Amerisur's OBA pipeline nets savings which will 'escalate further'

Oil and gas producer Amerisur Resources announced on Friday that its OBA pipeline has now saved the company $20.3m after originaly costing $18m.

The OBA pipeline was completed in October 2016 and has reduced average transport costs from $14.05 per barrel to $3.90 and reduced the opex per barrel to $15.

John Wardle, chief executive of Amerisur, said: "The OBA pipeline has more than paid for itself after just fifteen months of operations. As production increases from the Putumayo region and OBA throughput increases the cost savings Amerisur will achieve will escalate further."

The company transported its two millionth barrel through the pipeline on 20 Feb.

Amerisur, which has two producing fields in South America, achieved a peak production of 6,960 barrels of oil per day in February, with a total of 188,984 barrels of oil produced throughout the month.

The company also said that development, appraisal and exploration operations are continuing at the Chiritza Re-Pumping Station project in Colombia, with delivery expected to be on track for October.

As of 1006 GMT, Amerisur Resources' shares were up 0.61% at 16.50p.