Page 16 - LatAmOil Week 50 2020

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The VLCC will deliver the oil to the Asian mar- should be very proud.
ket, it added. Baúna, also known as BM-S-40, is located
The statement said that the sale would in a shallow-water section of the southern San-
strengthen the company’s financial position. tos basin, one of Brazil’s largest hydrocarbon
“The recent rally in global oil prices will be provinces.
reflected in the terms of the shipment’s sale It is located around 50 km from Karoon’s
and is expected to provide a positive boost to Neon and Goiá discoveries and 50 km from the
Karoon’s forecast revenue,” it declared. company’s Clorita exploration area.
Julian Fowles, the Australian firm’s CEO The field has been in operation since Febru-
and managing director, described the shipment ary 2013, and its output stood at around 16,000
as an important milestone for Karoon. “The barrels per day (bpd) of oil as of July 2020. It
off-loading of this oil cargo marks an enor- is already home to six production wells, three
mously important step in Karoon’s transforma- water-injection wells and one gas-injection well
tion into a significant oil producer,” he said. “It that are being used to exploit two reservoirs. All
is a remarkable achievement for Karoon, and all of the wells are subsea completions with tie-ins
of those involved in the delivery of this project back to the Cidade de Itajaí FPSO.. ™

ARGENTINA
Argentina receives bids from 16 firms in

gas subsidy auction

THE government of Argentina received bids bids, in absolutely all the basins with gas poten-
from a total of 16 companies last week in its first tial,” said Energy Secretary Dario Martinez. He
round of auctions to supply more than 70mn was referring to government officials’ previous
cubic metres of natural gas at subsidised well- statements of hope that the auctions would
head prices. promote the development of gas-bearing fields
All of the country’s main gas producers, within the Vaca Muerta shale formation.
including the national oil company (NOC) Buenos Aires was due to issue awards on 15
YPF and international firms such as France’s December, after analysing all of the bids.
Total and the Anglo-Dutch major Royal Dutch The auctions drew bids ranging from $2.40
Shell, bid for the right to supply gas for use in per mmBtu to $3.66 per mmBtu. The offers
the domestic power-generating sector between were all higher than the current average well-
2021 and 2023. Domestic independents Tecpet- head price of around $2.3 per mmBtu. The dif-
rol, Pluspetrol and Pampa Energia also submit- ference between the market price and the price
ted offers, according to press reports. awarded at auction is expected to be paid by the
“We are very happy because we received 16 government.

Argentina hopes the auctions will support gas development at Vaca Muerta fields (Photo: Equinor)

P16 www. NEWSBASE .com Week 50 17•December•2020