 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Argentine Roch bids for Chevron oil fields
Buenos Aires (UPI) Aug 4, 2009 Argentine oil company Roch S.A. has offered more than $70 million to acquire southern Argentinean oil fields of U.S.-based Chevron Corp., industry sources said. The sources cited an Argentine El Cronista newspaper report that Roch S.A. won the right to enter exclusive negotiations with Chevron, outbidding two business groups. Industry sources said the company based its bid on backing from the World Bank's International Finance Corp., which provided $37 million in equity and loans in 2008. IFC said it saw Roch's growth as key to increasing Argentina's energy production capacity to support economic growth. IFC also pledged to back Roch's plans to expand exploration and production. The company shares equity with IFC and Swiss firm Mercuria Energy Trading. Argentine businessman Ricardo Omar Chacra, who founded Roch in 1990, holds 86 percent majority stake. Roch S.A. is mainly involved with oil and gas exploration and production, with six hydrocarbon facilities located in the Austral, Golfo San Jorge and Neuquen basins, in central and southern Argentina. The company's main asset is its 20.29 percent participation in the Rio Cullen -- Las Violetas -- Angostura joint venture, which produces natural gas and crude oil from the Tierra de Fuego island. Roch is using the IFC financing package partially to fund its 2007-2010 capital expenditure program. The multifaceted project includes drilling to increase production from existing hydrocarbon fields, building of additional production and storage facilities, further exploration activities within existing hydrocarbon concessions and potential acquisition of new hydrocarbon assets. The bid for Chevron-owned oil fields in southern Argentina is part of the latter aim, said the sources. Chacra said developing Argentina's gas reserves would help provide the energy Argentina needs to grow. "Our cooperation with IFC validates our business plan and capabilities," he said. The company hopes that asset expansion with IFC's financial support would help strengthen its capital base and position as an independent regional oil and gas producer. Roch expects to double production from its existing fields by 2010. Exactly how much capacity Roch expects to add by aiming to acquire Chevron's southern Argentinean fields is unclear. Chevron is the third-largest producer of oil in Argentina, with hydrocarbons coming from two of its major basins. Chevron also owns a lubricant blending plant in Buenos Aires and, under the Chevron and Texaco banners, supplies finished products through a network of distributors and agents. Chevron has not yet responded to Roch's reported bid. The San Ramon-based U.S. giant's global profits plunged 71 percent in the second quarter of 2009 in response to the recession and lower oil prices, company figures showed. Chevron's earnings of $1.75 billion for the second quarter 2009 compared with $5.98 billion in the 2008 second quarter. A weaker dollar reduced Chevron's earnings in the quarter by $453 million, compared with a gain of $126 million a year earlier. Share This Article With Planet Earth
Related Links Powering The World in the 21st Century at Energy-Daily.com
Report: Oil reserves less than estimatedParis (UPI) Aug 3, 2009 World oil supplies will pass their peak production sooner than expected, creating conditions for a global energy catastrophe, a French energy economist says. Higher crude prices brought on by sharply growing demand, coupled with a stagnation or decline in supply, could shove any recovery off-course, said Fatih Birol, chief economist at the International Energy Agency in Paris. ... read more |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2009 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
del.icio.us
Digg
Reddit
YahooMyWeb
Google
Facebook