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Shale does not mean end to Argentina’s natural gas imports: IAPG

Argentina likely will continue to import natural gas supplies to meet peak demand, even as its production from large shale and tight gas resources grows in the next two decades, the Argentine Institute of Oil and Gas (IAPG) said. This is because it would not be economically viable to install production and transport infrastructure to meet peak demand in winter, due to the high cost of maintaining excess capacity simply to have it available for up to 90 days of the year, the industry group said in its gas demand forecast for 2015-2035. "It is cheaper to import LNG, than to build infrastructure and drill wells to meet peak demand," said IAPG president Ernesto Lopez Anadon. IAPG forecast that gas demand would rise to 260 million cubic meters/d in 2035, with peaks of 290 million cu m/d in the May-September cold season. That compares with average gas demand of […]

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Argentina and China lead shale development outside North America in first-half 2015

map of Neuquen Basin and Sichuan Basin, as explained in the article text As recently as last year, only four countries in the world were producing commercial volumes of either natural gas from shale formations (shale gas) or crude oil from tight formations (tight oil): the United States and Canada, and more recently, Argentina and China. Beyond these four countries, other countries have started exploring hydrocarbons from shale and other tight resources, but they are still short of reaching commercial production. The 2013 World Shale Gas and Shale Oil Resource Assessment , produced by EIA and Advanced Resources International (ARI), noted large shale deposits in China and Argentina. Exploration and drilling is already underway in these countries. For the last two years, China has drilled more than 200 wells, and Argentina has drilled more than 275 wells. Each country has the potential to significantly increase production of shale gas […]

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Russia eyes Argentinian energy role

President of Argentina Cristina Fernandez de Kirchner on hand for signing of memorandum of cooperation with Russian energy company Gazprom on April 23, 2015. Photo by UPI/Andrew Harrer. MOSCOW, April 24 (UPI) — Russian energy company Gazprom said it signed a memorandum of cooperation in Moscow to work alongside its counterparts on Argentina. Argentine President Cristina Fernandez de Kirchner met in Moscow with her Russian counterpart, Vladimir Putin, to discuss bilateral relations . Gazprom said its management team signed the memorandum with Argentinian energy company YPF on the sidelines of the meeting. Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of YPF. The following year, Gazprom won a tender to supply Argentina with 15 shipments of liquefied natural gas with a total of 1 million tons through 2015. In the Latin American market, both sides have focused on development the Vaca Muerta shale site in […]

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Argentina Summons U.K. Ambassador Over Falkland Islands Dispute

ENLARGE A view of the memorial in Buenos Aires to Argentine soldiers who died in the Falklands War. An online magazine contended in a published report that the U.K. spied on Argentina over the long-running Falkland Islands dispute. Photo: Zuma Press The U.K. government on Friday confirmed its ambassador in Buenos Aires had been summoned to a meeting at Argentina’s foreign ministry, in the latest flare-up of the long-running diplomatic row over the sovereignty of the Falkland Islands that has engulfed oil and gas exploration companies. The Argentine Deputy Foreign Minister Eduardo Zuain summoned the U.K. ambassador on Thursday to explain a report published by online magazine The Intercept that contended the U.K. had spied on Argentina over the Falklands dispute, the Argentine embassy in London said in a statement. The meeting Thursday came a day after the U.K. had summoned the Argentine ambassador in London. Argentina continues to […]

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Opinion: Can Argentina Capitalize On Its Vast Shale Reserves?

« Tenneco developing new gasoline particulate filter (GPF) technology ahead of Euro 6c emissions regulation | Main | Golf SportWagen Alltrack to go onsale in 2016 as 2017 model » by Alexis Arthur for Oilprice.com Argentina, once a regional energy leader, is now better known for financial busts and bombastic politicians than hydrocarbons prospects. Still, with a resource potential both vast and untapped, the nation has never been far from energy investors’ minds. The question today is just how much Argentina is willing to change and how this plays into a low oil price environment that is already negatively impacting investment elsewhere. Argentina’s deliberate efforts to appease some of its international creditors, combined with an overhaul of the nation’s hydrocarbons framework have the potential to lure foreign investors back. The promise of a change of government—and potentially a more market-friendly approach—later this year should add to the country’s appeal. […]

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Premier’s CEO Seeks to Top Oil Target, Get Falklands Partner

Premier Oil Plc (PMO) ’s newly appointed Chief Executive Officer Tony Durrant has three immediate priorities to consolidate a share-price gain of more than 20 percent since he took the job this year. He plans to bring onstream the $1.4 billion Solan field located west of Shetland before the end of the year, find a partner to share a $5 billion investment to develop the Sea Lion project off the Falklands, and exceed an oil-production target. Durrant, who was promoted to the top job at the London-based explorer on June 25 after being chief financial officer for about nine years, also aims to double cash flow within five years to about $2 billion a year. “We have to continue to tick the boxes on the things we’ve been doing, continue to restore credibility, keep the production up, beat the guidance,” the CEO said in his first interview since taking […]

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Russia eyes investments in Argentina’s energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

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Russia eyes investments in Argentina's energy sector

Russian Foreign Minister said Wednesday he was interested in encouraging more investments in the Argentine energy sector. Lavrov met in Moscow with Argentinean Foreign Minister Hector Timerman to discuss prospects for future energy cooperation as well as Argentina’s bid to join Brazil, Russia, India, China and South Africa in the five-member economic association dubbed BRICS. Lavrov said the outlook for Russian investments in the Argentinean energy sector was strong. "We aren’t just interested in ways to diversify our trade relations but actually want to focus on investment," he said . Russia expressed interest in Argentina’s energy market in 2012 following the nationalization of the country’s YPF energy company. Russian energy companies have a presence in Venezuela and Russian energy company Gazprom is exploring for natural gas in that country as part of a Russian consortium. Both sides have focused on development the Vaca Muerta shale site […]

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Repsol leaves Argentina behind

MADRID, May 23 (UPI) –Spanish oil company Repsol said Friday it sold off its stake in Argentina’s YPF and the bonds it received from the nationalization of the state energy company. Argentine President Cristina Fernandez de Kirchner signed legislation in 2012 to seize the YPF shares held by the Spanish energy company Repsol said Friday it completed the sale of its assets in Argentina to JP Morgan Securities including the bonds it received as compensation for the expropriation of its 51 percent stake in YPF. "From the sale of the entire holding of Argentinean bonds, Repsol has obtained a total $4.99 billion in compensation for the expropriation," Repsol said in a statement . "This extinguishes the $5 billion debt recognized by Argentina." Repsol’s board of directors rejected a compensation offer made in June by the Argentine government. That deal would have given Repsol drilling rights to Argentina’s vast Vaca […]

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Exxon finds oil, gas in Argentina’s shale

BUENOS AIRES, May 22 (UPI) –U.S. energy company Exxon Mobil said its affiliate in Argentina discovered oil and natural gas in the Vaca Muerta shale play in the country’s Neuquen province. ExxonMobil Exploration Argentina, alongside its regional partner, said it was carrying out additional analysis at the Bajo del Choique X-2 well after confirming an oil and gas discovery. Appraisal wells will need to be drilled before Exxon makes a commercial decision on the area, but the company expressed optimism about the potential. "Not all shales are alike, so our first Exxon Mobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquen province holds great promise as a liquids-rich unconventional resource for Argentina," Stephen Greenlee, president of Exxon Mobil Exploration Co. said in a statement Wednesday. The U.S. Energy Department’s Energy Information Administration estimates Argentina has 774 trillion cubic […]

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Exxon finds oil, gas in Argentina's shale

BUENOS AIRES, May 22 (UPI) –U.S. energy company Exxon Mobil said its affiliate in Argentina discovered oil and natural gas in the Vaca Muerta shale play in the country’s Neuquen province. ExxonMobil Exploration Argentina, alongside its regional partner, said it was carrying out additional analysis at the Bajo del Choique X-2 well after confirming an oil and gas discovery. Appraisal wells will need to be drilled before Exxon makes a commercial decision on the area, but the company expressed optimism about the potential. "Not all shales are alike, so our first Exxon Mobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquen province holds great promise as a liquids-rich unconventional resource for Argentina," Stephen Greenlee, president of Exxon Mobil Exploration Co. said in a statement Wednesday. The U.S. Energy Department’s Energy Information Administration estimates Argentina has 774 trillion cubic […]

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Argentine Provinces Said to Unite Against YPF License Bid

The three provinces holding Argentina’s largest shale oil and gas deposits will jointly challenge a push by federally owned YPF SA (YPF) to take control of the auction and renewal of licenses, three officials said. Jorge Sapag, Francisco Perez and Martin Buzzi — governors of Neuquen, Mendoza and Chubut, respectively — met in Buenos Aires on May 13 and agreed to impel their congressional representatives to oppose any move to federalize licensing processes, the provincial officials briefed on the matter said. They asked not to be identified because the talks were private. The three governors weren’t available to comment, their assistants said by telephone. Alejandro Di Lazzaro, a YPF spokesman in Buenos Aires, declined to comment. The fight underscores political tensions derived from unclear rules governing Argentina’s nascent shale boom. For prospective license holders, a single federal system would remove the need to negotiate with two levels of government. […]

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Argentina Cuts Utility Subsidies as Fiscal Deficit Swells

Argentina reduced government subsidies on natural gas and water by an average 20 percent in a bid to narrow the largest fiscal deficit in more than a decade. The government could save as much as 13 billion pesos ($1.6 billion) and will use proceeds to cover utility company costs and finance social spending, Economy Minister Axel Kicillof and Planning Minister Julio De Vido said today at a press conference in Buenos Aires. The cuts won’t apply to industrial users. President Cristina Fernandez de Kirchner has boosted social spending since taking office in 2007 and left utility rates largely unchanged amid average annual inflation of about 25 percent, straining the finances of power distribution companies and leading to periodic blackouts. Argentina, which has subsidized utilities since 2003, wants to cut aid from about 5 percent of gross domestic product to 2 percent of GDP and make higher income earners pay […]

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Apache, YPF deal in Argentina a win-win

U.S. energy company Apache Corp. said it was selling off its operations in Argentina to better focus on drilling operations in North America. Apache and its subsidiaries agreed to sell all operations in the country to YPF Sociedad Anonima for $800 million cash plus the assumption of $52 million of bank debt. G. Steven Farris, chairman and chief executive officer at Apache, said the company spent much of the year focusing on shaping its portfolio to enhance its "deep inventory" in North America. "This transaction is consistent with that strategy," he said in a statement Wednesday. Apache said it averaged 256 million cubic feet of natural gas per day in terms of production and estimates its reserves in Argentina at approximately 540 billion cubic feet of natural gas. Miquel Galuccio, president of YPF, said the acquisition is an "excellent opportunity" for his company, already […]

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Argentina’s Shale Industry Lures International Oil Companies

More The whole world knows that shale revolutionized the U.S. energy industry. Now oil and gas executives are salivating when they think of Argentina’s booming shale industry. Argentina ranks second in the world, behind China, in potentially recoverable shale-gas reserves, with 802 trillion cubic feet, according to a study last October by the U.S. Energy Information Administration. Argentina also ranks fourth in shale oil with an estimated 27 billion barrels. In July, YPF and Chevron inked a deal to spend $1.2 billion to further develop shale oil and gas resources in the Vaca Muerta  formation. The deal calls for an initial phase in which 100 wells will be drilled in a 5,000-acre tract in the Loma La Lata Norte and Loma Campana areas. Chevron said the deal gives it the chance to grow production beyond its 2017 target of 3.3 million barrels per day. Chevron says shale will help […]

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Argentina's Shale Industry Lures International Oil Companies

More The whole world knows that shale revolutionized the U.S. energy industry. Now oil and gas executives are salivating when they think of Argentina’s booming shale industry. Argentina ranks second in the world, behind China, in potentially recoverable shale-gas reserves, with 802 trillion cubic feet, according to a study last October by the U.S. Energy Information Administration. Argentina also ranks fourth in shale oil with an estimated 27 billion barrels. In July, YPF and Chevron inked a deal to spend $1.2 billion to further develop shale oil and gas resources in the Vaca Muerta  formation. The deal calls for an initial phase in which 100 wells will be drilled in a 5,000-acre tract in the Loma La Lata Norte and Loma Campana areas. Chevron said the deal gives it the chance to grow production beyond its 2017 target of 3.3 million barrels per day. Chevron says shale will help […]

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Companies drill for more oil in Argentina

A successful oil exploration program in Argentina should lead to a promising development opportunity, Andes Energia’s Alejandro Jotayan said Monday. Jotayan, chief executive officer of the company based in London, said its partners at YPF, an energy company in Argentina, started the exploration campaign in the Vaca Muerta, Chachao and Agrio reserve areas in the Neuquen basin. "A successful program will provide Andes and YPF with the opportunity to develop a large and promising area with unconventional and conventional resources potential," he said in a statement published by energy news website Rigzone. Andes said the exploration campaign targets an area already shown to contain oil. Energy consultant group Wood Mackenzie described the Vaca Muerta region as one of the best shale reserve areas in the world. Vaca Muerta, located in Neuquen province, holds 741 million barrels of recoverable oil, the U.S. Energy Information Administration […]

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Argentina nears deal with Spanish group Repsol over YPF seizure

Argentina is close to striking a deal with Spanish oil group Repsol to compensate the company for the nationalisation of its YPF unit last year which prompted a diplomatic crisis between Buenos Aires and Madrid. A delegation from Spain, including José Manuel Soria, industry minister, and several executives from Repsol , met Argentine officials in Buenos Aires on Monday to reach a preliminary agreement over compensation for the Spanish company, people close to the talks said. Repsol said in a statement on Monday night that it had noted the agreement between the governments and would consider its value to its shareholders ahead of a board meeting scheduled for Wednesday. Argentina, led by president Cristina Fernández, expropriated Repsol’s majority stake in YPF, its former state oil company, last year after accusing the company of failing to invest sufficiently in the country’s energy sector, a charge Repsol vehemently denied. Repsol was […]

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Bread prices in Argentina rise as corn and wheat scarcity kicks in

BUENOS AIRES, Oct. 29 (UPI) — Argentina’s wheat and corn distribution chaos, caused by erratic supplies and now widespread scarcity, has finally reached bakeries that are charging exorbitant prices for bread despite government warnings of a crackdown. Corn and wheat shortages began several months ago and weren’t relieved despite what critics called the government’s stopgap measures. The timing of the grain shortage and its direct impact on bakeries couldn’t be worse, critics said as media furor over bread prices and and shortages captured headlines days before Argentina’s mid-term elections. Gaps in supplies of corn were also reported across the country, Argentine media reported. Traders said wholesale prices for both corn and wheat were double those on Chicago markets as profiteering set in. Bakeries said they couldn’t avoid price hikes, forced as they were to pay ever higher rates for flour. Weather vagaries would likely impact on the new wheat […]

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Falklands oil prospecting firms to merge, aim to boost finds

STANLEY, Falkland Islands , Oct. 24 (UPI) — Two of the companies drilling for oil in the Falkland Islands’ South Atlantic waters are merging and further corporate patch-ups may not be far behind, industry analysts said. After several fits and starts, and investor jitters over the prospecting firms’ lackluster performance in the early phase of Falklands oil quest, the British Overseas Territory’s oil economy is stabilizing, analysts said. The oil-fueled optimism in the territories bodes well for companies and existing shareholders and is certain to draw more cash into the venture, made controversial and risky by Argentina disputing both the territory’s British rule and the mainly British oil companies’ right to prospect for oil. Britain and Argentina went to war over the islands in 1982 after an Argentine military junta briefly captured parts of the territories. The 74-day Falklands War led to deaths of 649 Argentine and 255 British […]

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