Pan American Energy secures US$520mn for Argentina E&P

Argentina-focused oil company Pan American Energy (PAE) secured US$520mn in financing from a consortium of lenders for exploration and production activity in the country.

The International Finance Corporation (IFC) will provide US$120mn of the total, IFC said in a statement, with the remainder coming from ICBC, Banco Itau BBA, Natixis, Credit Agricole, Banco Santander, BBVA and Latin American trade finance bank Bladex.

Financing will go toward development of the Cerro Dragón block in the Golfo San Jorgebasin (pictured) and the Lindero Atravesado block in the Neuquén basin, where PAE and Argentine national oil company YPF signed an agreement this month to jointly invest US$11bn over 20 years.

PAE is Argentina's second-leading oil and gas producer behind YPF. Among Argentina's main producers, PAE and YPF are the only ones to have consistently increased output in recent years.

In related news, representatives from state-run Russian energy company Gazprom met with local government officials in Argentina's Salta province to discuss natural gas E&P opportunities in the area.

A provincial government statement cited the production potential of Salta's Duran field, and the exploration potential of fields including Acambuco, Aguaregüe, Agua Blanca and San Antonio Sur.

Natural gas accounts for around 70% of production in Salta, the statement said, with liquids contributing the remainder.

Also from Argentina, Americas Petrogas announced that its shareholders approved the proposed transaction with Tecpetrol. The deal is due to close this August.

BNamericas will host its 5th LatAm Power Generation Summit in Lima, Peru, on August 19-20 and its 9th South America Infrastructure & Energy Summit in Bogotá, Colombia, on September 9-10. Click here to download the agendas.