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The Argentine Gas and Oil Market
Natural gas and oil constitute the main energy sources in the national primary energy matrix. The following table illustrates their shares as of December 31, 2022, as there is no available information for the year 2023 as of the date of 2023 Annual Report’s release:
| Type of Energy | Million ton of oil equivalent | % |
| Natural Gas | 41.4 | 53.0% |
| Oil | 24.4 | 31.3% |
| Hydro | 2.5 | 3.2% |
| Nuclear | 2.1 | 2.7% |
| Renewables | 1.6 | 2.0% |
| Coal | 1.3 | 1.6% |
| Others | 4.8 | 6.1% |
| Total | 78.1 | 100% |
Note: All figures have been subject to rounding, so figures shown as totals may not sum. Source: Secretariat of Energy (‘SE’).
Natural gas
In 2023, total gross natural gas production amounted to 132 million m3 per day, experiencing a 0.8% decrease vs. 2022, mainly due to the decline in the Austral and Noroeste Basins (-2.2 million m3 per day), partially offset by the commissioning of the first section of the GPNK, inaugurated in August 2023, which was supplied with additional Plan Gas.Ar from the Neuquina Basin (+1.0 million m3 per day), and a slight increase in the Golfo San Jorge Basin (+0.1 million m3 per day). In terms of net production, the decrease was marginal (-0.2%, to 121 million m3 per day).
The total demand recorded a 3% year-on-year decrease, mainly due to better climatic factors in the second half of the year and the substantial reduction of natural gas imports from Bolivia (-40% vs. 2022, to 6.2 million m3 per day), partially offset by higher LNG purchases (+9% vs. 2022, to 6.8 million m3 per day). On the other side, natural gas exports to Chile decreased by 8% against 2022, totaling 5.9 million m3 per day, representing 5% of the total domestic production in 2023.
Based on the most recent annual information published by the SE (Secretariat of Energy), as of December 31, 2022, the country’s total natural gas reserves and resources amounted to 1,675 billion m3, representing a 3% increase vs. 2021. Of the total, 27% were proven reserves, and 74% came from unconventional formations.
Oil
In 2023, total oil production increased by 9% vs. 2022, reaching 635.3 kbbl per day. This increase was mainly due to international reference prices and improved evacuation capacity from Vaca Muerta in Oldelval and OTASA’s systems. Of the total production, 63% and 32% came from the Neuquina and the Golfo San Jorge Basins, with 402.1 and 200.6 kbbl per day production, representing a 17% increase and a 1% decrease vs. 2022, respectively.
As for the local refining demand, a 6% year-on-year increase was recorded, reaching 518.7 kbbl per day. This volume was mainly supplied from the Neuquina Basin, with 321.7 kbbl per day (+9% year-on-year) and the Golfo San Jorge Basin, with 176.7 kbbl per day (+3% vs. 2022). The other productive basins contributed 20.3 kbbl per day (-13.2% year-on-year). Moreover, it is worth highlighting that in 2023 there were no oil imports, and exports were 5% higher than in 2022, reaching 120.9 kbbl per day and representing 19% of total local production, explained by evacuation infrastructure improvements.
As of December 31, 2022, the country’s oil reserves and resources totaled 10,521 million barrels, a 10% increase vs. 2022, of which 28% were proven reserves and 67% were classified as unconventional.
On October 29, 2014, the National Congress enacted Law No. 27,007, amending Hydrocarbons Law No. 17,319. Among other aspects, this law addresses new industry drilling techniques, introduces changes to terms and extensions of exploration permits and exploitation concessions, levies and royalty rates, and incorporates concepts for on and offshore unconventional exploration and exploitation and the promotion regime established under Executive Order No. 929/13.
| Unconventional hydrocarbons exploitation |
| The Law conferred legal status to the ‘Hydrocarbons Unconventional Exploitation Concession’ concept created by Executive Order No. 929/13. This term is defined as the extraction of liquid and/or gaseous hydrocarbons by unconventional stimulation techniques applied in reservoirs situated in geological formations of schist rock or slate (shale gas or shale oil), tight sandstone (tight sands, tight gas, tight oil), coal bed methane and/or characterized by the presence of low permeability rocks.
Holders of hydrocarbon exploration permits and/or exploitation concessions may request an unconventional exploitation concession to the enforcement authority under certain terms, allowing the subdivision of the existing block into new unconventional hydrocarbon exploitation blocks and granting an unconventional hydrocarbon exploitation concession. This request must be based on developing a pilot plan for commercially exploiting the discovered field. A unification of adjacent unconventional blocks as a single exploitation concession may also be requested, provided their geological continuity is reliably demonstrated. This request should be based on the development of a pilot plan. |
| Terms for concessions and permits |
The terms for the exploration permits will be established in each call for tenders issued by the enforcement authority according to the exploration’s target (conventional or unconventional):
Upon expiration of the basic term’s first period, the permit holder will decide whether to continue exploring the block or entirely transfer it back to the Government. The originally granted block may be kept if the permit obligations are met. If the exploration permit holder exercises the right of extension at the expiration of the basic term, the reversal will be limited to 50% of the remaining block. Exploitation concessions will be granted for the following terms, computable from the granting resolution’s date:
Moreover, the holder may request indefinite 10-year extensions provided it has met its obligations, hydrocarbons are produced in the block, and an investment plan consistent with the concession’s development is submitted. |
| Awarding of blocks |
| Law No. 27,007 proposes a standard bid form drawn up by the SE and the provincial authorities. All calls for tenders will adjust to this bid form. The law introduces the ‘greater investment or exploration activity’ criterion as a tiebreaker at the PEN or the Provincial Executive Branch’s duly supported discretion, as applicable. |
| Levy and royalties |
| Levy
Law No. 27,007 sets the levy values per km2 or fraction to be paid annually and in advance by the permit holder. The exploitation permit will amount to AR$4,500, and the following values will apply to exploration permits: AR$250 in the first period and AR$1,000 in the second period of the basic term; and AR$17,500 during the first year of the extension, with a 25% annual cumulative increase. The amount may be readjusted by offsetting up to 10% of the levy with actual investments, according to the period and per km2. In September 2019, the Province of Neuquén established new levy values per km2. The exploitation levy was set at AR$22,410, and the exploration levy at AR$1,245 for the first period, AR$4,980 for the second period, AR$7,470 for the third period, and AR$87,150 for the extension period (Executive Order No. 2032/19). As of 2021, DNU No. 771/20 set a maximum levy in AR$ equivalent to a certain volume of oil, valued at the average domestic market price and the Argentine National Bank (Banco de la Nación Argentina)’s FX rate. For exploitation concessions, it amounts to the equivalent of 8.28 barrels. In contrast, the following applies to exploration permits: 0.46 barrels in the basic term’s first period and 1.84 barrels in the second period, and 32.22 barrels during the extension period.
Royalties Royalties, the only monthly income on production mechanism collectible by the granting authorities, are set at 12% of the proceeds from liquid hydrocarbons and natural gas extracted at the wellhead. An additional royalty of up to 3% is applied in case of extension, reaching a maximum of 18% for next extensions. The PEN or the Provincial Executive Branch, as applicable, acting as granting authority, may reduce the applicable royalties by up to 25% for 10 years following the pilot project’s conclusion in favor of companies requesting a hydrocarbon unconventional exploitation concession within a period of 36 months as from Law No. 27,007’s effective date.
Extension and exploitation bonds Law No. 27,007 empowers the enforcement authority to set the payment of an exploitation concession extension bond. The maximum amount is calculated by multiplying the remaining proven reserves at the end of the concession period by 2% of the average basin price. Moreover, the enforcement authority may establish the payment of an exploitation bond, which is calculated similarly and is associated with hydrocarbon’s conventional exploitation.
Transportation concessions Transportation concessions, granted for the same term as the originating exploitation concession, may be extended successively for up to 10 years. Thus, the transportation concessions’ basic term will be 25 years in a conventional exploitation and 35 years in an unconventional exploitation, each plus any granted extension term. After these terms expire, the facilities will be transferred to the Federal or Provincial Government, as applicable, without any charges or encumbrances.
Uniform legislation Law No. 27,007 provides for non-binding commitments between the Federal Government and the provinces, including uniform environmental legislation that applies the best environmental management practices to hydrocarbon exploration, exploitation, and/or transportation activities. It also provides a uniform tax treatment encouraging hydrocarbon activities, in which the gross receipts tax rate will not exceed 3% of sales. Regarding taxation, it also undertakes to freeze the current stamp tax rate and not charge any financial contracts executed to structure investment projects. Besides, the provinces and their municipalities’ commitment not to impose new taxes or increase the existing ones is established, except for service compensation rates and improvement contributions.
Unconventional hydrocarbons exploitation concession (CENCH) in the Province of Neuquén Given an unconventional reservoir’s low permeability and productivity over the last few years, the Ministry of Energy and Natural Resources of the Province of Neuquén set certain parameters for granting a CENCH, instrumented through Res. No. 53/20 (July 2020) and No. 142/21 (November 2021), and later ratified by Provincial Executive Order No. 2183/21 (December 2021). Companies may request the CENCH based on a development project – Pilot Plan for up to five years, demonstrating its technical and economic feasibility, additional operational parameters, actual productivity assessments, costs and investment. Once the CENCH request is filed, a block extension bond payment is incorporated. The value will be associated with the resources expected to be recovered in the block, considering the basin’s average price over the last two years. While the CENCH is in effect, holders must submit annual development plans and investment commitments (those undertaken for the following year will be deemed firm). |
| Encouragement programs for the increase in domestic natural gas production | |||||||||||||||||||||||||||||||||||
| Created on November 16, 2020, Plan Gas.Ar seeks to promote Argentine natural gas production and manage the gas cost impact on the Priority Demand’s tariff through tendering long-term supply agreements (DNU No. 892/20).
Initially, the term for onshore production was 4 years, with an additional 4 years for offshore production from January 2021. Later, the term was extended until December 31, 2028, for the 70 million m3 per day base volume already awarded under rounds 1 and 3 (DNU No. 730/22).
Agreements are executed between producers (as sellers) and CAMMESA, gas distributors and ENARSA (as purchasers), with a 100% daily DoP and a 75% monthly ToP for CAMMESA and quarterly ToP for gas distributors and ENARSA. The awarded price is adjusted by the following factors: 0.82 in the summer period (October – April), and 1.25 (May -September) for the base volume and 1.30 for the additional volume in the winter period. CAMMESA and ENARSA, as purchasers, pay the awarded price, while gas distributors pay the price set in the effective tariff scheme, with the difference being offset by the Federal Government. Moreover, the Federal Government has set a compensation support guarantee system based on tax credit certificates, aside other applicable mechanisms.
In December 2020, round 1 was awarded for an annual base volume(1) of 67.4 million m3/day at US$3.5/MBTU from January 2021, and a winter additional volume of 3.6 million m3/day at US$4.7/MBTU from May 2021 (SE Res. No. 391/20 and 447/20).
Round 2 was awarded in March 2021, with an increasing daily DoP and a 75% quarterly ToP for a base volume of 3.3 million m3/day during winter at US$4.7/MBTU from June 2021 (SE Res. No. 169/21).
Round 3 was awarded in November 2021 for an annual base volume of 3 million m3/day at US$3.43/MBTU from May 2022 (SE Res. No. 1091/21).
Under the Transport.Ar program to increase gas transportation capacity through the GPNK, in December 2022, round 4 (Neuquina Basin) and round 5 (Austral Basin) were awarded (SE Res. No. 860/22). Rounds 4.1 and 5.1 extended a large part of the annual base volume until December 2028 under the following conditions:
Round 4.2 awarded new volumes until December 2028. Awardees may limit up to 30% of the volume committed with ENARSA for industrial customers and/or CNG, subject to SE’s approval. The calls were:
Finally, round 5.2 awarded the incremental volumes set monthly in the Austral, Golfo San Jorge and Noroeste Basins for 3.3 million m3/day at US$7.319/MBTU from October 2023 to December 2028. The customers are ENARSA and CAMMESA, with an 80% daily DoP and a 0% monthly ToP (SE Res. No. 799/23).
Pampa awards under Plan Gas.Ar Pampa participated and was awarded in all Plan Gas.Ar’s rounds in the Neuquina Basin. Each round’s conditions for Pampa are detailed below:
Note: 1 The total commitment from May 2021 is 7 million m3/day. Out of this, 4.9 are deliveries under Plan Gas.Ar and the balance is sold on the market. 2 1.25 adjustment factor in the winter and 0.82 for the rest of the year. 3 It covers May through September. 4 Prices start at US$9.8/MBTU and drop to US$6/MBTU in 2028 Notes: (1) 49.0 million m3/day is from the Neuquina Basin. Round 1’s base volume represents 70% of the total production commitment (96.3 million m3/day), and the remaining 30% is sold at market price. (2) Launched in August 2023 due to the delayed commissioning of the GPNK. (3) Beginning postponed to 2023. |
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| Foreign exchange access regime | |||||||||||||||||||||||||||||||||||
| Aiming to promote and increase added value in the hydrocarbon’s activity value chain, DNU No. 277/22, issued on May 27, 2022, establishes a regime facilitating access to FX in the MULC for companies with incremental oil and gas production compared to 2021.
Access to the MULC under this regime will not be subject to BCRA’s prior authorization requirement in case exchange regulations so require. Foreign currency obtained under this regime is destined to pay principal and interest on commercial or financial liabilities abroad and with non-resident affiliates, dividends from closed and audited balance sheets, and non-resident companies’ repatriation of direct investments. Benefits may be transmitted to direct suppliers.
For natural gas, the benefit equals 30% of the incremental injection valued at the country’s weighted average export price over the last 12 months, net of export duties. This price may not be lower than the weighted average award price under Plan Gas.Ar or higher than twice that value. For oil, the benefit equals 20% of the quarterly incremental production at the average Brent quotation over the last 12 months, defined by the enforcement authority, net of export duties, and adjusted based on the crude oil quality.
On January 13, 2023, through Res. No. 13/23, the SE established the conditions for companies to access the regime. Through notes issued in August and September 2023, the Undersecretariat of Hydrocarbons granted Pampa the certificates of access to the benefit corresponding to 3Q22, 4Q22 and 1Q23. In addition, Pampa sent applications for 2Q23, 3Q23 and 4Q23, which have not been granted as of this date. |
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| Export Growth Program | |||||||||||||||||||||||||||||||||||
To encourage oil and gas exports and strengthen BCRA’s reserves, SE Res. No. 808/23, which entered into force on October 3, 2023, allows hydrocarbon exporters to settle transactions under the Export Growth Program (Programa de Incremento Exportador —PIE—, DNU No. 576/22). PIE partially recognizes exports under a differential blue-chip swap (CCL) rate and the remaining balance under the official FX. Pampa opted into this regime. The evolution of percentages is summarized below:
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| Natural gas for the residential and CNG segment | |||||||||||||||||||||||||||||||||||
| Priority Demand and CEE (Emergency Executive Committee or Comité Ejecutivo de Emergencia)
In June 2016, CEE criteria were established to guarantee the Priority Demand’s supply in case of operational emergencies (MEyM Res. No. 89/16, as amended). In June 2017, the procedure for administering dispatch in the CEE was approved (ENARGAS Res. No. 4502/17). If the CEE does not reach an agreement, ENARGAS defines the required supply considering each producer’s available quantities and deducting the amounts previously contracted to meet the Priority Demand, with a progressive allocation until matching the proportional quota of each producer/importer in the Priority Demand.
Natural gas price within the PIST (Transportation System Entry Point) As of January 2021, gas volumes for the Priority Demand are contracted under Plan Gas.Ar. Gas distributors pay the price stated in the effective tariff scheme and the difference with Plan Gas.Ar’s awarded price is offset by the Federal Government. ENARSA pays 100% of the Plan Gas.Ar’s awarded price. |
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| Natural gas for power generation | |||||||||||||||||||||||||||||||||||
| As of December 30, 2019, power plants’ fuel supply was centralized in CAMMESA (except for generators with PPA under Energía Plus and SEE Res. No. 287/17). CAMMESA launches calls on an interruptible basis to cover its monthly consumption, and since 2021, most gas to CAMMESA has been supplied under Plan Gas.Ar. Generators under Energía Plus and SEE Res. No. 287/17 PPA can assign natural gas operation and transportation to CAMMESA. Pampa opted into this scheme.
As of 2021, new reference PIST prices were set for the production out of Plan Gas.Ar, at US$2.3/MBTU in the summer period (October – April) and US$3.5/MBTU in the winter period (May – September) for the Neuquina Basin (SE Res. No. 354/20). In addition to Plan Gas.Ar, CAMMESA launches auctions with a maximum price equal to Plan Gas.Ar, with a 30% DoP clause, although the volume is not significant. |
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| Natural gas export | |||||||||||||||||||||||||||||||||||
| On April 27, 2021, a procedure was regulated to authorize natural gas exports on a firm and preferential basis for Plan Gas.Ar awardees during the summer period, extendable to the winter period in case of oversupply at a specific basin, with the applicable authority’s prior approval (SE Res. No. 360/21). DNU No. 730/22, issued on November 4, 2022, allows exports on a firm basis in winter, prioritizing producers with competitive prices and/or a higher contribution under Plan Gas.Ar.
In November 2022, the SE introduced several amendments, including (i) a limitation on exports per producer to a maximum of 30% of the authorized volume per basin or 50% of the commitment under Plan Gas.Ar; (ii) quotas per basin for firm exports; (iii) the exported volume will be deductible from the Plan Gas.Ar commitment in the summer; and (iv) the minimum price will be the higher of a Brent percentage and the Plan Gas.Ar price with the adjustment factor (SE Res. No. 774/22).
For the October 2023-April 2024 summer period, authorized volumes are 9 million m3/day in the Neuquina Basin and 2 million m3/day in the Austral Basin. During the May through June 2023 winter period, the quota was 5 million m3/day in the Neuquina Basin, prorated among round 4.2’s awardees. From July to September 2023, another 3 million m3/day were authorized in the Neuquina Basin. For the May-September 2024 period, a firm exportable volume of 5 million m3/day was determined for the Neuquina Basin.
Pampa holds permits to export gas to Chile on a firm basis for a maximum volume of 1.5 million m3/day from October 2022 to April 2023, 2.2 million m3/day from May 2023 to June 2023, 0.9 million m3/day from July 2023 to September 2023, and 1.5 million m3/day up to the end of 2023. In addition, spot exports are made to Chile and Brazil, provided the enforcement authority authorizes them. |
Crude oil commercialization in the domestic market
No reference price has been established for selling crude oil domestically as of this date. However, local refining companies validate prices below the export parity.
Crude oil export
As of May 2020, export duties are exempted if the international Brent price is equal to or lower than US$45/bbl, with progressive increases until the reference price reaches 8%, the cap to be recognized when the Brent price equals or exceeds US$60/bbl (DNU No. 488/20). In 2023, the rate remained at 8%.
In April 2019, TGS received the last semiannual tariff update under the RTI, implemented in April 2017. Subsequently, with the entry into effect of the Solidarity Law in December 2019, no tariff changes were implemented in the natural gas main pipeline transportation under federal authority.
However, due to the evolution of macroeconomic variables, from February 2022, TGS received a 60% transitionary update on its tariff schemes for cost variations on account of the future RTI. The guidelines for this update were stipulated in a transitionary renegotiation agreement, which, among other measures, did not establish a mandatory investment plan and prohibited the distribution of dividends, the early cancellation of financial and commercial debts taken on with shareholders, and the acquisition of other companies.
A public hearing was held on January 4, 2023, and TGS requested a 135% tariff update effective February 2023. However, on April 27 and 29, 2023, ENARGAS and the PEN approved and ratified, respectively, an addendum to the transitionary renegotiation agreement, including a transitionary 95% increase on the natural gas transportation tariff and the CAU, effective from May 2023 (DNU No. 250/23, ENARGAS Res. No. 186/23).
Regarding the RTI, the Solidarity Law delegated the power to provide for a new review to the PEN, launched on December 17, 2020 (DNU No. 1020/20) and successively extended. Finally, on December 18, 2023, DNU No. 55/23 declared an emergency in the national energy sector, covering the electricity generation, transmission and distribution and natural gas transportation and distribution segments, effective until December 31, 2024.
To ensure the proper provision of public utilities, the SE was instructed to implement measures procuring free competition, low barrier pricing, and maintaining regulated income in purchasing power terms. Also, RTI processes were launched for electricity and natural gas transportation and distribution, to be implemented by the end of 2024. In this context, on January 8, 2024, a public hearing —previously called through ENARGAS Res. No. 704/23— was held to address the tariff adjustment and the monthly update index. As of today, TGS’s tariff schemes have not been published yet. In addition, the DNU also intervenes in ENARGAS as of January 1, 2024, and seeks to create a single National Regulatory Authority for Gas and Electricity (Ente Nacional Regulador del Gas y la Electricidad), which would eventually replace ENRE and ENARGAS.
Finally, in September 2023, TGS submitted to ENARGAS a request for a 10-year natural gas transportation license extension, expiring in December 2027. The governmental authorities will address the request.
Presidente Néstor Kirchner gas pipeline
Under Res. No. 67/22 issued on February 7, 2022, the SE created the Transport.Ar National Production (Transport.Ar Producción Nacional) program, declaring the construction of the GPNK of national public interest and its supplementary works as a strategic project.
Moreover, DNU No. 76/22, issued on February 11, 2022, granted ENARSA a 35-year concession for this gas pipeline and created the FONDESGAS (Fondo de Desarrollo Gasífero Argentino) trust, with ENARSA as trustor and beneficiary, and BICE (Banco de Inversión y Comercio Exterior S.A.) as trustee.
The following works executed by ENARSA have been commissioned:
- In August 2023, the first section of the GPNK, extending from Tratayén, Province of Neuquén, to Salliqueló, Province of Buenos Aires, interconnecting with the pipelines of the final sections licensed to TGS, contributing an additional 11 million m3/day of natural gas.
- In December 2023, the Mercedes-Cardales Gas Pipeline, which connects TGS and TGN’s systems, with a maximum of 15 million m3/day capacity.
The expansion of TGS’s final sections, with the installation of 29 km of loops in the Neuba II Gas Pipeline, is expected to be commissioned in May 2024, generating an additional 10 million m3/day transportation capacity from Salliqueló to Greater Buenos Aires.
TGS is the technical operator of the GPNK’s first section, including its two compressor stations. This role was awarded by ENARSA on June 5, 2023, through a private call for tenders, assigning its operation and maintenance for a term of 5 years, extendable for up to 12 months. After executing a 5-year agreement, TGS is also the technical operator of the Mercedes Cardales Gas Pipeline.
Household Gas Bottles’ Program and Propane for Grids Agreement
The Household Gas Bottles’ Program supplies LPG at subsidized prices (DNU No. 470/15, as amended), and the Propane for Grids Agreement are currently in force.
The Household Gas Bottles Program provides a defined LPG quota to fractionation companies to guarantee supply to low-income residential users at a maximum reference price. The maximum reference price for butane and propane producers under this program is shown below:
| Period | AR$/ton | SE Resolution No. | Period | AR$/ton | SE Resolution No. | |
| Jan-23 | 29,481 | 15/23 | Jun-23 | 41,862 | 391/23 | |
| Feb-23 | 32,429 | 63/23 | Jul-23 | 43,537 | 391/23 | |
| Mar-23 | 35,672 | 168/23 | Aug-23 | 45,278 | 391/23 | |
| Apr-23 | 38,704 | 326/23 | From Sep-23 to Feb-24 | 50,938 | 762/23 | |
| May-23 | 40,202 | 391/23 |
In August 2021, among other measures, transitory economic assistance was established, recognizing 20% of the billing for the August 2021 – December 2022 period of LPG sales destined for the Household Gas Bottles’ Program (SE Res. No. 809/21, as amended). Given the circumstances, participation in this program forces TGS to produce and sell LPG at prices ostensibly lower than market prices, which entails adopting the necessary mechanisms to minimize its negative impact.
Regarding the Agreement for the Supply of Propane Gas for Undiluted Propane Gas Distribution Grids (Propane for Grids Agreement), on August 28, 2023, TGS executed its 19th renewal, effective until December 31, 2023. This agreement stipulated the payment of compensation to participants, payable by the Federal Government, calculated as the difference between the sales price under this agreement and the export parity published monthly by the SE, although with significant delays in collection terms. The nineteenth extension allows payments with tax credit certificates, which producers may use to cancel hydrocarbon export duties. To date, such certificates have not been issued.
Export duty
As with hydrocarbon exports, as of May 2020, propane, butane and LPG are exempted from paying export duties as long as the international Brent price is equal to or lower than US$45/bbl, with progressive increases until the reference price reaches 8%, the cap to be recognized when Brent price equals or exceeds US$60/bbl (DNU No. 488/20). In 2023, the rate remained at 8%.
In June 2016, OldelVal requested the RTI from the MEyM, aiming to adjust tariffs for a maintenance and investment plan guaranteeing the integrity, efficiency and reliability of the transportation facilities and service. Consequently, on March 10, 2017, the new US$-denominated tariff scheme was published, providing for an average 34% increase, effective from March 2017 (MEyM Res. No. 49/17).
On November 28, 2022, the SE requested Oldelval to initiate the corresponding procedures to update the tariff scheme applicable to transportation service carriers. As of December 31, 2023, Oldelval is preparing the five-year information the SE requires.
In 2022, Oldelval launched a call for tenders to award and contract the firm transportation service for the Allen-Puerto Rosales oil pipeline section corresponding to the Duplicar Project for a total of more than 314 kbbl per day through the execution of contracts, effective until the end of the concession. Pampa was awarded with a quota of 6,302 barrels per day.
On September 14, 2022, the SE granted the extension of the transportation concession for the main oil pipelines providing access to Allen and the Allen-Puerto Rosales oil pipeline, as well as its expansion, called Medanito-Puesto Hernández, for a term of 10 years as from November 14, 2027. Consequently, the concession will be extended until November 14, 2037.