Argentine oil production fell 0.4% in March compared with the year-ago period, while natural gas output rose 0.5% over the same period, an industry report showed Friday.
Crude production declined to an average of 533,651 b/d in March from 535,639 b/d in March 2013, and was down 0.8% compared with 537,758 b/d in February, the Argentine Oil and Gas Institute, or IAPG, said without specifying reasons for the changes.
The decline came even as state-run YPF, which produces 39% of the nation's crude, was able to increase production 11% to 217,361 b/d in March compared with 196,479 b/d in the year-earlier period, the report showed.
YPF has been stepping up exploration, drilling and rig deployment since coming under state control in 2012 with the goal of turning around a decade-long 6% annual drop in oil and gas production. YPF has said it aims to increase crude production 5% and gas 16% in 2014 compared with 2013.
Even so, Argentina's overall oil production has dropped 37% from a record 847,000 b/d in 1998 on years of weak exploration, limited finds and maturing reserves, according to analysts. This has led the country to reduce heavy crude exports and start importing light crude supplies to meet domestic demand. Argentina now exports 10-15% of its heavy crude production, down from 40% in 1997 and 1998.
Other than YPF, the leading producers are BP-controlled Pan American Energy, with an 18% share of national output in March, Argentina's Pluspetrol with 7%, China's Sinopec with 6.4%, Brazil's Petrobras with 4.2% and Chevron with 4.1%, IAPG said.
IAPG said that gas production rose 0.5% to 112.1 million cubic meters/d in March, compared with 111.6 million cu m/d in the year-earlier period, and was down 1.6 % compared with 113.9 million cu m/d in February.
Gas output has dropped 22% from a record 143.1 million cu m/d in 2004, leading to shortages. Argentina, which relies on gas to meet 50% of its energy needs, has seen consumption of the hydrocarbon surge 33% since 2003 to an average 126 million cu m/d in 2013 on a growing economy and price controls that have made it the cheapest source of energy. The combination of falling production and rising demand is forcing the country to step up imports of LNG and Bolivian gas, which averaged 30 million cu m/d in 2013 compared with gas exports of as much as 20 million cu m/d as recently as 2004.
YPF and France's Total each produced 28% of the gas in March, followed by Pan American with 12% and Petrobras with 8.3%.
REFINING ACTIVITY
IAPG said crude processing dropped 20% to 441,186 b/d in March from 549,739 b/d in March 2013.
Of the supplies processed in March, the equivalent of 6,991 b/d was imported, or 1.6% of the total processed that month. That compares with imports of 10,526 b/d in the year-earlier period.
Argentina had not imported crude for years until 2012, when -- with domestic crude production dwindling and demand steady -- the need for more supplies made it necessary to import at times of peak consumption. These peaks come during the May-September cold season and the November-March crop harvesting and tourism season.
Output of RON 95 gasoline fell 5% to 95,845 b/d in March year on year, while that of RON 98 gasoline plunged 35% to 15,543 b/d. Production of fuel oil rose 2.5% to 11,645 mt/d, while that of diesel dropped 20% to 164,702 b/d and naphtha production rose 0.4% to 49,932 b/d over the same period.
The leading refiner is YPF, trailed by Shell, Bridas' Axion Energy, Oil Combustibles and Petrobras.
