Argentina extends Total, Wintershall offshore oil and gas concession
Offshore staff
BUENOS AIRES – Argentina has extended a concession held by energy firms Total Austral, Wintershall Dea Argentina and Pan American Sur for 10 more years until 2041, and approved an investment plan for $700 million, according to a government decree issued on April 19.
As reported by Reuters, the extension for oil and gas exploration in the 1,900 sq km (733.59 square mile) offshore area comes as Argentina looks to bolster domestic energy supply and reduce its reliance on imports.
The government approved the new investment plan for the period 2031-2041, and established a royalty payment of 15% starting at the date of the extension, the decree said.
The extension request made by the exploration concessionaires was based upon on their need for more time, given the complexity and high costs involved in the development of these hydrocarbon reserves, the Argentine government said.
The concession area is part of the Austral Basin, which extends over the provinces of Santa Cruz, Tierra del Fuego, and the Argentine southern sea.
“The extension is expected to allow the continuation of the development of investments in the area, in order to maintain a natural gas production flow of 20 million cubic meters per day,” the decree stated.
Total and Wintershall each own 37.5% of the concession, while Pan American Sur owns 25%.
04.22.2022
