ExxonMobil will proceed a long-term oil and natural gas development project on Vaca Muerta, Argentina. The company plans to drill 90 wells to take production to 55,000 b/d of oil equivalent in five years from the Bajo del Choique-La Invernada block in the Neuquen Basin in the country's southwest.
As part of the project, ExxonMobil will build export infrastructure and a central production facility. “Through this significant expansion, the company looks forward to increased production,” said Staale Gjervik, ExxonMobil senior vice president.
The development in Vaca Muerta still in less than 4 percent of the total acreage, but already driving a recovery in the country's oil and gas production after years of decline.
Led by a 64 percent surge in shale oil output, Argentina's total oil production rose 4 percent to 507,000 b/d in April year on year. Meanwhile, the country’s gas output increased 2 percent to 132 million cu m/d over the same period, driven higher by a 107 percent surge in shale gas.
ExxonMobil said that if this first development in Vaca Muerta is successful, it could take production to 75,000 boe/d in a second phase.
Most of the producers in Vaca Muerta are starting to export to Chile, which has increased its imports to around 6 million cu m/d this year from virtually zero last year. Chile is expected to continue importing more gas as it seeks to phase out the use of coal for power generation. The other regional markets are Brazil and Uruguay.
The Energy Secretariat has estimated that Vaca Muerta could lead a doubling of the country's oil production to 1 million b/d and gas to 260,000 cu m/d in 2023, allowing oil exports to surge to 500,000 b/d and gas to 80 million cu m/d by that year.
