A Chevron subsidiary has signed an agreement with Argentine oil company YPF to develop shale oil and gas resources on Vaca Muerta formation in the Neuquén province, Argentina.
The company, Chevron Argentina, plans a first phase spend of approximately $1.24bn to develop the Loma La Lata Norte and Loma Campaña areas.
The Loma La Lata field currently produces around 10,000 barrels of oil equivalent per day.
As part of the first phase, Chevron will drill around 100 wells in a 5,000-acre tract, part of a 96,000-acre concession.
Chevron vice chairman George Kirkland said that the agreement allows the company to drill the Vaca Muerta, one of the most significant oil and gas plays in the world.
"It provides Chevron with a new opportunity to profitably grow production beyond our 2017 production target of 3.3 million barrels per day," he added.
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By GlobalDataChevron Africa-Latin America exploration and production president Ali Moshiri said that the latest project will allow Argentina to achieve energy self-sufficiency and economic development.
Chevron Argentina currently produces around 21,000 barrels of crude oil a day and 4 million cubic feet of natural gas in the Neuquén Basin, where it holds operating interests ranging from 18.8% to 100%.
Chevron explores, produces and transports crude oil and natural gas, and also manufactures and sells petrochemical products.
Image: Chevron plans to drill about 100 wells in the first phase in Loma La Lata Norte and Loma Campaña areas. Photo: courtesy of Rurhfisch.
