JPM Energía targets infrastructure-led development as new Vaca Muerta asset operator

JPM Energía is entering Argentina’s unconventional upstream sector through an asset-acquisition agreement with Pluspetrol. If the transaction closes as expected, JPM Energía will become a new independent operator in the Vaca Muerta shale play.

The company agreed to acquire Pluspetrol’s 80% interest in Los Toldos I Sur and a 50% interest in Pampa de las Yeguas I.

Gustavo Nagel, JPM president, said the acquisition is focused on operational execution, not exploration upside.

“These are not exploration blocks. They are assets with infrastructure, wells and processing capacity. The value here is execution—completing wells, optimizing facilities and increasing throughput,” Nagel said.

The acquired areas include gas treatment plants, oil handling infrastructure, and pipeline connections, and the development strategy will be based on reactivating existing assets rather than building new infrastructure.

“Our model is not large-scale drilling from day one. The plan is phased development, starting with DUCs [drilled but uncompleted wells], facility optimization, and incremental production growth,” Nagel said.

“We saw an opportunity in assets with existing infrastructure and low activity. With the right operational approach, these blocks can increase production without massive initial capital,” Nagel continued.

Pluspetrol retained its pipeline capacity so JPM would  need to negotiate new transportation agreements as production ramps up, Nagel said.