State-run energy company Enarsa has suspended the auctioning of oil exploration rights at 32 offshore blocks in Argentina because of adverse market conditions.

The company will resume the auction process once conditions are more favourable.

The blocks are located in Valdes Peninsula, San Jorge and Malvinas in the Atlantic Ocean.

Enarsa has signed agreements with Petrobras Argentina and YPF to develop the region’s resources as the nation struggles to find new sources of energy.

Between 2003 and 2010, oil production fell by 18% to 34 million cubic metres and proven oil reserves decreased by 11% to 393 million cubic metres.

Natural gas production dropped 43% to 379 billion cubic metres and reserves fell by 8% to 47 billion cubic metres in 2010, reports Dow Jones.