84 
MINERALS YEARBOOK, 1978-79 
 
in the Argentina sector of Tierra del Fuego were estimated at 52 billion
cubic meters or 1.8 trillion cubic feet. 
 The new gas processing plant in Campo Durán in the Province of
Salta
will permit YPF to recuperate 95% of the propane in the natural gas imported
from Bolivia. Basic engineering and construction supervision was provided
by Fish International Engineering Inc. of Houston, Tex. Construction and
detailed engineering for the turboexpansion plant was accomplished by a consortium
of Argentine companies. 
 New gas deposits were discovered in Loma de La Lata in Neuquén
Province.
At yearend, Argentina's proved natural gas reserves were estimated at 15.26
trillion cubic feet, a substantial increase. 
 In July 1978 Gas del Estado changed its status to that of an autonomous
state enterprise, the status that YPF had obtained in April 1977. 
 Petroleum.—As a combined result of increased oil output and decreased
apparent domestic consumption, Argentina's selfsufficiency improved to 93%
in 1978 compared with the 88% status in 1977. For comparison, in 1965 self-sufficiency
was at 78%, growing to 90% by 1970. YPF accounted for 68% of total crude
oil production and contractors for 32% compared with the 76% and 24% breakdown,
respectively, in 1977. Secondary recovery accounted for 12% of total output.

 Much of the increased oil production was related to the renewed efforts
of private industry. Amoco Argentina Oil Co. entered into an agreement in
1978 with the Government to invest $57 million in a program of secondary
recovery using water injection in the oilfields of Cerro Dragon and Cañadón
Grande in Chubut Province, the second most important oil producing area in
southern Argentina. Amoco expected to increase total oil recovery by 27 million
barrels. 
 During 1978 and 1979 oil exploration was intensified. Oil discoveries enabled
YPF to add 460 million barrels to Argentina's reserves which at yearend 1979
were estimated at 2.4 billion barrels. In 1978 onshore oil discoveries in
Mendoza Province included Agua Botada well located south of Malarque as well
as Cajón de Los Caballos and Los Volcanes further south. In Neuquén
Province still further south, a wildcat discovery was reported by YPF near
the Llancanelo field. In Argentina's mountainous northwestern Province of
Salta, YPF made an oil and natural gas discovery near Tartagal which required
further evaluation. Offshore 
in 1978, YPF made its first discovery in the San Jorge basin, 17 kilometers
east of Comodoro Rivadavia. The Tehuelche well in the continental shelf was
the first of five wildcats planned. 
 In April 1978 the Secretary of Energy made public the long-awaited Risk
Contract Hydrocarbon Law No. 21,778. The law authorizes State enterprises
to conclude risk contracts for the exploration and development of hydrocarbons
and provides the contractors with certain tax and import incentives. It was
also announced that 19 areas throughout Argentina would be put up for bid
under the new law beginning in the second half of 1978. Included in areas
onshore are six in the north around Salta, five in the center west around
Neuquén and two in the south in Santa Cruz Province; four areas
are
offshore: Three off of Tierra del Fuego and one in the Colorado basin opposite
Buenos Aires. 
 Under the new law, the contractors must assume all risks of exploration
and development and must bear all capital costs and other investments required
in the contract area. The contractors will not acquire any mineral rights
over the deposits discovered in the contract area nor over the hydrocarbon
extracted. The contractors will be paid in cash per unit of production. Once
the internal needs of the country are satisfied and an adequate margin of
reserves are ensured, the contractors may be paid in gas or oil. The term
for executing exploration contracts may not exceed 7 years offshore and 5
years onshore, although the period may be extended by 2 years to evaluate
any discovery. The period for development of production may not exceed 25
years from the date it is determined that a deposit is commercially exploitable.
Foreign investments for exploration and development of hydrocarbons will
be excluded from the requirements of Foreign Investment Law No. 21282. 
 On July 3, 1978, YPF awarded a risk contract covering Tierra del Fuego Area
I to a group headed by the Argentina company of Bridas S.A., and including
ARFRANCO S.A., Deminex Deutsche Erdolver Sorgus Gessellshaft of West Germany,
and Total Exploitation S.A. of France. In March 1979 YPF opened the bids
for five exploration areas: Three onshore comprised of Acambuco (Salta),
Picfln Leufü (Neuquén) and Meseta del Guenguel (Chubut/Santa
Cruz); and two offshore areas comprised of RIo Gallegos and Magallanes (both
in the Austral Basin). During the summer of 1979 the