Mendoza hydrocarbons license auction advances

Argentine province Mendoza opened economic bids as part of a hydrocarbons license auction.

Technical bids were opened earlier in the year.

Companies placed offers for five areas which, if awarded, would result in upstream investment of more than US$33mn, the provincial government said in a statement. 

Petrolera Aconcagua Energía, Hattrick Energy and Selva María Oil are participating.

Two are extraction licenses, with the other three for exploration.

The provincial government celebrated the interest shown, citing a context where areas with proven reserves, particularly in the Vaca Muerta shale play, were pulling in investment and where the divestment of mature assets by YPF, via the Andes project, was also drawing upstream attention. 

Mendoza auction areas, bidders and license type

Area: Payún Oeste
Company: Aconcagua Energía
License type: Extraction

Area: Bajada del Chachahuen
Company: Selva María Oil
License type: Exploration

Area: CN V
Company: Hattrick Energy
License type: Exploration

Area: Loma el Divisadero
Company: Hattrick Energy
License type: Extraction

Area: Malargue
Company: Hattrick Energy
License type: Exploration

The jurisdiction offered 12 licenses, of which nine are for exploration and three for extraction. The process is the first held by Mendoza in three years, following the awarding of the Chañares Herrados area.