Inspenet, July 6, 2023.
The oil giants Capsa-Capex and Trafigura have signed an agreement to start a new and significant hydrocarbon production project in the Vaca Muerta area, in which the development of multiple wells will be carried out in the Agua del Cajón area.
Under this farm-out contract, Capsa-Capex, considered the sixth largest oil producer in Argentina, has awarded Trafigura, one of the world’s leading fuel traders that operates the Puma service station brand in the country, a stake in the development of four wells and the exclusive right for 30 months to do the same in another 12 additional wells.
In exchange, Trafigura will contribute 30% of the investment required for the wells in which it participates and in turn will obtain 30% of the resulting production from these wells over a period of 12 years.
According to a communication sent by Capex to the National Securities Commission (CNV), in relation to the Farm-Out Agreement, the company has entered into other contracts with Trafigura, which include a Joint Operation Agreement and a Temporary Union contract. Under these contracts, Trafigura will make payments to the company in connection with access to wells in which it participates, a royalty based on production and operating costs.
project terms
During a meeting of Capex shareholders held on Tuesday, July 4, the company’s president, Alejandro Götz, expressed the company’s intention to enter into the aforementioned contracts with Trafigura with the aim of carrying out a project of development of hydrocarbons in the Vaca Muerta formation from the Agua del Cajon area.
The executive detailed the terms of the agreement, noting that Trafigura has also signed a “Farm-Out” contract that gives it the right to acquire a 30% interest in the oil and natural gas production generated by the project. In addition, a Joint Operation Agreement was established that regulates the relationship between both oil companies and establishes the terms and conditions for the development of investments.
In the same context, Capex is in negotiations with Trafigura to sign a Transitory Union contract that will allow the development of the project and this proposal has been approved by the shareholders’ meeting.
Source and photo: https://www.iprofesional.com/negocios/384619-vaca-muerta-gigantes-del-petroleo-financial-millonario-proyecto.amp
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