MercoPress. South Atlantic News Agency

Oil and gas exploration off Comodoro Rivadavia begins August

Pan American Energy has contracted Western Geco for the seismic surveying

Argentine oil and gas company Pan American Energy will invest 80 million US dollars in the first phase of an offshore exploration program in the San Jorge Gulf in Patagonia, next to Comodoro Rivadavia, the company said Tuesday in a statement.

The exploration program, which includes a seismic study carried out by Western Geco, will run through 2012.

The exploration areas lies off the coasts of Chubut and Santa Cruz provinces and were awarded to Pan American under licenses extended by the Chubut and Santa Cruz provinces in April and June 2007. Pan American has joined with two local companies, Petrominera Chubut and Fomicruz, to carry out the projects, said the release.

“Western Patriot” belonging to Western Geco is scheduled to begin 3D seismic surveying next August for a period of 70 days. She will be operating in waters 80 meters deep. A helicopter will be working together with “Western Patriot” and two support vessels will be in charge of logistics.

Pan American expects to begin processing the new 3D seismic data and the purchased 2D data in 2010 and by early 2011 will have determined the best places for exploratory drilling.

Pan American, Argentina’s second oil and gas producing company, is 60% owned by the UK BP and 40% by Bridas Corp. According to the company’s website, average 2008 hydrocarbons production amounted to 229.700 barrels equivalent per day.

In related news Buenos Aires financial daily El Cronista published that the Argentine government wants more Argentine investors to buy up shares in local oil and gas firm YPF, as part of a creeping nationalization program.

The government of President Cristina Fernandez de Kirchner wants to water down the existing stake of Spain's Repsol, to secure at least 51% control among Argentine investors, according to the report.

Repsol President Antonio Brufau is scheduled to visit Buenos Aires this week, when an agreement over a new ownership structure could be unveiled, the report said. The government wants to cut a deal before June 28 midterm elections, according to the newspaper, though it also said that timetable may not be possible.

”Repsol wants to leave (Argentina) and the negotiations with Spain are very advanced” a government source told the newspaper.

Argentina's Grupo Petersen owns 14.9% of YPF and has the right to buy another 10%. The country’s national energy company ENARSA could complete the government’s target, speculates El Cronista.