Río Negro will stop being a luxury spectator of the Vaca Muerta exploitation in Neuquén and will begin to be part of one of the most important oil developments in the world. The numbers that are handled are exorbitant for the ordinary citizenbut it is an investment that will have a very significant spillover effect, especially in the Alto Valle where the two blocks that today received offers to start exploration are located.
The face of astonishment was unanimous when the offers for Pan American Energy (PAE) were opened. The oil company quadrupled the minimum imposed by the specifications and proposed to invest more than 48 million dollars in the North Confluence area and more than 38 million dollars in South Confluence. Two of the three areas that were tendered, the remaining Cinco Saltos had no bidder.
The other company that submitted an offer was Kilwer, a subsidiary of Phoenix Global Resources (PGR) that met the minimums required by the specifications: 10.2 million dollars for North and 12 million dollars for South. Since Kilwer was the firm that presented a private initiative for both deposits, it has the right to match or better the offer. The deadline is next Tuesday.
PAE’s proposal amazed everyone: the best expectation in the government was around 15 million dollars for each block. The exploration process has a high risk index, which is why in tenders of this type, the offers are generally close to the minimum provided by the tender.
The act was headed by the Secretary of Energy, Andrea Confini, and the Secretary of Hydrocarbons, Mariela Moya. It also had the participation of the senator and candidate for governor, Alberto Weretilneck, the lieutenant governor, Alejandro Palmieri, and the provincial deputy and former Secretary of Energy, Sebastián Caldiero.
The work on this sector began in 2019 and it has been announced for more than a year. Of course, it is not by chance that news of such an investment for the province It reaches a month before the provincial elections and the majority of the Río Negro localities.
Regarding the deserted tender that left the Cinco Saltos area, Confini said that it was foreseeable because it is a little distanced from the two remaining ones closest to the exploitation in Neuquén, but that the exploratory results of Confluencia Norte and Sur will drive that tender.
More areas to bid for Río Negro
He also assured if the results are as expected there will be new tenders in unconventional blocks of Vaca Muerta in Río Negro. “The risk is very limited because there are perforations very close to the area and there was some drilling inside and they have produced interesting results. There are expectations that there will be oil with 30 degrees API, a heavy oil that might provide a window of greater profitability. I understand that this is what they are looking for, “Confini explained.
The official considered that this kick to start the explorations will mark a new direction in the hydrocarbon activity of Río Negro. For more than a decade the extraction of crude oil has been in decline in the province, by the natural crisis of the conventional one and that these unconventional projects will generate a great economic impact in the region.
The first period of the exploration permit is for a period of three years, the minimum is the drilling of a vertical and some horizontal wells, in addition to a seismic study. Now it remains to define in the analysis of the offers, but it is estimated that within 6 to 7 months the company that wins the tender will begin to invest in the sector. The Energy area must carry out an exhaustive control of the proposals made by the operators.
Location of the areas
North Confluence It adjoins Mata Mora Norte, the strong area of activity for Phoenix Global Resources (PGR) and in which it is expected to reach a production of 40,000 barrels per day in the coming years.
The second area that borders Neuquén is South Confluence, and it also does so with another Phoenix Global Resources block such as Mata Mora Sur, locations that explain the special interest of the company led by the former vice president of YPF, Pablo Bizzotto from Rio Negro.
Finally, Five North Falls It is located a little further from the interprovincial limit, to the north of both Villa Manzano and Sargento Vidal, which are the closest communes.
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