Tuesday, December 15, 2015

After positive Argentine election results shale investment unleashed in Vaca Muerta Shale


The government of Neuquen, a southwestern province of Argentina, said Monday it has approved ExxonMobil's investment plan for developing shale resources in the Bajo el Choique and La Invernada blocks.

The company will work with Gas y Petroleo del Neuquen (GyP), the province's state-owned oil company, on the project to invest an initial $229 million in the delineation of the blocks, the government said in a statement.

Argentina’s state-run oil company, YPF SA, and Dow Argentina, the local unit of Dow Chemical Co., plan to invest between $400 million and $500 million to explore for shale gas, a person familiar with the matter said Tuesday.

Plus the new government in Argentina will keep the price of oil at elevated levels to stimulate development of the country's shale resource.

Argentina's new government will maintain wellhead crude prices above international levels for now, although the differential will narrow as artificially low wellhead prices for natural gas are gradually adjusted upwards, energy minister Juan Jose Aranguren said today.

Madalena Energy will benefit as the bigger money players invest and further derisk the Argentinian shale plays.  

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