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SOUTH AMERICAN ENERGY MARKETS DAILY ROUNDUP (April 8, 2009): Argentina’s YPF’s proved gas and oil reserves take a tumble in end-2008

April 8, 2009

South America Energy Markets (SAEM) will begin a daily roundup of the top-five stories affecting energy markets in the region with links. The roundup includes all the major web dailies of South America and other websites that write about the region’s energy markets. I aim to publish SAEM Daily Roundup from Monday through Friday by noon London time.

The next issue of SAEM Daily Roundup will appear on Monday, April 13, 2009.

Wednesday, April 8, 2009

ARGENTINA/GAS & OIL RESERVES

YPF, the country’s largest oil and gas company, said in a statement to the National Securities Commission (CNV) that its proved reserves at the end of December 2008 stood at 3.099Tcf, down 16.4% versus 3.708Tcf at the end of the  previous year. At the end of 2006, YPF’s proved gas reserves were 4.015Tcf.  Similarly, proved oil reserves of the company retreated at the end of 2008 by  6.9% to 580 from 623 million barrels. At the end of 2006, proved oil reserves were reported at 680 million barrels, or 17.24% higher than in 2008.

BRAZIL/PETROLEUM LAW

Energy regulator ANP head, Harold Lima, was quoted by Spanish news agency EFE that it is “highly probable” that Brazil will finish drafting a new petroleum law in June that aims to protect the country’s gigantic offshore oil discoveries made in the Santos Basin as well as in other areas.  Lima told reporters that estimates of 50 billion barrels of offshore oil reserves in Brazil were “conservative.” He said that more realistic forecasts placed such reserves between 80 and 100 billion barrels.

COLOMBIA/GAS OUTPUT

Gas output in Colombia is seen rising by about 200 million cu ft/day by 2010 from 730 million cu ft/day in 2007, according to energy regulator ANH. While the offshore Guajira gasfields will continue to provide the lion’s share of Colombia’s gas at 698 million cu ft/d by 2010, other fields such as La Creciente in northern Colombia will start to  contribute 140 million cu ft/day. The Gibraltar field in eastern Colombia will also start producing 30 million cu ft/day from next year. ANH forecasts that by 2015, however, the Cusiana field will surpass Guajira (285 million cu ft/d by 2015) as the biggest gas producer by mid-next decade at 390 million cu ft/day.  The fall in national output by 2020 to 519 million cu ft/day forces Colombia to aggressively prove up reserves in the next decade.

CHILE/GAS OUTPUT FORECAST

Minister of Mines Santiago Gonzalez said that Bermuda-based energy company Geopark has after successful drilling and testing at Fell Block in southern Chile produces 1 million cu m/day, reports Hidrocarburosbolivia.com. The discovery is important taking into account that southern Chile imported 6 million cu m/day from Argentina.  All of the gas supplied by Chile’s eastern neighbor is consumed by the Canada-based Methanex plant, which uses 81% of the 10.9 million cu m/day of the region. Output at the Methanex plant has been scaled back due to lack of gas supplies from Argentina.

BOLIVIA/GAS DEMAND

(Originally published on April 7, 2009) Lower demand due to a slowdown in economic growth in Bolivia’s main gas markets of Brazil and Argentina forced exports to average 24 million cu m/day in March, according to Bolivian hydrocarbons association CBH. Of these exports, 19.7 million cu m/day were earmarked for Brazil and 5.23 million cu m/day were supplied to Argentina.  That compares with 30 million cu m/day of gas Brazil imported in December from its western neighbor. Domestic demand during the month under review stood at 5.65 million cu m/day. CBH said that the price of gas in the domestic market in March was on average $1.15/MMBtu. Brazil paid $5.64/MMBtu and  Argentina $7.84/MMBtu.


These briefs can be reprinted as long as as the source is cited.

If you have any feedback on today’s articles, or if there are energy industry stories you think should be covered, or need research assistance, please contact etessieri@latamreport.com.

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