Page 12 - LatAmOil Week 15 2021

LatAmOil ARGENTINA LatAmOil

Protests slowing work at Vaca Muerta

LABOUR protests are hampering upstream completion projects, output is sure to start slip-
operations at fields in Vaca Muerta, a massive ping “soon,” the source said.
shale formation in Argentina. Neuquen’s provincial Security Ministry con-
According to press reports, healthcare work- firmed on April 13 that the demonstrations were
ers have been holding demonstrations in areas interrupting ground transportation. In a state-
near oil and gas fields since April 7. The protest- ment, it said it had asked the healthcare workers
ers are demanding higher wages, saying that involved in the protests to curtail their activities
they deserve better pay because of the risks they along the roads. So far, however, the demonstra-
face during the coronavirus (COVID-19) pan- tors have refused, said Security Minister Vanina
demic. Infection rates are currently climbing in Merlo. Healthcare workers have said they will
Argentina, where more than 58,000 people have not comply unless they are given assurances that
already died from the virus. their salaries will rise, she was quoted as saying
These challenges have driven demonstra- in the ministry’s statement.
tors to block roads leading to Vaca Muerta oil The protests and road blockages are already
and gas fields. In turn, the resulting blockages having knock-on effects. With fewer trucks
have stymied development operations. They plying the roads in Neuquen, some local filling
have also spread, with truck drivers joining the stations have not been able to receive shipments
healthcare workers. of fuel. As a result, some areas are reporting fuel
“The main problem that we have is the move- shortages. ™
ment of people and key inputs in and out of the
fields to continue with operations,” one source
from a producer active in Vaca Muerta told
Platts earlier this week.
Another source told Reuters that the protests
were disrupting efforts to develop the fields.
“More than 30 production teams had to stop
drilling or completing wells,” the source said on
April 13. (Both sources spoke on condition of
anonymity.)
Platts reported a similar level of disruption,
quoting its own unnamed source as saying that
the blockages had led to the idling of 30 rigs. If
these rigs do not resume work on drilling and Protesters have blocked the roads leading to Vaca Muerta fields (Photo: Equinor)

ECUADOR
Lasso’s election win may benefit oil sector

THE outcome of Ecuador’s presidential run-off To date, the president-elect has not talked
election may be good news for the country’s oil extensively about his plans for Ecuador’s oil sec-
sector. tor. However, he has said that his government
According to press reports, the winner of would promote efforts to increase crude pro-
the election was Guillermo Lasso, a right-lean- duction. Additionally, he has reassured investors
ing candidate and career banker who generally across the board by pledging to uphold Ecua-
favours market-oriented policies. Lasso won dor’s $6.5bn financing deal with the Interna-
more than 52% of all votes in the run-off, edg- tional Monetary Fund (IMF), to keep up with
ing out left-leaning Andres Arauz, an economist payments on the country’s overseas bonds and
with close ties to Ecuador’s former president, to stick with a market-oriented approach.
Rafael Correa. On the flipside, Lasso has mooted plans for
The outcome of the election came as some- investing more in renewable energy and tight-
thing of a surprise. Arrauz had the highest num- ening fuel quality standards in order to reduce
ber of ballots in the first round of the election pollution. Even so, on balance, LatAmOil con-
and was heavily favoured to triumph in the run- tinues to expect that his administration will seek
off. However, Lasso gained ground in the last to co-operate with international oil companies
few weeks before the second round of voting. (IOCs). ™

P12 www. NEWSBASE .com Week 15 15•April•2021