Cenit announces actions against Frontera Energy for breach of contract

Cenit warns that he will evaluate the necessary actions to safeguard the rights of the Colombian company

the version published by the Canadian oil company Frontera Energy on which ended a contract to send crude oil in the pipeline Caño Limón-Coveñas inactive since more than six months due to criminal group attacks, the signing of Cenit indicated in a statement that she did not agree with the alleged circumstances by the oil company in the notice of termination of crude transportation contracts.

Cenit Transport and Logistics of Hydrocarbons reports that on July 12, 2018, received from Frontera Energy, branch C olombie, "notification of the termination of the oil transportation contracts concluded with respect to the Caño Limón-Coveñas pipeline (owned by Cenit). "

The subsidiary of the Colombian oil company Ecopetrol says that is in agreement with the circumstances alleged by Frontera in the notice of termination of the oil transportation contracts. "

Consider that he will evaluate the actions necessary to safeguard the rights of Colombian society.

The pipeline of Frontera Caño Limón-Coveñas which connects the pipeline Bicentenario at the Coveñas export terminal, suspended the transport service provided to Frontera Energy for more than 180 consecutive days, which constitutes a completion event according to the agreement with Cenit. (Interested in Petrolera Frontera Terminates Contract in Colombia for Terrorist Attacks )

Frontera is committed to sending up to 47,333 barrels of oil a day, for which Cenit has charged a fee of US $ 3.09 per barrel, which represents an annual disbursement of US $ 53.4 million until October 2028, according to Frontera.

The Bicentenario Pipeline , which connects Araguaney to Banadía, where it connects to the Pipeline Caño Limón-Coveñas, has also not transported oil from the company for more than six months without interruption following a justified event. termination of the contract under the terms of the agreement between Frontera and Bicentenario the Canadian company specifies with arguments with which it seeks to get rid of the contractual relationship.