• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 9 mins Rioting and Protesting
  • 5 hours Would bashing China solve all the problems of the United States
  • 8 hours WHY was George Floyd Murdered and Why Publicly
  • 2 hours National Guard kills again
  • 4 hours Model 3 cheaper to buy than BMW 3 series.
  • 4 hours Build Back Better is the Latest Globalist Plot
  • 5 hours Pompeo's Hong Kong
  • 19 hours Iran's first oil tanker has arrived near Venezuela
  • 11 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 12 hours So the President is on that Hydroxy
  • 12 hours Thugs in Trumpistan
  • 15 hours Obamagate Is Not a Conspiracy Theory
  • 17 hours Michael Moore's Controversial "Planet of the Humans" Movie
Oil Majors Face Another Impossible Decision

Oil Majors Face Another Impossible Decision

The recent oil price crash…

Have Oil Traders Abandoned Fundamentals?

Have Oil Traders Abandoned Fundamentals?

Oil prices are back at…

Shell Opens Vaca Muerta Oil, Gas Treatment Plant

Shell yesterday cut the ribbon on a 10,000-bpd oil and gas treatment plant in its acreage in the Vaca Muerta shale formation in Argentina. The construction project was first announced back in 2014 as part of Shell’s development strategy for the play, where it operates the Sierras Blancas, Cruz de Lorena, and Coiron Amargo Sur Oeste oil and gas blocks.

Last year, the Anglo-Dutch company said it will pour $300 million annually into its Vaca Muerta operations until 2020, both in upstream and downstream operations.

Shell is not the only international oil major that has set their sights on the vast play. Exxon last year said it could invest as much as $10 billion in Vaca Muerta over the next two or three decades.

Chevron has also been quick to explore the opportunities that what could be the world’s second-largest shale gas play, and has invested $1.5 billion in its joint venture with Argentina’s YPF.

BP is also there, choosing the Argentine play over the U.S. star, the Permian. According to CEO Bob Dudley, Vaca Muerta is much more affordable than the Permian.

Schlumberger became the latest addition to the list, after earlier this month the oilfield service major struck a deal with YPF to invest $390 million in the development of the Argentine company’s Bandurria Sur block.

The Argentine government is doing all it can to keep such investors coming in. Mauricio Macri’s cabinet has agreed to lower local content requirements that are often off-putting for foreign investors, and has also scrapped a duty on oil exports that has been in place for 15 years to motivate more oil and gas investments.

Related: Alaska Needs Much Higher Oil Prices To Reverse Its Oil Fortunes

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.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • royal phoenix on April 19 2017 said:
    vaca muerta = dead cow ?

Leave a comment

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