Canadian First Nation blockades disrupt Obsidian Energy's operations in Peace River

(Reuters) - Oil and gas producer Obsidian Energy said on Wednesday that blockades by Canada's Woodland Cree First Nation forced it to shut in production at two of its sites amid an ongoing dispute with the Indigenous community.

The company said that the first blockade took place near its Walrus field asset on May 5, forcing a production shutdown.

The blockade later shifted near the entrance of its Harmon Valley South (HVS) field operation on May 11, Obsidian said. The HVS field asset was producing 4,500 net barrels of oil equivalent per day (boepd) at the time.

Production at Walrus has restarted, but it remains halted at HVS, the company said, adding that the blockades are breaching a court order and a resolution agreement between the two parties.

The Woodland Cree First Nation has been locked in a dispute over oil and gas drilling operations by Obsidian at its territory. The company maintains that its current and future drilling locations are situated on Crown land, away from the Indigenous community's reservation.

Calgary-based Obsidian produces around 6,500 boepd, or 20% of its total production, from assets in the Peace River region.

"We reserve the right to pursue all legal means to restore the lawful operation of our HVS field, and may, without further notice, commence civil litigation against the WCFN and related parties for damages," said Obsidian's CEO Stephen Loukas.

Woodland Cree First Nation said, separately, that it remains ready and willing to sit down with Obsidian to resolve their ongoing dispute.

(Reporting by Roshia Sabu and Sourasis Bose in Bengaluru; Editing by Alan Barona)