Laredo Oil Meets Santa Cruz Governor to Discuss Mature-Field Recovery
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Laredo Oil executives recently met with Santa Cruz Governor Claudio Vidal and Energy Minister Jaime Álvarez in Buenos Aires to present their Underground Gravity Drainage (UGD) technology, designed to enhance recovery in mature oil fields. Following an initial discussion in August, this second meeting yielded no binding commitment or agreement from either party.
The Golfo San Jorge basin in Santa Cruz, a major contributor to Argentina’s conventional oil production, faces declining output due to aging fields. Laredo holds a non-binding letter of intent targeting a development zone in the province, though any future UGD project remains subject to provincial approval. Provincial officials emphasized their focus on revitalizing local oil sector activity through new technologies and investments, agreeing to maintain an ongoing dialogue with the company.
Laredo CEO Mark See noted that the geological conditions in Santa Cruz align with UGD’s design, adding that upcoming engineering evaluations will determine the feasibility and timeline of potential operations.
Highlighting Ministry of Economy data, Laredo noted that total Argentine crude production reached a record 887,227 barrels per day in May—a 19% year-over-year increase driven primarily by unconventional shale output in Neuquén. Conventional basins like Golfo San Jorge currently account for roughly 30% of the nation’s total supply. To fund prospective developments, Laredo intends to explore a combination of private capital and U.S. government-backed financing mechanisms established under a bilateral trade and investment agreement signed in February.
