Marking 35 years of activity in the block, the renewal of the concession for the field in southern Argentina recognizes the company’s consistent work and the commitments it has met over time.

After a fast-paced negotiation process that had to be completed within 60 days under Río Negro provincial regulations, the concession to operate the Agua Salada block, covering an area of 650 km², has been extended for another ten years. Tecpetrol, which holds a 70% stake in the operation, has been managing this block in partnership with YPF since 1990, building a track record of solid results and fulfilled commitments.

The contract renewal process was successfully completed thanks to the efforts and close coordination between the teams in Neuquén and Buenos Aires. Juan Martín Andueza, Development Geologist Expert, pointed out that the main aim was to demonstrate progress, in addition to compliance. “Our objective was to show how the strategies we’ve carried out in the area have developed in line with the results obtained. This is clear evidence that we’ve not only met our contractual commitments but exceeded them, always making the most of opportunities arising along the field’s growth curve.”

Lorena Montgaillard, Joint Ventures Senior Manager, added that for these negotiations, they needed to include commitments that were feasible given the reality of a mature field: “Although our initial proposal required some adjustments, we reached an agreement that was satisfactory as much for our company as for YPF and the province,” she said, adding that, “The meetings were always very harmonious in terms of atmosphere.”

For Juan Esteban Divito, Optimization Process Expert, the good working relationship with the province has been a key aspect for some time. “We’ve shown that we’re an operator committed to developing the area beyond the obligations of the contract, and that has opened doors for us. We also had to make sure we aligned with our partner, YPF, so at times it felt like we were juggling hard to keep all our balls in the air” he recalled, adding that, “It took quite some effort, but the outcome was positive.”

This sentiment was echoed by Matías Crestiaa, Communications and Institutional Relations Manager: “The negotiations with the province of Río Negro took place in a climate of openness and constructive collaboration. From the side of Tecpetrol, we felt we were all working toward one single goal, and the recognition of our technical contribution to developing the area was key to moving forward. The process was carried out in close coordination with the Joint Ventures department and was actively supported by the professionals from the Ministry of Energy, whose active involvement made each stage so much easier.”

Potential for unconventional development

The 10-year extension includes a commitment to continue conventional activity in Agua Salada, while also leaving the door open for unconventional development within the block.

Paúl Garabano, the Agua Salada Production Manager, explained what this potential is about, as, “there is a small part of the Vaca Muerta formation where preliminary studies have already been carried out, and we need to start working on it to see what it can yield. This area has given us strong results in conventional operations, and now we look forward to exploring new opportunities.”

Another highlight of the agreement is that it reflects the role played by Tecpetrol in the local community. The company has pledged to maintain 80% of its workforce from the area and to continue offering internships for students from Río Negro. It will also make annual contributions to training, research and development, while keeping in place the Roberto Rocca Scholarship Program that supports secondary-school students in Catriel.