Parex Resources Inc., Calgary, has begun initial restart of production at Capachos block in Northern Llanos, Colombia, after the restoration of safe working conditions, the company said.
On Jan. 21, 2023, Parex shut-in Capachos block (50%) and halted drilling operations at Arauca block (50%) due to heightened security concerns as the country faces rising political, economic, and social unrest.
“After continuous dialogue and coordination with various government entities, as well as a robust safety and security assessment in alignment with our workforce, we are confident in safely restarting activity in [Northern Llanos],” said Daniel Ferreiro, president and country manager. The company continues to work with all stakeholders to resume drilling operations at Arauca block sometime in this year’s second quarter, he continued.
The shut-ins, limited to Capachos and Arauca blocks, are expected to affect Parex’s first-quarter 2023 results. Net production was impacted by about 6,500 boe/d during the suspension, in addition to slowing the pace of new wells that could be drilled and brought online, the company said.
A Mar. 28 note by the Colombian Chamber of Oil, Gas and Energy Goods and Services (Campetrol) said it foresees a 2.5% drop in average daily production of crude oil this year, mainly due to an “increase in public order conflicts” in areas where oil and gas extraction activity is carried out.