Petrobras Strikes Deal, Restarts Block 18 Output
Argentina's Petrobras Energia (PE; NYSE: PZE) has resumed production on block 18 in Ecuador, bringing an end to the 25-day halt in operations, Ecuador's state oil company Petroecuador said in a statement.
Block 18's production levels reached 11,600b oil on April 1, 23,560b on April 2 and 28,626b on April 3, the statement said.
Production is expected to return to normal at its typical 35,000b/d rate in "a few days," the statement said.
Output stopped due to a conflict with local communities but PE has now struck a deal with protestors.
Lost production during the conflict was 840,000b of crude worth roughly US$20mn.
As a result of the protest, Petroecuador was forced to declare force majeure on its exports.
PE is a subsidiary of Brazil's federal energy company Petrobras (NYSE: PBR).
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Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
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