• 15 hours Shell Oil Trading Head Steps Down After 29 Years
  • 19 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 21 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 23 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 1 day Venezuela Officially In Default
  • 1 day Iran Prepares To Export LNG To Boost Trade Relations
  • 1 day Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 2 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 2 days Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 3 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 5 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 5 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 8 days The Oil Rig Drilling 10 Miles Under The Sea
  • 8 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025

Argentine Firm Plans $2.3B Investment In Vaca Muerta Shale

Vaca Muerta

Argentine exploration and production firm Tecpetrol has plans to invest $2.3 billion on gas exploration in the massive Vaca Muerta shale formation. As part of the plan, Tecpetrol, which is the fifth largest energy company in the country, will drill 150 wells over the next three years in the Fortin de Piedra block.

Tecpetrol eyes daily output of 14 million cu m of gas by 2019, which is equal to 50 percent of Argentina’s current natural gas imports, according to a union leader who took part in the talks between the government and Tecpetrol regarding the investment program.

The investment news comes after Mauricio Macri’s government implemented some significant legislative changes to encourage more foreign investments in Argentina’s oil and gas industry.

For gas investors, the government came up with price incentives that will shield them from market prices until 2022. So, next year, gas producers in Vaca Muerta will receive $7.50 per MMBtu of gas at the wellhead, which will gradually decline to $6 per MMBtu by 2021.

Another part of efforts to stimulate energy investments came in the form of scrapping a duty on oil product exports. Last year, Macri’s government also pledged to remove subsidies for the local oil and gas industry, although it gave no timeline for this.

Related: The Oil Market Is At A Major Turning Point

The Vaca Muerta formation is estimated to hold some 16.2 billion barrels of crude oil and 308 trillion cu ft of natural gas, which makes it the second-largest in terms of gas reserves globally.

Among the Big Oil players who have declared interest in taking part in the development of Vaca Muerta are Chevron and Exxon. They have already invested in exploration there: Exxon has splashed $250 million and plans to add another $10 billion to this over the next 20-30 years. Chevron invested $1.5 billion when it struck a joint venture deal with YPF three years ago.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on March 24 2017 said:
    That is a LOT of gas and oil. Sounds like a good investment for Chevron & Exxon to me. Rockefeller's babies just keep on rolling along, and will for decades to come. Nice that the family gave away a lot. They didn't have to, not in the United States.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News