Argentine oil export requests tick up by volume as crude starts flowing over Andes

Argentina published 34 oil and gasoline export permission requests in April, compared with 42 in March and 24 February. 

The requests correspond to exports via Atlantic coast oil terminals, which from this month are being complemented by dispatches through pipeline to Chile, which are subject to a different regulatory regime.

A key difference is that producers that want to export oil to Chile by pipeline are exempt from first having to consult local refineries – a procedural step that companies that export via the Atlantic need to take to ensure local demand is met.

Nationally, oil production was 101,300m3/d (637,157b/d) in February, up 12.0% year-on-year. Vaca Muerta drillers drove a 34.2% increase in output of unconventionals, which accounted for about half. That month, 540,294b/d was processed into derivatives locally.

In terms of exports to Chile, under an initial agreement, up to 40,000b/d from state oil firm YPF and other producers will be exported to Chilean state hydrocarbons company Enap via the pipeline, with YPF accounting for around 45% of dispatched crude. Following completion of the Vaca Muerta Norte pipeline this half, which will connect to YPF’s core Vaca Muerta shale hub, volumes are expected to climb to 70,000b/d and rise again to 110,000b/d by the end of 2024.

Today, the biggest chunk of Argentine hydrocarbons exports is Medanito crude from the Neuquén basin, home to Vaca Muerta. Neuquén province, which sits over the bulk of Vaca Muerta, exported roughly 69,900b/d in 1Q23, up 58% year-on-year. Revenues fell 23%, linked to a drop of 22% in average price fetched. In March, the biggest Neuquén exporters by share of the pie were Vista Energy (33%), Petronas (20%), Compañía de Hidrocarburo No Convencional (YPF-Chevron) (20%) and Shell Argentina (11%). 

Neuquén province oil production climbed 24.0% year-on-year in April, but fell 1.27% month-on-month, to 328,082b/d. Unconventional oil accounted for 91% of output.

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.

The bulk of export authorization requests published in April, meanwhile, correspond to roughly 30-day periods, according to data published by the federal energy department. 

Pan American Energy filed the biggest single request, for 167,000m3 of Escalante crude from the Golfo San Jorge basin from June 5-July 10.

Requests from 26 companies were published in April, compared with 25 in March and 18 in February. Together, the companies sought authorization last month to ship 1.05 million cubic meters, compared with 936,881m3 of requests published in March and 722,385m3 in February.

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

REQUESTS PUBLISHED IN APRIL 

Enap Sipetrol: One request for 16,000m3

Pan American Energy: Four requests, for a total of 191,850m3

Total Austral: Two requests, for a total of 14,000m3

Refinería del Norte: Two requests, for a total of 10,500m3

Secra: Two requests, for a total of 538m3

Petrolera El Trébol: One request for 850m3

Desarrollos Petrolero y Ganadero: One request for 777m3

Crown Point Energía: One request for 1,737m3

Roch: Three requests, for a total of 1,367m3

Shell Argentina: One request for 65,000m3

Equinor Argentina: One request for 18,0003

Compañía General de Combustibles: One request for 42,000m3

Aconcagua Energía: Two requests, for a total of 20,000m3

President Petroleum: One request for 5,000m3

Tecpetrol: Two requests, for a total of 85,000m3

YPF: One request for 8,700m3

GyP: One request for 3,000m3

Petroquímica Comodoro Rivadavia: One request for 10,000m3

CGC Energía: One request for 70,000m3

Pan American Sur: One request for 20,000m3

Pluspetrol: One request for 45,000m3

Capex: One request for 80,000m3

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

Pampa Energía: One request for 10,000m3

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

Vista Energy: One request, for 160,000m3