Argentina watch: Big-ticket project studies, acreage transfer deal, auction rules

Argentine national oil firm YPF is carrying out early-stage work on two major midstream projects, local press report.

In a move linked to a planned liquefaction plant, the company and project partner, Malaysia’s Petronas, signed a land use agreement with the administrators of the Bahía Blanca port in Buenos Aires, state news agency Télam reported. Following an initial six-month period for associated studies at the site, the companies will submit a private initiative application to obtain a long-term concession, port operator Puerto Bahía Blanca was quoted as saying.

In 2022, YPF and Petronas signed a joint LNG development and study agreement.

An LNG bill is being drafted, officials have said previously.

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YPF started work on an environmental impact study for a planned oil terminal and pipeline project in Río Negro province, media outlet Río Negro reported. 

The company plans to export some Neuquén basin oil via the planned terminal.

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Argentine upstream firm Aconcagua Energía is expanding its footprint.

The mid-sized player reached an agreement with heavyweight Vista Energy to acquire its conventional hydrocarbons assets in Neuquén and Río Negro provinces.

The transaction – due to be fully executed by end-February 2027 – will make Aconcagua one of the country’s six biggest conventionals operators, with a production portfolio of 13,400b/d consolidated, a statement said.

Aconcagua will become operator of Entre Lomas, Jarilla Quemada, Charco del Palenque, Jagüel de los Machos and 25 de Mayo-Medanito, taking its tally of operated concessions to 13.

Under the US$26.5mn transaction, the company will have the right to 60% of associated oil and gas output, Vista the balance, and will work to boost output and prevent declines, a regulatory filing said. Oil output will be sent to the Bahía Blanca terminal via Oldelval midstream infrastructure.

Aconcagua will also acquire the Entre Lomas and Jarilla Quemada gas transport concessions and the 25 de Mayo oil transport concession.

Aconcagua recently announced an US$8mn bond sale and the extension of its extraction license at Mendoza province block Confluencia Sur for 10 years. In 2021, the company said it aimed to increase consolidated production to over 3,000boe/d.

Aconcagua’s production climbed 103% year-on-year in 3Q22 to 2,623boe/d, according to a company presentation. Of that, 15% was exported, up from 5% a year earlier and zero in 3Q20. Argentine E&P firms are ramping up production to boost exports, with appetites whetted by favorable prices on the international market and midstream investment.  

Aconcagua oil production in October was 388m3/d (2,440b/d), according to operator data published by the federal energy department.

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The energy ministry of Mendoza province launched a public consultation on proposed new acreage auction rules.

A goal is helping increase the flow of investment into the jurisdiction. 

Mendoza has previously said it planned to offer 12 blocks this year under a new model of continuous auctions. 

Officials will accept comments and suggestions for 20 days starting Friday, when an associated notice was published in the official gazette. 

Click here to see the draft rules