Pan American’s growth opportunities, the rating agency said, are linked to the development of Vaca Muerta’s resources, both in oil and gas, after obtaining a 35-year concession from the province of Neuquén for the exploitation of unconventional hydrocarbons At the Boundary Crossed, Aguada Pichana East and West, Bandurria Centro and Aguada de Castro.
The company, for now, carried out a pilot program to drill and complete 101 horizontal wells in these fields and “the investment plan committed in this basin is about US $ 1.6 billion until 2025”, which will allow it to diversify the geographical areas in which it operates.
Surpassed in activity only by YPF, the firm controlled by the local group Bridas and the Chinese state company CNOOC participates in 13 productive areas and six exploration areas, and to date its hydrocarbon production originates in areas whose concessions expire as of 2026 .
The Golfo San Jorge basin is the main area of the company, from where it obtains 85.4% of the total oil and LPG and 21.9% of the gas, and where 78% of the proven reserves are located, equivalent to 22 years of production, well above comparable companies.
Production until last September was 165 thousand barrels of oil equivalent (59% crude and 41% gas), compared to 154,000 recorded in December 2020.
Pan American’s current market share is around 15% (it produces 19.1% in oil and 11.2% in gas), while YPF maintains its leadership with about 39% (distributed in 47% of the crude oil production and 30% of gas production).
The rating agency’s report highlighted the company’s ability to supply foreign markets: PAE has exportable balances of 35%, “which allow it to mitigate the risk of minor adjustments in pump prices.”
The company’s export revenue in the third quarter of this year amounted to US $ 213 million, compared to US $ 127 million obtained in the July-September 2020 period.
Foreign sales allow PAE “to diversify its sources of income and counterparties, to have some flexibility in a volatile price market, and to mitigate currency mismatches,” Fix concluded.
Source From: Ambito
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