(Argentina)- Argentine state oil firm Enarsa has signed a letter of intent with its Venezuelan counterpart PDVSA to study the geology of blocks in several regions, including Argentina's offshore San Jorge basin.
According to a PDVSA statement, the two companies will "study the potential, reserves and possibility of carrying out joint exploration." In addition, Brazil's Petrobras will most likely participate in any exploration activities that arise as a consequence of the studies.
The letter of intent was signed in Brazil's capital Brasilia last week during a meeting between Venezuela's President Hugo Chavez, Brazil's President Luiz Inacio Lula Da Silva and Argentina's President Nestor Kirchner.
In other offshore Argentina news, Enarsa has recently signed two agreements with Spanish oil major Repsol YPF and other international partners for exploration activities. As a result, Repsol YPF and Enarsa will partner with Petrobras and Uruguay's state oil firm Ancap to form an exploration consortium. Exploration activities will center in the Colorado Marina basin.
Repsol YPF will act as the operator with a 35% share, while Enarsa will also have a 35% share, Petrobras will have 25% and Ancap will have 5%. Repsol YPF, Petrobras and Ancap will invest between $40-100 million in exploring the area. From there, investment in joint development and production could reach over $2 billion if commercially viable reserves are discovered.
Repsol YPF will begin registering and processing 1,000 sq km of 3D seismic this year, and plans to drill the first well in 2008.
Enarsa's deals with foreign companies are cementing the Argentine national's presence in new offshore E&P projects, which is one of the reasons the firm was created in 2004. Since its inception in October 2004, Enarsa has been participating in the majority of offshore E&P projects, and now participates in all new projects.