Chevron, Buoyed by Permian, Hails Potential for Argentine Sh Chevron released earnings today. Article below shows their focus on Argentina. The 8 well program referenced below offsets Madalena’s acreage at Curamhuele. Lots of activity there now. Bodes well for farmout process.
Chevron, Buoyed by Permian, Hails Potential for Argentine Shale
Friday, February 1, 2019 02:12 PM
By Jonathan Gilbert
Company begins 8-well appraisal in the north of Vaca Muerta
Shale oil now accounts for 16% of total Argentina crude
(Bloomberg) --Chevron Corp. sees “great potential” for its Argentine shale operations as it looks beyond a flagship project with state-run YPF SA.
Speaking Friday, after reporting fourth-quarter earnings buoyed by booming U.S. shale output, Chevron said it has begun an eight-well appraisal in the north of Vaca Muerta, a deposit Argentina wants to turn into the next Permian Basin.
“Our folks are intrigued by the possibilities up in the north,” Chief Executive Officer Michael Wirth said during a conference call with investors.
The U.S. oil major was the first foreign driller to take the plunge into Vaca Muerta, embarking on a joint venture in 2013 with YPF at Loma Campana, a southern oil field where both companies are now planning a new phase of production.
Wirth said Chevron has also purchased extra acreage in another area, the Narambuena, where it’ll start test drilling with YPF this year.
“While the Permian may be in the spotlight within our shale and tight portfolio, it is far from the only asset that we have,” Wirth said. Shale oil now accounts for 16 percent of Argentina’s total crude production.
Chevron’s upbeat tone on Vaca Muerta is welcome news for the Argentine government, whose move this week to pare back shale gas subsidies has angered some drillers.