Wintershall Unfazed by Argentina's Repsol Row

Germany's Wintershall , the oil and gas arm of chemicals group BASF, said on Monday it was unperturbed by the enforced nationalisation of Argentine oil company YPF, having just been awarded another oil and gas licence there.

A spokesman for the Kassel-based company said there was no indication that Argentina had plans to seize control of other companies besides the majority YPF stake held by Spain's Repsol in mid-April.

"We therefore do not expect any impact on our Wintershall business in Argentina," the spokesman said.

The move, which rattled international investors, has prompted Repsol to cancel its contract to supply Argentina with liquefied natural gas (LNG).

Wintershall said on Monday it had been awarded a new exploration permit for gas and oil in the Ranquil Norte area of Argentina, where it says it is the fourth-biggest gas producer.

 

The permit was obtained by Wintershall Energia, the local subsidiary of the Kassel-based company, for 50% of a participating interest as operator, and with the local unit of France's Total - Total Austral - holding the remaining 50% as a partner, it said on Monday.

The area is in the southernmost region of Mendoza province and covers 2,232 square km.

The permit follows one granted to the company in March for the adjacent area Cuenca Neuqina V.

Wintershall has been present in the area since 2004, performing field and laboratory work, including geological mapping and modelling, geochemical analysis as well as 2-D seismic reprocessing and interpretation.

"These evaluations indicate that the Ranquil Norte Block has potential to explore and develop conventional and unconventional reservoirs (shale gas and shale oil)," the press release said.

Wintershall already has stakes in 15 Argentine oil and gas fields. It produces 27 million cubic meters of oil equivalent, mostly gas, per annum in the country.