Two oil giants, Shell and Total, have announced that they’ll invest in shale gas exploration in the Argentinian Vaca Muerta formation.
The two companies will invest a combined US$550 million to develop two shale oil and gas pilot projects in partnership with Gas y Petroleo de Neuquén Oil Neuquen (GyP).
Shell Argentina alone will invest a total of US$250 million, which will be used to explore hydrocarbon deposits in the Sierras Blancas and Cruz de Lorena blocks.
“Investments in Vaca Muerta are for the long term and will not be impacted by day-to-day variations in oil prices,” a provincial energy official in Neuquén told Buenos Aires Herald. The individual withheld his name because he was not authorized to talk to the media.
“The pilot plan will include drilling commitments in each block and a central treatment plant for oil and gas with a capacity of 10,000 barrels per day,” GyP said in a statement.
GyP also announced a US$300-million investment with Total Austral for a separate Vaca Muerta oil and gas pilot project. Total did not respond to a request for comment.
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