Argentina continues its rapid pace of petroleum industry privatization.
The Argentine government has received bids totaling $4.2 billion for the restructured, privatized assets of Argentina's gas industry, reported N.M. Rothschild & Sons Ltd., London.
A group led by British Gas plc bought the distribution company that supplies gas to Buenos Aires, and Nova Corp., Calgary, leads a group that is buying 70% of Argentina's northern natural gas pipeline system.
Meantime, several companies are capitalizing on the privatization of Argentina's Yacimientos Petroliferos Fiscales (YPF) and international tenders covering Northwest basin assets.
GAS PRIVATIZATION
The privatization of Argentina's state gas utility, Gas del Estado, was complete Dec. 16. The utility had been divided into two national gas transportation companies and eight regional distribution companies.
BG's group secured for $300 million a 70% share in the regional Distribuidora de Gas Metropolitana, which supplies 1.7 million consumers in Buenos Aires. Gas de Buenos Aires Norte, which supplies 850,000 consumers, was sold to Repsol Petroleo SA unit Gas Natural for $155 million.
"The investment secures us a strong strategic role in distribution with annual sales of 180 bcf of gas," said Russell Herbert, managing director of British Gas' global gas division.
British Gas has a 41% interest in the group and acts as operator. Partners are Argentine conglomerate Perez Companc 25%, Astra Cia. Argentina de Petroleo SA 20%, and Invertrad SA, an Argentine steel company, 14%.
As many as one third of the remaining 30% of the shares in Metropolitana will be allocated to Gas del Estado employees, British Gas said, while the balance of shares will be held by the Argentine government for later sale.
The Metropolitana deal doubles the size of British Gas' global gas division, which it intends to contribute 20% of total profits by the end of the decade (OGJ, Aug. 16, 1992, p. 18).
"This transaction is in line with the British Gas strategy of acquiring interests in overseas gas companies that have significant opportunities for growth and for us to add value," Herbert said.
NOVA PURCHASE
The Nova group will pay $248 million for a 70% interest in Argentina's northern gas pipeline system. Nova will pay $37.5 million for its 15% share in the group.
Other members are Soc. Comercial del Plata and Techint Cia. Tecnica International, both of Argentina, and Malaysia's Petroliam Nasional Bhd.
Nova participates through its Novacorp International Consulting Inc. and Novacorp International SA units. The latter has been named technical operator of the 2,485 mile system that includes 12 compressor stations.
The group's offer was chosen over other bidding groups whose members included TransCanada PipeLines Ltd. and British Gas.
Enron Corp. submitted the winning bid of $561 million early last December for a 70% interest in Transportadora de Gas del Sur SA, operator of the southern Argentina pipeline system (OGJ, Dec. 7, 1992, Newsletter).
NORTHWEST BASIN AWARDS
Meantime, international companies are acquiring Northwest basin assets, capitalizing on the privatization of YPF and tender offerings by the country.
A group led by Pluspetrol SA has been awarded through international tender the 4.2 million acre Palmar Largo exploration tract in the Northwest basin, previously operated by YPF.
The Palmar Largo Unit holds proved reserves of 17 million bbl of crude and production of 7,400 b/d.
Pluspetrol holds a 20.3% interest, Norcen International Ltd. 17.85%, Cia. General de Combustibles SA 17.85%, Dong Won Co. 14%, and YPF Soc. Anonima 30%.
Norcen International parent Norcen Energy Resources Ltd., Calgary, paid $9.2 million for its interest.
In a separate deal, Norcen International acquired a 100% interest in a 3.09 million acre block off Tierra del Fuego in southern Argentina. The block will be the first in Argentina in which Norcen acts as operator.
Pluspetrol has been awarded a working interest in the Campo Duran refinery, gas processing plant, and associated products pipeline. It is the only refinery in the region.
Pluspetrol holds a 21% interest in the facilities. Partners are Argentine companies YPF 30%, Perez Companc 28%, Astra 10.5%, and Isaura 10.5%.
AMPOLEX BID
Ampolex Ltd., Sydney, Australia, successfully bid for a joint interest in the Agurague Unit in the Northwest basin near the Bolivian border.
The assets were purchased from YPF as part of its privatization.
The Aguarague Unit covers 17,000 sq km, contains three gas/condensate fields including Aguarague field, and produces 160 MMcfd of gas and 9,000 b/d of liquids.
Ampolex's bid was $261 million for a 100% interest in the assets. It will own a 20-25% interest in the project.
Plans for the unit include a 7 year, $50 million exploration program.
Ampolex expects gas sales to increase soon under a contract signed with an electrical power station. The company said there is potential to improve productivity of the fields and for new gas sale contracts in Argentina and surrounding countries.
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