Players hold out for incentive in Argentina

By Gareth Chetwynd Buenos Aires

 29 November 2012 23:59 GMT

Private sector companies operating in Argentina such as ExxonMobil, Petrogas Americas, Total, Wintershall, Apache, Chevron and EOG Resources have reported encouraging results from initial drilling and fracturing operations in the Vaca Muerta formation, but tend to restict such operations to a mere foothold in the hope that the authorities will offer better terms.

Rock-bottom gas prices have similarly stifled Argentina’s upstream investments for more than a decade, driving reserves down to about 340 billion cubic metres and leaving a supply gap of about 30 million cubic metres per day to be filled by imports in winter months, and rising.

Argentina may possess the third best unconventional resource in the world and rely on gas for 85% of its energy needs, but the country has been routinely paying about $11 per million British thermal units for Bolivian gas and up to $20 per million Btu for…

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login

Upstream share price index