Tecpetrol Says Resolution 46 Covers Entire Fortin de Piedra Gas Project

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(Energy Analytics Institute, Aaron Simonsky, 1.Apr.2019) — Tecpetrol, the oil and gas affiliate of Techint, considers that a resolution emitted by Argentina’s Finance Ministry rejects the appeal presented for incorrect liquidation of benefits offered by the country’s gas subsidy, officially Resolution 46/17, the company announced in a post on its Facebook page on 1 April 2019.

Buenos Aires-based Tecpetrol initiated work in early 2017 on a fast-tracked unconventional shale gas project at Fortín de Piedra in Argentina. To-date, the company has spent more than $1.8 billion of a total $2.3 billion earmarked for the project, Tecpetrol said.

Shale gas production at the project recently reached 17.5 million cubic meters per day (MMcm/d) in February 2019, up 1,150% from 1.4 MMcm/d in October 2017.

Tecpetrol’s original plan under Argentina’s gas subsidy plan was to achieve production of around 8.5 MMcm/d, which would have resulted in a government subsidy payment to the company of around $729 million, reported specialized website EconoJournal. However, based on actually production, Tecpetrol is seeking payment from government for around $1.446 billion, reflecting the doubling of production.

Tecpetrol said the following on Facebook:

“The subsidy does not provide a limit to the volumes that are entitled to the incentive, nor was there a limit to the benefits granted by the Gas Production Stimulus Programs 1, 2 and 3 (the latter implemented by this administration).”

Resolution 46/17 expressly defines that the benefit covers the entire production of the project, Tecpetrol said in its post.

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© Energy Analytics Institute (EAI)

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