Petronas, YPF sign $550 million development deal for Vaca Muerta

Malaysia’s state-run Petronas signed a $550 million agreement with YPF SA, Buenos Aires, on Aug. 28 in Kuala Lumpur detailing terms and conditions for the development of oil from the giant Vaca Muerta shale in Argentina’s Neuquen province.

The project calls for three stages, the first of which involves the development of a shale oil pilot on the 187-sq km La Amarga Chica block, slated to begin in first-quarter 2015. More than 30 wells will be drilled, both vertical and horizontal. YPF will serve as the area’s operator with 50% interest.

Petronas will provide $475 million of the agreed-upon total investment. Overall investment is expected surpass $1 billion over the next 5 years.

“We see Neuquen as a very prolific area, with high growth potential that will surely greatly benefit Argentina,” noted Shamsul Azhar Abbas, Petronas chief executive officer.

Miguel Galuccio, YPF chief executive officer, said, “We’re putting a resource into production that can change the energy future of our country.”

The US Energy Information Administration in 2012 estimated Vaca Muerta to hold 741 million bbl of recoverable shale oil.

YPF and Chevron Corp. in April reported plans to invest in large-scale drilling and production in the 96,000-acre Loma Campana concession of Vaca Muerta (OGJ Online, Apr. 10, 2014).

Related Articles

Daybreak advances Kentucky, California operations

10/13/2014

Daybreak Oil & Gas Inc., Spokane, Wash., has advanced its operations in Kentucky and California.

Petronas purchases share in Shah Deniz for $2.2 billion

10/13/2014

Malaysia’s Petronas has purchased a 15.5% share in the Shah Deniz production-sharing agreement in Azerbaijan from Statoil ASA.

Prices and potential

10/13/2014 If prices of crude oil continue to slide, oil production in the US very likely will follow. Naysayers then will claim vindication for their gloom a...

CNOOC begins oil production at Enping 24-2 field

10/13/2014 China National Offshore Oil Corp. Ltd. reported oil production from the Enping 24-2 field in the Pearl River Mouth basin of the South China Sea.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected