Qatar Petroleum (QP) has signed an agreement to acquire a 30% equity in two ExxonMobil affiliates in Argentina that hold interests in shale assets in the Vaca Muerta play in the onshore Neuquén basin.
The deal will give QP access to interests in hydrocarbon licences for seven blocks through shareholding in ExxonMobil Exploration Argentina and Mobil Argentina.
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The company noted that the blocks are under unconventional exploration licenses with active drilling plans and exploitation licences with pilot drilling and production.
QP president and CEO Saad Sherida Al-Kaabi said: “We are pleased to enter into this agreement with our long-time partner ExxonMobil and to participate in the further development of the VacaMuerta unconventional resource in Argentina.
“This is an important milestone, as it marks Qatar Petroleum’s first investment in Argentina, as well as its first significant international investment in unconventional oil and gas resources.”
The firm is also expanding production from the North Field in Qatar, which will help increase its LNG production from 77Mt to 100Mt a year.
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By GlobalDataReuters reported that the deal will enable ExxonMobil to find a partner and accelerate the development of the project in Argentina.
Exxon Mobil senior vice-president and principal financial officer Andrew Swiger said: “This agreement builds on our long-standing and successful partnership with QP, and underscores our commitment to develop Argentina’s resources to further support domestic production of oil and natural gas.”
Company affiliates recently drilled wells and conductedpilot production testing.
Exxon Mobil subsidiary XTO Energy is providing operational support to the two affiliates, as well as developing detailed appraisal and development plans for the assets.
Financial terms of the deal were not disclosed.
