facebook
twitter
rss
account
search
search
 

Chevron taps into Argentinian shale

July 17, 2013 at 6:54 AM   |   Comments

SAN RAMON, Calif., July 17 (UPI) -- Shale oil and natural gas developments in Argentina will help Chevron meet its medium-term production targets, the U.S. energy company said.

Chevron announced it signed an agreement with Argentine oil company YPF to develop shale oil and natural gas reserves at the onshore Vaca Muerta formation.

Chevron said the deal calls for a $1.24 billion investment in the first phase of development, which calls for the drilling of 100 wells on a 5,000-acre tract.

Chevron's existing assets in Argentina have produced, on average, 21,000 barrels of crude oil and 4 million cubic feet of natural gas.

Chevron Corp. Vice Chairman George Kirkland said the investment in Argentina gives his company access to a promising shale reserve.

"It provides Chevron with a new opportunity to profitably grow production beyond our 2017 production target of 3.3 million barrels per day," he said in a statement Tuesday.

Energy group Wood Mackenzie described the Vaca Muerta region as one of the best shale plays in the world. The U.S. Energy Department's Energy Information Agency ranked Argentina third in the world in terms of shale resources.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
GM recalls 221,000 Cadillacs and Impalas GM recalls 221,000 Cadillacs and Impalas
2
New National Security Cutter delivered to Coast Guard New National Security Cutter delivered to Coast Guard
3
First MT30 engine for Korean Navy frigates passes acceptance tests First MT30 engine for Korean Navy frigates passes acceptance tests
4
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
5
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
Trending News
Video
x
Feedback