• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 10 hours Could Venezuela become a net oil importer?
  • 2 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 13 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 19 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 10 hours Gazprom Exports to EU Hit Record
  • 13 hours Why is permian oil "locked in" when refineries abound?
  • 3 hours Oil prices going down
  • 11 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 9 hours Could oil demand collapse rapidly? Yup, sure could.
  • 9 hours Oil Buyers Club
  • 13 hours EVs Could Help Coal Demand
  • 8 hours Saudi Arabia turns to solar
  • 1 day Teapots Cut U.S. Oil Shipments
  • 19 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 46 mins Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf

Chevron Signs Deal to Help YPF Develop the Vaca Muerta Shale Formation

Miguel Galuccio, the president of YPF, and Ali Moshiri, Chevron’s Latin America and Africa chief have just signed a letter of intent to begin work on the development of a huge shale project in the Vaca Muerta area of Argentine Patagonia.

The Vaca Muerta shale formation is believed to hold the third largest shale resources in the world.

The deal will begin with more than 100 wells being drilled in the first year, an effort that YPF hopes will massively boost production in order to meet Argentina’s growing energy demands in the future.

The initial cost of the project will be around $1 billion, but it has been estimated that $15 billion may be needed to develop the entire Vaca Muerta formation.

Related Article: Chevron Waits for Romanian Vote to Decide Shale Fate

Argentina has always known that it requires huge amounts of foreign investment in order to develop the play, but until now major oil companies have avoided the country. Mainly due to the government’s clumsy dealings in the market, such as the seizure of YPF from the Spanish company Repsol, and also partly due to the fact that Repsol promised to sue any company that partnered up with YPF.

Repsol has stuck to its guns and filed a case against Chevron earlier this month in New York to try and prevent it from developing Argentine assets with YPF.

It has been stated that the deal between Chevron and YPF will not be affected by the embargo that an Argentine judge placed on all Chevron’s assets as part of the Ecuadorean court case.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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