Energy and Natural Resources

Resolution No. 447-E/2017 (Program to Stimulate the Production of Unconventional Natural Gas)

On November 17, the Resolution No. 447-E/2017 of the Ministry of Energy and Mining was published in the Official Gazette (the “Resolution”) which extends the application of the Program to Stimulate Investments on the Production of Unconventional Natural Gas, created by Resolution No. 46-E/2017 (the "Program") to the production of unconventional natural gas coming from the Cuenca Austral.

The Resolution adapted the definition of "Unconventional Gas" of the Annex to Resolution No. 46-E/2017 for the concessions located in the Cuenca Austral in order to include those concessions within the scope of the Program, due to the geological heterogeneities of each project located at the Cuenca Austral.

The Secretary of Hydrocarbon Resources shall determine, on the analysis of the pilot phase of each project, the particular technical conditions that the natural gas production of each well must meet to be considered Unconventional Gas, such as the initial flow of each well, its accumulated in the first semester, and any other parameter considered relevant by the Secretary in order to consider the production as coming from formations of low permeability and/or porosity."

For further information on this topic please contact Juan Martín Allende and Marcos Patrón Costas