Pampa Energia S.A. has announced that Petrolera Pampa and YPF S.A. have signed an addendum to the investment agreement dated 6 November 2013, related to the exploitation of Rincon del Mangrullo block. Both parties have agreed to amend certain terms and conditions of the agreement, mainly to add certain investments to those already involved in the block.
Thus, upon completion of certain conditions precedent and as of 1 January 2015, the main amendments to the agreement are the following:
- The incorporation of other formations not included in the former agreement, excluding Vaca Muerta and Quintuco formations.
- Petrolera Pampa shall be entitled to the production of all existing wells in the block and must meet all investments in surface facilities – estimated in US$75 million for the 2015-2016 period – as well as expenses incurred in the block's operation, all based on its ownership stake.
- Petrolera Pampa will invest US$22.5 million for wells drilling in the Mulichinco formation and/or additional surface investments for the 2016-2017 period. Moreover, jointly with YPF, Petrolera Pampa agreed to expand the 2015 drilling plan at the Mulichinco formation for about US$70 million.
- Petrolera Pampa will invest in exploratory wells at the Lajas formation, which will involve an investment of US$34 million for the 2016-2017 period.
Increased production figures
Since the entry into force of this addendum, it is estimated that Petrolera Pampa will add approximately 300 000 m3/d to its average production in the block, which will represent an increase of over 35% of its current average production. Therefore, the committed investment of Petrolera Pampa for the period 2014-2017 in the block would exceed US$350 million.
Adapted from press release by Cecilia Rehn