In the oil sector, YPF leads with 59% of the production, followed by Sinopec with 24%, and PAE with 10%. The remaining production is shared among seven smaller operators.
In natural gas, Compañía General de Combustibles is the primary operator, accounting for 27% of the province’s total gas extraction as of September 2017. YPF follows with 25%, Sinopec with 21%, and Enap Sipetrol with 13%.
The extracted gas is transported via a main pipeline to major consumption centers in the central region of the country. There are also export pipelines, including one originating at YPF’s “El Cóndor” treatment plant in Santa Cruz, which supplies Posesión in Chile. Another is the Methanex-Patagonia pipeline, also directed to Chile.
Most of the hydrocarbon processing takes place outside the province. There are only three gas separation plants involved in the initial transformation stage within the region.
The primary transformation centers are gas treatment plants that supply gas through networks, with most of it destined for other provinces and a portion for local consumption.
Palermo Aike Fm. is located in Austral Magallanes Basin, south of Santa Cruz Province (Argentina). The geological deposit is an unconventional – shale reservoir. It covers 230.000 𝑲𝒎𝟐 of which 89.000 𝐾𝑚2 are in Santa Cruz Province (onshore). It was deposited during the Cretaceous period, between 144 and 65 million years ago.
Palermo Aike is the main source rock of the basin. It is responsible for generating approximately 6,1 𝑀𝑀𝑚3 of oil and 78.877 𝑀𝑀𝑚3 of gas proven reserves so far.
Geological Framework The Austral Basin ranks third in South American shale resources behind Vaca Muerta and La Luna. According to several sources, Palermo Aike Fm. harbors approximately 177 TCF of gas and 10 billion barrels of oil as technically recoverable resources. These amounts are equivalent to more than 81 years of current gas consumption and between 35 and 50 years of current oil consumption in Argentina.
Strategic role Palermo Aike has three members (Lower, Middle, Upper) representing different sedimentary environments: deep marine, deep marine influenced by a deltaic system, and prodelta (Richiano et. al, 2012). The thickness is variable between 150 and 400 m, with an average of 250 m.
• Average TOC: 1,6 %
• Mainly silicoclastic
• High average porosity: 11% inter & intra particle type.
• Overpressured (gradient 0.76 psi/ft)
• Normal to Strike Slip Stress Regime. High geothermal gradient.
The Austral Basin ranks third in South American shale resources behind Vaca Muerta and La Luna. According to several sources, Palermo Aike Fm. harbors approximately 177 TCF of gas and 10 billion barrels of oil as technically recoverable resources. These amounts are equivalent to more than 81 years of current gas consumption and between 35 and 50 years of current oil consumption in Argentina.
Palermo Aike is the second most important source rock in Argentina. The exploration of this play is one of the strategic projects of the operating companies and Santa Cruz Province Government. Its exploration will allow to expand Argentina’s unconventional frontier. Also, it will contribute to know the extent of the oil & gas productivity of the geological formation. Moreover, there are current conventional O&G production operations at nearby fields, with available facilities capacity.
Target depth 3000 to 3800 m. Thickness: 200 to 300 m. Geosteering levels: 3. Wells with unconventional hydraulic stimulation: 5. Previous vertical wells with sustained hydrocarbon flow tests showed: 3400 bbl of 38°API oil, 70% above °P and 2000 bbl of 51° API oil, 100% above °P.
A vertical pilot wellbore was recently drilled with vast data collection (logs and rock samples), and with a 1000 m long horizontal section. During its completion, unconventional hydraulic stimulation will be performed as well as sustained hydrocarbon flow tests.
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