Chevron Granted Shale Exploration Concession in Argentina’s Vaca Muerta

In the three-year pilot stage, Chevron plans to invest $65.7 million to drill, complete and commission five horizontal wells in the Vaca Muerta Shale formation. In addition, the oil major will invest $13 million in infrastructure.

Reuters

The Argentine province of Neuquén granted U.S. oil company Chevron Corp. a new concession for shale exploitation in the Vaca Muerta formation, with a pilot stage investment of $78.7 million, the local government said in a statement on April 11.

The company obtained the concession as operator and holder of the 282.8-sq-km El Trapial Este block.

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

Already have an account? Log In

Sign up for FREE access to view this article now!

Unlock Free Access