• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 mins Which type of Hegemony will China follow
  • 17 hours Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 1 min China gets caught?
  • 7 hours Demand for Diesel vs. Oil
  • 20 hours Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)
  • 3 hours Us Shale: Moving the US shale revolution forward
  • 2 days Here is Why People Lose Money Trading Natural Gas
  • 21 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Let’s take a Historical walk around the Rig
  • 2 days US Shale: Technology
  • 2 days Governments that wasted massive windfalls
Alt Text

Just How Serious Is The Shale Slowdown?

There has been a lot…

Alt Text

China Turns Its Back On Iran’s Crude Oil

Beijing is doing its best…

Alt Text

The “Twin Threats” Facing Big Oil

According to a new report…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Another $165 Million Deal Signed In This Emerging Oil Hotspot

I discussed last week how Argentina is now getting the best oil pricing on the planet. Setting up this former pariah nation as perhaps the best play going in petroleum today.

And this week we got confirmation that big players in the E&P space are taking notice.
Companies like Chile’s state energy firm ENAP. Which signed up a major exploration deal in the Argentinean offshore on Wednesday.

ENAP announced that it has agreed on a 10-year contract extension with Argentina’s state oil and gas firm YPF, for work focusing on the Strait of Magellan in southern Argentina (see map below), as well as exploration areas in the offshore proper. Related: 27 Billion Barrels Worth Of Oil Projects Now Cancelled

ENAP and YPF will explore waters in the Strait of Magellan (inland, center of map)

The deal is a big one, with total value announced at $165 million — signaling that incoming partner ENAP is very interested in the potential here.

Of course, this isn’t a new deal — with the partnership between ENAP and YPF in this area actually dating back to 1991. But the signing of this week’s extension conspicuously coincides with recent announcements about energy market reforms by Argentina’s new government. Related: Saudi Arabia: A Weak Kingdom On Its Knees?

That may have given a firm like ENAP the push it needed to commit hundreds of millions of dollars. A very large amount for the company — which has few international projects on its slate.

Argentina’s announced oil price of $67.50 for 2016 will undoubtedly help project economics for discoveries developed in this area. With crude reportedly being targeted here, along with significant natural gas fields.

As an interesting aside, ENAP said it will seek to maximize production from existing natgas fields at the project. Suggesting they may try using advanced production techniques such as unconventional completions — which ENAP has already been using in some parts of Chile recently.

This is further evidence that Argentina’s regulatory moves — along with its attractive petroleum geology — are setting this up as an energy spot to watch for 2016. Keep an eye out for more deals on Argentinean acreage.

Here’s to getting together with the neighbors

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play