It will generate foreign exchange and exports

The Secretary of Energy, Flavia Royón, celebrated the ruling that enables the exploration and exploitation of offshore hydrocarbons since “it could double current production” and “it will generate foreign exchange and exports.” The official spoke during her visit for the 14th edition of the Argentina Oil & Gas Expo 2023, event that brings together the entire hydrocarbon sector. “We have high expectations for the Argerich project and next month the first stage of drilling will begin,” he assured.

The Argerich project is located in the Argentine Seamore than 300 kilometers from Mar del Plataprovince of Buenos Aires and for the Secretary of Energy represents a finding that can modify the history of YPF and the country, “with a productive impact that could be similar to that of Vaca Muerta; “It would mean more jobs and could double current hydrocarbon production with a future expectation of incremental exports of more than 30%.”

“Today in the Northern Basin we are in an exploratory stage, but let us remember that offshore in Argentina has been in activity for more than 40 years. 17% of our gas comes from offshore development which comes from the southern basin (which is the Fénix project in Santa Cruz, Tierra del Fuego and the national State), so it is not a new activity for Argentina,” said Royón after having attended the presentation of the book “Exploration and exploitation of “offshore” hydrocarbons in the Rural.

Besides, was expectant with the results of the exploration work in the North Basin: “Although we are in an energy transition, the transition must be financed, and what we defend and propose is that the energy transition has to be carried out in our country to the extent of our resources, our capabilities, our competencies, but with growth and well-being for all Argentinians.” In that tone, Royón reiterated – in a press conference – that The energy transition must be financed and there “the development of offshore makes sense, which can create more than 30,000 jobs in Argentina.”a, which can generate foreign exchangewhich can generate exports That is why it makes important, urgent and strategic sense to develop offshore.”

Finally, and in reference to the judicial setback of the precautionary measure presented by the Environment and Natural Resources Foundation (FARN), Secretary Flavia Royón expressed: “now that justice has acted and ruled, We hope to make real progress so that the Argerich exploratory well can be completed this second half of the year.also like seismic exploration.”

They reject a new precautionary measure against offshore oil exploration and exploitation

The Federal justice rejected a precautionary measure requested by the Environment and Natural Resources Foundation (FARN) to stop offshore hydrocarbon exploration and exploitation and warned that oil and natural gas production in the country’s Southern Basin would be stopped. “The plaintiff fails to demonstrate the plausibility of the right it invokes. (…), at least with the degree of evidence required to suspend the effects of an administrative act,” stated the resolution of the Federal Administrative Litigation Court No. 8 to which Télam agreed.

The Court considered it relevant “that The economic damage that would be caused to the country is also taken into consideration. to give rise to the requested measure, since the investments committed by the companies and the exploration and exploitation activities already undertaken would suffer damage that is impossible to reverse, putting in imminent danger the continuity of offshore developments for the future of the Republic. The fact is that, “if the measure were to take place, not only would all the ongoing seismic campaigns be paralyzed, which could eventually be definitively voided, but “The production of oil and natural gas in the Southern Basin of our country would be stopped.”

The magistrate recalled that this production “is intended for the supply of domestic consumption (residential and industrial), and projects that are currently in a construction stage to compensate for the decline in gas production and thus supply the internal demand for a fundamental energy such as natural gas.” This would mean that the country would have to “emergencyly resort to importing liquefied natural gas at significantly higher international prices.” to the internal prices of natural gas, with the consequent negative impact on the trade balance,” he added.

The objective of the FARN presentation was “prevent the environmental damage that the marine ecosystem could suffer if offshore oil exploration and exploitation continues.” and analyze the technical reasonableness of advancing with an activity contrary to the climate commitments assumed by the Argentine Republic.” In that sense, it promoted an autonomous precautionary prohibition of innovation so that the Secretariat of Climate Change and the Ministry of Environment and Sustainable Development “refrain from granting permits for offshore seismic exploration or hydrocarbon exploitation, approving studies and environmental impact assessments, issuing environmental impact statements or authorizing seismic or exploitation prospecting” in the entire offshore area.

I intended for that to be done “until the cumulative and climatic impacts of hydrocarbon exploration and exploitation activity in the Argentine sea are evaluated and a strategic environmental assessment would be prepared and published that would consider, in addition to the cumulative impacts, energy alternatives and the costs and benefits of the activity within the framework of a just energy transition.”