Wells in the Octagon (File Photo)
The deadline to bid for YPF’s conventional areas, which have marginal production, closed last week. In the Neuquén Sur cluster there are three key areas for Plaza Huincul due to geography, but also for Cutral Co due to labor issues.
These are the Dadin, Al Norte de la Dorsal and Octógono areas, which were grouped in Neuquén Sur. The offers for the areas have been numerous, but in overall numbers, it is not yet known how they turned out for this sector since the process is confidential.
This medium was able to establish, however, that the cluster is not very attractive for operators due to its high operating costs, the OPEX. In recent days it emerged that this cluster increased its operating expenses from 6 billion pesos to 16 billion pesos and this leaves a deficit of 8 billion annually by 2024.
YPF can (now does not want to) absorb those costs, but no company that is dedicated to mature deposits will do so. Because their business plan is to keep the workforce small and costs low.
The OPEX or current expenses of the three areas of Plaza Huincul is very high because salaries are paid for the non-conventional labor agreement and because YPF always managed large teams. That is to say, for businessmen there are many and they charge a lot. As anticipated here, there will be layoffs when the operation is carried out although the Private Oil Tankers Union and its general secretary, Marcelo Rucci, announced that this will not be allowed.
“If the OPEX does not go down, those fields have no future, but the union does not understand it,” a businessman told this medium. And the business of conventional operators is to “scrape the bottom of the pot” with low production.
In any case, it is easy to anticipate that there will be labor conflicts and staff loss if the cluster is sold and if it is not, YPF will have to make tough decisions to make the business attractive to potential buyers. And the workers? It would be best for you to settle your family accounts and prepare for a change.
