Exxon Proceeds with Expansion in Vaca Muerta
ExxonMobil Corp. is moving ahead with its long-term development project in Argentina’s Bajo del Choique-La Invernada block in the Vaca Muerta shale formation, the company announced Tuesday.
The project is expected to produce 55,000 barrels of oil equivalent per day (boepd) within five years and will include 90 wells, a central production facility and export infrastructure connected to the Oldeval pipeline and refineries, Exxon said.
Bajo del Choique-La Invernada is a 99,000-acre block operated by ExxonMobil Exploration Argentina (90 percent interest) with partner Gas y Petróleo del Neuquén (10 percent interest).
Exxon was given a 35-year concession in Vaca Muerta for the Bajo del Choique-La Invernada block in 2015 and began an exploration pilot program the following year.
“We are encouraged by the excellent results of our Neuquén pilot project and look forward to increased production through this significant expansion,” Staale Gjervik, senior vice president of unconventional at ExxonMobil, said in a company statement. “The reforms implemented by the federal and provincial governments have been critically important to enabling the development of the Vaca Muerta basin as one of the country’s main energy resources.”
If the expansion is successful, ExxonMobil said they may invest in a second phase, which could produce up to 75,000 boepd.
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