Argentine oil, refined product export requests climb by volume in December

Twenty-seven crude oil and derivative export authorization requests were published in Argentina in December, down from 37 a year earlier.

Associated volume was 944,230m3 compared with 809,200m3 in December 2023.

Requests from 22 companies were published, down from 25.

The bulk of requests published in December are for roughly 30-day periods in January-March.

Argentina’s government has loosened state control over the hydrocarbons sector but retains powers to ensure that local demand is met, as detailed in the secondary legislation issued to guide implementation of the framework law. 

More legislation involves bringing into force a 2013 decree that awards forex benefits for companies who have invested over a certain threshold in the Vaca Muerta shale play. Decree No. 929 encourages investments by enabling exports, and promising zero withholding taxes and access to a percentage of the net income in hard currency free of exchange controls, Argentine hydrocarbons lawyer Francisco Romano explained in a past guest column. The decree establishes that proceeds from 20% of production can be freely exchanged into dollars.

Domestic demand for light crude is met. Argentina imports some grades of gasoline and diesel.

According to data from the General Mosconi institute energy think tank, Argentine oil exports were 583,600m3 in October, down 12.2% year-on-year. That month Argentina imported 56,600m3 diesel and 47,000m3 gasoline, down 74.5% and 65.4%, respectively. 

National oil production was 118,100m3/d in October, up 12.2% year-on-year. Unconventional output growth of 29.5% to 67,800m3 offset a 4.9% decline in conventionals production to 50,300m3. The export market and a midstream buildout is spurring output growth.

The bulk of upstream investment is being pumped into Vaca Muerta, located chiefly in Neuquén province. 

Other news

In other hydrocarbons sector developments, CGC and VenOil Energía reached a preliminary agreement under which the former will cede the Mendoza province mature assets Piedras Coloradas and Cacheuta to the latter.

Mendoza’s provincial government needs to authorize the transfer of the Cuyana basin acreage, whose licenses are due to expire in 2025 and 2026, respectively. A concession extension decision is also pending.

Combined output is around 200m3/d (1,258b/d). VenOil has submitted an investment plan. 

CGC is redirecting money in the Palmero Aike formation in the Santa Cruz province chunk of the Austral basin, deemed to hold unconventional hydrocarbons production potential. Palermo Aike covers an area of roughly 12,600km2 and may host 10Bboe (billion barrels of oil equivalent), around a third of the resources estimated to be held by Vaca Muerta.

In Mendoza province, meanwhile, fellow upstream player PCR has committed to invest US$20mn, a sum that may rise depending on exploration results.  

In other upstream news, Capex said it planned to invest US$200mn in Chubut province this year, local media outlet Eolo Media reported. Capex aims to pump the money into Diadema Argentina, Pampa del Castillo and Bella Vista Oeste, in the Golfo San Jorge basin.

In Río Negro province, Capex is poised to secure rights to carry out work, targeting unconventional hydrocarbons, at area Cinco Saltos Norte.

Oil, refined product export authorization requests published in December

Pan American Sur: One request for 25,000m3
Petrolera Aconcagua Energía: One request for 9,000m3
Pan American Energy: Two requests for a total of 169,500m3
Total Austral: One request for 20,000m3
Pluspetrol: One request for 45,000m3
Equinor Argentina: One request for 35,000m3
CHNC: One request for 120,000m3
Gas y Petróleo del Neuquén: One request for 5,000m3
Petrolera El Trébol: One request for 40,000m3
Refinería del Norte: Three requests for a total of 7,000m3
PCR: Two requests for a total of 20,000m3
Shell Argentina: One request for 50,000m3
Pampa Energía: One request for 10,000m3
ExxonMobil Exploration Argentina: One request for 20,000m3
Capex: One request for 7,000m3
Desarrollos Petrolero y Ganadero: One request for 307m3
Crown Point Energía: One request for 1,223m3
Petróleos Sudamericanos: One request for 15,000m3
Hattrick Energy: One request for 200m3
Tecpetrol: Two requests for a total of 115,000m3
Vista Energy: One request for 150,000m3
CGC: One request for 80,000m3