Pampetrol to select partners in Argentine blocks

Argentine provincial oil company Pampetrol will on Wednesday open a second set of envelopes in a bid round for 25-year licences for the 25 de Mayo-Medanito SE and Jagüel de los Machos blocks.

On Monday, Pampetrol opened the first set of envelopes containing the technical and financial information of the two bidders, Petroquímica Comodoro Rivadavia and a joint venture between Ribeiro and Oilstone Energía. The envelopes to be opened today will reveal the companies’ economic offers, with the joint venture bidding on both areas and Petroquímica Comodoro Rivadavia targeting for renewal only the second block, which it currently operates.

La Pampa Governor Carlos Verna said that to take on the blocks, the companies would have to pay the provincial treasury an initial bond of USD 20 million for the unconventional 25 de Mayo-Medanito SE area and USD 10 million for the conventional Jagüel de los Machos concession.

According to Pampetrol president Daniel Grundig, the provincial oil company would retain a minimum 20% stake in each block and the winners would have to offer at least 20% in royalties to the province.