Trafigura to invest $250mn in Argentine oil
The Argentine subsidiary of Trafigura said June 29 it signed an investment agreement to develop 20 oil wells in the Vaca Muerta shale.
The wells in the Bajada del Palo Oeste block in the shale basin represent a $250mn investment for the agreement between Trafigura Argentina and Vista Oil & Gas, one of the largest oil producers in the country.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Trafigura committed to $75mn of the total investment. Vista will take 80% of the production and cover the rest of the investments, serving as the operator.
“Our strategic agreement with Vista will contribute to the development of Vaca Muerta, continuing its operational excellence and compliance with the highest safety and environmental standards,” said Martin Urdapilleta, the general manager of Trafigura Argentina.
Spanning an estimated 7.5mn acres in total, the Vaca Muerta shale basin is among the largest in the world. Research from the US Energy Information Administration finds the basin holds 308 trillion ft3 of natural gas and 16bn barrels of oil and condensate.
The geological characteristics are similar to the Eagle Ford shale in the US, which is forecast to be the third-largest oil producer and the fifth-largest gas producer in the US in July.
Argentine energy company YPF in March said it envisioned a $1.5bn investment in Vaca Muerta to stimulate production. YPF said the investments would target operations in Neuquen province, near the western border with Chile, and boost production from the Vaca Muerta shale by 56% for oil and 70% for unconventional natural gas.