Chubut Launches San Jorge Exploration Tender

Argentine province Chubut's hydrocarbons department has launched a tender for the 3-D seismic exploration of five blocks in the Golfo San Jorge basin, the provincial government reported.

Technical bids are due May 19 and economic bids June 21, with the goal of awarding the blocks from August-September, hydrocarbons secretary Ricardo Moralejo told BNamericas. Bidding rules cost US$5,000.

Bidders will not have to submit offers in conjunction with regional companies due to the investment risk, although preference will be given to groups with local firms, the statement said. The blocks are Pampa Salamanca Norte, San Bernardo, Confluencia, Rio Senguer and Paso Moreno, and range from 794-2,680 sq km, said Moralejo, adding that the wells are expected to produce oil rather than gas.

All of the blocks have been studied with 2-D seismic and had exploratory wells drilled by Spanish oil major Repsol YPF (NYSE: REP) in the 1970s. The blocks were considered "marginal" at that time.

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