas activity.

The government of President Juan Manuel Santos has pledged to increase oil exploration in Putumayo and tighten security for producers. A provincial official has said that there are plans to quadruple production to around 200,000 b/d over the next three years.

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