Argentine driller secures YPF mature blocks, expands Mendoza footprint

Argentine hydrocarbons, renewables and cement firm PCR has further expanded its upstream footprint in Mendoza province.

The company, via a regulatory filing, said it had agreed with state-controlled driller YPF to acquire the latter’s 100% stake in extraction-phase areas Llancanelo and Llancanelo R.

YPF is in the process of divesting multiple mature conventional areas under a plan known as Proyecto Andes, which it wants to conclude this half.

PCR said the YPF assets would boost its Mendoza production rate to 3,300b/d and expand its reserves by 1.26 million cubic meters, or 7.93 million barrels.

"In this way, PCR plans to increase the production and reserves of the acquired areas through investment activities aimed at achieving production growth, optimizing and reactivating existing wells, as well as evaluating potential new hydrocarbon accumulations and drilling in new structures," the filing said.

Mendoza province needs to greenlight the transaction.

In 1H23, PCR said it had acquired from Phoenix Global Resources five Mendoza areas along with a crude delivery plant and associated assets. The acquisition would ramp up company oil output in the province to 1,500b/d, a regulatory filing published at the time said.

In June, according to federal energy department operator data, PCR produced in Mendoza 4,750m3 conventional (or 993b/d) oil, along with 1,540m3 shale oil and 210m3 tight oil. PCR also has upstream operations in La Pampa province.