The ongoing closure of Colombia’s second most important oil pipeline continues to impede national oil production costing millions in lost revenues for the oil companies and the state, reported national media on Thursday.
The continuing paralysis of the Caño Limon-Coveñas pipeline in north western Colombia as a result of a guerrilla attack last month has worried Colombia’s oil sector. The closure has halted the production of 2.2 million barrels of oil per month, according to Caracol Radio.
The Caño Limon Coveñas pipeline was allegedly attack by the country’s second largest guerrilla group, the ELN, on March 25 in the municipality of Toledo in the eastern Colombian state of Norte de Santander.
The ongoing closure of the pipeline is halting the production of around 72,000 barrels per day, and losing the Colombian state around $8 million per day.
As a result of the closure the government has not received royalties, taxes and dividends totaling $136 million.
So far it has proven impossible for the state to repair the damaged section of pipeline as access to the area has been blocked by the U’wa indigenous community who have been mounting a resistance against state oil projects. They argued that oil projects present an imminent physical social and cultural threat to their group.
MORE: Colombia Ministers meet with indigenous group impeding oil pipeline repair
On Friday, marking a month since the closure of the pipeline, government ministers representing the Interior, Mining and Environment ministries will meet with the U’wa community to try and reach a deal to access the land and repair the pipeline.
In November 2013, the ELN declared war on the multinationals and oil companies “plundering” the country’s natural resources.
MORE: ELN declares war on oil companies
Sources
- Se han dejado de producir 2,2 millones de barriles de petróleo por atentado (Caracol Radio)
- Un mes paralizado Oleoducto Caño Limón-Coveñas (Dinero)
