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Frontera Announces $377 Million in Transportation Cost Savings and Other Transportation Related Events
Frontera Announces $377 Million in Transportation Cost Savings and Other Transportation Re...
About this update from Frontera Energy Corporation
[{"type":"text","content":"\n\n\n\nFrontera Announces $377 Million in Transportation Cost Savings and Other Transportation Related Events\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, July 13, 2018\n\n\n\nTORONTO, July 13, 2018 /CNW/ - Frontera Energy Corporation (TSX:FEC) (the \"Company\" or \"Frontera\") today announced that it has reached the successful settlement of the Ocensa transportation arbitration concerning the P-135 Project and terminated its contractual commitment with Cenit Transporte y Logistica de Hidrocarburos S.A. (\"CENIT\") to transport oil through the Caño Limón pipeline (\"CLC\") and its contractual commitment with Oleoducto Bicentenario de Colombia S.A.S (\"Bicentenario\") to transport oil through the Bicentenario pipeline (\"BIC\").\n\nOcensa P-135 Project ArbitrationFrontera Energy Colombia Corporation Sucursal Colombia (\"FECC\"), Frontera's Colombian operating branch, and Oleoducto Central S.A. (\"Ocensa\") have reached a successful settlement agreement in an arbitration on tariffs and monetary conditions relating to transportation contracts entered into with Ocensa concerning the P-135 Project (the \"Settlement Agreement\"). Under the terms of the Settlement Agreement which was approved by the arbitrators, FECC has committed to ship 30,000 barrels of oil per day at $6.3601 per barrel (adjusted at 2.57% inflation per year until 2023 and thereafter, pursuant to applicable regulation), on the Ocensa P-135 Project through June 2025. The original terms of the contract were for the shipment of 30,000 barrels of oil per day at $8.7729 per barrel, adjusted at 2.57% inflation per year. The estimated impact of the Settlement Agreement will reduce Frontera's future transportation commitments by approximately $178.3 million and reduce future monetary conditions relating to heavy crude oil quality by approximately $199.2 million over the life of the contract.\n\nTermination of Transportation ContractsThe CLC pipeline, which connects the BIC pipeline to the Coveñas Export Terminal, has suspended transport rendered to FECC for mor...