It’s not just Vaca Muerta: Argentina bets on offshore oil and gas production

By Mariana Espina

More than 310 kilometers from Mar del Plata is the Cuenca Argentina Norte (CAN) 102 block, a project whose shareholders are YPF (operator) and the Norwegian Equinor (EQNR), 50% each company.

This week, the Secretary of Climate Change published the approval of the 3D seismic study to search for hydrocarbons in the Official Gazette.

The seismic prospecting, which involves an investment of US$10 million, would begin in March 2024.

EQUINOR, YPF, SHELL, AND CAN 100: THE CONTROVERSIAL BLOCK

After several ups and downs, at the beginning of December last year, the Court of Appeals of Mar del Plata finally lifted the injunction that prevented the start of the seismic exploration works off the coast of Buenos Aires.

Days later, the Energy Secretariat extended the seismic exploration concession until 2024.

Exploration of the CAN 100 block, whose shareholders are Equinor (operator) and YPF with 35%, and Shell with 30%, would begin in October, according to sources involved in the projects, which asked not to be identified.

In December, exploratory drilling could begin.

FÉNIX PROJECT

Non-binding public hearings were held this week regarding the Fénix Project for offshore gas production 60 kilometers off the coast of Tierra del Fuego.

The project responds to a consortium formed by Total Energies (TTE), Wintershall DEA, and Pan American Energy (PAE) with an initial investment of US$700 million.

The first gas from Fénix is expected in early 2025 and will reach maximum production of about 10 million cubic meters daily.

Daniel Gerold of G&G Consulting participated in the hearing and said, “This Fénix project has a major relevance because it will reestablish the supply in the San Martín pipeline.”

“Today it is, I would not say empty, but with a transport capacity and a very considerable sunk investment, and where it is essential that more gas volume is developed”, he added.

With information from Bloomberg