Offshore hydrocarbon production is crucial, contributing to about 30% of global outputs, with leading countries like Brazil, Norway, and Qatar showing positive socioeconomic impacts and limited environmental incidents. Notably, recent significant oil discoveries in Africa may drive technological advancements, while Argentina's offshore activity has historically included various explorations, primarily in shallow waters. The document highlights regulatory frameworks, environmental considerations, and the ongoing evolution of offshore practices in different regions.

2. • 1.1 How relevant is offshore hydrocarbon production worldwide and which are the main producing
countries?
• It is very relevant. According to the International Energy Agency (IEA), approximately 30% of the
hydrocarbons produced in the world come from offshore generation.
• Offshore hydrocarbon exploitation is the one that emits the least amount of kg of carbon dioxide (CO2) per
barrel of oil equivalent among the different forms of hydrocarbon extraction that exist (for more information
see point 6.2.).More than 50 countries produce hydrocarbons at sea.
• The top ten countries in terms of offshore production are, in order:
• 1.2 What has been the experience of countries extracting oil offshore?
• In the vast majority of cases, it has been a source of jobs and income for the countries, and developed in a
complementary manner and without any conflicts with other sectors, such as fisheries or tourism. Some
examples are mentioned: BrazilIn the case of Brazil, thanks to offshore exploitation, largely carried out by
Petrobras, the neighbouring country is already the third largest oil producer in the Americas after the United
States and Canada, and the largest offshore producer. The main offshore basins, both in the south and north
of the country, are developing in parallel with coastal tourism activity, with several of the main beach resorts
located in the vicinity of hydrocarbon exploitation. In addition to the coast of Rio de Janeiro, the coastline of
the state of São Paulo stands out, as well as several of the main tourist destinations in the northeast: Maceió,

3. • Norway
• Norway is an international success story of economic and social development based on hydrocarbon exploitation. In just a few
decades, it went from being one of the lowest income economies among Scandinavian countries to one of the richest countries in the
the world. Equinor, until 2018 called Statoil, is the Norwegian state-controlled energy company that has led the development of
offshore oil in Norway. This has been the case since the 1970s, and since then the activity has coexisted without tension with fisheries
and aquaculture, which make up the country's second largest export complex after hydrocarbons. Norway's main offshore fields are
between 65km and 320km offshore, a shorter distance than that stipulated for the Argentinean Sea (300km offshore on average).
• Qatar
• Qatar is the world's richest country in terms of GDP per capita. Its wealth is due to the fact that the country is a gas exporter, owning
the world's third largest proven reserves of natural gas, 14% of the world's total. Exploitation takes place in the maritime area
adjacent to its coasts, where there is also oil development. The Qatari government promotes luxury tourism, with major hotel
developments around the capital and more than 500 km of coastline. Beaches are one of the country's main attractions, along with
ultra-modern architecture. Tourism is one of the main sectors on which the country is betting to diversify the economy and is
considered complementary to hydrocarbon activity. Offshore activities are approximately 80 kms offshore.
• Canada
• Canada has been developing its offshore oil activity for several years. Particularly in the island of Newfoundland and Labrador, where
this practice has considerably benefited the activity of other sectors such as construction, tourism, fishing and manufacturing. This
activity has greatly boosted the region's economy. The offshore oil platforms in this case are located some 350km offshore.
• Scotland
• In the Shetland Islands, offshore oil activity, far from having negative effects on tourism, has brought benefits not only to tourism but
to the island's activity in general.
• Firstly, since offshore activity began, the most direct impact was for hotel operators who had been used to a strong demand only in
the summer season (holiday and very sporadic) and now provide a year-round service to the oil companies working in the area. There
were large economic benefits as a result. Secondly, the demand for staff increased significantly, mainly in bars and restaurants, which
became in constant demand.
• 1.3 Have there been any global environmental problems arising from offshore hydrocarbon production?
• Incidents in the industry are very rare, they are by no means the norm.
• However, there have been some incidents throughout history. According to a report by the US Bureau of Ocean Energy Management,
between 1964 and 2015 there were 17 major spills (greater than 1,000 barrels), of which 14 were before 1980. Technological
improvements have drastically reduced the possibility of offshore accidents. It is worth noting that the lower frequency of spills since

4. • 48% of oil spills at sea are caused by natural releases from the subsoil through the seabed and the water column. Some 37% of spills
are explained by losses from ships and tankers, 9% are spilled from coastal installations, 4% are associated with small coastal
activities and only 2% are related to offshore exploration and production activities.
• The most important accidents linked to offshore hydrocarbon exploitation were the Deepwater Horizon (2010) and Ixtoc I (1979)
accidents, both in the Gulf of Mexico.
• The Ixtoc I accident occurred off the coast of Isla del Carmen, in the state of Campeche in Mexico. Today, this area is where Ku
Maloob Zaap, the largest oil field in terms of production in the last 20 years, is being developed, 100 km offshore.
• Despite the accident and other incidents in the Gulf, Isla del Carmen is considered one of the regions with the greatest potential for
tourism due to its beaches and biodiversity, being located between the Gulf and the Laguna de Términos protected area. The
sustained improvement of prevention and remediation tools has mitigated many of the most damaging potential effects of the
activity.
• As mentioned above, offshore technologies have improved significantly in recent decades, minimising environmental risks.
• Technologies on carrier vessels have also improved markedly, resulting in a marked drop in the number of spills in recent decades
(while oil transport has grown steadily over the same period). According to the site Our World in Data, while in the 1980s there was
an average of 24.5 major oil spills per year in the transport of oil (over 700 tonnes), in the 2010s that figure averaged 1.7 per year.
This represents a 93% decrease compared to the 1970s.
• 1.4 Why is the recent discovery of oil off the coasts of South Africa and Namibia significant?
• In January 2022, the industry was surprised by the announcements of two major hydrocarbon discoveries in Namibia, in the Orange
Basin, South Africa.
• Shell was the first to announce the discovery of light oil in the Graff-1 well and quickly initiated the delineation campaign to find out
the total volume of hydrocarbons in the field, which could reach 1 billion barrels of oil.
• In February, the news came from Total Energies, announcing the discovery of another significant oil accumulation confirmed by the
Venus-1 well, drilled a few kilometres from Graff. Venus could contain up to 3 billion barrels of oil and, while the accumulation is at
water depths of 3,000 metres below sea level, posing a challenge for development and production in ultra-deep water, the
significant volumes found could accelerate technological development to operate in such conditions.
• It is interesting to put the southern African discoveries in the proper geological context and to think that, 121 million years ago,
during the Aptian age of the Cretaceous period, when the recently discovered accumulations in Namibia were formed, Africa was
much closer to South America than it is today. In fact, Venus must not have been more than 200 km from the areas that YPF is
currently exploring in the Northern Argentine Basin.
• Recent discoveries in Africa, confirming the existence of an active petroleum system containing significant hydrocarbon

5. • 2.1 Is there already offshore production in Argentina? How developed is the activity in our country?
• Yes, historically, 187 wells have been drilled in the Argentinean Sea, of which 36 are productive, and all of these productive wells
are in the Austral Basin, off the coasts of Tierra del Fuego and Santa Cruz. Currently around 20% of the natural gas produced in the
country is extracted from these fields. When we use cookers to cook, for example, we are probably using gas produced in the
offshore south of our country.
• Although offshore hydrocarbons have been extracted offshore in the Austral Basin in Tierra del Fuego since 1989, it is worth
mentioning that Argentina has several offshore basins. These basins have been studied since the 1940s and were first drilled in the
late 1960s. The Argentina Basin, one of the most distant from the Argentinean coast, and where the reservoirs currently being
explored are located, remains virtually unexplored to this day.
• Between 1957 and 1961, the Naval Hydrographic Service carried out the first seismic works.
• Salado Basin
• Seismic acquisition by YPF in 1968. By Amoco and YPF-Repsol from 1992 to 1995. More than 6,000km.
• Colorado Basin
• Throughout different campaigns, 43,361 km of seismic lines were acquired.
• Rawson Basin
• 7,600 km of seismic recorded by YPF between 1976 and 1983. Between 1987 and 1989, Exxon recorded 10,000 km of seismic lines.
• San Julián Basin
• Between 1979 and 1980 YPF recorded 2,406 km of seismic lines. In 1991, Petrobras acquired 4,518 km of seismic lines.
• Austral Basin
• Up to 2005, 34,840 km of 2D seismic and 3,530 km2 of 3D seismic were drilled.
• Malvinas Basin
• A total of 40,000 km of seismic was acquired up to 2008. New seismic acquisition work has been underway since late 2019.
• Argentina Basin
• Seismic work during the 2000s.

6. • 2.2 Which areas of the Argentinean Sea are being explored?
• YPF seeks to explore in areas concessioned by the national state in the North Argentina Basin (CAN_102, CAN_100 and CAN_114) and the West
Malvinas Basin (MLO_123).
• In the North Argentina Basin (CAN), the areas to be explored are on average more than 300 km from the coast of Buenos Aires. This is such a far
distance that it is impossible to see or hear potential operations from the beaches or any point in a coastal city.
• 2.3 Is this the first time that this area of the Argentinean Sea is being explored?
• No. The Argentine offshore has been explored by wells and 2D and 3D seismic.
• There are 137 exploratory wells, mostly in the offshore south, but also in the offshore north. All of them drilled in the shelf area, in shallow water,
with the sole exception of the Malvinas-1 well, with 492 metres of water depth.
• In the offshore north, the first offshore round was launched in 1967 and in 1968 34 exploratory wells were drilled in the awarded areas of the
Salado and Colorado (19) and San Jorge (15) offshore basins. The Samar-1 well, in the offshore Salado basin, is the first Argentine offshore well.
• In 1976, YPF's General Mosconi semi-submersible platform came onto the scene. This platform, together with the Ocean Nomad and the Rio
Colorado among others, have been used by different operators until 2000 to drill 91 exploratory wells in the Salado, Colorado, Rawson, Valdés,
San Julián, Golfo San Jorge Marina, Austral Marina and Malvinas basins.
• Many of the wells drilled in the Salado and Colorado basins are less than 100 km offshore Buenos Aires. So far, no hydrocarbon accumulations
have been found in the northern offshore basins that would justify exploiting them economically. Only the Cruz del Sur-1 well, drilled in 1994 in
the Colorado basin, found direct evidence of light oil.
• This is not the case in the offshore south and especially in the Austral marine basin where, during the 1980s, Argentina's main gas fields were
discovered, which are productive today and provide about 20% of the country's total natural gas.
• During the last stage of exploratory drilling, between 2000 and 2011, only 9 wells were drilled, 8 of them by YPF. The Ocean Scepter jack-up
platform drilled 4 wells in the Golfo San Jorge Marina basin and 3 wells in the Austral Marina basin. In 2011, YPF drilled the Malvinas-1 well with
the Stena Drill Max, the first deepwater well in Argentina.
• The acquisition of marine seismic in our country began towards the end of the 1960s and especially in the early 1970s with the activities of the
YPF seismic vessel Jose Maria Sobral. In the 2000s the first 3D seismic surveys were carried out.
• Throughout history and up to the present day, in different periods, approximately 393,000 km of 2D seismic and 29,000 km2 of 3D seismic have
been recorded in the Argentinean Sea.
• 2.4 Why is it the National State that regulates offshore activity?
• The provinces are the authority of application and control over the natural resources found in their soils and subsoils.In this case, as it is an
activity in the Argentinean Sea, it is the National State that carries out the process of awarding the zones, granting exploration and development
permits and control.The bidding process was carried out in 2019. Eighteen areas were awarded for a total of 94,000 km2 of extension over the
Argentinean Sea, at a distance of no less than 300 km2 from the city of Mar del Plata in the northern sector and in the vicinity of the Fuegian

7. • 3.1 Is it true that, as was claimed in a report against the activity, "there is a 100% chance of spills"?
• No, the statement is erroneous and refers to a study carried out by the Faculty of Engineering of UNICEN-Olavarría1 , which estimates the probability of
occurrence of a spill for different levels of production. The report has a number of shortcomings, which are discussed below:
• Firstly, the estimates are made on the basis of a global model, which can be used to carry out these simulations, but should be complemented with in
situ measurements through oceanographic buoys.
• On the other hand, the paper was not published in an academic journal with the peer review process that this implies. On the other hand, the study
does not include the names of the authors or bibliographical references at the end of the study.
• Furthermore, when analysing the methodology, several questionable aspects emerge, such as the fact that the historical average of spills (1964-2015) is
used as a parameter instead of the last few years, where accident rates are notoriously lower thanks to sustained improvements in production
technologies. This shortcoming leads to an overestimation of the probability of occurrence (in recent decades, the average number of spills has dropped
dropped substantially, as shown in the same UNICEN report). In addition to this, the data used for the analysis correspond to US offshore platforms in
the Gulf of Mexico, where the climatic conditions of the area (high occurrence of hurricanes) are very different from those of the Argentinean Sea.
• In addition, according to the report itself, the 100% probability is only given in cases of small spills, while it tends to zero for larger spill events.
• The study calculates the probability of a spill occurring on the basis of the oil resource data estimated in a report published by the Centro
Interdisciplinario de Estudios en Ciencia, Tecnología e Innovación -CIECTI- ("Estimaciones del potencial económico del Océano Argentino")2 under the
scenario of larger stocks. In this case, production is estimated at 10,666 MBOE (barrels of oil equivalent) per year, which is a totally overestimated
estimate (since it is equivalent to one third of world production in 2019). The flaw in the UNICEN document is that it confuses resources with reserves
(reserves are oil resources that can be extracted from the subsoil at a cost that is financially viable) and in turn assumes that the estimated production
would equal the total estimated reserves. Therefore, the conclusions drawn in the document are erroneous.
• Finally, it is relevant to note that in the Argentine slope a south-north circulation of sea currents is observed (supported by numerous works and studies)
studies) but there are no studies of dispersion, which is the other important element to consider in any predictive model. Such studies have not yet been
been carried out in our sea, especially on the slope.
• 3.2 Argentina currently has offshore production, but in shallow waters. How much riskier is it in deep waters?
• Argentina's offshore production comes from gas and, to a lesser extent, oil fields located in shallow waters near the coasts of Tierra del Fuego and Santa
Santa Cruz, in the offshore Austral basin.
• In the North Argentina basin, the Argerich project is located in the CAN_100 block, where the first ultra-deepwater well in our country will be drilled.
However, deepwater drilling has already taken place in 2011 when YPF drilled an exploratory well in the Malvinas basin, east of Tierra del Fuego (492
metres of water).
• It is important to note that operating in deep or ultra-deep water poses no additional risks. The difference between shallow water, deep water and ultra-
ultra-deep water operations is marked by the change in technology and type of drilling platform, where there is a transition from using different types

8. • 3.3 Is there harm to marine wildlife near offshore developments?
• Like most human activities, seismic exploration may cause some effect on the environment. It should be borne in mind,
however, that the effects are localised and of limited duration, and mitigation measures can be applied.
• It is on this basis that specific environmental impact studies are carried out, where specific mitigation and environmental
management measures are designed and established for each project and area of influence, applying the principle known as
the mitigation hierarchy.
• Among the main mitigation measures that are taken into account during seismic activities are the soft start of the canyons,
minimising the sound level at the source and the observation of marine mammals 24 hours a day.
• The soft start procedure has been used for more than 15 years in seismic prospecting work as part of good industry practice
and is implemented as a best practice in many countries with specific existing environmental regulations.
• It is important to note that in the last 50 years whale populations have not stopped growing and during the last 90 years
there has been a search for hydrocarbons in the Argentinean Sea. This is a clear sign that the activity can be done in a
responsible way without harming the marine fauna.
• 3.4 What happens in the event of a massive oil spill on one of the platforms, and is it possible to mitigate it?
• In the event of a massive oil spill, contingency plans developed specifically for the project are activated.
• Oil Spill Response Plans (OSRPs) provide guidance in the event of a potential oil spill. They are prepared in accordance with
the requirements of the Argentinean Naval Prefecture, the authority in charge of these matters, and are in line with
international best practices, such as: IPIECA, ITOPF and IOGP, ISO 15544:20002 standards and the IMO Manual on Oil Spill
Risk Assessment and Preparedness (International Maritime Organization; 2010 Edition). The preparedness and tiered
response scheme is in line with the OPRC Convention4 (International Convention on Oil Pollution Preparedness, Response
and Cooperation) and the National Contingency Plan for Argentina (PLANACON) established by Ordinance 8/98.
• The response plans are aimed at:
• Provide guidance to Crisis Management and Emergency Response teams to respond to and control an oil spill associated
with operations.
• Define internal and external warning and notification requirements.
• Establishes the roles and responsibilities of key personnel following an oil spill incident.
• Provides guidance on spill assessment and response strategy selection to protect sensitive areas and mitigate negative

9. • 4.1 What is the relationship between offshore hydrocarbons and the country's quest for energy sovereignty?
• The Argentinean Sea is one of the least explored maritime littorals in the world. At the same time, it
represents one of the most extensive exploratory frontiers in the world. With the enactment of Law 27.757 in
August 2020, the new demarcation of the outer limit of the shelf was sanctioned, as ratified by the UN,
extending the marine boundaries beyond the 200th mile, incorporating 1,782,500 square kilometres to the
Argentine Continental Shelf. This means an extension of 35% of the seabed and subsoil under Argentine
sovereignty. The law on the definitive demarcation of the continental shelf is the result of a State policy that
Argentina has been developing uninterruptedly during governments of different political signs. In March
2017, the Commission on the Limits of the Continental Shelf (CLCS), a body created by the United Nations
Convention on the Law of the Sea (UNCLOS), approved the Recommendations on the Argentine submission
of the outer limit of the continental shelf that had been made in April 2009.
• The exploratory blocks in the Northern Argentine Basin off the coast of Buenos Aires are close to the 200-
mile limit, and it was possible to incorporate some of them due to the extension of the outer limit of the
Argentine continental shelf. Available geological information indicates that the potential to be investigated is
is tens of billions of barrels of oil, which implies recoverable volumes of the order of magnitude of the Vaca
Muerta formation. Investigating the oil and gas resources of the marine subsoil in order to eventually move
on to their development and production implies the exercise of sovereignty over our territory. A successful
development of the Northern Argentina Basin would not only allow the country to be self-sufficient in
hydrocarbons, but would also generate large exportable balances, which would allow the consolidation of
our country's energy sovereignty.
• 4.2 Which productive sectors would benefit from offshore hydrocarbons?
• Directly, in addition to the oil industry, all sectors supplying products and services would benefit. In the first
place, the production of offshore hydrocarbons would increase demand in the transport and
communications sector, both in the project evaluation and construction stage, as well as in the operation

10. • Various professional services would be impacted throughout the life of the offshore
projects, such as engineering services, legal services, accounting, etc. Trade would also
increase, both in construction and operation, impacting different sectors and goods
throughout the different stages. Other sectors that would benefit greatly would
undoubtedly be oil, oil services and refining, all of which are directly related to the
exploitation of offshore hydrocarbons. Indirectly, the economy as a whole would benefit
in two ways
• . On the one hand, the creation of jobs means more purchasing power for the working
population, which in turn leads to greater consumption, which has a favourable impact
on Argentina's commercial, industrial, cultural and tourist activity. At the same time, the
increased foreign exchange and tax revenues that the country obtains contribute to
stabilising the macroeconomy, with beneficial effects on the population as a whole,
through greater exchange rate and, therefore, inflationary stability.
• 4.3 Can the fisheries and tourism sector be affected by offshore hydrocarbons?
• Fishing activity is not affected by hydrocarbon activity. Countries that are fishing powers,
such as Norway, have intensive offshore oil and gas developments.
• As for the tourism sector, both Norway and Brazil have a strong tourism sector, while
developing strong offshore production activity.
• In Norway, the tourism sector grew considerably in the last decade and in the years
before the COVID-19 pandemic, it contributed 3.6% to the country's Gross Domestic
Product.
• In Brazil, offshore activity is developing off the coast of Rio de Janeiro, which is also the
country's most popular city for international travellers. In 2019 it reached the 99th most

11. • 5.1 Why now, in the midst of the energy transition, is it decided to search for hydrocarbons in the Argentinean Sea?
• Currently, 27% of the world's energy is supplied by coal, the fuel that generates the most carbon dioxide emissions. In Argentina, coal is not
relevant in our energy matrix, and that is why our matrix is much cleaner than the world average. Developing offshore hydrocarbons, in addition to
generating jobs, revenue, foreign exchange and social advancement, will allow many countries - such as China or India, for example, where coal is
the main element of the energy matrix - to reduce their carbon dioxide emissions. In other words, while oil and gas generate emissions, they do so
to a lesser extent than coal, and so if a country substitutes coal for oil/gas, its contribution to climate change will decrease.
• Another aspect to note is that, depending on the type of field and type of extraction, the emissions resulting from hydrocarbon production may
vary. In this sense, offshore exploitation is the one that emits the least amount of kg of CO2 per barrel of oil equivalent:
• Conventional onshore: 75 kg CO2/boe
• Unconventional onshore: 77 kg CO2/boe (Vaca Muerta)
• Shallow offshore: 124 kg CO2/boe
• Deep offshore: 52 kg CO2/boe (North Argentina Basin Offshore Project; CAN-100 is included within this basin)
• Finally, it is important to note that hydrocarbons are not only a source of energy but also an essential raw material for other industries such as
petrochemicals, technology, pharmaceuticals and automotive, among others. There are few materials in the world that are not directly or indirectly
derived from hydrocarbons.
• 5.2 How is offshore exploitation framed in Argentina's NDCs? What is the impact in terms of the path towards energy transition in other countries
considering an export scenario?
• In its Nationally Determined Contribution, the Republic of Argentina sets out a just transition and energy security as axes of its 2030 agenda.
• The country approaches the energy transition on the basis of a just transition, taking into consideration national circumstances and based on the
principle of common but differentiated responsibilities and respective capabilities. In this sense, all states have a responsibility to address the
challenges of climate change, but not all countries have the same obligations and responsibilities with regard to these challenges. This is due to a
disparity in the contribution to the climate change problem between developed and developing countries. The higher levels of industrialisation in
developed countries mean that they have historically generated more greenhouse gas (GHG) emissions.
• Energy security is one of the main axes that will guide Argentina's energy transition in the medium and long term. An inclusive, dynamic, stable,
federal, sovereign and sustainable energy matrix must guarantee the availability of energy to users and the reliability of the system. The concept of
energy security is linked to security of supply, and there is no doubt that the development and production of offshore hydrocarbons would
contribute to the generation of a reliable energy source for our country. At the same time, it would enable the generation of economic resources
that would allow investment in new technologies and infrastructure, sources that generate less greenhouse gases, contributing to environmental
and social security, also linked to the concept of energy security.