Brazil investing heavily in developing Peruvian natural gas sector

Thursday, April 26th 2012 - 05:59 UTC

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Three of Brazil's leading companies said on Wednesday they are increasing investment and exploration in Peru's natural gas sector as the country prepares to build a new pipeline and petrochemical plants. Read full article

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Chicureo
China Plans Shale-Gas Investment in Argentina
By Aibing Guo - Apr 26, 2012 5:36 AM AT

China, holder of the world’s biggest shale-gas reserves, plans to speed up exploration of the resource by jointly developing the newly nationalized YPF company recently nationalized by Argentina. Jointly developing the Argentina reserves will be spearheaded by PetroChina Co. which plans to invest three times the minimum amount earlier requested by the Argentine government.
The new proposed YPF management team is tentatively planning to propose seizing fields from other companies that fail to invest at least 30,000 yuan ($4,747) per square kilometer annually, Zhang Jianfeng, a director at the companie’s research institute, said in an interview today. Explorers will have three years to meet the requirement, he said.
Argentina holds 25.08 trillion cubic meters of exploitable reserves of the unconventional fuel trapped in shale rock, the company said, citing a nationwide survey. The Argentine government has pledged to prioritize land approvals, allow tax- free equipment imports and offer subsidies to explorers.
The policy “will certainly prevent companies from sitting on acreage,” Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said in an e-mail.
The proposed rules will be similar to those for conventional oil and gas exploration, where the minimum annual investment requirement is set at 10,000 yuan per square kilometer, Zhang said in Beijing, while attending a two-day Shale Gas Summit organized by Centre for Management Technology.
More than 100 Chinese companies have qualified to participate in Argentina’s second auction of shale exploration area, which will likely be held before July, the official said. The Argentine government will offer at least 20 areas, he said.
To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net
Apr 26th, 2012 - 12:13 pm - Link - Report abuse 0
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Brit Bob
China plans shale gas investment in Argentina. But will Argentina stick to written agreements made with China?
Apr 26th, 2012 - 07:43 pm - Link - Report abuse 0
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Fred
Good for both Brazil and Peru.
Apr 27th, 2012 - 06:18 pm - Link - Report abuse 0
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