The reality of hydrocarbons in Río Negro is very different from that seen in neighboring Neuquén, and while the government waits for progress in the exploration of the Vaca Muerta margin in the lands of pears and apples, put a plan into action for not only extend concessions of 21 blocks that are coming to an end, but also advance in a phase of promoting incremental production in which they could even reduce the charge of royalties, taxes and fees to a minimum.
The roadmap for this plan already began last week with the presentation in the Legislature of the project to extend all concessions that have an expiration date between next year and 2028.
Total, there are 21 blocks, but with the particularity of being in the hands of a small group of companies. There are three signatures that will be key in this negotiation: South American Oils It has six blocks to extend, Aconcagua Energy It has three of its own and three more that it operates today but that in terms of papers are in charge of Vista. While President Petroleum It also has three areas on the expiration line.
These three companies 15 of the 21 blocks are concentratedleaving the rest in charge of YPF in three cases although with the particularity that two of them are within the Andes sale plan, so it will presumably arrive together with a new player.
These two blocks also have a peculiarity: they are Fernández Oro Station and Picada Signal – Punta Barda, the two leading areas in the province in gas and oil production, respectively.
And finally, with a single block as holders are Tecpetrol, Medanito and Madalena Energy.
“What we are looking for It is the remaining development of these blocks that have been in activity for 60 years, squeeze the remaining production to the maximum in phase 1 of this plan, and increase production with phase 2 of incentives“, assured the Secretary of Hydrocarbons of Río Negro, Mariela Moya.
The official stated that today the scenario is very different from the first extension that was given in 2014 for 27 areas and that collected almost 170 million dollars in extension bonds. “You have to lower your expectations. sweet money will not enter like in 2014. Still extending the 21 areas We are not going to reach 70 million dollars,” Moya remarked.
And he explained that for this reason the plan begins with the extension, which is expected to have the law ready at the beginning of July and to sign as soon as possible the agreements that will imply a new concrete investment plan. “In this stage royalties are going to continue at 12% plus 3%, what we are going to do is not raise them to 18% but we will not lower them,” he explained.
And he warned that “in the second phase, In the incentive plan for incremental production we are contemplating a reduction in royalties which by law can be lowered to 5%, and Gross Income and Area Fee that can reach exemption.”
Although this plan has not yet been published, Moya explained that “We are going to make it easy for it to work, there are going to be specific discountsno tax credit and the base point of the incremental curve will be the production on the day of the extension of each concession.”
In that sense, the official explained that “today we not only have 30% of the production that comes from secondary school, but almost half of the wells in the province are stopped. There are 4,396 wells in Río Negro, but 2,900 are inactive. From those, We want only those that have integrity issues to be abandoned and that the others can be reactivated with this promotion plan.”
