New Reserve Boosts Argentina's Crude Oil Supply 3%

---

Researched by Industrial Info Resources (Sugar Land, Texas)--According to Mario Calafel, Vice President for Public Affairs at Pan American Energy (PAE), the Argentine and British oil company has increased its reserves by 15% after announcing on January 29, 2008, a new reserve on its Cerro Dragon concession in Chubut province. This finding accounts for a 3% increase in Argentina's crude oil reserves.

According to Guillermo Moreno, Argentina's Domestic Commerce Secretary, the country's government has decided to restrict crude oil, fuel oil, gasoline, diesel fuel and naphtha exports to regulate rising domestic prices until supplies normalize and prices drop to levels seen in October 2007. Repsol YPF is having problems supplying gasoline because demand has exceeded supply. The company has the lowest prices in the market. For more details, see related January 16, 2008, news article - Argentina's Government Cuts Fuel Oil Exports.

BP PLC (NYSE:BP) (London) owns 60% of PAE, and Argentinean company Bridas owns the remaining 40%. PAE consolidated as the second-largest oil and gas producer in Argentina in 2007 and produced an average of 219,640 barrels per day, accounting for 17% of oil and 14% of gas produced in the country. Chubut province extended the company's exploration contracts 10 more years to 2027.

PAE has almost 60 drilling rigs operating in its Cerro Dragon concession and since it has declared a $1 billion investment in Argentine operations in 2008, it is expected to have 70 rigs more by the end of that year. The new reserve found in Chubut province, which holds 100 million barrels of crude oil and is the largest oil reserve and the sixth-largest gas reserve in the country, will contribute to extend the estimated nine-year hydrocarbons reserves five more years. The reserves will be certified in 2008.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.