Chubut launches Cerro Negro tender
Argentina’s Chubut province has launched a tender for the temporary operation of the 186km2 Cerro Negro oil area, in the San Jorge Gulf basin.
"Its start-up means the gradual and progressive recovery of the area, giving predictability to workers, resources to the province and income to the company," the president of state-owned Petrominera Chubut, Héctor Millar, said in a statement.
Companies may request information on the oil area and visit the facilities until February 18 and written inquiries will be accepted until February 19.
Petrominera Chubut will receive offers until March 1, 10am Buenos Aires time and the envelopes with the technical-economic proposals will be opened one hour later.
Bidders must also submit a plan for starting up the field, present minimum investment commitments and corresponding expenditures, operating costs, estimated production schedule, as well as alternatives for the commercialization of the field’s gas and oil.
Although an awarding date has not been set, operations must start within 60 days, Petrominera Chubut’s general manager, José Luis Esperón, told radio LU4 Nacional Patagonia.
The nine-month concession may be renewed for another nine months.
Petrominera Chubut initially planned tendering a six-month contract with the option of a 12-month extension. But the plan changed because the company considered that a company would need at least three months to get the field operational.
The concession winner must pay Petrominera Chubut 3% of the revenues stemming from the sale of Cerro Negro oil.
The holder must also pay the provincial government royalties of 12% wellhead value.
As BNamericas reported, Petrominera Chubut launched the tender to avoid safety and maintenance expenses, which it had to shoulder since June 2020, when local oil company Roch returned the area to the province after defaulting on its bonds.
"We are communicating with several companies to invite them to participate and, until now, one that was most interested was Capetrol Argentina," Esperón said.
When Petrominera Chubut awarded the original six-month contract in 2019, Capetrol was one bidder, besides Roch, Selva María and Petrolera Aconcagua Energía.
Petrominera aims to launch a tender in mid-2022 to award the definitive operation of the block under a long-term concession.
That contract will establish that the concession holder has to invest US$45mn in the drilling of 12 exploration wells and 10 production wells during the first three years.
It will have to spend up to US$5mn in the reconditioning of the 34 operating wells to increase oil production from 189b/d to 440b/d and gas from 10,000m3/d to 30,000m3/d.
And the winner will have to invest US$10mn in installing a 1,000m3 tank and an 8km pipeline during the first year to connect the area with the Anticlinal Grande crude treatment plant, owned by Pan American Energy, to lower transport costs and increase the sales price.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Oil & Gas (Argentina)
Milei’s economic reform bill: Key energy sector measures
BNamericas looks at Argentine President Javier Milei’s reform bill, which comes hot on the heels of a deregulation-focused decree issued last week.
Argentina's gas pipeline flow-reversal project: Lot No. 2 bids opened
State company Energía Argentina this week rejected the bids placed by two parties for lot No. 1 work because of the large gap between them and the ...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Oil & Gas (Argentina)
Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Sierra Chata Field
- Current stage:
- Updated:
7 hours ago
- Project: Block MLO_118
- Current stage:
- Updated:
3 days ago
- Project: Gasoducto Norte flow-reversal project – Complementary Works to the President Néstor Kirchner Pipeline
- Current stage:
- Updated:
3 days ago
- Project: Block MLO_117
- Current stage:
- Updated:
3 days ago
- Project: Block MLO_113
- Current stage:
- Updated:
3 days ago
- Project: Area Cerro Manrique
- Current stage:
- Updated:
1 week ago
- Project: RIO GRANDE COASTAL DEFENSE
- Current stage:
- Updated:
5 months ago
- Project: Block RAMOS MEXIA
- Current stage:
- Updated:
8 months ago
- Project: SAN SALVADOR block
- Current stage:
- Updated:
8 months ago
- Project: Block CÑ-01 ÑIRIHUAU SOUTH
- Current stage:
- Updated:
8 months ago
Other companies in: Oil & Gas (Argentina)
Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Arenas Argentinas del Paraná
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Chimen Aike S.A.  (Chimen Aike)
- Company: José Cartellone Construcciones Civiles S.A.  (José Cartellone Construcciones Civiles)
-
José Cartellone Construcciones Civiles S.A. (JCCC) is an Argentine engineering and construction company with a project portfolio that includes hydroelectric plants, power transm...
- Company: Promaíz S.A.  (Promaíz)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Dow Argentina S.A.  (Dow Argentina)
-
Dow Argentina is a subsidiary of US chemical company Dow Chemical which began activities in Argentina in 1957. The company's activities encompass the chemical, petrochemical and...
- Company: Litoral Gas S.A.  (Litoral Gas)
-
Litoral Gas is an Argentine piped natural gas distributor which supplies Argentina's Santa Fe and northern Buenos Aires provinces. The concession area spans 136,387km2, providin...
- Company: TotalEnergies Gas y Electricidad Argentina S.A.  (TGEA)
-
Total Gas y Electricidad Argentina S.A. is a company based in Argentina. It was founded in 2001. By means of this firm, Total S.A. sold or will eventually sell its interests in ...
- Company: Enersud Energy S.A.  (Enersud Energy)
-
Enersud Energy S.A. is a subsidiary of the Argentine power company Genneia. The firm's main activities are natural gas trading and transportation and it is also involved in the ...