Canadian First Nation agrees with Obsidian Energy's drilling expansion plans

Obsidian Energy

12/06/2024 01:14

June 11 (Reuters) - Canada's Woodland Cree First Nation
said on Tuesday it has ended its dispute with oil and gas
producer Obsidian Energy  OBE.TO  to expand drilling operations
on its traditional territory.
    "After mediated negotiations, we have come to terms on an
agreement in principle that balances the rights and interests of
the Nation and Obsidian Energy Ltd." Woodland Cree Chief Isaac
Laboucan-Avirom said in a statement.
    Obsidian Energy was forced to shut production at two of its
sites last month amid an ongoing dispute with the Indigenous
community.
    Woodland Cree First Nation first criticized Obsidian Energy
in February for failing to address concerns about its operations
after regulators said the Canadian oil and gas producer was
responsible for a series of earthquakes.
    Calgary-based Obsidian produces roughly 31,000 barrels of
oil equivalent per day (boepd). Around 20% of output comes from
the company's Peace River assets in northern Alberta, some of
which are located within Woodland Cree territory.
    

 (Reporting by Shivani Tanna in Bengaluru; Editing by Alan
Barona)
 ((ShivaniJayesh.Tanna@thomsonreuters.com;))