Argentinean oil and gas company YPF has signed an agreement with Malaysia’s Petronas to jointly invest $2.3bn over the next four years in a shale oil project in the La Amarga Chica block, Neuquén province.
The companies drilled the first well in 2015 and have so far jointly invested $550m in the pilot project in La Amarga Chica in the Vaca Muerta shale formation, which is one of the biggest shale plays in the world.
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YPF and Petronas aim to increase production to 60,000 barrels of oil equivalent per day (boe/d) by 2022 from the existing 9,800boe/d.
The project could receive a total investment of up to $7bn over a 20-year period to increase production to 75,000boe/d.
YPF chairman Miguel Gutiérrez said: “We are proud of the solid relationship we have established with Petronas throughout the three pilot phases, in which we exceed the proposed objectives.
“This same link, together with the knowledge and experience acquired in the block, is what guarantees our success in the stage we are announcing today: the massive development phase of La Amarga Chica.”
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By GlobalDataThe La Amarga Chica pilot project represents the third project that YPF will bring to the development stage. Other projects being developed by the company include Loma Campana with Chevron and El Orejano with Dow.
Since the first well, a total of 33 wells have been drilled.
The investment in La Amarga Chica is expected to increase Argentina’s oil production by 15% by 2022, spglobal.com reported citing a statement from Argentina’s Energy Secretariat.
