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Thursday, Aug 29
Chevron optimistic about Argentina deal as province OKs exploration
- Chevron (CVX) says it is optimistic it will move into phase two of investment to develop Argentina's massive shale oil and gas deposits in tandem with state-run YPF, as lawmakers in Neuquen province approve an agreement paving the way for exploration by the two companies.
- As part of the deal, CVX plans to initially invest $1.24B in a pilot project to develop shale deposits in the Vaca Muerta formation in the province; the deal involves splitting investment costs and profits, with YPF retaining operating control.
- Argentina ranks second in the world, behind China, in potentially recoverable shale gas reserves, with 802T cf, and is fourth in shale oil with an estimated 27B barrels, according to the U.S. EIA.