Oil Prospects In Argentina A Country With A Rapidly Growing Economy

Abstract

Introduction During the years 1964 and 1965, American oil companies in Argentina were in the process of negotiating settlements with the Argentine government to recover their investments preparatory to leaving that country. This turn around of events resulted from President Arturo Illia's decision to carry through his campaign President Arturo Illia's decision to carry through his campaign promises "to eliminate the foreign oil companies and return the promises "to eliminate the foreign oil companies and return the oil wealth of Argentina to the Argentine people." This act would eliminate the oil companies who came to Argentina during 1957 and 1958 at the invitation of President Frondizi who immediately preceded Illia in office. In Argentina, the government owned and preceded Illia in office. In Argentina, the government owned and operated oil company is Yacimientos Petroliferos Fiscales or YPF. It was through YPF that the government made settlements to these oil companies. First Contract for Ryder Scott In June of 1964, Ryder Scott Company Petroleum Engineers received information about YPF's desire to obtain technical assistance to conduct waterflooding in several of its oil fields. This information was received in the form of a request from a manufacturer's representative in Buenos Aires who wanted to supply assistance to Ryder Scott to qualify as a bidder and then enter into competitive bidding to secure a service contract from YPF. In view of the mass exodus of oil people from Argentina, this was a difficult decision for Ryder Scott. Most bankers said "no, don't go to Argentina." Oil companies and service companies said they were disappointed with the turn of events in Argentina.