Repsol, Petrobras in Argentina oil exploration deal
Stock Market News and Investment Information Reuters.com
BUENOS AIRES, Argentina, Jan 11 (Reuters) - Spanish oil major Repsol YPF and Brazil's Petrobras will join Argentina's nascent state-owned energy firm Enarsa in oil exploration in Argentina's Atlantic waters, the government said on Wednesday.
The accord is the first major commercial venture by Enarsa, created by President Nestor Kirchner in the midst of an energy shortage in 2004 to give the state a greater role in the energy sector after wide-scale privatization in the 1990s.
The new consortium, which includes Uruguay's state oil firm Petrouruguay, will explore three blocks in the Colorado Marina basin, 200 kilometers (124 miles) east of Argentina's coast.
Enarsa has jurisdiction over underwater hydrocarbons resources in Argentina but has almost no assets and limited operating capacity, analysts say, forcing it to rely on partnerships with private operators to finance projects.
"This will be Argentina's first attempt to recover oil income," said Planning Minister Julio De Vido.
The accord calls for joint development and production of oil if commercially viable resources are found, which could trigger investments of over $2 billion, Repsol YPF said in a statement.
Repsol YPF (REP.MC: Quote, Profile, Research) will be the operator of the group, with a 35 percent stake, and together with the non-Argentine partners will invest between $40 million and $100 million in the exploration stage.
Enarsa will also have a 35 percent share while Petrobras (PETR4.SA: Quote, Profile, Research) (PBR.N: Quote, Profile, Research) will have 25 percent and Petrouruguay 5 percent.
The 35,000 square kilometer area to be prospected includes two blocks provided by Enarsa, called CAA-7 and CAA-44, and another provided by Repsol and Petrouruguay called CCM-2.
Repsol YPF said it will begin registering information from a 1,000 square kilometer area this year and will start drilling in 2008.
"In case of a commercial discovery that allows us to advance to a phase of development and production, the investment could surpass $2 billion," the company said.
Enarsa and Repsol YPF also signed a separate 10-year accord on Wednesday to explore other offshore areas in Argentina.
Enarsa has been seeking exploration partners at a time when low investment in the energy sector following a 2001-2002 crisis has led to predictions the nation will become a net importer of crude within a few years.
Repsol YPF obtains the majority of its crude and gas in the South American nation and in December said it planned to sink $6.7 billion in Argentina overall in the 2005-2009 period.
Petrobras, which has experience in producing heavy oil from deep-sea locations, has a producing unit in Argentina that pumps oil in onshore areas.
BUENOS AIRES, Argentina, Jan 11 (Reuters) - Spanish oil major Repsol YPF and Brazil's Petrobras will join Argentina's nascent state-owned energy firm Enarsa in oil exploration in Argentina's Atlantic waters, the government said on Wednesday.
The accord is the first major commercial venture by Enarsa, created by President Nestor Kirchner in the midst of an energy shortage in 2004 to give the state a greater role in the energy sector after wide-scale privatization in the 1990s.
The new consortium, which includes Uruguay's state oil firm Petrouruguay, will explore three blocks in the Colorado Marina basin, 200 kilometers (124 miles) east of Argentina's coast.
Enarsa has jurisdiction over underwater hydrocarbons resources in Argentina but has almost no assets and limited operating capacity, analysts say, forcing it to rely on partnerships with private operators to finance projects.
"This will be Argentina's first attempt to recover oil income," said Planning Minister Julio De Vido.
The accord calls for joint development and production of oil if commercially viable resources are found, which could trigger investments of over $2 billion, Repsol YPF said in a statement.
Repsol YPF (REP.MC: Quote, Profile, Research) will be the operator of the group, with a 35 percent stake, and together with the non-Argentine partners will invest between $40 million and $100 million in the exploration stage.
Enarsa will also have a 35 percent share while Petrobras (PETR4.SA: Quote, Profile, Research) (PBR.N: Quote, Profile, Research) will have 25 percent and Petrouruguay 5 percent.
The 35,000 square kilometer area to be prospected includes two blocks provided by Enarsa, called CAA-7 and CAA-44, and another provided by Repsol and Petrouruguay called CCM-2.
Repsol YPF said it will begin registering information from a 1,000 square kilometer area this year and will start drilling in 2008.
"In case of a commercial discovery that allows us to advance to a phase of development and production, the investment could surpass $2 billion," the company said.
Enarsa and Repsol YPF also signed a separate 10-year accord on Wednesday to explore other offshore areas in Argentina.
Enarsa has been seeking exploration partners at a time when low investment in the energy sector following a 2001-2002 crisis has led to predictions the nation will become a net importer of crude within a few years.
Repsol YPF obtains the majority of its crude and gas in the South American nation and in December said it planned to sink $6.7 billion in Argentina overall in the 2005-2009 period.
Petrobras, which has experience in producing heavy oil from deep-sea locations, has a producing unit in Argentina that pumps oil in onshore areas.
posted by Marcel at 4:14 PM
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