March 12, 2014
'We have complied with all terms of the Neuquén contract,' Petrobras
Brazilian oil giant Petrobras assured that it has complied with all terms of its Neuquén province oil explotaition contract, following governor Jorge Sapag's announcement of the termination of the concession contract in Veta Escondida area.
The company said in a communiqué that it was informed on Wednesday of Governor Jorge Sapag’s decision of “unilaterally deciding on the termination" of the Veta Escondida exploitation contract.
"We have complied with all the requirements and as we see it, the exploration and exploitation contract we signed three and a half years ago remains in force," the communiqué continued.
Sapag announced the termination of the contract "after proving that the area remains with no proven production or reserves and with insufficient investment," according the Neuquen provincie Ministry of Energy.
However, the Brazilian company insists that the exploration and exploitation contract, which was agreed upon by the Executive branch on December 10th 2008 and is valid until 2027 remains in force.
We hold 55 percent of the concession and we carried out investments according to the search for hydrocarbon, amounting to a total of US$10 million in the last three years.
Additionally, the company has began efforts in the search of non conventional hydrocarbons in the area, aided by new techologies.
Earlier, Petrobras’ head Maria das Graças Foster said she was surprised by Sapag’s announcement, but confirmed the company’s intention of continuing its operations in Neuquén. “I was surprised by the news. We were not expecting it. We have very positive relations with Argentina and we were analyzing future opportunities to remain in that country.”