Repsol YPF, Tierra del Fuego Sign E&P Accord
Spanish oil firm Repsol YPF (NYSE: REP) and authorities from Argentina's Tierra del Fuego have signed an agreement to promote exploration and production of hydrocarbons in areas owned by the provincial government, local papers reported.
Tierra del Fuego government representative Hugo Coccaro and Repsol YPF representative Juan Carlos Fernandez Zarate signed the agreement.
The agreement is designed to determine the "mechanisms and joint procedures" for the exploration and production of hydrocarbons in areas owned by the province by constitutional mandate.
With good potential exploration upside, Tierra del Fuego also offers an attractive tax-free zone to foreign oil companies.
"We know about the province's potential in terms of oil and gas but we need a strong investment. We have decided to sign an agreement for reciprocal cooperation so our technical teams can keep working and see the possibility of investment in the future," newspaper Ambito Financiero quoted Coccaro as saying.
"We have invited the representatives of YPF in the same way we did with the consortium of Total, Wintershall and Panamerican Energy, which are the companies that work in this area," Coccaro said.
The consortium led by France's Total started natural gas production in June 2005 from the Carina and Aries fields in the Cuenca Marina Austral-1 (CMA-1) block off the coast of Tierra del Fuego.
Gas production from Carina and Aries will be used gradually to substitute declining production on existing fields in Tierra del Fuego and supply more gas to the Argentine market.
The project had been delayed because of lack of transport capacity on the 296km, 30-inch diameter San Martín pipeline linking Tierra del Fuego to central Argentina, but that pipeline has been expanded to allow the transport of gas from CMA-1.
About Business News Americas: Business News Americas is a multilingual news and business information service that covers the most important original stories in 11 different business sectors throughout Latin America everyday. Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
- Total's CEO Says Will Try To Move Ahead With Iran Gas Project (Oct 17)
- Total Expands Presence in Mexico (Oct 12)
- Wood Group Wins Total Refinery Maintenance Contract (Oct 11)
Company: Repsol more info
- Exxon Mobil Bets on Brazil, Buys 10 Oil Blocks in Auction (Sep 28)
- Repsol Says Drilling Suspended On Vietnam Oil Block Disputed By China (Aug 02)
- China Urges Halt To Oil Drilling In Disputed South China Sea (Jul 25)
Company: Wintershall more info
Operates 3 Offshore Rigs
- Libya's NOC, Wintershall Strike Interim Deal To Resume Output (Jun 13)
- BASF Sees Role of Oil and Gas Unit Declining Further (May 12)
- Norway Awards 56 Oil And Gas Licences In Mature Areas (Jan 17)
Company: PanAmerican Energy more info
- Neuquen Maintenance May Impact Exports (Jan 09)
- Ministry Official: Salta E&P Tender Interest Exceeding Expectations (Aug 16)
- Three Companies Purchase Bidding Rules in Salta Tender (May 19)