LNG Energy Group has provided an operational update regarding its Colombian operations.
As previously announced, as a result of unexpected production restrictions at some wells in the Bullerengue natural gas field, the company has had to limit natural gas deliveries under gas sales agreements.
Subsidiary, Lewis Energy Colombia (LEC), signed an amendment to some gas sales agreements to reduce the volumes by 5 MMBtu per day for four months but with no significant changes to the average natural gas sales price.
LEC’s attempts to address production disruptions by an extensive working campaign and drilling initiatives have not resulted in production increases, LNG Energy said.
As a result, LEC issued a notice to the applicable Colombian regulator regarding a restriction in the natural gas deliveries under certain supply contracts. LEC continued to receive the proceeds from the natural gas sales and has notified its senior lenders of the notice.
In order to reduce costs, LNG Energy is implementing a corporate reorganisation policy at its Colombian operations resulting in annual savings of around $1 mill.
The company added that it continued to review ways to optimise costs, its business and operations.
LNG Energy also announced that COO Nicolas Ziperovich had resigned to pursue new opportunities. Director, Stan Jumper, was appointed as interim COO. Prior to joining the group, he was the Vice President of Exploration and Development at Lewis Energy Group for more than 30 years.
