Argentina’s energy sector is advancing, with Vaca Muerta fields already making up nearly half its hydrocarbon production.
The nation now eyes offshore and deep-water opportunities in the North Argentine Basin, over 300 kilometers from the coast, signaling a major shift in energy exploration.
Rystad Energy’s report suggests Argentina is a regional leader in offshore drilling.
The Argerich-1 well, Argentina’s dive into ultra-deep waters with Shell owning a 30% share, is key to this venture.
Equinor leads the project, exploring 15,000 km2 at 1,527 meters deep. Drilling starts mid-April, estimated between 55 and 65 days, aiming to discover significant oil reserves.
YPF’s Gustavo Astié stated the Argerich-1 well might yield 200,000 barrels daily, nearly matching YPF’s output.
However, this and other findings could raise Argentina’s GDP by 1.88% from 2025 to 2052, per Ecolatina’s findings.
In addition, Tierra del Fuego already sees shallower offshore oil and gas extraction.
The Fénix Project, a $700 million investment by TotalEnergies and partners, plans to boost local natural gas supply by up to 10 million cubic meters daily.
Globally, oil and gas giants are cautiously spending on exploration, keeping drilling tight.
Yet, optimism for deep-water projects in the Atlantic Margin, the Eastern Mediterranean, and Asia remains.
In 2023, Uruguay notably secured over half of Shell’s exploration awards, reflecting a careful but hopeful outlook for 2024, according to Rystad Energy.
In short, this perspective highlights the importance of strategic investments in realizing the potential of offshore resources, like those near Argentina.