Later, on the occasion of the health emergency due to the coronavirus pandemicthe companies holding the exploration permits requested the suspension of the term of the first exploration period of their respective exploration permits.
The firms argued that the exploration in these coastal areas “is carried out mainly through seismic acquisition to discover the potential of the hydrocarbon resources available in a certain place, which entails the contracting of vessels specially designed to carry it out, whose availability it depends on the level of activity, logistics of the operation and weather windows, among other variables”, according to the resolutions in their recitals.
Both Shell and Qatar Petroleum, in this case, requested a two-year extension in the concession period, which was effectively granted today by the Secretary of Energy.
The extension was granted after the energy portfolio took into consideration the work plan and the steps taken by both companies in order to comply with the investment commitments assumed, and the activities to be carried out during the extension period.
The resolutions considered that it is “advisable to grant a reasonable term for carrying out the pending activities and their subsequent interpretation and technical and economic evaluation.”
Both exploration blocks (called CAN_107 and CAN_109) are located on the edge of the continental shelf, have an area of 8,341 and 7,860 square kilometers, respectively, and extend into shallow and deep waters from 200 to 2,500 meters deep. .
As reported by Shell in 2019, during the initial phase of exploration, new and high-quality seismic information will be obtained, which will allow the evaluation of hydrocarbon formations and identified concepts.
Its long-term potential would allow the development of a deepwater portfolio, “thus complementing our unconventional model in the Neuquén Basin,” said Andy Brown, Upstream director of the Anglo-Dutch energy firm at the time.
The exploration permit is divided into two periods of four years each, so with today’s extension to the first, it will be extended to a total of ten years between them.
No less than 60 calendar days before the end date of the first exploration period, the exploration permit holders will notify Energy if they will continue exploring in the area or if they will completely reverse it.
Source: Ambito
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