Compañía General de Combustibles S.A. (CGC) finalized the acquisition of Sinopec Argentina Exploration and Production. With this, CGC increased production by more than 50,000 Barrels of oil equivalent per day (boe), pushing its total production to a combination of 63% gas and 37% oil (previously 85% and 15% respectively). Additionally, proven reserves will increase by a margin higher than 50% (from 59 MM boe to 90 MM boe).

Sinopec Argentina’s sites cover more than 4,600 km^2, with a majority located in Cuenca del Golfo de San Jorge and in Cuenca Cuyana. Sinopec Argentina also has a stake in Termap, the operator of port terminals in Caleta Olivia (Santa Cruz) and Caleta Córdova (Chubut).

CGC as a company has recently celebrated its 100th anniversary of operating in Argentina. The company was producing 8.500 boe/d when, in 2013, it was acquired by Corporación América. Its partner in CGC, with 30% of the remaining shares, is Sociedad Comercial del Plata, an Argentine economic group unit that is listed in the Bolsa de Comercio de Buenos Aires.

In 2015, CGC took another step forward in growth by acquiring Petrobras Argentina’s sites in Cuenca Austral, in the southern region of the Santa Cruz province, with a produccion rate of 20,000 boe/d.

Between 2015 and 2020, CGC managed to increase gas production threefold through an aggressive investment plan, successfully developing on the non-conventional tight gas deposits of Campo Indio and El Cerrito. Thus, by late 2019, CGC reached an unprecedented produccion rate of 37,000 boe/d.

Through the Sinopec acquisition, CGC will reach over 50,000 boe daily.

In the Cuenca Austral, CGC ran the most ambitious prospecting campaign of the last two decades, with more than 1,600 km^2 of 3D seismograms and the digging of 21 exploratory wells.

In addition, with the goal of maximizing gas merchandising options, CGC moved forward the planning and execution of the Almacenamiento de Gas Subterráneo Sur Río Chico (Southern Subterranean Gas Storage Project of Río Chico), a pioneer in the Cuenca Austral.

CGC is one of the main gas transport operatives in the nation, through its shareholding in TGN, GasAndes and TGM, with 7,540 km of national gas ducts, and interconnections with Brazil, Chile, and Bolivia.

Hugo Ernekian, president and CEO of CGC, addressed the importance of this transaction, stating that it “reaffirms CGC’s vision of continued growth and investment in Argentina. We are sure of the immense and diverse potential offered by our country’s geology, not only in shale but especially in tight and convential gas: this step we are taking is testimony to the fact”. Finally, he added “We are glad of this new growth milestone is reached in Santa Cruz, a province that we feel to be a part of where CGC has been active in for almost 30 years”.

CGC wishes to highlight the joint effort of all individuals involved in the realization of this operation, having been long sought after and planned for, and opening significant future projections for both company and country.

CGC is a part of the Corporación América International, an Argentine economic group investing for over three decades in Argentina, South America, and Europe in sectors including airports, infrastructure, technology, and energy.

Since being acquired by Corporación América in 2013, CGC has invested over 1.5 billion USD in energy development in Argentina.

Buenos Aires, June 30th 2021