Paraguay lawmaker keeps upstream hydrocarbons flame lit

Paraguay lower house member Edwin Reimer has introduced a bill to ease restrictions for upstream hydrocarbons activities in the Médanos del Chaco national park.

The proposed legislation would modify articles in the law that declares the park a protected wilderness area under public domain.

According to the lawmaker, subsequent modifications to the law widened the area to 605,075ha from 457,479ha, impacting companies which held hydrocarbons concessions and permits that were granted before the park was declared a protected area.

Reimer argues that the law has impacted companies Primo Cano Martínez, Zeus Ol, Riviera and Petropar.

One modification would task the environment ministry with establishing a management plan for the park that would allow exploration and production if the appropriate environmental mitigation measures are carried out.

The ministry also would be responsible for authorizing any occupation of land in the park.

The bill, available here, will now be studied in the legislation and environment committees.

Earlier this year, Reimer was successful in having congress’ permanent committee approve a declaration to promote upstream projects in the western Chaco region.

Efforts to tap Paraguay’s oil and gas resources have not moved beyond exploration, however. The lack of advancement would be due in part to the frontier, high-risk nature of plays, and well-established, neighboring upstream markets.

National oil company Petropar’s last international upstream call in 2020 was declared void after no bids were submitted.

Nevertheless, the NOC does have an open-door process where it offers blocks, and in 2021 the state operator acquired new software to better define acreage information and held upstream training provided by Uruguay’s national oil company Ancap.

One of the few active operators in the country is President Energy, which recently completed a farm-out of its Pirity concession.

A map featuring the country’s hydrocarbons upstream areas, including acreage holders, as of March is available at this link.