Argentina’s Aconcagua Energía announces bond sale, block extension

Bnamericas Published: Thursday, January 05, 2023

Argentine upstream firm Aconcagua Energía announced a decision to sell class II and III bonds under a US$100mn issuance program.

Citing current market conditions, the company said in a regulatory filing the target was US$8mn, extendable to US$15mn.

The news comes shortly after Aconcagua said Mendoza province had extended its extraction license at block Confluencia Sur for 10 years. The rights to the acreage – in which state oil firm YPF holds a 14.4% stake – now expire in 2033.

The block is a 1,000boe/d operation and is the target of a US$8.17mn investment plan, the filing said.

Last month Aconcagua was awarded 125m3/d (786b/d) of capacity on a future new oil pipeline that will boost dispatch between the Neuquén basin and export facilities in Buenos Aires province. The company last year sought oil export permits

Also last year, Aconcagua Energía sold to Crown Point Energía 50% of its rights and obligations in the Puesto Pozo Cercado Oriental concession in Mendoza province.

The sale, among other objectives, would permit Aconcagua to accelerate growth and achieve objectives under its strategy, according to a regulatory filing at the time. These included increasing consolidated production to over 3,000boe/d, tripling its thermoelectric generation park to more than 6MW in 2022, scalable to 10MW in 2023, and supporting solar PV projects in Mendoza and Río Negro provinces.

Aconcagua’s production climbed 103% year-on-year in 3Q22 to 2,623boe/d, according to a company presentation. Of that, 15% was exported, up from 5% a year earlier and zero in 3Q20. 

Argentine E&P firms are ramping up production to boost exports, with appetites whetted by favorable prices on the international market. 

The presentation said two Mendoza solar parks – Aconcagua and Malargüe – would be built over the subsequent 24 months by unit Aconcagua Energía Renovables, to help achieve a goal of obtaining at least 20% of power from renewables and so comply with a national renewable energy law. Under a 150MW Aconcagua 2027 plan, other parks are planned for Río Negro. 

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