Argentina’s oil patch draws more than $416mn in oil exploration commitments

Argentina’s Neuquén and Mendoza provinces are advancing oil exploration projects carrying more than $416mn in proposed investment and access payments, spanning new acreage in Neuquén's Vaca Muerta and conventional exploration areas in Mendoza.

Companies submitted more than $410mn in offers for eight areas in the first round of Neuquén’s 2026 exploration plan, including more than $180mn in access bonuses and $230mn in exploration commitments, Bloomberg Línea reported.

Provincial oil company Gas y Petróleo del Neuquén (GyP) received 20 bids from 10 companies for eight of the 15 blocks initially offered.

Petroquímica Comodoro Rivadavia (PCR) provisionally led three areas, offering combined bonuses of $71.5mn and exploration commitments of $55.6mn for Águila Mora Noreste, La Tropilla I and Santo Domingo II.

GeoPark (NYSE: GPRK) ranked first for Corralera Noreste with a $60.5mn bonus and $34mn in exploration spending, while Patagonia Energy led Corralera Noroeste with a $22.1mn bonus and $78.7mn investment commitment.

A Phoenix Global Resources-Continental Resources partnership led Corralera Sur, while JPM Energía topped bidding for Pampa de las Yeguas II NE and Selva María Oil for Chasquivil Sur.

GyP will review the technical programmes and other terms before submitting preliminary awards to its board. Neuquén governor Rolando Figueroa aims to complete the awards in October, with a second tender round planned for November.

Separately, Mendoza awarded two conventional exploration blocks carrying combined initial investment commitments of $6.134mn, Vaca Muerta News reported.

PCR secured the 847-sq-km Río Atuel block with a $3.59mn programme including reprocessing 2D and 3D seismic data, drilling and completing an exploration well and intervening in an existing well.

Hattrick Energy was awarded the 316-sq-km Atuel Exploración Sur block after committing $2.54mn. It plans to reprocess 300 km of 2D seismic and 80 sq km of 3D seismic data and drill a 1,500-metre exploration well.

The permits initially run for three years. Companies meeting their first-phase obligations can seek a further two-year exploration period, which would require at least one additional well reaching the depth of the nearest known reservoir.

The awards bring to nine the number of blocks allocated through Mendoza’s national and international tender process.

Mendoza energy and environment minister Jimena Latorre said PCR and Hattrick had shown interest in the two areas before the tender and that the process had converted that interest into specific exploration and investment programmes.