Interoil moves into Vaca Muerta

Oct. 9, 2023
The Argentine subsidiary of the Norwegian company will invest $20.5 million in partnership with local and state-owned companies.

Interoil Argentina SA and the Argentine company Selva María Oil SA, together with state-owned Gas y Petróleo (GyP) from Neuquén, will carry out exploration, development, and production activities in oil-rich Vaca Muerta’s Bajo del Toro Este area, with an initial investment of $20.5 million. Interoil Argentina will be the operator of the block, marking the entry of the second Norwegian oil company into the formation. The other company is Equinor, which initially studied Bajo del Toro Este but chose to focus on the neighboring YPF-operated block, Bajo del Toro Norte.

The contract between the companies was part of a state tender conducted by Neuquén province, known as the Neuquén Exploratory Plan. It outlines a schedule of works and investments for the first 4-year exploration period, including acquisition and reprocessing of 3D seismic data and the drilling of a vertical exploratory well, followed by horizontal drilling and unconventional completion.

In its second-quarter 2023 earnings, Interoil reported net production of 108,971 boe in first-half 2023, a decrease from 150,445 boe during the same period in 2022.

In July 2023, Interoil, in collaboration with Argentine company Selva Maria Oil SA, completed the acquisition of an additional 65% of concessions in Santa Cruz province. The company already held an 8.34% share in the region and served as operator.