Argentine Province Expects Big Oil To Bid In Shale Block Auction

Posted by Joseph R. Fonseca
Wednesday, April 30, 2014
Neuquen province

 

Argentina's Neuquen province expects major global energy companies, including Royal Dutch Shell, Chevron Corp and Exxon Mobil Corp , to bid in a May auction of 11 oil blocks, its energy minister said on Wednesday.

The exploration and development blocks include conventional and unconventional oil and gas resources, most of them in the vast Vaca Muerta shale formation, considered one of the world's biggest shale deposits.

The results are expected for August.

"For unconventionals, the players will be the majors," Neuquen Energy Minister Guillermo Coco said in Houston on a road show to attract foreign capital. "Chevron, Exxon, Shell have shown interest in Vaca Muerta. They will compete for sure."

Companies interested in participating would have to form joint ventures with the provincial oil company, Gas y Petroleo de Neuquen (GyP), with 50-90 percent stakes, depending on the block size and resources.

"We want to be the minority stakeholders in all the unconventional projects and also be an important stakeholder in conventional developments," Coco added.

According to Argentine law, it is possible for companies to form consortia to develop conventional and unconventional resources separately in a single block.

President Cristina Fernandez has given the provinces more leeway to set up energy development programs, a reflection of the huge resources needed to exploit the fields.

The Neuquen basin's crude output was 224,000 barrels per day (bpd) in 2013, more than a third of the country's production, and it also produced 2.2 billion cubic feet per day, according to the regional government's figures.

The first bidding round in Neuquen was held from 2008 to 2009 and there have been another two rounds since. At least 57 blocks have been assigned and some of the properties given back to GyP are being re-offered.

In the first round, the regional government did not demand access bonds as will be the case in this round. Companies could pay as much as $80 million to access mid-sized areas.

The crude produced in the new areas has to be sold to refineries in Argentina through individual supply contracts, the minister added.

He expects that this will not be an issue, even though the controlled internal gas price is the cause of frequent complaints from operators working in the country.

U.S.-based Chevron has been the most active foreign oil company in Vaca Muertain partnership with Argentine state-run company YPF SA.

(Reporting by Marianna Parraga; Editing by Terry Wade and Andre Grenon)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Baltic Index Dips on Weaker Rates for Bigger Vessels

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday, hurt by lower rates for capesize and panamax vessels.

Norway: Oil Industry Safety Deteriorated in 2015

The risk of accidents in Norway's oil industry rose last year after reaching record lows in 2014, a survey by the Nordic country's safety watchdog showed on Thursday.

Fitch: M&A, Not Alliances to Help Revive Container Shipping

The following statement was released by the rating agency: Mergers and acquisitions, rather than the historically more popular alliances, are inevitable to address

Energy

India Instructs Disputed Tanker to Await UN Orders

India has instructed an Indian-flagged oil tanker that has been blacklisted by the U.N. not to discharge its cargo of crude oil from Libya's rival eastern government

Norway: Oil Industry Safety Deteriorated in 2015

The risk of accidents in Norway's oil industry rose last year after reaching record lows in 2014, a survey by the Nordic country's safety watchdog showed on Thursday.

Ulstein Verft's First Wind Service Vessel Launched

Shipbuilder Ulstein Verft has launched its first vessel within the renewable energy segment, and also the first with the newly-developed X-STERN hull line design.

News

UK Navy Warship Escorts Queen Mary II

U.K. Royal Navy warship HMS Defender provided escort duties for transatlantic ocean liner RMS Queen Mary II through the Gulf of Oman. The Type 45 destroyer,

Voice-data Communications and HDTV in One System

PDQ’s OneSource System provides long range cell, wi-fi and high definition TV in one system for mobile users.   San Diego wireless company PDQ Connect has developed

Entrance to Port of Santos Reopens

The entrance to Brazil's largest  reopened on Thursday, after rough seas prevented ships from entering or leaving for more than 30 hours during peak soy export season.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0926 sec (11 req/sec)