Argentinas State Oil Firm Postpones Offshore Exploration Rights Auction

By MarEx 2011-08-09 13:00:23

The state run energy company of Argentina, Enarsa, has suspended plans to auction oil exploration rights for 32 offshore blocks due to adverse market conditions. 

The auction had been scheduled for this week, but was postponed as a source from Enarsa cited the tumultuous nature of the world market.  They commented, however, that the auctions for the oil blocks will still happen.  The source told Reuters that the company will be waiting for a bit, but not for long, calculating to go on sale no later than October with the idea to launch the tender as soon as possible. 

The blocks from Enarsa are located in the Atlantic Ocean, situated near Patagonia and include areas of Valdes Peninsula, San Jorge, and Malvinas. 

Oil production in Argentina has been declining over the past 9 years, and is struggling to find new sources of energy amidst the decline of their oil and gas reserves and production.  Despite the decrease, Enarsa has already penned agreements with Petrobras Argentina and YPF for exploration.