After 27 years without awarding any offshore oil exploitation licenses, the Argentinian government plans to issue the terms and conditions for a future auction for offshore oil exploration rights.
The 38 blocks to be awarded are located in the northern Argentina basin (14 blocks), in the Austral basin (6) and in the Malvinas West basin (18). The auction has already attracted over 20 companies, but it still needs presidential and ministerial authorization to be set in motion. The dates for each stage of the bid are uncertain. Exploration rights will be awarded to the highest bidders, for 4 years with the option to extend for another 4, and winners may start drilling before the end of the first 4-year period; if they extend for a second 4-year period, they will have to start drilling wells within this period.
Argentina's crude oil production has been declining since its 1998 peak of 43 Mt, down to 25 Mt in 2017, and exports have collapsed from 17 Mt in 1998 to 1.4 Mt in 2017. Meanwhile, oil product imports soared, from 1.5 Mt in 1998 to 7.4 Mt in 2017.