Index

1.       Energy in Argentina.. 1

Petroleum... 1

Gas. 4

Exploitation in Argentina.. 7

2.       Opportunities in oil and gas, May 2012. 8

 

1.           Energy in Argentina

Since 1990 the Argentine energy sector has become very active. From YPF privatization in 1994 Repsol had dominant position till this month, when the local government expropriated most of it. Many other domestic and international companies have invested in electricity, oil and gas in both upstream and downstream operations.

Argentinean Oil and Gas production is declining due to the maturity of the fields, thus bringing opportunities to companies having technology and skills in that type of operations (tight sands, tertiary recovery, EOR, etc) to farm-in in order to enhance production.

Petroleum

In Energy & Petroleum, there is now quite a mix of companies; we can name international companies like Chevron, Repsol, Petrobrás, Total, Panamerican Energy, Bridas Corporation (owned by CNOOC and an Argentinean holding company), Amoco (bought by the Chinese Sinopec) among others, but also medium size and small international operators, together with Argentinean ones. The broad range of companies operating in the country, added to the need for the investment and technology, open up a variety of opportunities for foreign companies to start business in Argentine.

Excluding the OPEP countries who produces petroleum (USA and Russia); Argentina is positioned in the 11° with 35.3 Mm3.

 

Petroleum Production Worldwide

 




Petroleum Import and export in Argentina (Mm3)

Petroleum Production in Argentina (mm3)

 

Petroleum production per drilling in Argentina

Gas

Regarding to natural gas production, Argentina is the 21° producer in the World, with 400.000 Mm3.

                                                           Natural Gas Production Worldwide

1 USA

 


 

                                                         

 

 

 

 

 

 

 

 

 

 

Natural Gas Import and Export (mMm3) in Argentina

 

 

                                  Gas Production (Mm3) in Argentina


 

Gas production per drilling in Argentina

 

The trend is to increase the imported gas participation, due to the declining of local deposits.

The gas consumption is divided between industrial, power plants, residential and CNG for vehicles. With low temperatures during winter time, the residential consumption has a shooting, which has priority, with vehicular use. The power plants change to consume liquid fuels and the industries are the ones that can be interrupted with the supply, although they might have fixed contracts.

Other products, like thight gas and shale gas, are obtained from non conventional deposits, with extraction techniques different from the ones used with conventional gas. Argentine, based on recent studies, occupies the third place in deposits, after USA and China.

 


Deposits of non conventional gas deposits (billion m3) in Argentina

 


 

 

Exploitation in Argentina

There are also opportunities in onshore and offshore oil and gas exploration as well as in the natural gas downstream and electricity sector.

 

 

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 22%   productive deposits

 

 

 78%   non exploited deposits

 

 

 

 


2.           Opportunities in oil and gas, May 2012

During last month, the Argentinean government reacted against the growing imports of gas and gas oil, and expropriated 51% of Repsol stake in YPF (remaining 7% in their hands, almost 17% in the NYSE and 25% to a local partner) due to lack of agreed investment, and started the talks with other companies in the industry to increase production by increasing investment in production and exploration in their concessions, and jointly with YPF, which now is a SOE. With this new scenario, there are three ways of opportunities to invest in the industry.

  1. Province Concessions cancelled to YPF and others oil companies, also due to the lack of investment (provinces managed concessions and the Federal Government established the regulatory framework as prices, royalties, etc.). All exploration and production concessions recovered by the provinces, will be call in a bid for new agreements in the following months.
  2. Join YPF projects either for conventional oil and gas as well as for the huge shale and tight gas. As mentioned before, Argentina is the third producer in the world of this product.

 According to new YPF authorities, they are looking for association with capital and non conventional oil and gas know how. In this line, exists the possibility to invest together with YPF for exploration and exploitation with a higher level of participation.

  1. Increasing the actual production of oil and gas

Finally, from those companies that already have recent concessions (Government friends with no expertise and enough capital), the Government is pushing to accomplish their investment compromise and are looking them in a more negotiable way, for partners to go ahead in their areas. Some of these examples of areas to explore and to increase production are annexed below. The aim is to return to cover with local supply of gas oil and gas to the total country needs, which now we are importing for the first time since 1961.

Inter-Link Services Pvt. Ltd. can provide with knowledge, contacts and negotiation skills to help introduce your company in oil and gas opportunities in Argentina and Mercosure.