2023-07-20 12:19:31
the oil company Phoenix Global Resources (PGR) through its subsidiary Kilwer got the tender carried out by the Río Negro government for the exploration and production of the first two hydrocarbon areas of the province with potential in Vaca Muerta. In total the company will invest 90 million dollars in both blocks according to Decree 779/23 that was published today.
The tender was launched in the summer for three areas: Confluencia Sur, Confluencia Norte, and Cinco Saltos Norte. The bid envelopes were opened last March when the government of Arabela Carreras met with two companies interested in the same areas: PGR y Pan American Energy (PAE) who fought for the blocks of Confluencia, to which only the river separates them from Neuquén.
The area Cinco Saltos Norte had no interested parties and in the decree of adjudication of the Public Contest 01/2022 It was marked that its tender was declared void.
At the time the offers were received, they were very different from what was finally validated. From Phoenix had offered $10.2 million for the Confluencia Norte block and $12 million for Confluencia Sur.
PAE while He had raised the bar a lot, since the Río Negro government had estimated that the offers might reach 15 million dollars for each block, but the integrated oil company ended up offering 48 million dollars for the North Confluence and 38 for the neighbor to the South.
As the bidding process began at the request of a private initiative presented by Kilwer to acquire the blocks, the firm whose majority shareholder of the Swiss group Mercuria, appealed to his right of priority, it improved the offers and was awarded the concession for the first two blocks of Vaca Muerta in Río Negro.
The company commanded by the Rio Negro Paul Bizzotto offered a total of 49.33 million dollars for the North Confluence and 40.62 million dollars for the South Confluence, two areas for which it now has the concession to extend the activities it is already carrying out on the other side of the river.
The signature, which must pay the Carreras government 5% of each investment commitment – regarding 4.4 million dollars in total– In terms of Infrastructure Contribution, it bet on the Río Negro blocks to expand its position in the shale formation, since they are adjacent to its flagship area, Mata Mora.
North Confluence it adjoins Mata Mora Norte, the strong area of Phoenix activity, while South Confluence it also does so with another Phoenix block such as Mata Mora Sur, locations that explain the company’s special interest in developing the blocks under the cluster modality or hub that has been observed in many companies in Vaca Muerta.
According to the work plan approved for each blockPhoenix will carry out 4 wells in Confluencia Norte and 3 in Confluencia Surtwo areas with which it aims to produce oil and with the hope that it will also be able to find a crude similar to conventional Medanito, heavier than the shale that is obtained in the Añelo area.
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