Mendoza awarded two hydrocarbon areas with committed investments exceeding USD 45 million
The Government of Mendoza awarded exploitation concessions for the Atamisqui and El Manzano hydrocarbon areas as a result of the bidding process promoted by the Ministry of Energy and Environment to incorporate new investments, reactivate productive areas, and strengthen provincial hydrocarbon activity.
In both cases, concessions were granted for 25 years. Atamisqui, located in the Cuyana Basin, was awarded to Petróleos Sudamericanos SA, with a rational exploitation plan providing for an investment of USD 15,007,000 over the first ten years. El Manzano, in the Neuquina Basin, was awarded to Venoil SA, with a commitment of USD 30,975,000 for the same period.
Combined, committed investments total USD 45,982,000, with work programs, activity plans, and execution schedules that must be fulfilled according to the conditions established in both companies' bids.
New oil wells and assured investments for Mendoza.
"What matters is not just the amount committed, but what it translates into," said Minister Jimena Latorre, adding: "New wells, secondary recovery, and reactivation of idle wells. That is concrete activity on the ground, work for service providers, and royalties for the Province."
For his part, the Director of Hydrocarbons, Lucas Erio, stated: "These awards confirm that conventional Mendoza still has potential. When there are clear rules and predictability, the market responds. We went from a single awarded area with one bidder in 2019 to seven awarded areas in less than two years, with real competition between companies. It is an authentic signal about Mendoza's geological potential and the direction of provincial energy policy."
Environmental requirements and permanent monitoring
Environmental protection is one of the central pillars of the concessions. The decrees establish that companies must conduct their activities minimizing atmospheric and environmental impact, applying industry best practices, and guaranteeing high standards of safety and well integrity control.
Both titles require the submission of decarbonization plans addressing greenhouse gas emission reductions in line with the most advanced available technology, and prohibit gas venting without combustion.
Concessionaires must obtain environmental insurance in accordance with General Environmental Law 25675 and submit an annual well abandonment plan. Environmental obligations extend to the end of operations phase: in case of partial or total area reversion, an audit must be presented certifying the absence of environmental liabilities on the area to be reverted.
The provincial State retains broad inspection and oversight powers, with the right to inspect without prior notice and to request all documentation related to investments, contractual compliance, and environmental conditions of operations.
Concrete activity: new wells and interventions
The approved rational exploitation plans commit to drilling seven new wells and 58 interventions on existing wells over the first decade of concession, across a combined surface area of 822 km².
In Atamisqui, the plan includes drilling one development well in the Cuyana Basin and 26 well interventions. Infrastructure work adds over USD 3.5 million, including evacuation pipeline, power line installation, and tank repairs.
Venoil is one of the awarded companies.
In El Manzano, Venoil SA committed to drilling six new wells—USD 15,000,000, nearly half its investment plan—and 32 interventions distributed across four deposit zones, including the heavy crude zone, El Manzano West, and Los Volcanes, plus facility upgrades totaling USD 3.7 million.
A relevant aspect of the schedule: 68% of total investment; USD 31.1 million will be executed in the first five-year period. This represents concrete near-term activity, not deferred commitments at the end of the concession period.
Enhanced recovery and idle well reactivation
Both plans incorporate secondary recovery work and well conversion to injectors, a strategy that extends the productive life of mature deposits and recovers reserves currently not in production.
This is complemented by pulling and work over interventions on idle wells, which reincorporate existing infrastructure into the provincial productive base, with shorter timelines and direct demand on local service companies.
Continuous bidding model
Both areas were awarded through Mendoza's continuous bidding model, which maintains an updated supply of available areas and receives investment proposals on a permanent basis, without relying exclusively on periodic tenders.
The system aims to streamline procedures, promote competition, and create conditions for incorporating new operators and reinvestment by companies already operating in the province. With Atamisqui and El Manzano, seven areas have now been awarded under the current administration.