Oil and Gas in the Capitals: Non-traditional countries attract new and important investments

Argentina. The Ministry of Energy had already confirmed historical levels in hydrocarbon production during July. Oil extraction recorded a 9% increase on an annual basis, reaching 682,000 bpd. This number represents the best performance in the last 20 years. 

The growth in production is directly related to the greater contribution of unconventional oil from the Vaca Muerta formation, Fig. 1. It contributed 57% of total oil production and 54.8% of total gas output. 

Fig. 1. A portion of the Vaca Muerta shale gas field. Image: YPF Argentina.

The field, in fact, generated 386,000 bopd and 83.1 MMm³/day of gas (2.93 Bcfgd). In September, Shell said it would increase crude oil production in Argentina by 40%, from the current 50,000 bpd to 70,000 bpd, during 2025. This will be achieved, thanks to new investments in Vaca Muerta shale oil, which amount to approximately $550 million per year. 

Finally, in early November, Pluspetrol confirmed its purchase of Exxonmobil’s assets, which include six blocks in the Neuquén formation that it currently shares with Qatar Petroleum (70% - 30%). ExxonMobil currently owns six oil and gas blocks in the Neuquén basin, five of which  are in operation and one is still in the exploration phase. 

Bolivia. According to the Ministry of Energy, the main fields of Margarita, Incahuasi, Sábalo, San Alberto and Yapacaní are those with the greatest gas production, which has recently shown a progressive decline. In 2015, Bolivia produced 59.2 MMm³/day, and that level has dropped to 37.2 MMm³/day in 2023, a decrease of 37.2%. 

However, in September, state oil company YPFB, through the “Upstream Reactivation Plan” (PRU), announced that it had discovered a new field in the northern region of the country, confirming the success of the Mayaya Centro X1 exploratory well (Fig. 2) which, according to tests carried out, has a potential of 1.7 Tcf. Production tests carried out have confirmed production of around 15 MMcfd, and YPFB has confirmed that it will invest $400 million dollars to drill three more wells. 

Fig. 2. Drilling of the Mayaya Centro-X1 IE well, located to the north of La Paz. Image: YPFB.

Colombia. According to the latest report from the National Hydrocarbons Agency (ANH), 262 development wells were drilled between January and June 2024, which represents a 15% decrease compared to the number drilled in the same period of 2023. In turn, between April and May 2024, oil production decreased 2,200 Bpd (-0.3%). According to ANH, during May 2024, oil production reached 790,000 bpd, a 1.7% increase compared to the average for the same month of 2023. 

The Colombian Petroleum Association (ACP) also confirmed a significant decline in investment and exploration activity in the country through its new study, “Trends and Prospects of the Hydrocarbons Sector.” In 2024, total investment in hydrocarbon exploration and production is down 5%, compared to 2023, and in the first six months of the year, 11 of 40 planned exploration wells were drilled, which means that the exploration investment target will not be met. The Ministry of Energy also said that foreign investment in the oil sector during the first half of 2024 reached $1.2 billion, a 30% decrease, compared to the same period of the previous year. 

Ecuador. According to new information from state company Petroecuador, until the end of 2024, the objective is to reach 390,000 bopd. To meet it, the government stated that 19 wells will be drilled in Sacha, Block 60; there are some in blocks 12 and 31; three wells in Block 7 and two wells in Pucuna, Block 44. Additionally, 33 wells will be drilled in the provinces of Orellana and Sucumbíos. 

“The fields of EP Petroecuador have a natural decrease of 23%, and in the meantime, they will have to have between 10 and 15 drilling rigs per year, to maintain production,” stated the general manager of Petroecuador in a recent press release. 

Crude oil extraction in Ecuador began to decline during 2024, complicating the government's goal of increasing production to 550,000 bpd. A number of factors have affected oil exploration in the public sector, leading to the decline. 

Guyana. A new report published by S&P Global has stated that Guyana's production will peak in 2037 at 2.3 million boed, of which oil will account for 90%. This means that ExxonMobil will add three FPSOs to the ones currently producing offshore Guyana, thus doubling production from the current 630,000 bopd to a capacity of over 1.3 MMbopd by 2027. However, a seventh offshore project, scheduled to start production in 2029, is expected to raise oil production to around 1.5 MMbopd. 

According to the same report, S&P Global states that since 2015, recoverable resources from the Guyana seabed have reached 18.7 Bboe. Statistics released by the U.S. Department of Energy indicate that Guyana became the third-largest supplier of oil in June, after Canada and Mexico. Guyana supplied an average 293,000 bopd in June, a level that nearly triples what it exported in the same month last year. 

Peru. According to the new statistical report from Perupetro, 52 wells were drilled until September, of which 50 were development wells and 2 were exploration wells, with an investment of $337 million. 

In September 2024, oil production decreased 9.8% compared to August 2024, while NGLs production increased 8.2%, resulting in a 2.0% increase in total liquid hydrocarbons production. In September of this year, 1.6 MMcfd of natural gas were produced. This volume was 4.9% lower than the output in September 2023. This is mainly explained by the decrease in production in Blocks 88 and 56. 

Suriname. In August, state-owned Staatsolie announced it would issue bonds in 2025 to finance production operations in Block 58. Staatsolie estimates that the total stake would require $1.6 billion. "We are considering several options to finance our stake, from our own cash reserves, bonds, bank loans, partnerships with international companies," the company said in the statement. 

However, the small South American country decided in mid-October to increase investment in the development of new offshore wells, with the support of TotalEnergies through a $10.5 billion investment in Block 58, to drill 30 wells. The Guyana-Suriname basin is expected to add 950,000 bopd to market supply, with four projects to come onstream in the 2025-2028 period. The managing director of,Staatolie said in a statement, "It will be the largest investment ever made in our country, the one in which Suriname will receive the most benefits, and Staatsolie will be the supervisor of the entire operation." 

Venezuela. According to OPEC data, the oil production of state-owned PDVSA in October 2024 recorded its seventh month of continuous growth, reaching 990,000 bpd, up 23%. In absolute numbers, the production of Venezuelan crude oil recognized by OPEC grew between December last year and October this year by 187,000 bpd, a situation due mainly the easing sanctions imposed by the United States. 

The Ministry of Energy presented to parliament its request to approve the capital increase of two mixed companies, Petro Boscán and Petro Independiente, companies in which Chevron has a 30% stake. This request that was accepted by the Assembly, approving the extension of both companies until 2047. Based on this agreement, Chevron presented to the Assembly a series of investment plans ranging from $2 billion to $10 billion until 2050, with the aim of continuing both exploration and development of hydrocarbon production in the Orinoco belt.