Argentine oil export requests climb, Neuquén shale drillers power growth

Argentina’s federal energy department published 39 oil and gasoline export authorization requests in January, up from 35 in December and 34 in November.

The bulk corresponds to roughly 30-day periods in March-April.

Drillers, chiefly in the Neuquén basin, are ramping up production, with appetites whetted by attractive prices on the export market, geopolitical shifts and midstream investment to debottleneck golden goose Neuquén basin.  

Overall, requests from 28 companies were published, compared with 23 firms in December, 27 in November, 24 in October and 21 in September.

Together, the companies sought authorization to ship 1.21Mm3 (million cubic meters) compared with 612,201m3 in requests published in December and 1.1Mm3 in requests logged in November.

Pan American Energy, a major player in the Golfo San Jorge basin, filed the biggest single request, for 167,000m3 of crude from there. Overall, the company sought authorization to ship 192,100m3, with the balance comprising refined products and oil from the Noroeste basin.

The second-biggest single request, for 160,000m3 of Neuquén basin crude, was filed by Vista Energy, which said last year that exports may account for half of production in 2024, up from 2022 levels of around 40%. 

NEUQUÉN EXPORTS

Argentina’s top-producing hydrocarbons jurisdiction, Neuquén, exported 22Mb (million barrels) of crude (roughly 60,280b/d) last year, or 22% of its total output, the provincial government said in a statement. Fourteen drillers exported, with the biggest players by volume Vista Energy, Chevron, Shell and Petronas, representing 24%, 21%, 12% and 11% of the province’s exports, respectively. Average price obtained was US$87/b, higher than what was fetched locally, likely around US$63/b.

Associated work is underway to boost Neuquén basin dispatch capacity. Neuquén hosts the biggest chunk of the basin, which extends into Mendoza, Río Negro and La Pampa provinces.

Governor Omar Gutiérrez recently said a new duct being built between the basin and export facilities in Buenos Aires province would add 300,000b/d of dispatch capacity. In a first phase, 115,000b/d of capacity is expected to enter service in 2024. Current basin dispatch capacity is 470,000b/d. 

An export pipeline to Chile is being refurbished and due to begin carrying oil again this half. Transport capacity range is 8,000m3/d to 17,500m3/d (50,318-110,071b/d), according to a presentation from operator Otasa.

Argentina exports crude and liquid fuels but, on account of domestic refinery capacity, typically imports some grades of gasoline and diesel to meet local demand.

NEUQUÉN PRODUCTION, GOALS

Oil production in Neuquén has been trending up sharply since 2020, spurred by shale drillers, as output from other jurisdictions – which mainly produce conventionals – has largely remained flat or trended down.

Neuquén monthly oil output, according to data from the provincial energy ministry, was 1.49Mm3 (48,187m3/d or 303,087b/d) in October, up from 1.13Mm3 a year earlier and 766,315m3 in October 2020. The provincial government said in a press release that December production was 308,660b/d, smashing the province's all-time production record of 308,000b/d, set in October 1998.

The production target set for 2022 was 308,000b/d. Neuquén is aiming to hit 1Mb/d. Gutiérrez last year said the 2030 goal was 700,000b/d.

Neuquén is working to expand the amount of hydrocarbons acreage under development. In an associated move, officials recently launched an auction for the rights to explore and extract hydrocarbons from 209km2 area Cerro Hamaca. Bids for the acreage, formerly held by state oil firm YPF, are due March 13. Production at the area began trending down in July, with December oil output registering at 41.8m3/d, compared to 123m3/d in December 2021.

Around 90% of the area of the basin’s Vaca Muerta formation is undeveloped. 

Around 89% of Neuquén’s production is unconventional. Up from just 1% a decade ago.

NATIONAL OIL PRODUCTION

Nationally, oil production was 98,900m3/d in December, up 0.7% month-on-month and 11.1% year-on-year, according to data from the General Mosconi institute energy think tank. Unconventionals accounted for 44,900m3/d of the total, up 2.1% month-on-month and 33.0% year-on-year.

OIL AND GASOLINE EXPORT REQUESTS PUBLISHED IN JANUARY

Petronas E&P Argentina: One request for 75,000m3

Pan American Sur: One request for 20,000m3

Pan American Energy: Four requests for 192,100m3

ExxonMobil Exploration Argentina: One request for 35,000m3

Total Austral: Four requests for a total of 50,000m3

Shell Argentina: One request for 65,000m3

Enap Sipetrol: One request for 16,000m3

CGC Energía: Three requests for a total of 130,000m3

GyP: One request for 2,000m3

Pluspetrol: One request for 70,000m3

YPF: Two requests for a total of 14,300m3

Oilstone Energía: One request for 5,500m3

Roch: Two requests for a total of 8,640m3

Secra: One request for 323m3

Petrolera El Trébol: One request for 1,020m3

Desarrollos Petrolero y Ganadero: One request for 933m3

Crown Point Energía: One request for 2,084m3

Compañia General de Combustibles: One request for 41,000m3

Petróleos Sudamericanos: One request for 9,000m3

Refinería del Norte: One request for 5,000m3

Wintershall Energía: One request for 35,000m3

Capex: One request for 90,000m3

PCR: One request for 10,000m3

Compañia de Hidrocarburo no Convencional (YPF-Chevron): One request for 100,000m3

Pampa Energía: One request for 10,000m3

Petrolera Aconcagua Energía: One request for 2,000m3

Tecpetrol: Two requests for a total of 60,000m3

Vista Energy: One request for 160,000m3