Sinopec disposes of Argentina oil exploration assets
Deal enables CGC to increase its production to more than 50,000 barrels of oil equivalent per day
7 Jul 2021 | Michael Marray

Compania General de Combustibles (CGC) has acquired Sinopec Argentina Exploration and Production. With the acquisition, CGC substantially increases its production to more than 50,000 barrels of oil equivalent per day (boe/d), bringing its total production to a mix of 63% gas and 37% oil (previously 85% and 15% respectively). In terms of proven reserves, this will result in an increase of more than 50% from 59 million boe to 90 million boe.

Sinopec Argentina's assets cover more than 4,600 square kilometres, most of them located in the San Jorge Gulf Basin and also in the Cuyana Basin. It also has a stake in Termap, the operator of the Caleta Olivia (Santa Cruz) and Caleta Cordova (Chubut) port terminals.

CGC is a century-old Argentine company. In early 2013 the holding company Corporacion America acquired control of the company. Its partner in CGC, with the remaining 30% of the shares, is Sociedad Comercial del Plata, an Argentinean economic group listed on the Buenos Aires Stock Exchange.

Corporacion America International has been investing for three decades in Argentina, South America and Europe in sectors such as airports, infrastructure, technology and energy.

CGC has invested more than US$1.5 billion in energy development in Argentina since being acquired by Corporacion America.

In 2015, CGC took another important step in its growth by acquiring Petrobras Argentina's assets in the Austral Basin, in the south of Santa Cruz province. This positioned the company as the most important operator in the Austral Basin in the province of Santa Cruz, with a production of 20,000 boe/d.

Between 2015 and 2020, through a major investment plan, CGC managed to triple gas production, successfully developing the Campo Indio and El Cerrito unconventional tight gas fields. By the end of 2019, CGC had reached a record production of 37,000 boe/d.

The company has also made progress in the planning and execution of the South Río Chico Underground Gas Storage Project, a pioneer in the Austral Basin.

CGC is also one of the main gas transportation operators in the country through its shareholdings in TGN, GasAndes and TGM, with 7,540 kilometres of gas pipelines in the country and interconnections with Brazil, Chile and Bolivia.

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