Roundup: Offshore block extension, H2 guide, biofuels consultation, China visit

Offshore extension

The Falkland Islands agreed to extend, until December 2026, Rockhopper Exploration production licenses, the company said in a regulatory filing. 

Rockhopper has a 35% stake in eight North Falkland basin licenses and holds 100% of three South and East basin licenses. 

North Falkland partner and operator Navitas (65%) this year submitted for review an environmental impact statement for the offshore project Sea Lion. A final investment decision is pending. Sea Lion corresponds to North Falkland basin production license PL032. Gross capex to first oil is estimated at US$1.2 billion and peak production at 55,000b/d, which could eventually be ramped up to 80,000b/d if the original FPSO vessel is replaced by a bigger one.

The PLO32 license was granted to Rockhopper in May 2005. The acreage, and production license PLO33, were previously held and drilled by Shell.

PLO32 and others had been due to expire next month.

Green hydrogen guide

A resolution mandates Chile’s electricity and fuels watchdog SEC to publish a new hydrogen project guide.

The document will be for developers seeking authorization from SEC for “special hydrogen projects.”

The guide, which will replace an original one, is designed to support harmonization of the authorization process for projects that fall within the scope of a 2022 hydrogen installation safety decree as well as those that do not.

The 2022 decree, which entered force this year, covers aspects such as design, construction, operation and maintenance.  

Chile has around 70 publicly announced green hydrogen projects and several are in the environmental review phase. SEC has issued multiple authorizations. 

A green hydrogen regulatory action plan is being carried out to support development of the nascent sector.

A chief challenge today is securing offtakers and driving down production costs.

Fuel quality specifications consultation

A public consultation linked to a proposed change to rules governing the proportion of alcohol permitted in the finished gasoline mix in Uruguay is due to end on October 25.

Uruguay’s energy ministry instructed water and energy regulator Ursea to analyze establishing a maximum of 12%.

The change would require tweaking technical specification rules, which is the subject of public consultation.

Currently, the minimum proportion of ethanol required in gasoline is 8.5%. At pumps the proportion is around 10%, local press report. 

State hydrocarbons company Ancap has a biofuels unit, Alur.

Uruguay imports the oil and gas it consumes and is working to spur electromobility and build a green hydrogen ecosystem. 

China visit

Representatives of Chinese hydrocarbons services company CCDC met with officials from Argentine province Mendoza.

Local investment was discussed, Mendoza’s provincial government said in a statement.

CCDC is a subsidiary of China’s biggest oil and gas producer, CNPC. In Latin America, CCDC has a branch in Ecuador.

Mendoza is in the process of auctioning multiple areas. 

In parallel, national oil company YPF is exploring Mendoza’s 30% portion of the Vaca Muerta unconventional hydrocarbons formation.

In terms of gas, Mendoza produced 1.57Mm3/d in June, according to data from the federal energy department. Of that, 1.43Mm3/d was conventional and the balance shale and tight.

Regarding oil, the province produced 9,033m3/d, with 8,900m3/d conventional and the rest shale and tight.

Nationally, oil production was 725,200b/d (115,297m3/d) in August, with gas output at 153Mm3/d.

The bulk of upstream investment is being pumped into Neuquén province, home to the lion’s share of Vaca Muerta.