The operational strategy will be led by Roch, known for expertise in mature field management and secondary recovery, focusing on reducing costs, managing water cuts, and stabilizing production decline curves. The engagement of Doris Capurro, former YPF vice president and founder of Luft Energía, brings critical institutional knowledge and local governance navigation, essential for securing regulatory support in Santa Cruz. Maintaining or reducing provincial royalty rates is identified as vital to sustaining investment viability.
This move signals a strategic shift from unconventional shale dominance back to optimizing conventional assets under a flexible operational framework. It addresses the declining trend in Santa Cruz’s petroleum activity amid recent exits by major operators and reflects on the province’s challenged fiscal environment. The growing pressure from local unions demanding accelerated investment and project execution adds urgency to operational plans.
Moshiri’s return to Argentina, juxtaposed with ongoing large-scale investments in Venezuela, emphasizes confidence in the potential of the southern Argentine basin to contribute meaningfully to the country’s energy output and economic recovery. Should production targets be met, Santa Cruz could regain prominence as a competitive conventional oil producer despite its historical cost disadvantages compared to shale.
This article was curated and published as part of our South American energy market coverage.
