Argentine oil export requests flat in November

Argentina published 42 export-authorization requests for crude and refined products in November, just one more than the 41 registered in November last year, according to data from the federal energy department.

Crude exports have been trending up this year in terms of both volume and revenue, with 193,000b/d for a total of US$451mn registered in September, up from around 100,000b/d and US$300mn in January, according to data from consultancy Economía & Energía.

Exporters' appetites are being whetted by the buildout of midstream infrastructure and a government focused on policies to increase deregulation.

Against this backdrop, the country’s hydrocarbons export sector is undergoing a regulatory overhaul, with a key pillar being the recently published secondary legislation guiding the implementation of President Javier Milei’s economic framework law. 

The fine print permits the market to set prices of hydrocarbons and maintains a degree of government control over exports to ensure that local demand is met.

More legislation, due for implementation in January, involves bringing into force a 2013 decree that awards forex benefits for companies who have invested over a certain threshold in the Vaca Muerta shale play. 

Decree No. 929 encourages investments by enabling exports, and promising zero withholding taxes and access to a percentage of the net income in hard currency free of exchange controls, Argentine hydrocarbons lawyer Francisco Romano explained in a past guest column. To be put into operation, the decree requires secondary tier regulations for customs, the central bank and energy department. 

The decree establishes that proceeds from 20% of production can be freely exchanged into dollars. Potential beneficiaries include the firms Chevron and Petronas.

Milei has said the government planned to lift capital controls in 2025. Progress on accumulation of monetary reserves and the fight against inflation are seen as being among the key enablers.  

National oil output in September was 746,900b/d, up 14.5% year-on-year, as nonconventional production rose 37.3% to 418,900b/d, offsetting a 5.6% drop in conventional oil output.

Meanwhile, in November, the federal energy department published oil and derivative export authorization requests for a total of 1.16Mm³ (7.30Mb), corresponding to 29 companies.

The bulk are for periods of 30 days or more between December and early February. Vista Energy filed the biggest single request, involving dispatching 200,000m³ of Medanito crude from the Neuquén basin via Puerto Rosales in Buenos Aires province from January 1 to 31. Vista is Argentina's second-biggest shale oil producer after state-controlled player YPF. 

Crude oil is also dispatched to Chile via the Otasa duct under a separate regime. According to federal energy department data 450,000m³ (2.83Mb, or around 94,330b/d) was transported via the 110,000b/d capacity pipeline in September, up from 219,000m³ in January. 

Oil, refined product export authorization requests published in November

Petrolera Aconcagua Energía: One request for 9,000m³
Pan American Energy: Four requests for a total of 52,000m³
Pluspetrol: One request for 60,000m³
Enap Sipetrol: One request for 16,000m³
Chevron Argentina: Two requests for a total of 52,000m³
Wintershall Energía: One request for 10,000m³
Capex: Two requests for a total of 60,000m³
CGC: Two requests for a total of 128,000m³
Combustibles Italo Argentino: One request for 200m³
Tecpetrol: Two requests for a total of 83,000m³
Refinería del Norte: Two requests for a total of 5,000m³
Secra: Two requests for a total of 754m³
Petrolera El Trébol: One request for 37,380m³
President Petroleum: One request for 2,220m³
Desarrollos Petrolero y Ganadero: Two requests for a total of 2,176m³
Crown Point Energía: Two requests for a total of 4,863m³
Roch: Two requests for a total of 3,827m³
Equinor Argentina: One request for 55,000m³
ExxonMobil Exploration Argentina: One request for 11,000m³
Gas y Petróleo del Neuquén: One request for 4,000m³
Shell Argentina: One request for 80,000m³
CHNC: One request for 130,000m³
Pampa Energía: One request for 10,000m³
Petronas E&P Argentina: One request for 80,000m³
YPF: Two requests for a total of 26,000m³
Chevron Argentina: One request for 32,000m³
Hattrick Energy: One request for 200m³
Vista Energy Argentina: One request for 200,000m³
Trafigura Argentina: One request for 6,000m³