YPF TO BOOST VACA MUERTA PRODUCTION
Agentina’s YPF, Total Austral, Wintershall Energia and BP subsidiary Panamerican Energy will invest USD 1.150 billion to develop the Vaca Muerta non-conventional reservoirs in the province of Neuquen in Argentina and boost production. Through the agreement, the province of Neuquen approved the subdivision of the Aguada Pichana area which will include the Aguada de Castro area.
Total will operate Aguada Pichana Este with a 41 percent stake, where 48 horizontal wells will be drilled through 2021. Pan American Energy will operate Aguada Pichana Oeste as well as Aguada de Castro with a 45 percent stake and plans to drill 24 horizontal wells.
The Vaca Muerta Shale is a continuous tight oil and shale gas reservoir covering a total area of 30,000 square kilometres in the Neuquen Basin. The large oil discovery in the Vaca Muerta Formation was made in 2010 by the former Repsol-YPF, which announced the discovery in May 2011.
The US EIA estimates that the total recoverable hydrocarbons from the shale play are up to 16.2 billion barrels of oil and 308 trillion cubic feet of natural gas. (Source: YPF – Image: Drilling rig in Neuquen Province / Shale Seguro)