The Argentine province of Neuquén granted the US oil company Chevron a new concession for the unconventional exploitation of hydrocarbons in the Vaca Muerta formation, with an investment in the pilot stage of 78.7 million dollars, the local government reported in a statement.
The company obtained the concession as operator and owner of the El Trapial Este block, of 282.8 square kilometers, producer of gas condensate, light oil and black oil.
“We are very excited to begin this new phase in our historic field, and look forward to continuing to strengthen our commitment to the community and our presence in the country,” said Eric Dunning, managing director of Chevron in Latin America, according to the statement.
In the three-year pilot stage, the company plans to invest 65.7 million dollars to drill, complete and start up five horizontal wells of between 2,500 and 3,000 meters and 38 to 46 fracture stages each. In addition, it will make an investment of 13 million dollars in infrastructure.
“We are connecting Neuquén with the world. This implies a new development in the northern area of Vaca Muerta, generating new jobs,” said Governor Omar Gutiérrez.
Vaca Muerta, with an area of about 30,000 square kilometers, is the fourth largest non-conventional oil reserve in the world and the second largest gas reserve. Its development is key for Argentina to reverse its significant energy deficit at a time when it needs to preserve the scarce international reserves of the central bank.
At the beginning of the month Sacde, Marcelo Mindlin’s construction company, said that it would expand the Vaca Muerta Norte gas pipeline.