Gran Tierra says output hit by pipeline disruptions

Thu Jul 12, 2012 9:42am EDT
 
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(Reuters) - Gran Tierra Energy Inc GTE.TO GTE.N said it does not expect to meet its 2012 production forecast due to disruptions at the Oleoducto Transandino (OTA) pipeline in Colombia and shrunk its capital budget for the year by 14 percent.

The OTA pipeline, operated by Colombia's state oil company Ecopetrol SA ECO.CN, runs through Bolivia, Colombia, Ecuador and Peru. Ecopetrol's pipelines, including OTA, have been attacked by guerrillas, resulting in unscheduled shut-downs.

The South America-focused oil and gas producer had forecast an average production of 20,000-21,000 barrels of oil equivalent per day (boe/d) during the year, after royalties.

The disruption also impacted its second-quarter production, which fell 10 percent to 16,300 (boe/d).

The company said it is targeting to cut its 2012 capital expenditure budget by $60 million to $380 million.

(Reporting By Krithika Krishnamurthy; Editing by Sreejiraj Eluvangal)