Page 18 - LatAmOil Week 44 2020

LatAmOil BRAZIL LatAmOil

It is known as the “transfer of rights” zone remaining equity is split between Shell, with 4%;
because it was sold to Petrobras without an Total (France), with 4%; Petrogal, with 2%; and
auction. Pre-Sal Petróleo, which represents Brazil’s fed-
Since the fields were acquired by Petrobras eral union, with 1%.
in 2010, there has been a decline in the value Atapu comprises the Oeste de Atapu and
of these rights. Nevertheless, Petrobras started Atapu fields, as well as a non-contracted area
oil and gas production at the shared deposit of owned by the union. Both fields are located near
Atapu in June, using the P-70 FPSO platform. Búzios, a large deposit in the eastern portion of
Petrobas owns an 89% stake in Atapu. The the Santos Basin. ™

ARGENTINA
Official: Gas key to Argentina’s

post-pandemic energy sector

NATURAL gas is set to become a more impor- Argentinian government’s introduction of
tant component of Argentina’s energy sector in measures designed to curb the spread of the
the post-pandemic world, according to one of pandemic. But the undersecretary said he hoped
the country’s senior energy officials. that the government’s new gas policy would
Javier Papa, the undersecretary of energy bring production levels to back to pre-corona-
planning at Argentina’s Energy Secretariat, said virus levels next year.
last week that gas had “enormous potential” to In the meantime, he said, Buenos Aires will
help the country in the wake of the coronavi- continue to take measures such as freezing util-
rus (COVID-19) outbreak. “It’s important to ity rates until the end of the year and enforcing
say that natural gas in Argentina is the biggest a law that prevents gas and electricity suppliers
energy resource in terms of national supply, from cutting off deliveries to consumers. These
accounting for 58% of total energy,” he was policies have bolstered the Argentinian econ-
quoted as saying at an energy event by Natural omy during the pandemic, he claimed.
Gas Intelligence. Argentina’s President Alberto Fernández
Gas is a “key part of the energy transition” in unveiled the country’s much-anticipated gas
Argentina, he added, calling the fuel part of the stimulus plan last month. The package, known
path towards reducing emissions. as Plan Gas 4, calls for state-owned YPF to invest
Papa further indicated that the development $1.8bn in gas production over the next three
of fields in the Vaca Muerta shale formation years.
would underpin Argentina’s gas policy. Vaca It will also involve a four-year tender scheme,
Muerta appears to be able to perform as well as under which producers will be able to offer gas
“the best plays” in the United States, he said. And to the market at a price up to $3.70 per million
since only 4% of the shale formation’s resources Btu. The tenders will cover the delivery of 70mn
have been developed on a commercial basis, cubic metres per day of gas, just over half of the
this “gives us an enormous potential in hydro- country’s current production.
carbons,” he added. The gas plan is expected to save Argen-
Production rates at Vaca Muerta fields tina around $5bn in imports to cover seasonal
dropped earlier this year, following the demand, officials have said. ™

Vaca Muerta fields are key to Argentina’s gas strategy (Photo: File)

P18 www. NEWSBASE .com Week 44 05•November•2020