Total Austral (a subsidiary of Total), BP's affiliate Pan American Energy, the German Exploration and Production (E&P) company Wintershall and the Argentinian state-held firm Yacimientos Petrolíferos Fiscales (YPF) have announced a joint investment of US$1.15bn in Argentina's Vaca Muerta shale gas asset in order to enhance its production. According to the local authorities, this investment will double natural gas production in the area to 4.5 mcm/d, up from the current 2.2 mcm/d.
In 2012, potential shale gas reserves in the Vaca Muerta Block (Neuquén Basin, Patagonia) were estimated at 19 820 bcm by the US EIA (i.e. the equivalent of more than 300 years of current gas consumption). Since the discovery, Argentina planned to invest massively in shale oil exploration and production in the asset through YPF. According to the Government, total long-term investments to develop the Vaca Muerta shale deposits are estimated at US$200bn.
The development of the Vaca Muerta play could restore Argentina's energy independence and as of today, its reserves are expected to amount 308 Tcf (around 8.7 Tcm) of shale gas and 16.2 Gbl of shale oil.