UK Markets open in 4 hrs 13 mins
  • NIKKEI 225

    29,683.09
    +84.43 (+0.29%)
     
  • HANG SENG

    25,319.72
    -330.36 (-1.29%)
     
  • GOLD FUTURES

    1,861.20
    -0.20 (-0.01%)
     
  • DOW

    35,870.95
    -60.10 (-0.17%)
     
  • BTC-GBP

    42,997.20
    +2,218.51 (+5.44%)
     
  • CMC Crypto 200

    1,402.14
    -65.80 (-4.48%)
     
  • Nasdaq

    15,993.71
    +72.14 (+0.45%)
     
  • ^FTAS

    4,152.80
    -11.97 (-0.29%)
     

Report for the third quarter and first nine months of 2021

  • Oops!
    Something went wrong.
    Please try again later.
·6-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Oslo, 16 November 2021

Gross production in Q3 2021 decreased from the production registered in Q2 2021 mainly due to a combination of weather conditions that affected road transportation, national strikes and social unrest in Colombia that led to road blockages causing the suspension of the oil transportation, especially from the Vikingo operation.

Interoil’s EBITDA in Q3 2021 continues with the same positive tendency registered in the immediately preceding quarter in terms of improvement.

In Argentina, the workover operations at the MMO-15 continues to be suspended due to the Covid-19 lockdown imposed by the Argentinian authorities prohibiting critical field experts from arriving in the country and downhole equipment from mobilizing to the well-site.

In Colombia, Interoil continues to seek the authorities´ required approval before spudding a well in Altair and LLA-47 blocks. In addition, the ANH issued in July 2021 a resolution (Agreement 005) granting companies the right to request extensions of the terms of exploration programs adversely affected by blockages, national strikes, the effects of the Covid-19 pandemic and the like. Interoil has filed with the ANH requests for extensions of the terms to perform exploration activities in both Altair and LLA-47 blocks.

The Company requests is based on the adverse effect on the progress in exploration activities resulting from the conjoining effect of social unrest, national strikes, and adverse conditions and restrictions imposed for the ongoing serious impact of the Covid-19 pandemic in the area and the communities located in the vicinities of the blocks which have prevented advance on the socialization of the project activities. The ANH response to the Company requests is pending.

Subsequent events and current plans

On October 15th a tower unit was mobilized to Puli C fields to repair and/or replace downhole production equipment in some producing wells aimed at recovering oil and gas production.

On October 25th eleven Puli C workers (out of twenty-three affected to the operation) unilaterally decided to strike and to block the entrance to the Mana Treatment Facilities with legal collaboration from the Colombian Oil Union Organization (Union Sindical Obrera – USO) requesting additional benefits and compensation to Puli C workers. Since then and regardless all the legal actions taken by Interoil, operational management staff has been immediately mobilized to Puli C Facilities to, firstly, grant safety and integrity to the operation, to the environment and to the surrounded communities, and, in addition, to secure a direct and friendly conversation with the Union and workers illegally blocking the entrance aiming to find a suitable solution to their request. On November 4th, the workers agree to end the strike and the blockage and to continue negotiations with the Company. Regardless the blockage situation at the entrance in Mana treatment facilities, field operation and wells production have been normally flowing where oil commercial has been stored in Mana’s main storage facilities. As a result of the end of the blockage, oil sales dispatch may resume shortly.

On November 1st, Perenco notified a heavy crumbling on a route section (Aguazul – Sogamoso) due to heavy rains in the last weeks forcing a temporarily shutdown of oil export system. Export operation will resume once civil works finish route repairing and normal pumping operation is restored.

Field operations and production continue at a reasonable level despite the logistics challenges related to the COVID-19 restriction in Colombia and lockdown imposed by the Argentinean authorities.

Gross production in Q3 2021 decreased from the production registered in Q2 2021 mainly due to a combination of weather conditions that affected road transportation, national strikes and social unrest in Colombia that led to road blockages causing the suspension of the oil transportation, especially from the Vikingo operation.

Interoil’s EBITDA in Q3 2021 continues with the same positive tendency registered in the immediately preceding quarter in terms of improvement.

In Argentina, the workover operations at the MMO-15 continues to be suspended due to the Covid-19 lockdown imposed by the Argentinian authorities prohibiting critical field experts from arriving in the country and downhole equipment from mobilizing to the well-site.

In Colombia, Interoil continues to seek the authorities´ required approval before spudding a well in Altair and LLA-47 blocks. In addition, the ANH issued in July 2021 a resolution (Agreement 005) granting companies the right to request extensions of the terms of exploration programs adversely affected by blockages, national strikes, the effects of the Covid-19 pandemic and the like. Interoil has filed with the ANH requests for extensions of the terms to perform exploration activities in both Altair and LLA-47 blocks.

The Company requests is based on the adverse effect on the progress in exploration activities resulting from the conjoining effect of social unrest, national strikes, and adverse conditions and restrictions imposed for the ongoing serious impact of the Covid-19 pandemic in the area and the communities located in the vicinities of the blocks which have prevented advance on the socialization of the project activities. The ANH response to the Company requests is pending.

Subsequent events and current plans

On October 15th a tower unit was mobilized to Puli C fields to repair and/or replace downhole production equipment in some producing wells aimed at recovering oil and gas production.

On October 25th eleven Puli C workers (out of twenty-three affected to the operation) unilaterally decided to strike and to block the entrance to the Mana Treatment Facilities with legal collaboration from the Colombian Oil Union Organization (Union Sindical Obrera – USO) requesting additional benefits and compensation to Puli C workers. Since then and regardless all the legal actions taken by Interoil, operational management staff has been immediately mobilized to Puli C Facilities to, firstly, grant safety and integrity to the operation, to the environment and to the surrounded communities, and, in addition, to secure a direct and friendly conversation with the Union and workers illegally blocking the entrance aiming to find a suitable solution to their request. On November 4th, the workers agree to end the strike and the blockage and to continue negotiations with the Company. Regardless the blockage situation at the entrance in Mana treatment facilities, field operation and wells production have been normally flowing where oil commercial has been stored in Mana’s main storage facilities. As a result of the end of the blockage, oil sales dispatch may resume shortly.

On November 1st, Perenco notified a heavy crumbling on a route section (Aguazul – Sogamoso) due to heavy rains in the last weeks forcing a temporarily shutdown of oil export system. Export operation will resume once civil works finish route repairing and normal pumping operation is restored.

Field operations and production continue at a reasonable level despite the logistics challenges related to the COVID-19 restriction in Colombia and lockdown imposed by the Argentinean authorities.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

***************************

Please direct any further questions to ir@interoil.no (mailto:ir@interoil.no) Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange with focus on Latin America. The Company is operator and license holder of several production and exploration assets in Colombia and Argentina with headquarter in Oslo.

Attachment


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting