Just-In: Argentine Oil Giant Turns Gas Flares to Crypto Goldmine

Buenos Aires-based oil producer Tecpetrol has unveiled plans to mine cryptocurrencies using associated gas from its oil fields near Vaca Muerta. This initiative is set to commence between the end of October and the beginning of November. The company, a significant player in the oil and gas sector in Argentina and other LATAM countries, aims to convert associated gas into electricity to power mining rigs, thereby addressing environmental concerns related to gas flaring.

The company’s Chief Executive Director, Ricardo Markous, revealed that the mining operations would utilize gas from six field wells. These wells produce around 60,000 cubic meters of natural gas daily. However, Tecpetrol has yet to disclose which cryptocurrencies it intends to mine.

Tecpetrol Strategic Partnership for Crypto Mining

Tecpetrol has formed a strategic partnership with a firm experienced in providing similar services to US-based companies. This collaboration is expected to facilitate the seamless integration of crypto-mining operations with the company’s existing infrastructure. 

Additionally, the company has emphasized the environmental benefits of this initiative, highlighting the reduction in gas flaring, a common practice in remote oil fields where associated gas is often burned due to the lack of evacuation facilities.

Markous stated that utilizing the gas would mitigate environmental impacts and accelerate oil production at the site. The company plans to install three generating facilities equipped with crypto-mining rigs to optimize the use of associated gas.

Russian Oil Fields Inspire Tecpetrol’s Crypto Vision

This endeavor by Tecpetrol follows similar pioneering efforts by Russian oil firms earlier this decade. The oil fields are isolated, lacking production treatment and evacuation facilities. Tecpetrol sells some of its extracted gas to Chevron but has reached its sales limit. Consequently, the innovative approach of using associated gas for crypto mining is a viable alternative.

Coingape recently reported a cryptocurrency-related fraud in Russia’s Yaroslavl Region. A Moscow resident stands accused of defrauding victims of over 5 million rubles, approximately $51,000, through eight crypto scams between 2017 and 2022.\

Also Read: Are World’s Largest Oil Producing Companies Diving into Bitcoin Mining?