Citing a 50% reduction in horizontal drilling costs, YPF SA and Chevron Corp. will add a third drilling rig to its 96,000-acre Loma Campana concession in Argentina’s Vaca Muerta shale before the end of October.
News site Revista Petroquimica reported that the partners will jointly invest an additional $500 million in 2018.
Chevron signed its initial agreement with YPF in July 2013, when the average cost of horizontal wells was $16.2 million (OGJ Online, July 16, 2013). This cost has decreased to $8.2 million as of this year’s second quarter.
Chevron also has divested its assets in Argentina’s Rio Negro Province to focus on its Neuquen basin operations. President Energy, subsidiary to UK’s President Petroleum, reported in September that it purchased 100% of Chevron’s producing Estancia Vieja-Puesto Flores block in the northern part of Roca. President holds 90% interest in the blocks with Ediphsa, Rio Negro Province’s own energy company, holding 10%.
Contact Tayvis Dunnahoe at [email protected].
