Argentina roundup: Offshore block exit, Río Negro concession extension

Offshore divestments 

Two Argentine offshore hydrocarbons exploration licenses, originally awarded to the private sector, have been transferred back to the State.

The step was announced on Monday by the federal energy department. 

Total Austral and BP had said last year that they relinquished their rights to Argentina Norte basin blocks CAN-111 and CAN-113. The two areas do not have an environmental permit.

ALSO READ: The offshore hydrocarbons push of Argentina, Uruguay and the Falklands

The official notice comes after other European drillers – Equinor and Eni – announced offshore divestments. It also follows news that Argerich-1, the country’s first ultra-deepwater exploration well, drilled in the Argentina Norte basin, was dry.

Río Negro concession extension 

Río Negro province lawmakers passed a bill that authorizes 10-year hydrocarbons license extensions by 37 to eight votes. 

The draft legislation, especially geared to mature fields, was given the green light at the committee stage last week, following amendments. 

Chief among them is one establishing that each extension needs congressional ratification. Another one, concerning revenue distribution, sets out, for example, that 2% must go to energy efficiency programs. 

At stake are 21 contracts that involve nine operators and which are due to expire in 2025-28. These account for 75% of the province’s production licenses.