YPF lets additional rig contracts for work in Argentina
Key Highlights
- The new contract will add one rig while continuing deployment of a second for ongoing development.
- The 3-year contract includes an optional 2-year extension.
- Vaca Muerta is projected to produce 1 million b/d of oil by 2030.
Yacimientos Petrolíferos Fiscales (YPF) has let an additional long-term agreement for two drilling rigs to Archer for work in Argentina.
The 3-year drilling contract, which holds an option for an additional 2 years, is for the addition of the DLS-160 rig to Archer's operations in Vaca Muerta, while securing the continued deployment of the DLS-rig 163 in support of YPF's ongoing development activities in the basin.
The contract expands Archer's operating fleet of rigs in the region and has an estimated value of US$100-110 million over the full contract term, including the optional extension years, Archer said.
Vaca Muerta oil production forecast
Argentina’s Vaca Muerta play is on track to reach oil production of 1 million b/d by 2030 through infrastructure buildout, capital deployment, and operational learnings, according to a report by Wood Mackenzie.
Oil production is projected to grow quickly, led by YPF and core operators across key development areas, while gas production is projected to exceed 7 bcfd post-2030, with associated gas from oil-focused drilling as a major contributor to incremental supply.