90% of the energy consumed in the country comes from hydrocarbons and, among them, the most important is oil. There are two methods of exploration and oil exploitation: the so-called "on shore", i.e. inland, and the "offshore" held beyond the coast, in an area also known as continental shelf.

On the latter case, the State has a body that has the power to operate the sea areas in conjunction with private companies. It is Energy Argentina SA (Enarsa), whose attribution extends not only to project implementation and monitoring of the consequences of this activity, considered risky, has on the environment. However, a report from the General Audit Office (AGN), argues that Enarsa is not involved in the drafting of impact studies on ecosystems, nor does it have surveys of this type made by the partner companies, even operated without hiring environmental insurance, although they were obliged to do so.

Out of Sight

Joint exploration and exploitation of hydrocarbons offshore is carried out by forming joint ventures or joint venture between Enarsa and private firms (see Projects). Tells the AGN, which adopted its report in May of this year, when these conventions are held they must be filed with the Secretary of Energy of the Nation calls Environmental Impact Assessments (EIA), with details of abandoned wells and ecological incidents.

At this point, the inspection agency stressed the "lack of documentary evidence that Enarsa has intervened in the preparation of corresponding areas in exploration where activity is recorded, or who has not had view of reports before the EIA are presented "to the Secretariat of Energy.

The auditors also failed to find evidence that Enarsa has "records or copies of basic environmental documentation of the activities carried out by operators in areas in exploration," referring to both the EIA, as contingency plans, monitoring or reporting closures wells.

In order to complete the AGN adds that "there is no documentary evidence that Enarsa has taken action monitoring, measurement and analysis of the actions developed by operators."

In a nutshell: ENARSA did not participate in drafting of environmental impact studies, also has not even looked at the reports made by private companies and made no research of their own.

A broken coat under lock and key

The audit also found that ENARSA does not have copies of the environmental impact studies conducted by the company GX Technology Corporation (GXT), and that the firm itself filed with the National Energy Secretariat.

GXT was responsible for carrying out the Argentine Seismic Program. It was the "survey, processing, visualization and interpretation of 2D seismic data on 11,000 kilometers of the Continental Shelf Argentina, in order to obtain improved geophysical data and geological understanding (of the area) to promote interest in exploring hydrocarbons in the country," explains the AGN.

Seismic 2D is a study in two dimensions used to examine the position and geometry of underground layers, and determine the possible presence of hydrocarbon deposits. Once there is certainty about a possible oil well, the area is delimited to start scanning.

Well, says the report of AGN that beyond that ENARSA does not have copies of the environmental studies by GXT, the state agency "has not provided documentary evidence of actions" related in the permissions that managed the same private company to to national and provincial agencies do their work.

Completing, the audit reveals that it could not access the results of the venture international company: "Finally Mar. 16, 2010, GXT delivers the original of the final report of the program, which the audit team has not had access. ENARSA mentions that (the material) is physically stored in a safe, being alleged the confidentiality of it." At the closing of the field work, the AGN concluded that "there is no evidence that Enarsa has planned activities with this information."

Insurance

According to the General Environmental Law, all natural and / or legal entities engaged in risky activities for its environment or ecosystem must have an environmental insurance. In fact, the Manual of Procedure indicates that the insurance "is a final status" in all endeavors in which ENARSA is responsible.

Based on this data, and from information provided by the state agency itself, the auditors found that "none of the companies with which UTEs has contracts have an environmental policy."

In addition, the AGN analyzes current legislation on this issue and concluded that "it is quite confusing." Despite all this, "Enarsa has not made any steps before the competent authorities in order to resolve whether or not this requirement (to contract environmental insurance) emanating from the General Environmental Law" completed the investigation.

Offshore Projects

Moreover, thanks to a map provided by Enarsa, it could be established that at the time of the audit there were 33 areas for bidding, three were being operated and another two planned; all belonging to the Continental Shelf Argentina, where it is possible to have offshore projects.

In the three mined areas (E1, E2 and E3, all in the Colorado Basin), Enarsa signed several agreements -the joint venture to exploit hydrocarbons, besides, had CONFIDENTIALITY- clauses: in the E1, for example, the state agency that was associated with YPF, Petrobras and Petrouruguay, the work program included a first stage with the record 2000 kilometers of 3D seismic (more accurate, but also more expensive than 2D), and an exploratory well.

With regard to this initiative, the AGN noted that "after five years, processing and interpretation of 3D seismic was completed, but the well has not been drilled, by low chances of success and high drilling costs" and also "since 2010 no activities have been completed."

For E2, ENARSA turned to associate with YPF and Enap Sipetrol Chile. This firm developed between 2008 and 2009 jobs in three wells. Tells the Audit, which in September of last year "decided to end exploration and abandon the project." And for 2010 and 2011 several studies presented including the Ministry of Energy and Energy Institute of Santa Cruz were performed.

Finally, in 2007 they began research at E3, which ended between 2008 and 2009 recorded 7,500 Km of gravimetry and magnetometry (procedures to determine the thickness of sedimentary layers), which serve for studies of future drilling, facing a joint venture between Enarsa, YPF and Petrobras. But the AGN remarked that "these studies completed, no further action on the matter were recorded in the area."

In relation to the three areas of work, the Audit completes its report by saying that "ENARSA has not have updated the degree of progress and status report of the activities of hydrocarbon exploration in the Continental Shelf Argentina offshore doing their associated information."

And most of the areas to tender, added: "It has not been made available to the audit team supporting documentation that gives evidence of the evaluation and selection of the areas mentioned, nor the degree of progress of the bidding process or if they are part of an investment plan or a strategic plan attesting to goals, objectives and deadlines. "