The national government has taken a new step to promote hydrocarbon exploration in the Argentine continental shelf. Through decree 590 published this Wednesday in the Official Gazette, it instructed the Secretariat of Energy to call for an International Public Tender to award an exploration permit in the CAN_200 area, located off the coast of Mar del Plata.
This area covers approximately 5,000 square kilometers and is under national jurisdiction. The initiative arose after the expression of interest submitted by the British company Challenger Energy Group PLC, which in February 2025 requested to explore the area and provided data about the project and its experience.
The authorities justify the measure by the need to expand knowledge of offshore areas. The aim is to attract investments in seismic prospecting and other exploratory activities carried out by companies with sufficient technical and financial capacity.
The bidding process must guarantee principles of competition and transparency, as established in Law 17.319 and the conditions of the decree.
Royalties and exploitation conditions
If it advances to the exploitation stage, the permit holder will have to pay royalties on production. The Secretariat of Energy will be responsible for defining the complementary rules and the calculation formula that will be included in the terms of reference.
Additionally, there is the possibility of including international arbitration clauses to resolve potential disputes. These tribunals must be based in countries that are parties to the 1958 New York Convention. However, the decree clarifies that this does not imply a waiver of execution immunity over key assets such as the Central Bank reserves, public domain goods, or military assets.
The decision is part of a policy for greater development of marine hydrocarbon resources. The precedent of the International Public Tender Offshore No. 1 of 2018 is highlighted, which promoted exploration and generated economic and labor benefits.
Context and potential of the continental shelf
The decree recalls that in 2016 the Commission on Limits of the Continental Shelf recognized Argentine limits, incorporating more than 1,782,500 additional square kilometers under national control. This strengthens the country's position to advance in offshore projects.
Exploration in the Northern Argentine Basin seeks to determine the potential of the deposits and maximize the revenue from the resources. Authorities emphasize the importance of having appropriate technology and equipment for these complex operations.
The government highlights that this type of initiative contributes to economic growth and the generation of skilled jobs in the energy sector. The Secretariat of Energy must now proceed with the preparation of the terms of reference and the organization of the international tender.
