Wintershall delays investment in Vaca Muerta due to "rule changes"

The managing director of the German oil company Wintershall, Mario Mehren, has clearly criticized the changes made to the energy policies of Mauricio Macri's government. "The situation in Argentina is not easy, partly because of the lack of production infrastructure, still too high costs, but also because of the changes in the rules of the game brought about by the government, "he said at the end of the year. the annual business conference in his central house, in the picturesque town of Kbadel.

It is because of this combination of factors that not only does the oil company decide to focus its activity on oil production – as YPF solved – but it will wait until the end of the year to define the shift to mbad of the two blocks in operation at Vaca Muerta: Aguada Federal and Bandurria Norte.

The CEO of Wintershall explained that "in the last two years we have seen a government say that we are moving towards the free market, which is good, but that we have witnessed a permanent change in resolutions. and rules of the game ".

And while acknowledging that "Mauricio Macri's government has done a lot of good things," he pointed out that "for example, we are not investing in Phoenix (a $ 1 billion project in the southern basin) because we do not know the rules of the game. " Thu. "

Vaca Muerta has favorable oil projects and, although they have been affected by export withholdings, the company is pursuing its plans to move to the joint mbad development phase at Bandurria Norte and Aguada Federal. In this case, the effect is the delay of a definition that, in another context, has already occurred because the pilot projects have been respected and that at Aguada Federal alone, is in the process of developing a second one. production horizon.

They keep the investments
If Wintershall was a huge company, the merger was about to end with DEA, the country's second largest operator, repowering, and that's why they announced that despite the changes to the rules of the game, they would invest $ 600 million. dollars in the coming months. three years and will seek to add new areas to the first offshore tender that will take place in a few weeks.

The oil company closed the 2018 year more than auspicious with a net profit of 829 million euros and reached two historic records to bring its production to 500,000 barrels of oil equivalent per day and a 12% increase in reserves to 1 871 million barrels equivalent and a reserve replacement rate of 11, or 11 percent per barrel extract generated last year.

"Argentina is a pillar of our investments and is very important to us.We have invested $ 600 million over the last three years and we want to continue in this direction, with an additional $ 600 million over the next three years. years, "said Thilo Wieland, executive director of Exploration and Production for South America, Russia and Africa.

He pointed out that "we have come forward at the call for tenders launched by the government for offshore areas and we have expectations in this regard". The investment commitment relates to its 15 developments in the country and it is firm, but not identical to developments for which the level of obligation is not so high and for which Mehren has made it clear: "S & he There are no clear rules in Argentina, we transfer investments elsewhere because we have to be responsible with our investors. "