Energy & OilEnergy & Oil
The inauguration ceremony of the Vega Pléyade natural gas field offshore Tierra del Fuego scheduled for Friday, has been postponed, although no official explanation has been given, it is believed that Argentine President Mauricio Macri was determined to attend, but his political agenda is too full precisely over the energy controversy and the fact next week he flies to China for the G20 summit.
Total inaugurates gas field offshore Tierra del Fuego with potential production of 10m cubic meters per day
Argentina will officially inaugurate this Friday the Vega Pléyade natural gas field, twenty kilometers offshore Tierra del Fuego to the south of the San Sebastián bay. The field started production last February and as a production potential of 10 million cubic meters per day.
The commercialisation of the Sea Lion Oil Field off the Falkland Island’s continues to take steps forward as Premier Oil prepares a detailed project proposal to be submitted to the Falkland Island’s Government (FIG). Premier Oil has been undertaking public consultations in the Falklands over the past week as part of their Environmental Impact Assessment, which will support their application to FIG to proceed with oil development.
Argentina's Supreme Court on Thursday blocked President Mauricio Macri's move to slash natural gas subsidies, a much-hated policy that has sent customers' bills soaring. The ruling is the hardest blow yet to the business-friendly president's move to eliminate electricity, gas and water subsidies which he says are bloating the deficit and sapping the struggling economy.
Argentina's government and leading oil companies hammered out a plan to gradually trim artificially high wellhead crude prices over the next three months in exchange for a temporary freeze on retail fuel prices.
The following article from The Economist points out that the Argentine Supreme Court in the next ten days has to decide on tariff rises for gas and electricity blocked by lower courts. And president Macri cannot afford to lose sine the price increases are a vital part of his plan to restore confidence in an economy undermined by years of reckless spending.
Brazil's Petrobras reported second-quarter profit that fell by nearly a third from a year earlier, missing expectations as oil prices fell and it took charges for layoffs and the impairment of a refinery. Petrobras said net income fell 30% to 370 million Reais (US$118 million) in the three months ended June 30 compared with a profit of 531 million Reais a year earlier.
Falklands discards air links with Argentina and iterates London pledge to support hydrocarbons development
The Falkland Islands government has made a public statement pointing out that the UK Government has been open and transparent with FIG about how it would like to improve the bilateral relationship with Argentina but ”has made it clear that this will not include negotiations on the sovereignty of the Falkland Islands.”
China’s role in Argentina’s foreign relations will be more balanced than during the Kirchner administrations, with a larger role played instead by the United States and European countries, the country’s ambassador to Beijing Diego Guelar said, claiming Chinese investment will have to be more competitive.
Argentina and Brazil commemorated on 18 July the 25th anniversary of the creation of the Brazilian-Argentine Agency for Accounting and Control of Nuclear Material, ABACC, which was the result of the nuclear energy exclusive peaceful use accord, signed by then presidents Carlos Menem and Fernando Collor, in Guadalajara, Mexico.