Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina

Fil: Peruchin, Tomas Francisco. Universidad de San Andrés. Departamento de Economía; Argentina.

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Autor principal: Peruchin, Tomas Francisco
Otros Autores: Quesada, Lucía
Formato: Tesis Tesis de maestría updatedVersion
Lenguaje:Inglés
Publicado: Universidad de San Andrés. Departamento de Economía 2025
Acceso en línea:https://repositorio.udesa.edu.ar/handle/10908/26128
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spelling I37-R143-10908-261282025-12-18T03:00:57Z Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina Peruchin, Tomas Francisco Quesada, Lucía Fil: Peruchin, Tomas Francisco. Universidad de San Andrés. Departamento de Economía; Argentina. This thesis examines the design of petroleum exploration and production (E&P) rights auctions in Argentina, emphasizing the theoretical and policy implications of President Milei’s 2024 Ley Bases reform to Hydrocarbon Law 17,319, which introduced royalty bidding as an alternative to the prevailing investment-commitment framework. The study develops a Bayesian auction model in which firms, facing incomplete information, compete after receiving noisy private signals regarding the tract’s underlying value. Two mechanisms are examined: (i) workcommitment bidding, where competition is based on the scale of exploration and production expenditures under a flat royalty; and (ii) royalty bidding, where firms bid a royalty rate rather than committing to a fixed investment level. The symmetric Bayesian Nash equilibrium is characterized by numerically solving coupled integro-differential equations, calibrated to the specific conditions of Argentina’s hydrocarbon sector. The analysis reveals a key policy tradeoff: royalty bidding enhances government rent capture but exposes the state to greater fiscal volatility, whereas work-commitment schemes provide more stable, though typically smaller, revenue flows, limiting the upside from high-quality tracts. 2025-12-17T17:27:07Z 2025-12-17T17:27:07Z 2025-11 Tesis info:eu-repo/semantics/masterThesis info:ar-repo/semantics/tesis de maestría info:eu-repo/semantics/updatedVersion https://repositorio.udesa.edu.ar/handle/10908/26128 eng info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-nc-nd/4.0/ application/pdf application/pdf Universidad de San Andrés. Departamento de Economía
institution Universidad de San Andrés
institution_str I-37
repository_str R-143
collection Repositorio Digital - Universidad de San Andrés (UdeSa)
language Inglés
description Fil: Peruchin, Tomas Francisco. Universidad de San Andrés. Departamento de Economía; Argentina.
author2 Quesada, Lucía
author_facet Quesada, Lucía
Peruchin, Tomas Francisco
format Tesis
Tesis de maestría
Tesis de maestría
updatedVersion
author Peruchin, Tomas Francisco
spellingShingle Peruchin, Tomas Francisco
Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
author_sort Peruchin, Tomas Francisco
title Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
title_short Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
title_full Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
title_fullStr Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
title_full_unstemmed Shifting the bidding game: reform of auction design for petroleum exploration and production rights in Argentina
title_sort shifting the bidding game: reform of auction design for petroleum exploration and production rights in argentina
publisher Universidad de San Andrés. Departamento de Economía
publishDate 2025
url https://repositorio.udesa.edu.ar/handle/10908/26128
work_keys_str_mv AT peruchintomasfrancisco shiftingthebiddinggamereformofauctiondesignforpetroleumexplorationandproductionrightsinargentina
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