Two Bidders for Salina Grande Exploration in La Pampa

Argentina's La Pampa provincial government has received two bids for the US$6.5mn exploration of the 4,280 sq km Salina Grande area, the government reported in a statement.

The two bidders were Canadian oil company Petrolifera and local consortium Union Transitoria de Empresas (UTE). The two offered additional production royalties of 1.5% and 0.5% respectively on top of the 18% base.

The exploration works involve the acquisition of 1,700km, 2D seismic data, 100 sq km, 3D seismic data and the drilling of three exploratory wells with 4,500m depths, the statement said.

The exploration phase covers three years, not including subsequent two and one-year extensions. If hydrocarbons reserves are found, the exploration rights would be converted into a 25-year production concession.

Salta's provincial government will spend 30 days analyzing the offers, according to the statement.

Although the quantity of oil contained in Salina Grande is unknown, the product found there is light crude of some 32 degrees API, according to a previous BNamericas report.

UTE is made up of local firms Gregorio, Numo y Noel Werthein, Energial and Petrosiel.

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.