In brief
Gas y Petróleo del Neuquén S.A. (GyP) has launched a national and international call for bids to select companies interested in partnering with GyP in the exploration, development, and eventual production of 15 hydrocarbon areas located in the Province of Neuquén (“Province”), reserved for GyP.
In focus
- GyP’s Involvement and Participation: By submitting a bid, the bidder agrees that, if awarded the contract, it must sign a contract with GyP. The successful bidder will act in its own name as the operator of hydrocarbon exploration, development, and production activities in the area, while GyP will be the sole holder of the exploration permit and any subsequent production concession, and will hold a working interest of between 10% and 20%.
- Exploration and Production Term: The exploration period consists of two phases of up to four years each, extendable once for up to one year. The production concession will be granted for a term of 35 years.
- Exploration Work Plan and Minimum Investment Commitment: Bidders must submit and guarantee an Exploration Work Plan with a Minimum Investment Commitment per block, including an annual investment and activity schedule, to be executed during the first exploration period.
- Risk Allocation: The successful bidder shall bear 100% of exploration, development, and operating costs, at its sole risk and expense, with no recourse against GyP. Upon the granting of the Exploitation Concession, the successful bidder shall continue to bear 100% of the development and operating costs. Cost recovery (interest-free) is limited to 80% of GyP’s production share and is contingent on actual hydrocarbon production.
- Royalties: The royalty to be offered must be 15% + “X”. The term “X” is a percentage at the bidder’s sole discretion, which may be negative but may not exceed 3%.
- Bonuses and Contributions payable to the province:
1. Minimum Access Bonus: determined in inverse proportion to the Minimum Investment Commitment but it cannot be less than USD 500,000.
2. Commerciality Bonus: upon application for a production concession, the successful bidder must make a one-time fixed payment equal to 2% of the volume of expected resources at the time of the concession application (calculated at the end of the concession term), multiplied by one US dollar.
3. Assignment Bonus: in the event of any transfer of interests, the assignor must pay an amount in pesos equivalent to 6% of the transaction value.
4. CSR Commitment: the successful bidder must make a one-time contribution equivalent to 2.5% of the investment commitment or pilot plan, to fund provincial infrastructure works, and must also submit annual sustainability reports.
- Registration Requirements: The bidder must be registered, or provide evidence of having initiated registration, with the Provincial Registry of Hydrocarbon Companies and the Registry of Oil Companies.
- Bid Security: The bid security shall amount to USD 100,000 with a minimum validity period of 60 days from the date of bid opening.
- Deadlines and Opening: The deadline for submitting inquiries is 10 August 2026. Bids must be submitted before 11:00 am on 19 August 2026. The opening will take place on the same date, 19 August 2026, at 3:00 p.m., at Aramendia 200, Neuquén City, Province of Neuquén.
Delfina Ferrario and Franco Sinagra, Associates, have contributed to this legal update.
Download the Spanish version of Argentina: Call for Bids to Partner With Gas y Petróleo del Neuquén S.A. in its Hydrocarbon Areas.