Another fourteen years at Aguaragüe

It’s been over eighteen months of work, and an extended series of conversations between all parties about many different projects and proposals to reach the results sought: this is how we moved towards the renegotiation of the concession to operate the fields in northwestern Argentina.

There’s good news for Tecpetrol: finally, the light at the end of the tunnel is the renewal of the concession contract for the Aguaragüe field, in Salta, Argentina. This was the result of a long and arduous process that included much discussion about projects and proposals, as well as a great deal of planning. In the midst of the general relief and joy at completing this lengthy process, we talked to those involved in the negotiations so they could tell us in person about this great achievement.

Edward Isasmendi, Sr. Division. Manager begins with an overview of all the complexities that arose. “This was a really long process, with all kinds of stakeholders and partners, which started well over a year ago. There were several steps involved in the negotiations, each of which had to be completed successfully, involving the provincial authorities and our business partners, in addition to complying with all of Tecpetrol’s own internal processes. So, we started drawing up the commitments, then we assembled the projects together with the Exploration and Development area and, finally, put forward our specific case, meaning our proposal, to achieve the extension of the contract. The entire process was led by the Commercial Area. It was a huge job."

Juan Divito, Joint Ventures Specialist explains things from his perspective. “During the first internal meetings, we laid out our intention to move forward with our proposal. However, having so many parties with different interests involved made the process very complex, as we had to factor in different perspectives, projects and approaches. Luckily, everybody was keen for the negotiations to come to fruition, and the good news is that we can continue to work in the area for another ten years.”

With the concession renewed.Our team gets going.

For his part, Daniel Gargiulo, Joint Ventures Director, lists some of the objectives agreed. "Our commitments include the construction of a new well in 2024 (P1 of the Durán field) and two workovers, one in 2023 and one in 2024. In addition, we have six abandonments (two wells per year between 2023 and 2025) and the reprocessing of the seismic lines for Río Pescado.”

Daniel shares another bonus point that became apparent as events unfolded. “I have to highlight the quality of the team put together between Tecpetrol and our partners and how well we all worked together. We achieved excellent synergy, featuring transparent and firm processes. Every detail, every last-minute change, was shared instantly by all areas, as part of a very authentic relationship: this transparency was highly valued by all parties and one of the reasons why we were able to achieve the best result possible in this process.”

Now, with the negotiations over, the next steps will carve out the future for this enterprise, deep in the Aguaragüe rock. Eduardo confides that, “We were pretty sure that this signing would go ahead, and we’ve been working for some time on developing the steps necessary to comply with our projects within the deadlines agreed. In our area, the news has been received with great joy, as it means more activity and brings a different dynamic to our daily routine. Our team is ready and eager to meet the commitments made.”

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