Report for the third quarter and first nine months of 2021
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.
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