ARGENTINA'S YPF OUTLINES PLAN FOR SALE OF RIGS

State owned Yacimientos Petroliferos Fiscales (YPF) has unveiled the schedule it plans to follow to privatize oil and gas contract drilling in Argentina. YPF proposes to exit the drilling business by selling state owned drilling rigs, drill pipe, and accessories in a series of auctions beginning next month and lasting through first quarter 1993.

Nov. 16, 1992

3 min read

State owned Yacimientos Petroliferos Fiscales (YPF) has unveiled the schedule it plans to follow to privatize oil and gas contract drilling in Argentina.

YPF proposes to exit the drilling business by selling state owned drilling rigs, drill pipe, and accessories in a series of auctions beginning next month and lasting through first quarter 1993.

YPF intends to open bids Dec. 16 for a completion unit and 30 drilling rigs, several working under contract. Bids will be opened during first quarter 1993 for new and used YPF drill pipe and collars, spare equipment and accessories, and an inventory of fishing tools said to be one of the largest in South America.

Winners are to be notified immediately after each auction. YPF plans to hand over by Feb. 1, 1993, the rigs sold in December. Companies buying YPF drilling assets in first quarter 1993 are to assume ownership by Mar. 24, 1993.

The sales are part of a greater plan begun in 1989 to boost Argentina's economy by opening it to private investment and reducing government's role. Plans to end YPF's drilling activity could be a significant opportunity for private companies to become players in Argentina's oil and gas industry, YPF and consultants helping stage the drilling asset auctions contend.

In 1991, YPF drilled 447 exploratory, development, and service wells in Argentina and let contracts for another 234. During 1980-90, YPF drilled 548 of the 933 wells drilled yearly. Altogether, more than 34,500 wells have been drilled in Argentina, including 109 offshore and 70 in unproductive continental basins.

YPF drilling in 1991 totaled 767,841 m, about 22,737 m/crew. Drilling contractors in 1991 accounted for 398,441 m of hole, an average of 52,084 m/unit.

ASSETS TO BE SOLD

Here is a breakout of YPF drilling assets to be sold in mid-December to the highest bidders:

In the Northwest basin, seven idle rigs, including one rated to 1,800 m, one to 5,000 m, four to 6,000 m, and one to 7,000 m.
In the Cuyana basin, five working and five idle rigs. Working units include one rig rated to 1,800 m, one to 2,800 m, two to 3,500 m, and one to 4,500 m. Idle units include one rig rated to 1,800 m, one to 3,500 m, two to 4,000 m, and one to 4,300 m.
In the San Jorge basin, a completion unit and eight working drilling rigs, including four rated to 1,800 m, one to 2,450 m, and three to 2,800 M.
In the Neuquen basin, one idle and four working drilling rigs. Working units include one each rated to 2,800 m, 3,500 m, 4,000 m, and 4,500 m. The idle unit is rated to 4,000 m.

YPF said 12,400 joints of drill pipe and 1,200 collars could be sold with the drilling rigs. Drill pipe and collars remaining after the auction will be added to other YPF warehouse and yard inventories to be sold separately from drilling units.

Major items in inventory include:

5,700 joints of new and 13,300 joints of used drill pipe.
200 new and 2,000 used drill collars.
Draw works, mud pumps and systems, engines, generators, rotary tables, blowout preventers, and blocks, hooks, and swivels.

Bid packages for YPF's drilling rig auction went on sale in Argentina early this month. Drill pipe bid packages were to be available by Nov. 16 and related equipment/accessories bid packages by Nov. 30.

Brochures describing in general YPF's planned sales can be obtained from Hadco International Inc., Conroe, Tex.