The Chubut government oil and gas concern Petrominera SE has terminated a joint venture agreement with Interoil Exploration and Production ASA and Selva Maria Oil SA.
The contract was entered into in connection with exploration and exploitation of Mata Magallanes Oeste and Cañadon Ramirez, both in the Province of Chubut, Argentina.
The producing Mata Magallanes Oeste block and the Cañadón Ramírez exploration block lie adjacent, covering nearly 380 sq km in the western part of the Golfo San Jorge basin in southern Argentina.
According to Interoil, the basin is said to hold about half of Argentina’s gas reserves and 20% of the country’s oil reserves.
On its website, Interoil is listed as operator of the licenses with an 80% working interest through the joint venture with Selva Maria and Petrominera.
Interoil, in a release Sept. 4, said Petrominera’s termination of the agreement “is purported to be based upon alleged failures of the private companies [Interoil, Selva Maria] to meet their obligations.”
Interoil said it is assessing with counsel appropriate courses of action to challenge the legality of the termination and to restore the company’s rights.
