Home Argentina community Chevron obtains a shale exploration concession in Argentina’s Vaca Muerta

Chevron obtains a shale exploration concession in Argentina’s Vaca Muerta

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A Chevron gas station sign is seen in Del Mar, California in this April 25, 2013 file photo. REUTERS/Mike Blake/File Photo

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BUENOS AIRES, April 11 (Reuters) – Argentina‘s Neuquen province has awarded U.S. oil firm Chevron Corp (CVX.N) a new concession to exploit shale in the Vaca Muerta formation, with an investment in the pilot phase of $78.7 million, the local government said. in a statement Monday.

The company was awarded the concession as operator and holder of the 282.8 square kilometer El Trapial Este block.

The Vaca Muerta shale formation, which is the size of Belgium, is the fourth largest shale oil reserve in the world and the second largest for shale gas. Its development is essential for Argentina to reverse its huge energy deficit at a time when it must preserve its central bank’s scarce international reserves.

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“We are very excited to begin this new phase in our historic domain, and we look forward to continuing to build our commitment to the community and our presence in the country,” said Eric Dunning, general manager of Chevron in Latin America, in the press release. .

During the three-year pilot phase, the company plans to invest $65.7 million to drill, complete and commission five horizontal wells of 2,500 to 3,000 meters and 38 to 46 frac stages each. In addition, it will invest $13 million in infrastructure.

“We are connecting Neuquén to the world. This involves new development in the northern area of ​​Vaca Muerta, generating new jobs,” said Neuquén Governor Omar Gutierrez.

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Reporting by Eliana Raszewski; Written by Steven Grattan; Editing by Mark Porter

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