The Ministry of Energy extended for a period of one year, until 2025, a hydrocarbon exploration permit for the companies YPF and Equinor which comprises a block of 8,965 square kilometers located to the north of the North Argentina Basin, on the maritime lateral limit between Argentina and Uruguay, through Resolution 123/2023 published today in the Official Gazette.
These concessions were awarded in May 2019 during the previous national administration, and were part of the granting of exploration permits for the search for oil and gas in 18 offshore areas.
13 companies participated in the tender -among others, YPF, Equinor, Eni, Qatar Petroleum, Exxon, Shell, British Petroleum and TotalEnergies-, which, as a whole, promised an investment of US$724 million.
Subsequently, due to the health emergency caused by the coronavirus pandemic, the companies that own these areas requested the suspension of the term of the first exploratory period of their respective permits.
The firms argued that exploration in these coastal areas “is carried out mainly through seismic acquisition to find out the potential of the hydrocarbon resources available in a certain place, which entails hiring specially designed vessels to carry it out, whose availability depends on the level of activity, logistics of the operation and weather windows, among other variables”.
Both YPF and Equinor requested a first one-year extension of the first exploratory period -which expired in 2023-, which was granted in May of last year.
After that, today’s resolution indicates that YPF, in its capacity as co-owner, requested a new extension for one year of the first exploratory period, thus extending it until 2025.
Based on the “documentation presented by the company and according to the reports issued by the areas with technical competence”, Energía verified compliance with the work plan and the steps taken by both companies in order to comply with the investment commitments assumed. , and the activities to be carried out during the extension period.
The Secretariat thus considered that it is “advisable to grant a reasonable period of time for carrying out the pending activities and their subsequent interpretation and technical and economic evaluation.”
In the block in question (called CAN_102), located just over 300 kilometers from the coast and with waters with a depth of 1,200 to 4,000 meters, YPF, the operator of the area, associated with the Norwegian oil company Equinor, committed to a investment of US$ 23 million to carry out the 3D seismic study in the block, and, for this, it has already presented its environmental impact study.
In addition to this block, both firms, together with Shell, are associated in three other areas (CAN_100, CAN_108 and CAN_114) located in the North Argentina Basin between 307 and 443 kilometers from the coast of the city of Mar del Plata.
Source: Ambito
