Oil company YPF, the Argentine unit of Spain’s Repsol YPF, said on Tuesday it discovered an oil field in the western province of Neuquen.
The field is in the La Caverna area, which covers 46,600 hectares (115,061 acres), YPF said.
The first two wells drilled in the area have yielded average production “well above” the average in that part of Neuquen, which is in Patagonia, since production started three months ago, YPF said.
Neuquen Gov. Jorge Sapag said Monday that the field appeared to be the largest found in Argentina since 1992.
The field could reach annual production of 90 million barrels, or the equivalent of YPF’s total current output, the Argentine press reported, citing experts.
“What we cannot certify or confirms is the extent of the reservoir, and we do not want to do so because it’s a matter of sensitivity in the markets,” a YPF spokesman said.
A unit of Brazilian state-controlled oil giant Petrobras, meanwhile, has won the bidding for two oil exploration areas in Neuquen.
Petrobras Energia said it won the rights to explore for oil in the Borde de Limay and Los Vertices areas in an auction held by Gas y Petroleo del Neuquen.
The two areas are in the Neuquina basin, the largest oil and gas production region in Argentina.
Petrobras Energia agreed to an initial investment of $4.5 million over four years in Borde de Limay, which covers some 36,799 hectares (90,864 acres).
Investment in Los Vertices, which covers an area of 5,900 hectares (14,567 acres), will total $2 million over four years, the company said.
“In both cases, the investment is destined for exploration. If oil is found, development investment related to these projects could exceed $125 million,” Petrobras Energia said.