Argentina's Neuquén province gives green light for GyP exploration contract

Argentine province Neuquén authorized a hydrocarbons exploration contract corresponding to the Bajo del Toro Este area.

The work will be carried out by private sector players Interoil Argentina and Selva María Oil, along with provincial hydrocarbons firm GyP. Interoil is the operator.

Associated investment is US$20.5mn, the provincial government said in a statement.

In the first four-year period, acquisition and reprocessing of 3D seismic is planned, along with the drilling of an exploration well.

The acreage, located in the oil zone of the Vaca Muerta unconventional hydrocarbons formation, was auctioned this year.

Areas in the province are earmarked for GyP, which can develop them alone or in partnership with third parties. An associated auction is being held, with bids due by March 20, 2024.

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In other news from Argentina, industry suppliers and providers attended a workshop hosted by the federal government on hydrogen economy opportunities at Bahía Blanca port in Buenos Aires province.

Home to petrochemical players, Buenos Aires constitutes one of several potential low-emission hydrogen hubs envisioned for the country.

The port is the biggest producer of hydrogen in Argentina and has infrastructure in place for the export of methanol and ammonia, the federal government said in a statement.

Argentina recently published a hydrogen strategy and has a green hydrogen promotion bill in congress.

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In related news, Santa Cruz province said it had become part of the Patagonia region hydrogen strategy initiative.

The objectives of the scheme, the provincial government said, include establishing the region’s production potential, creating a roadmap and establishing what conditions are needed to achieve economic and technical feasibility.

The initiative is being driven forward by the federal investment council, CFI. 

Patagonia comprises the provinces of Chubut, Neuquén, Río Negro, Santa Cruz and Tierra del Fuego. Large-scale hydrogen projects have been announced for Río Negro and Tierra del Fuego, which have abundant wind resources and land.