Oil and Gas Situation in Argentina

348 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
348
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Oil and Gas Situation in Argentina

  1. 1. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netIndex1. ENERGY IN ARGENTINA..............................................................................................................................................2 PETROLEUM..............................................................................................................................................................................2 GAS.......................................................................................................................................................................................4 EXPLOITATION IN ARGENTINA...........................................................................................................................................................82. OPPORTUNITIES IN OIL AND GAS, MAY 2012...............................................................................................................9 1
  2. 2. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.net1. Energy in ArgentinaSince 1990 the Argentine energy sector has become very active. From YPF privatization in1994 Repsol had dominant position till this month, when the local government expropriatedmost of it. Many other domestic and international companies have invested in electricity, oiland gas in both upstream and downstream operations.Argentinean Oil and Gas production is declining due to the maturity of the fields, thus bringingopportunities to companies having technology and skills in that type of operations (tightsands, tertiary recovery, EOR, etc) to farm-in in order to enhance production.PetroleumIn Energy & Petroleum, there is now quite a mix of companies; we can name internationalcompanies like Chevron, Repsol, Petrobrás, Total, Panamerican Energy, Bridas Corporation(owned by CNOOC and an Argentinean holding company), Amoco (bought by the ChineseSinopec) among others, but also medium size and small international operators, together withArgentinean ones. The broad range of companies operating in the country, added to the needfor the investment and technology, open up a variety of opportunities for foreign companies tostart business in Argentine.Excluding the OPEP countries who produces petroleum (USA and Russia); Argentina ispositioned in the 11° with 35.3 Mm3. Petroleum Production Worldwide 2
  3. 3. INTER-LINK SERVICES PVT. LTD.K-185 Sarai Jullena, New Delhi 110025Tel. +91-26831226 Fax +91-26929055e-mail: Mahajan@interlinkindia.netwebsite: http://www.interlinkindia.net Petroleum Import and export in Argentina (Mm3) Petroleum Production in Argentina (mm3) 3
  4. 4. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.net Petroleum production per drilling in ArgentinaGasRegarding to natural gas production, Argentina is the 21° producer in the World, with 400.000Mm3. Natural Gas Production Worldwide 4
  5. 5. INTER-LINK SERVICES PVT. LTD.K-185 Sarai Jullena, New Delhi 110025Tel. +91-26831226 Fax +91-26929055e-mail: Mahajan@interlinkindia.netwebsite: http://www.interlinkindia.net Natural Gas Import and Export (mMm3) in Argentina 5
  6. 6. INTER-LINK SERVICES PVT. LTD.K-185 Sarai Jullena, New Delhi 110025Tel. +91-26831226 Fax +91-26929055e-mail: Mahajan@interlinkindia.netwebsite: http://www.interlinkindia.net Gas Production (Mm3) in Argentina Gas production per drilling in Argentina 6
  7. 7. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netThe 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 forvehicles. With low temperatures during winter time, the residential consumption has ashooting, which has priority, with vehicular use. The power plants change to consume liquidfuels and the industries are the ones that can be interrupted with the supply, although theymight 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 7
  8. 8. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.netExploitation in ArgentinaThere are also opportunities in onshore and offshore oil and gas exploration as well as in thenatural gas downstream and electricity sector. 22% productive deposits 78% non exploited deposits 8
  9. 9. INTER-LINK SERVICES PVT. LTD. K-185 Sarai Jullena, New Delhi 110025 Tel. +91-26831226 Fax +91-26929055 e-mail: Mahajan@interlinkindia.net website: http://www.interlinkindia.net2. Opportunities in oil and gas, May 2012During last month, the Argentinean government reacted against the growing imports of gasand 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, andstarted the talks with other companies in the industry to increase production by increasinginvestment in production and exploration in their concessions, and jointly with YPF, whichnow is a SOE. With this new scenario, there are three ways of opportunities to invest in theindustry. 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. 3. 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 tohelp introduce your company in oil and gas opportunities in Argentina and Mercosure. 9

×