• 2 hours Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 hours Venezuelan Output Drops To 28-Year Low In 2017
  • 6 hours OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 9 hours Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 10 hours Kinder Morgan Delays Trans Mountain Launch Again
  • 11 hours Shell Inks Another Solar Deal
  • 1 day API Reports Seventh Large Crude Draw In Seven Weeks
  • 1 day Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 1 day EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 1 day IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 1 day Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 1 day Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 1 day Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 1 day Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 2 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 2 days Norway Grants Record 75 New Offshore Exploration Leases
  • 2 days China’s Growing Appetite For Renewables
  • 2 days Chevron To Resume Drilling In Kurdistan
  • 2 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 2 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 2 days Nigeria Among Worst Performers In Electricity Supply
  • 3 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 3 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 3 days Saudis To Award Nuclear Power Contracts In December
  • 3 days Shell Approves Its First North Sea Oil Project In Six Years
  • 3 days China Unlikely To Maintain Record Oil Product Exports
  • 3 days Australia Solar Power Additions Hit Record In 2017
  • 3 days Morocco Prepares $4.6B Gas Project Tender
  • 3 days Iranian Oil Tanker Sinks After Second Explosion
  • 6 days Russia To Discuss Possible Exit From OPEC Deal
  • 6 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 6 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 6 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 6 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
  • 6 days Falling Chinese Oil Imports Weigh On Prices
  • 6 days Shell Considers Buying Dutch Green Energy Supplier
  • 7 days Wind And Solar Prices Continue To Fall
  • 7 days Residents Flee After Nigeria Gas Company Pipeline Explodes
  • 7 days Venezuela To Pre-Mine Petro For Release In 6-Weeks
  • 7 days Trump Says U.S. “Could Conceivably” Rejoin Paris Climate Accord
How To Play The Oil Rally

How To Play The Oil Rally

Analysts are taking conflicting predictions…

Exxon To Start Exporting Vaca Muerta Gas

Vaca Muerta

Exxon will start exporting natural gas from the massive Vaca Muerta shale play in Argentina to Chile, local media reported. This will make the world’s top oil company the first to commercialize the reserves of the formation that Argentina is eager to exploit to improve its energy security.

Exxon has sealed an energy swap deal with Chilean Innergy, according to which the supermajor will feed up to 1.06 million cu ft of gas daily from the province of Neuquen into the Pacifico pipeline, which will carry it to the Pemuco regasification plant. The gas will then be sent to the Mendoza province in Argentina.

The deal, for the period until end-May next year, will see Exxon export a total 31.8 million cu ft of Vaca Muerta gas, unless an energy emergency requires diverting the shipments to local destinations.

Exxon is among the biggest investors in the Vaca Muerta shale. It has already poured US$450 million into the deposit and, should things with its pilot project go well, it plans to splash another US$10 billion or more over the next 20 to 30 years.

Argentina is home to 27 billion barrels of recoverable oil and 802 trillion cubic feet of natural gas, primarily in and around multiple prolific shale basins in the central Neuquen province, including the prized Vaca Muerta shale. The 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.

Besides Exxon, Chevron, Total, BP, and Shell have also established a presence in Vaca Muerta. The Argentine government is eager to help, earlier this year introducing tax incentives to spur more investment in both shale oil and gas, and conventional exploration as it grapples with a serious energy deficit thanks to insufficient exploration up until just recently.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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