MercoPress. South Atlantic News Agency

“Increase reserves” Argentina tells oil companies

Argentina will demand oil and gas companies to increase their reserves announced Planning Minister Julio De Vido. The minister and one of President Kirchner's closest aides specifically mentioned Repsol-YPF, Petrobras and Chevron.

"We're convinced that geologically Argentina has a greater potential capacity than that shown by the reserves of the companies. There must be an increase in exploration resources to expand production", said Mr. De Vido in a long interview with Buenos Aires daily Pagina/12.

Mr. De Vido said that "Repsol-YPF, Petrobras and Chevron reserves must increase their reserves", contrary to other oil and gas companies operating in Argentina such as Total, Pan American Enerby, Wintershall and Oxy, "which have increased their reserves".

"If some can manage it, the others must also. We're not going to tolerate asymmetries. Several companies have reacted to Argentina's economic growth recovering reserves, but others haven't".

Mr. De Vido emphasised that these companies will have to improve their management, technology and investment, "because they are compelled to do so according to contract".

The minister recalled that several companies in four years managed to increase reserves by as much as 52%, while others dropped 20%, "and this happened in neighbouring fields, which obviously means more investment is needed".

Finally Minister De Vido forecasted that Argentina will not face energy shortages this coming winter and "there will be no repeat of the 2004 crisis".

"In energy terms there's nothing to spare but we'll face winter with the same calm as in 2005. We managed the last three years, the 2006 summer with record energy consumption, so I'm convinced the system will resist, even with another year with the economy expanding 9%".