Oil & Gas

The province of Mendoza ranks fourth in the extraction of conventional oil and gas in the country.

Mendoza shares with the province of Neuquen a geological formation called Vaca Muerta (Dead Cow) which -according to the estimated reserves- would be world’s third largest reserve for non-conventional shale oil and gas, just behind the reserves in the United States and China.

The oil and gas sector represents 25% (USD 3.6 billions) of the Province GDP.

 

Facts:

  • The oil sector generates more than 15,000 direct and indirect jobs.
  • 78,000 barrels a day are produced from conventional oil fields (Data: Dic 2012).
  • There are more than 2,258 productive oil wells.
  • 150 companies operate in the sector.
  • Companies operating in the local sector include: YPF, Wintershall, Sinopec, Pluspetrol, Petrobras, El Trébol, Tecpetrol, Roch, San Jorge Petroleum, Petro AP, among others.

 

Conventional Hydrocarbons

The activity is carried out in the Cuyana and Neuquina Surmendocina basins, two extraction sedimentary basins of hydrocarbon resources, with a total of 86 exploration and explotation areas.

Proven reserves up to December 2013

41 million cubic meters of oil

7.65 billion cubic meters of gas

There is an important volume of probable reserves.

 

Non-Conventional Hydrocarbons

The Vaca Muerta formation covering an area of 30,000 km (7,4 million acres) contains light oil, wet gas (liquefiable at room temperature) and dry gas with a thickness greater than 200 meters. It covers 53 areas of great potential.

Studies carried out by the International Energy Agency (IEA) indicate that there may be 20 trillion cubic meters of prospective gas reserves, generating significant expectations regarding potential oil reserves as well.

The studies carried out in 2 exploratory wells reveal a potential of 1,000 Mboe (Thousand of Barrels of Oil Equivalent).

 

 

Petrochemical Industry

Argentina’s most complex oil refinery is located in Mendoza (Rated 11 out of 12 in the Solomon Index). It is the second largest producer in the country with a nominal refining capacity of 16,800 cubic meters per day. This refinery generates 3,500 jobs.

 

Why to invest in the oil and gas sector in Mendoza?

  • Great potential in conventional and non-conventional hydrocarbons.
  • High quantity, quality and availability of exploratory data.
  • High quantity of reserves under study.
  • Good connectivity, infrastructure and services.
  • Skilled human capital
  • Specific legislation framework for the activity
  • Energy availability
  • Government’s commitment to the development of the sector

 

Opportunities to invest in the sector
Bidding opportunities for conventional and non-conventional hydrocarbon exploration. The bidding process follows the current regulations of the Mendoza Government.

 

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