CAPITAL: BUENOS AIRES
MONETARY UNIT: PESO
REFINING CAPACITY: 639,075 B/CD
OIL PRODUCTION: 749,400 B/D
OIL RESERVES: 3 BILLION BBL
GAS RESERVES: 26.4 TCF

Argentina's economy emerged from a sluggish year in 1999 to a respectable performance in 2000, and the energy sector also experienced a strong rebound from weak oil and gas prices.

Argentina exported oil, gas, and electricity, primarily to its geographic neighbors.

Operators ran 40-65 rigs during the year compared with 25-40 in 1999, Baker Hughes figures showed. Some of the drilling was for gas, and the pickup in drilling for oil had not yet reversed the country's first production decline of the 1990s.

Most oil production came from the Neuquen and Golfo San Jorge basins.

Upstream activity

The largest oil-producing companies in 2000 were Repsol-YPF SA, Chevron San Jorge, Perez Companc, and Pan American Energy LLC.

During the year the government extended Repsol-YPF's concession on giant Loma la Lata field to 2027 from the original expiry in 2017 in exchange for $300 million in three cash payments over 2 years. Observers said the agreement set a precedent for negotiations involving other fields.

Repsol-YPF's early year plans called for the drilling of 200 wells in the Golfo San Jorge and Austral basins. Its drilling split was to be 60% oil and 40% gas. The company reported that a gas find in Barrosa North field in Neuquen flowed more than 35 MMcfd of gas plus condensate and might contain 3 billion cu m of reserves.

Chevron said its San Jorge unit, resulting from its acquisition of Petrolera Argentina San Jorge in September 1999, had become the country's second largest oil producer and oil exporter. Output averaged 78,000 b/d of oil and 40 MMcfd of gas at midyear.

El Trapial field on the Huantraico Block in the central Neuquen basin had produced 130 million bbl of oil since discovery in 1991.

Chevron said the Loma Negra field complex on the Rio Negro Norte Block in southeastern Neuquen had hosted nine discoveries since opening of Loma Negra field in 1997. Loma Negra, with reserves of at least 240 million bbl, appeared to be Argentina's second largest oil producing field as of early 2000, behind Repsol-YPF SA's Sierra Negra field.

Chevron San Jorge produced 2,000 b/d of oil and 42 MMcfd of gas in the Austral basin, where it made three finds in 1999.

Pioneer Natural Resources Co., Dallas, said its 2000 drilling program at Bajo Barda Gonzalez field in Neuquen added 2.5 million boe of net proved reserves. A further 10-20 wells were to be drilled at the field in 2001 among a planned 82 net wells for the company in Argentina. Pioneer operated 19 blocks and three gas processing plants in Neuquen.

Downstream activity

Repsol-YPF and Brazil's Petrobras concluded a $1 billion asset swap during 2000.

Petrobras took 99.5% of Repsol-YPF subsidiary EG3, which had 700 gas stations and a 30,500 b/d refinery in Argentina. In return Repsol-YPF got 30% interest in a Brazilian refinery, control of 250 gas stations, and a 10% stake in giant Albacora Leste oil field in the Campos basin off Rio de Janeiro state.

With the acquisition of EG3, Brazil gained a 12% share of the Argentine oil products market. Repsol-YPF had been under government pressure to divest downstream assets.

Cuenca Marine Austral-1 partners led by Total Austral SA began LPG shipments from a gas processing plant at Tierra del Fuego via pipeline to ENAP's fractionator at Cabo Negro, Chile. Most products were exported, but heavier hydrocarbons were being blended with crude produced from Hidra field off Argentina.

During the year new pipelines began gas service from Argentina to Paysandu, Uruguay, and from Buenos Aires to Montevideo, Uruguay.