Argentina awarded permits to start hydrocarbon exploration in 18 areas off the coast of the Buenos Aires province, the Austral basin and the Malvinas West basin, which neighbors with the Falkland Islands, the insular territory claimed by Argentina.
According to Decision 216, the profitable firms supplied bids totaling US$724 million to discover the areas which might be positioned alongside the South Atlantic. The cities had been awarded to twelve foreign companies and YPF, some in consortia and included ExxonMobil Argentina Offshore Investments Bv, Qatar Petroleum International Limited, Tullow Oil Plc, Pluspetrol SA, Wintershall Energía SA, Equinor Argentina SA, Complete Austral SA, BP Exploration Operating, Eni Argentina Exploración y Explotación SA, Mitsui y Co. Ltd, Tecpetrol SA, Shell Argentina SA Firm Restricted.
Argentina media experiences indicated that British companies, Shell, BP, and Tullow Oil took seven of the 18 areas, which represents 39% of the whole on bid.
“It is the largest focus of areas gained by private companies from a single international nation, on this case, the UK,” identified OETEC, the Vitality, technology, and Infrastructure for Development Observatory,
The OETEC lobby also indicated that the Norwegian firm Equinor, former Statoil, ended up with the identical variety of areas but in three blocks in affiliation with Argentina’s YPF.
OETEC earlier this week reported that the Equinor board has as full member Ms. Anne Drinkwater, described as a former advisor to the Falklands’ authorities, and who additionally was a member of the Tullow Oil board, which recognized as an organization involved within the Falklands oil business. In impact, OETEC claims that Ms. Drinkwater in 2013 elaborated a five-year undertaking to develop the gas and oil business for the Falklands (“unlawful”) authorities.
OETEC additionally underlined that the West Malvinas basin is after the Falklands EEZ, and will” mechanically grow to be a zone of great geopolitical and pure safety significance and for which the decision (65) doesn’t keep in mind.”
The present bidding course of was performed following Regulation 17.319 and Energy Secretariat Resolution 64, from 4 November 2018 to award hydrocarbons exploration permits offshore Argentina.
Offshore exploration is predicted to spice up Argentina’s reserves, which fell within the last decade as a consequence of authority’s regulations that discouraged overseas funding within the vitality sector. President Mauricio Macri has sought to extend vitality manufacturing. In 2018, 18% of the country’s gas production got here from offshore areas.