BOGOTÁ, COLOMBIA (By Ana Sanches, Editores Latin Petroleum, 22.Oct.2026, Words: 619) — Santa Cruz governor Claudio Vidal presided over the signing of a contract with Alianza Petrolera Argentina S.A. for the development of the Sur Río Deseado Este hydrocarbon area in Santa Cruz.
The project includes a financial offer exceeding $10mn, the drilling of 3 exploratory wells, and incorporation of multilateral drilling technology, which will be used for the first time in Argentina, the Santa Cruz government announced on 22 Oct. 2026 in an official statement.
This investment aims to expand geological knowledge of the area and evaluate new opportunities for hydrocarbon resource development.
The signing, held at the Santa Cruz Puede SAU facilities, formalizes a new stage in the recovery process of the province’s hydrocarbon activity, which began with the national and international public tender and the subsequent awarding of the exploration permit to the company through Provincial Decree No. 969/26.
Ministry of Energy and Mining head Jaime Álvarez and Alianza Petrolera Argentina VP Pedro Martínez Cereijo, also participated in the meeting.
Sur Río Deseado Este investment
The concession establishes an exploration program that includes the drilling of 3 wells: 2 during the first phase and 1 in the second.
One of the project’s key aspects is the incorporation of Canadian multilateral drilling and profiling technology, which involves opening multiple horizontal branches from a main well, thus multiplying the well’s extraction volume.
The application of this system, unprecedented in Argentina but already in use for over 10 years in Canada in areas similar to Río Deseado Este, represents an opportunity to incorporate new technological capabilities into the Argentine oil industry and explore alternatives for improving resource utilization.
International Technology and 90+ Jobs
Drilling is scheduled to begin in the first half 2027.
For this phase, the program includes adapting a local drilling rig, training Argentine and Santa Cruz workers, and projecting more than 90 direct and indirect jobs once the rig is operational.
The initiative also anticipates participation of suppliers and service providers from the province, with the goal of ensuring part of the investment translates into local economic activity.
In this regard, Vidal emphasized the agreement includes hiring of Santa Cruz workers and suppliers, prioritizing those who lost their jobs after YPF‘s withdrawal from conventional areas.
“This is the path to recovering oil activity with new technology,” Vidal said.
During the signing, the governor also highlighted the importance of creating conditions to attract investment, incorporate innovation, and progressively recover hydrocarbon activity in Santa Cruz.
“Today we are signing the concession for these areas, convinced that this is the path to recovering oil activity with new technology,” Vidal said.
The governor also indicated a new drilling rig is expected to be added in 2027 and that discussions are ongoing to finalize agreements with other companies interested in developing projects in the province.
Strategic Concession for Energy Development in Santa Cruz
The awarding of the Sur Río Deseado Este concession is part of the province’s strategy to attract investment, promote exploration, and generate new opportunities for the energy sector. This, within a context of transformation of conventional activity and the search for new development alternatives.
The participation of Canadian investors, through SurCana Energy Inc., will allow for incorporation of specialized expertise in multilateral horizontal drilling and the combination of international knowledge with local operational capabilities.
With this concession, the province adds a project that integrates private investment, technology transfer, training, and job creation, with the aim of expanding the prospects for hydrocarbon activity and strengthening the participation of Santa Cruz workers and companies.
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By Ana Sanches reporting from Bogotá. © 1999-2026 Energy Analytics Institute (EAI) and its 100% owned Venezuelan affiliate Editores Latin Petroleum CA. All Rights Reserved.
NOTES: all photos courtesy of the Santa Cruz province.