News Details

Argentina oil, gasoline export requests nearly double in October

Argentina

Chemicals Products

01-12-2023

Argentina published 48 crude oil and gasoline export authorization requests in October, almost double the 25 published in September. The number of companies seeking the green light also climbed to 29 from 20 in the same period. Among them are two firms new to the arena: Madalena Energy Argentina and Pluspetrol Energy, according to federal energy department data. In October, the 29 companies sought to export a combined 1.23Mm3 (million cubic meters) compared with 680,500m3 in September and around 1.70Mm3 in August. The bulk of requests are for 30-day periods in December-January. Argentina exports oil via Atlantic seaports and the Otasa pipeline, which connects the Neuquén basin to Chilean state oil firm Enap’s refinery in Biobío region.  YPF recently cut the ribbon on an associated 150km duct, Vaca Muerte Norte, capable of carrying 155,000b/d to feed into the Otasa duct and the company’s Luján de Cuyo refinery in Mendoza province.  Elsewhere on the map, midstream concessionaire Oldelval has brought online the 20,000b/d first phase of its Duplicar Plus project, being built to boost dispatch capacity between the Neuquén basin and export facilities at Puerto Rosales in Buenos Aires province.  Oldelval is planning another export-focused expansion, which should ramp up basin dispatch capacity to 1Mb/d by the end of 2026. 

 

PRODUCTION, EXPORTS
Argentina produced 102,600m3/d (645,334b/d) of crude oil in September, up 7.0% year-on-year, according to data from the General Mosconi institute energy think tank. Output of unconventional crude was up 17.6% year-on-year to 49,500m3/d. In contrast, conventionals production dropped 1.3% year-on-year to 53,200m3. Producers in the Neuquén basin, home to the Vaca Muerta shale play, are eyeing increased production, with appetites whetted by the export market and midstream outlay.  Neuquén province, which sits over the biggest chunk of Vaca Muerta, produced a record 354,146b/d in October, up 16.9% year-on-year, the provincial government said in a statement. The jurisdiction is aiming to continue ramping up production. In September, Argentina exported 383,800m3 of crude oil, up 46.8% year-on-year, according to the latest report from the General Mosconi institute. An improvement in macroeconomic conditions, coupled with a lifting of restrictions on access to dollars, could turbocharge investment in the local oil and gas sector. All eyes will be on the policy announcements and achievements of incoming president Javier Milei, a free market champion who will inherit a floundering economy when he takes office on December 10.