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1. Purpose

Under Resolution 65/2018 (Resolution) published today, the National Secretariat of Energy (SE) called for the International Offshore Public Bid No. 1 (Public Bid) to award hydrocarbons exploration permits and eventual exploitation concessions in areas offshore Argentina (Areas) detailed in the following link: https://f.datasrvr.com/fr1/818/31362/ ATables.pdf

Exploration: permits will be tendered on the Areas according to Hydrocarbons Law No. 17,319 (HL):

  1. in shallow water areas: 1st period of 4 years, 2nd period of three years and an extension of 4 years;
  2. in deep and ultra-deep water areas: 1st period of 4 years, 2nd period of 4 years and an extension of 5 years.

Exploitation: in case of commercial discovery, awardees may obtain a concession for the exploitation for a renewable period of 30 years.

2. Schedule

Opening of background information to be included in participants' List (as defined below) November 6 to February 14, 2019
Purchase of access codes to the Digital Database and opening of Database November 6 to February 14, 2019
Queries and clarifications to the Bidding Terms and Conditions November 6 to February 14, 2019
Offer opening day March 14, 2019
Publication of Resolution awarding the Areas April 15, 2019
Publication of Resolution granting the exploration permits July 15, 2019 (subject to the subsidiary being registered under the applicable law)
Granting of the final title 15 calendar days after the Permit was published

  
3. Next steps

To participate in the Public Bid companies must acquire access codes to the Digital Database of the areas, paying USD 50,000 through the following web site (Official Website), which is already available on this site.

In addition, companies shall be included in a list that will be published on the Official Website (List).

For that purpose, interested parties shall submit to the SE: (i) legal information; (ii) economic-financial information (minimum net worth - USD 15,000,000 to USD 250,000,000 - and capital investments, depending on the type of participation of each company and the areas that they apply for); and (iii) technical information (offshore production and operation).

Companies that evidence they are in the last ranking published by "Energy Intelligence Top 100 and / or Top 50: Global NOC & IOC Rankings", may request their direct inclusion in the List without proving the economic-financial and/or technical requirements.

4. Economic content of the offers

The offers must contain: (i) minimum work units and basic work units (UT) according to each of the Areas (the value of each UT is USD 5,000); (ii) entry bonus; (iii) commitment to drill at least one (1) exploration well in the second exploration period, if they access to such period; (iv) the commitment to drill at least one (1) exploration well in the term extension, if they access to such extension.

5. Guarantees

A bid maintenance guarantee must be submitted together with the offer for the sum of USD 100,000 for each of the Areas offered.

Within thirty (30) calendar days from the effective date of the permit, the permit holder or his operator shall constitute, under the condition of the permit and to the satisfaction of the SE, the guarantee of compliance for an amount equivalent to:

  • One hundred percent (100%) of the minimum UT amount, plus
  • Twenty-five percent (25%) of the UT committed above the minimum UT, plus
  • fifty percent (50%) of the entrance bond.
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