Argentina offshore round attracts US$1bn in bids

Some 18 of the 38 areas offered in Argentina's first ever offshore round launched in November received bids to conduct exploration by 13 companies for total investments of US$995mn.

Four of those companies have no previous operations in Argentina: Mitsui, BP, ENI and Tullow. The rest are Qatar Petroleum, Equinor, Exxonmobil, Total, YPF, Shell, Pluspetrol, Tecpetrol and Wintershall, according to a government release. No bids were made for the other 20 areas.

In the Western Malvinas basin, offers were made for nine areas for a total of US$776mn. Three of those areas, MLO-113, MLO-117 and MLO-118, off the coast of the southern province of Tierra del Fuego, were awarded to Qatar in a consortium with Exxonmobil, according to statements from both companies.

One area in that basin, MLO-123, was awarded to a consortium formed between Total Austral, YPF and Equinor, according to Total.

Lastly, the Austral basin received offers worth US$38mn.

In the northern Argentine basin (see image below) off the northern coast of the city of Mar del Plata, which received offers totaling US$181mn, areas CAN-107 and CAN-109 were awarded to a consortium formed between Shell and Qatar Petroleum, the two companies said in separate releases.

CAN-111 and CAN-113, in the same area, were awarded to Total Austral in conjunction with British Petroleum, Total said in a release.

However, these award decisions still have to go through a vetting process. The official adjudication, along with those of those areas that received several competitive offers, will be announced on May 16.

After that date, teh winners will begin 3D seismic data acquisition, after which they will start with exploratory drilling. The initial exploratory phase lasts four years, with an additional four years for the second phase. Tender winners may ask for an additional four-year extension.

Source: bnamericas