Snapshot: YPF’s Proyecto Andes mature conventional asset sale

Argentina’s biggest oil and gas company YPF aims to complete its planned divestment of mature conventional blocks this quarter – an initiative known as Proyecto Andes.

State-controlled YPF has previously said that freed up capex would be redirected into projects at the Vaca Muerta unconventional hydrocarbons formation, where the company is betting big on shale oil for export.

YPF received more than 60 offers from over 30 national and international companies. It said in June that transfer agreements would be signed this half. 

Among those interested in the assets is local player Aconcagua Energía, the country’s sixth-biggest conventionals producer and the tenth biggest overall.  

A new operator has also been formed, Bentia Energy, which is bidding for a cluster of blocks known as Neuquén Norte, according to local media outlet EconoJournal.

Assets YPF has put on the block, according to a company presentation, include 30 concessions spread across 11 clusters, with combined production of around 34,000b/d oil and 3.6Mm3/d (million cubic meters per day) gas. It is the operator of all but six of them. Offers were made for all clusters. 

Proyecto Andes is in the due diligence phase, BNamericas has learnt. More details could be disclosed during the 2Q24 results call of YPF, due to be held in August.

In Argentina, production of conventional hydrocarbons has been trending down and unconventionals trending up, driven by Vaca Muerta, where oil drillers are laser-focused on the export market.

National oil production in May was 698,800b/d (111,000m3/d), up 8.5% year-on-year, according to data from local consultancy Economía & Energía.

Output of unconventionals climbed 23.8% to 366,500b/d, offsetting a drop of 4.6% in conventionals to 332,200b/d. 

The Neuquén basin, home to investment magnet Vaca Muerta, is consolidating its position as the country’s top-producing basin, accounting for 467,200b/d in May, up 15.7% and offsetting declines in other basins. 

President Javier Milei's economic reform law, known as Ley Bases, deregulates the oil and gas sector, easing state control over exports and pricing.  

PROYECTO ANDES – CLUSTERS AND BLOCKS

Cluster 1 - Mendoza Norte (Cuyana basin)
Oil output: 11,725b/d
Gas output: 99,000m3/d
Barrancas
Río Tunuyán
Ceferino
Mesa Verde
La Ventana
Vizcacheras

Cluster 2 - Mendoza Sur (Neuquén basin)
Oil output: 2,090b/d
Gas output: 844,000m3/d
El Portón
Chihuido de la Salina
Altiplanicie del Payún
Cañadón Amarillo
Chihuido de la Salina Sur
Confluencia Sur (operator is Aconcagua)

Cluster 3 – Llancanelo (Neuquén basin)
Oil output: 1,818b/d
Gas output: 2,000m3/d
Llancanelo
Llancanelo R

Cluster 4 – Neuquén Norte (Neuquén basin)
Oil output: 2,665b/d
Gas output: 121,000m3/d
Señal Cerro Bayo
Volcán Auca Mahuida
Don Ruiz
Las Manadas

Cluster 5 – Neuquén Sur (Neuquén basin)
Oil output: 1,266b/d
Gas output: 419,000m3/d
Al Norte de la Dorsal
Octógono
Dadín

Cluster 6 – Señal Picada-Punta Barda (Neuquén basin)
Oil output: 4,022b/d
Gas output: 86,000m3/d
Señal Picada-PB

Cluster 7 – Estación Fernández Oro (Neuquén basin)
Oil output: 1,389b/d
Gas output: 890,000m3/d
Estación Fernández Oro

Cluster 8 – El Trébol-Escalante (Golfo San Jorge basin)
Oil output: 7,112b/d
Gas output: 38,000m3/d
El Trébol-Escalante

Cluster 9 – Campamento Central-Cañadón Perdido (Golfo San Jorge basin)
Oil output: 1,546b/d
Gas output: 5,000m3/d
Campamento Central-Cañadón Perdido

Cluster 10 – Chubut (Golfo San Jorge basin, non-operating stakes)
Oil output: 416b/d
Gas output: 15,000m3/d
El Tordillo (operator is Tecpetrol)
La Tapera (operator is Tecpetrol)
Puesto Quiroga (operator is Tecpetrol)

Cluster 11 – Tierra del Fuego (Austral basin, non-operating stakes)
Oil output: 1,693b/d (operator is Enap)
Gas output: 1.13Mm3/d (operator is Enap)
Magallanes (offshore)
Poseidón (offshore)