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Canadian First Nation blockades disrupt Obsidian Energy's operations in Peace River
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Canadian First Nation blockades disrupt Obsidian Energy's operations in Peace River
May 15, 2024 11:38 AM

May 15 (Reuters) - Oil and gas producer Obsidian Energy ( OBE )

said on Wednesday that blockades by Canada's Woodland

Cree First Nation forced it to shut in production at two of its

sites amid an ongoing dispute with the Indigenous community.

The company said that the first blockade took place near its

Walrus field asset on May 5, forcing a production shutdown.

The blockade later shifted near the entrance of its Harmon

Valley South (HVS) field operation on May 11, Obsidian said. The

HVS field asset was producing 4,500 net barrels of oil

equivalent per day (boepd) at the time.

Production at Walrus has restarted, but it remains halted at

HVS, the company said, adding that the blockades are breaching a

court order and a resolution agreement between the two parties.

The Woodland Cree First Nation has been locked in a dispute

over oil and gas drilling operations by Obsidian at its

territory. The company maintains that its current and future

drilling locations are situated on Crown land, away from the

Indigenous community's reservation.

Calgary-based Obsidian produces around 6,500 boepd, or 20%

of its total production, from assets in the Peace River region.

"We reserve the right to pursue all legal means to restore

the lawful operation of our HVS field, and may, without further

notice, commence civil litigation against the WCFN and related

parties for damages," said Obsidian's CEO Stephen Loukas.

Woodland Cree First Nation said, separately, that it remains

ready and willing to sit down with Obsidian to resolve their

ongoing dispute.

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