Frontera Energy halts pipeline production

Reuters reports that following a rupture on its 1,100km oil pipeline in Peru, Frontera Energy has stopped production.  

Located 200 kilometres from the pipeline rupture, Frontera Energy has said that production at its oilfield will stop until authorities work to resolve the disputes made by indigenous protestors.

Due to the suspended production, Reuters says that operators of the pipeline, Petroperu estimated a loss of $200,000 (€176,000) per day.

According to Reuters, inhabitants of the indigenous Mayuriaga community served the pipeline however, last week they prevented technicians from repairing it. Frontera Energy says that the company is planning to repair the pipeline and will restart operations shortly.  

The oilfield has recently averaged 8,950 barrels per day and Petroperu estimates that the rupture could have caused some 8,000 barrels of oil to spill. The company has said that no oil has contaminated water sources in the area and that it has shut off crude oil from flowing through the pipeline.

The pipeline transports crude oil from the Peruvian jungle oil fields to the Petroperu refinery on the Pacific coast. Since it began operating nearly four decades ago, it has faced an oil spill of nearly 20,000 barrels, at least 15 attacks and a leak of 5,600 barrels due to corrosion of mechanical failures.