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

Drilling begins on Manora oil development offshore Thailand

09/05/2014 A joint venture led by Mubadala Petroleum, Abu Dhabi, has spudded the first of 15 planned development wells in the Manora oil development in the no...

BHI: US rig count posts double-digit gain for second straight week


The US drilling rig count gained 11 units to reach 1,925 rigs working during the week ended Sept. 5, Baker Hughes Inc. reported.

Devon Canada files with AER for Walleye oil sands project


Devon Canada Corp. has submitted applications with Canada’s Alberta Energy Regulator for its Walleye steam-assisted gravity drainage project.

Noble, Nepco sign gas supply deal for Leviathan production

09/04/2014 Noble Energy Inc., Houston, reported signing a nonbinding letter of intent (LOI) to supply natural gas from Leviathan field offshore Israel to Jord...

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