Roundup: YPF gas duct permitting, CGC Vaca Muerta farm-in, Enap exploration, Rockhopper update

Pipeline

Argentine state-controlled hydrocarbons firm YPF is seeking the environmental green light for a gas transfer pipeline in Neuquén province.

The company has submitted environmental impact documentation to local authorities for review. 

The project – the El Casquete a Puesto López gas pipeline – involves building 16km of 8-inch duct to permit the transfer of gas from the Loma La Lata-Sierra Barrosa treatment plant to the Loma Negra turbo expander facility, to make use of idle capacity at the latter asset. Maximum pipeline capacity is 1Mm3/d (million cubic meters per day).

YPF’s top-producing gas license is Loma La Lata-Sierra Barrosa, pumping out 5.68Mm3/d in January, according to data from industry chamber IAPG.

A public consultation is planned for May 15, according to information published by Neuquén’s environment department. 

Last year YPF submitted permitting documents for crude treatment plant Sur de Los Lagos and plant La Angostura Sur at Loma La Lata-Sierra Barrosa.

CGC acquisition 

Argentine energy firm CGC has obtained a foothold in the Vaca Muerta shale play after signing an agreement to buy a 49% stake in YPF-operated area Aguada del Chañar.

In terms of oil, the move should result in CGC consolidated output climbing 25% based on recent production data.

The acreage, along with La Amarga Chica, Bandurría Sur and Loma Campana, constitute YPF’s key Vaca Muerta assets.

According to January data from IAPG, Aguada del Chañar produced 1,908m3/d (12,000b/d) oil and 139,000m3/d natural gas. National oil and gas production that month was 118,853m3/d and 141Mm3/d, respectively. 

CGC and YPF partner in Santa Cruz province at the country’s other unconventionals formation, Palermo Aike. CGC said it planned to use, at Palermo Aike, knowledge acquired at Vaca Muerta. 

CGC produces the bulk of its hydrocarbons in the Austral basin and has assets in the Noroeste, Cuyana, Neuquén and Golfo San Jorge basins. CGC also has 25% stakes in two exploration licenses offshore Tierra del Fuego province held by Norway’s Equinor.

In 3Q24, CGC produced 6.3Mm3/d gas and 22,737b/d oil. CGC also has midstream assets.

YPF was recently awarded four new concessions in Vaca Muerta: Narambuena, Aguada de la Arena, La Angostura Sur I and La Angostura Sur II. The company is working to ramp-up shale output and reduce its conventional hydrocarbons footprint.

Enap exploration

Chile’s national oil company, Enap, submitted for environmental review an US$8mn exploration project targeting Magallanes region.

The project involves drilling exploration well Hollister A, within the company’s Manzano block.

Work is penciled in to start in March 2026.

Enap expects to deploy, overall, around US$700mn in capex this year, BNamericas was told recently. 

Under Enap’s 2023-27 business plan, US$580mn is allocated to Magallanes exploration and production work, for drilling campaigns, output increases and new technology incorporation.

Falklands project

Upstream firm Rockhopper, a stakeholder in the Sea Lion development-phase oil project offshore Falkland Islands, said a final investment decision was still due around the middle of the year. 

In a statement announcing an updated independent resource report, Rockhopper said operator Navitas estimates capex to first oil of around US$1.4bn.

Last year an MOU was signed for a floating production storage and offloading vessel and associated front-end engineering design work got underway.

The Falkland Islands government recently agreed to extend, until December 2026, Rockhopper’s production licenses.

Several exploration campaigns have been carried out around the islands, but commercial production has not started.

The PLO32 license, which hosts the Sea Lion field, was granted to Rockhopper in May 2005. The acreage, and PLO33, were previously held and drilled by Shell.

Rockhopper, after farming out to Navitas, holds a 35% stake.