Canacol working to end gas supply disruptions in Colombia

Canacol Energy said Tuesday it is working to resume normal natural gas production in Colombia amid fears of shortages in the country’s northern Caribbean coastal region. 

In a statement, Calgary-based Canacol said problems at its Jobo gas treatment facility and "certain producing wells" had reduced average gas sales to 178Mf3/d (million cubic feet a day) in August, down from 197Mf3/d in July. The company did not say what the problems were. 

"[We have] had to restrict gas deliveries under certain supply contracts dedicated to supplying non-essential gas demand, all in accordance with applicable Colombian regulations and in consultation with the relevant authorities," the statement reads. 

"The corporation is presently working on remediating this short-term disruption and expects to have production back to normal levels shortly."

In a letter sent to energy minister Andrés Camacho and leaked to local press last week, Canacol said it reduced deliveries to offtakers by 37.6Mf3/d after declaring force majeure on August 8. 

Local distributor Gases de Caribe said it had asked its customers to reduce consumption by 10% to mitigate the impact of tighter supply while consumer group Asoenergía called for government measures to guarantee availability of the fossil fuel.

COLOMBIA DRILLING

Meanwhile, Canacol said it plugged and abandoned its Cereza 1 exploration well on its 100% operated VIM 21 block after failing to find commercial gas volumes.

It added that it is currently drilling the Fresa 2 appraisal well while mobilizing two rigs to drill the Aguas Vivas 4 and Pandereta 9 development wells in late September and early October, respectively. 

"The corporation is focusing on infill development drilling and workover opportunities to meet anticipated high gas demand during the El Niño season which is anticipated to start in fourth quarter 2023. The company will return to exploration drilling prior to year end," the company said.