Tierra del Fuego manages transition of expiring oil concessions

The province of Tierra del Fuego is managing a historic transition in its energy sector as the first oil concession in the region expires without an extension. The UTE, composed of Roch S.A., Secra, Crownpoint Energía S.A., and DPG (Desarrollos Petroleros y Ganaderos), decided not to request a contract extension for the Angostura, Las Violetas, and Río Cullen areas.

To prevent production halts and protect the local economy, the provincial government has implemented a transition scheme. During this period, Roch S.A. will continue to operate on behalf of the province until a new concessionaire is selected through a public bidding process. This arrangement aims to ensure technical and operational continuity.

The plan also addresses labor concerns. While the UTE is responsible for paying corresponding indemnities due to the end of the concession, workers will be called upon to continue their duties under Roch S.A. during the transition. Additionally, the province will acquire fixed assets, including infrastructure, processing plants, and vehicle fleets, to strengthen state involvement in resource exploitation.