Gazprom International delegation headed by Andrey Fick, the company’s Managing Director, attended the 1st Argentina Business & Investment Forum that took place in Buenos Aires, the country’s capital city, on 12-14 September 2016.
During the Forum, Andrey Fick met Argentina’s Energy and Mining Minister, Juan Aranguren, who expressed great interest in the further development of close ties between Russia and Argentina in field of oil and gas cooperation. The Head of the country’s Energy and Mining Ministry also reassured his Russian colleagues that the country’s current government would offer its full support to their joint projects with Gazprom.
The same day the Managing Director of Gazprom International held negotiations with the Management Committee of the country’s national oil and gas company YPF S.A.
During these negotiations Miguel Gutierrez, the new Chairman of the company’s Board of Directors, who assumed the position in April earlier this year, introduced the company’s new CEO Ricardo Darré to their Russian colleagues. The Head of the Argentinian company expressed their dedication to further strengthening their relationship with the Russian gas company and referred to the productive work both parties have achieved in the field of researching and evaluating projects on the exploration and production of hydrocarbons in Argentina for potential future joint development.
Ricardo Darré also reiterated that YPF considers Gazprom to be an important strategic partner, stating his belief that cooperation between the two companies should continue to develop.
The First Business & Investment Forum in Buenos Aires was organized with the support and under the patronage of the country’s new President, Mauricio Macri. The main impetus for this impressive event which brought together more than 1,500 representatives of business sectors worldwide was to attract foreign investments to the country in the aims of reviving the economy after what has been a prolonged period of crisis.
One of the key topics discussed at the Forum was the development of the republic’s fuel and energy sector. Strengthening international cooperation in the field of hydrocarbon exploration and development on its territory is one of the main priorities for the Argentine government. It is also interested in seeing joint midstream and downstream projects realized on its territory.
Argentina is the largest natural gas market in South America. Annual consumption of this type of fuel in the country exceeds 50 billion cubic metres.
Natural gas production volumes in Argentina amount to 42.3 billion cubic metres per year. Proven natural gas reserves in the country amount to approximately 330 billion cubic metres, alongside approximately 283 million tons of proven oil reserves.
Besides, Argentina comes second after China in terms of potential volumes of shale gas reserves (more than 800 trillion cubic feet, equivalent to 22.6 trillion cubic metres), and fourth in volumes of shale oil which are currently estimated at 23 – 27 million barrels (3.2 – 3.7 billion tons).
The main oil and gas production facilities are located in the province of Neuquén, in the south-west of the country, which is known for its ample natural resources reserves.
YPF S.A. (Yacimientos Petrolíferos Fiscales S.A.) is the main oil and gas company in Argentina. The company currently holds leading positions in all fields of petrochemical activity (exploration, production, refining, sales and transportation). The company’s share of the market exceeds 43%. YPF manages three oil treatment facilities at key strategic locations, as well as an extended network of 1,500 filling stations.
In April 2014, heads of PJSC Gazprom and YPF, Alexey Miller and Miguel Galuccio, signed a Memorandum of Cooperation in the presence of the presidents of the Russian Federation and the Argentine Republic. The Memorandum outlines the main areas of the companies’ cooperation, including cooperation in the fields of geological exploration, production and transportation of hydrocarbons across Argentina as well as other countries.
During the Eastern Economic Forum, held in Vladivostok in September 2015, Gazprom and YPF signed a framework agreement outlining the key principles of the parties’ cooperation in the development of future projects related to the exploration and production of hydrocarbons in Argentina.
PJSC Gazprom is currently taking part in negotiations regarding further potential joint ventures with YPFВ in the field of natural gas production in Argentina, in the framework of newly reached agreements.