Gazprom interested in Argentinian shale deposits

Argentina map
Source: DollarPhotoClub

The representatives of Gazprom have travelled to Argentina to hold talks with the Ministry of Industry of Argentina, and YPF about a preliminary exploration agreement which would allow the Russian company to search for shale gas and oil in Argentina’s rich Chubut and Vaca Muerta formations.

The deal – in which the German company Wintershall AG, a subsidiary of BASF SE, is also considering to become a partner – is estimated to be worth 1 billion dollars.

The negotiations between Gazprom’s CEO Alexei Miller and Debora Giorgi were the continuation of the energy dialogue initiated in July when Russian President Vladimir Putnin visited Argentina. The topic of the ongoing discussions was the cooperation in the gas sector, particularly in the exploration of oil and gas from shale.

YPF, the largest energy company in Argentina, is looking for partners who would help it explore the rich shale formations in Chubut and Vaca Muerta in the Neuquen region. Vaca Muerta Formation is estimated to contain at least 23 billion barrels of oil. Argentina’s proven gas reserves amount to 300 billion cubic meters and 300 million tons of oil, but Argentinian companies lack the technology and the know-how to fully capitalise on these deposits.

Apart from exploration, yesterday’s talks also focused on the LNG trade. Last year, Gazprom Marketing & Trading won a tender to supply Argentina with LNG to the total volume of one million tonnes.

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