Roundup: Rigi, LNG deal, concessions extension, US$300mn drilling plan and more

Rigi

Argentina’s economic reform bill has become law after being published in the government’s official gazette.

The deregulation-focused legislation includes an investment-promotion regime known as Rigi that will include spending on oil and gas projects.

Secondary legislation governing the law’s implementation is pending.

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LNG deal

Pan American Energy plans to start exporting LNG from Argentina in 2027, after entering into definitive agreements with Golar LNG.

The objective is to tap unconventional gas in the Vaca Muerta formation, Golar said in a statement.

The deal involves a 20-year deployment of a floating liquefied natural gas vessel.  

Based on operator data, PAE was Argentina’s fourth biggest natural gas producer in May, accounting for 19.5Mm3/d (million cubic meters a day) of the 150Mm3/d registered that month, local consultancy Economía & Energía said in a report. 

In terms of shale gas, PAE accounted for 10.3Mm3/d of the 77.0Mm3/d reported for May, and 800,000m3/d of the 20.1Mm3/d of tight gas. 

State-controlled hydrocarbons company YPF also has an LNG project planned. Another is planned by midstream firm TGS and energy logistics player Excelerate Energy.

Argentine gas is currently exported via pipeline, chiefly to Chile.

Concessions extension

Lawmakers and hydrocarbons sector stakeholders in Argentine province Río Negro are debating a proposed 10-year extension of existing oil and gas extraction contracts.

Officials are analyzing 21 contracts that involve nine operators and are due to expire in 2025-28. These correspond to 75% of the province’s extraction licenses. 

“We’re thinking ahead a few years because we see that the situation is critical in terms of investment and production,” provincial hydrocarbons department chief Mariela Moya said in a statement. “We’re looking to buoy activity and investment.”

Of Argentina’s provinces, Río Negro was the sixth biggest gas producer in March, reporting 3.5Mm3/d. 

In February, according to federal energy department data, Río Negro was the fifth largest oil producer, logging 3,040m3/d (19,121b/d.)

US$300mn exploration project

Chilean state oil company Enap submitted for environmental review a US$300mn drilling project.

The firm plans to drill up to 98 wells, both exploratory and development, according to documents filed with environmental review agency SEA.

Work, penciled in to start in April 2025, also involves platform construction and road building and upgrading, among other components.

Enap is targeting natural gas at Magallanes region acreage known as sub-block Picuyo. Output would supply local offtakers.

Earlier this year Enap launched an oilfield services tender. 

Uruguay H2 advisory tender

Uruguayan state electricity company UTE is seeking a firm to conduct green hydrogen studies.

The procurement process falls under a technical cooperation agreement inked last September with regional development bank CAF.

One objective is to outline ways of integrating green hydrogen and its derivatives into the power system. The winner will also be required to analyze the financial aspects of production and storage.

UTE has formed a special hydrogen team to build knowledge and, in turn, provide technical support in the formulation and execution of strategies, a procurement document states. 

“The activities framed with the hydrogen project are new and very different than the traditional ones at UTE,” it says. “In this sense, it is necessary to strengthen the team's capabilities through the implementation of specific actions and the support of international advisory services.”

Uruguay has green hydrogen projects planned, targeting the domestic transport segment and the e-fuels export market. 

The country is a clean energy champion, typically generating around 98% of power from emissions-free sources.

Bids are due July 16.

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