Managers of Laredo Oil discussed Underground Gravity Drainage (UGD) technology in a meeting with Claudio Vidal, the governor of Santa Cruz, and Jaime Alvarez, the province's Minister of Energy and Mining. This meeting took place earlier this month at Casa de Santa Cruz in Buenos Aires and was Laredo's second meeting with Vidal following their first meeting in August. No agreement was reached in this session, and neither party made any commitments.
Status of Mature Fields in Santa Cruz
Santa Cruz is one of the main provinces producing conventional oil in Argentina, located in the San Jorge Gulf basin. Many of the oil fields in this province are currently mature and in decline. Laredo's latest letter of intent, which is non-binding, refers to a development area in this province. Any final agreement on UGD there may require approval from the province.
Government and Laredo Oil Considering Future Collaborations
According to Minister Alvarez, the province is in the process of "reviving oil activity," and both parties discussed investment and new recovery technologies in this meeting and agreed to continue the dialogue. Alvarez also stated that Santa Cruz has precise reservoirs for which UGD technology is designed.
Mark C, CEO of Laredo, commented: "Engineering work and evaluations ahead will determine what actions can be taken and when, and we will keep provincial authorities informed of progress."
Oil Production Trends in Argentina and Laredo's Plans
According to data from the Ministry of Economy, Argentina's crude oil production reached a record 887,227 barrels per day in May of this year, an increase of about 19 percent compared to last year. This increase is mainly due to unconventional production in Neuquén, while traditional fields, including the San Jorge Gulf, account for about 30 percent of national production.
Laredo has also announced its intention to explore government-backed financing alongside private capital, which falls under the trade and investment agreement between the United States and Argentina signed in February of this year.
