The Argentine province of Neuquén has granted a new concession for shale exploration in the Vaca Muerta formation to Chevron. The company, which obtained the concession as operator and holder of the El Trapial Este block, plans to invest US$65.7m in a three-year pilot stage to drill, complete and commission five horizontal wells of between 2,500 and 3,000 meters and 38 to 46 fracture stages in each. Chevron will also invest US$13m to develop support infrastructure, raising its total investment to US$78.7m.
The Vaca Muerta shale play has estimated gas reserves at around 8,700 bcm and oil reserves at 16.2 Gbl. It is estimated to be the second largest unconventional gas reserve and the fourth largest oil reserve of its kind in the world, with only 7% of its potential developed.
Argentina's oil production declined by 5% in 2020 to 29 Mt, after a 4% rise in 2019. Natural gas production dropped by 9% in 2020 (41 bcm), after having increased by 3.4%/year over 2014-2019. Conventional gas and oil reserves amount to around 400 bcm and 340 Mt, respectively (end of 2020).