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.