Argentina tops LatAm rig growth, Brazil wallows

Argentina was Latin America's fastest-growing market for oil and gas exploration in the first half of 2014, according to BNamericas data.

Research shows the country had a daily average of 100.8 rigs in operation from January to June, up 22% on the 2013 full-year figure.

The rise bucked an overall trend of falling demand in the region with Chile and Peru the only other nations to post higher rig counts in the first half.

Chile's average tally rose from 2.8 to 4.0 while the number of rigs in Peru climbed from 5.6 to 6.3.

The steepest decline was in Brazil, where an average of 47.3 rigs were operating each day – 25% less than in 2013.

Mexico's figure dipped 15% to 89.8 while Colombia (down 2% to 41.8) and Venezuela (down 4% to 75.5) were also hit by tepid demand.

ARGENTINA: PARIAH NO MORE

Argentina's robust drilling market reflects an abrupt shift in the country's oil and gas fortunes following the gloom surrounding the 2012 nationalization of Spain's Repsol, our correspondents say.

The government has since acted swiftly to dispel claims by its Spanish counterpart that Argentina risked being an international "pariah."

The first steps towards recovery came earlier this year when Argentina's state oil firm YPF announced a US$5bn settlement with Repsol.

Further strides have been made in recent months as YPF has drawn Chevron, Dow Chemical, Petronas, Sinopec, ExxonMobil and Gazprom to the negotiating table.

Pictured: Argentine economy minister Axel Kicilloff signing off on the indemnity deal with Repsol in May. AFP PHOTO/FOTOGRAFIAMECON/HO.

The Vaca Muerta play in Neuquén province is widely considered the most alluring prospect for international firms seeking to tap Argentina's vast unconventional acreage.

The formation holds estimated reserves of 22.8Bboe, making it one of the world's largest shale reservoirs.

BRAZIL MALAISE

Brazil's plummeting rig count coincides with weak onshore demand as Petrobras sharpens its focus on ultra-deepwater blocks off the southeast coast.

It also follows a spate of aborted exploration campaigns from independent firms.

Among companies to halt their Brazilian operations since 2012 are OGpar, HRT, Panoro, Maersk and Anadarko.