ExxonMobil proceeds with Vaca Muerta expansion in Argentina

ExxonMobil has announced plans to move ahead with long-term oil development on Bajo del Choique-La Invernada block in Argentina’s Vaca Muerta basin.

The project is expected to produce as much as 55,000 barrels of oil equivalent per day (boe/d) within five years. It will include 90 wells, a central production complex and export infrastructure, all connected to the Oldeval pipeline and refineries.

ExxonMobil unconventional senior vice-president Staale Gjervik said: “We are encouraged by the excellent results of our Neuquén pilot project and look forward to increased production through this significant expansion.

“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.”

The company plans to invest in a second phase, which would produce as much as 75,000boe/d if the expansion is successful.

Timing of the second phase is subject to initial project performance and market conditions, among other factors.

ExxonMobil lead country manager Daniel De Nigris said: “ExxonMobil has been an active player in the Neuquén basin since 2010 and in Argentina for more than 100 years.”

In 2015, ExxonMobil was granted a 35-year concession in Vaca Muerta for the Bajo del Choique-La Invernada block. It began an exploration pilot programme in 2016 and now has three producing wells, and three additional wells moving into production.

An existing production facility, along with a gas pipeline and oil terminal, was recently connected to the Pacific Gas pipeline via a 16in pipeline.

Located 58 miles north-west of Anelo and 114 miles north-west of Neuquen, the Bajo del Choique-La Invernada block sits on 99,000 acres.

ExxonMobil Exploration Argentina operates the block with a 90% interest, in partnership with Gas y Petróleo del Neuquén, which owns a 10% interest.

The company continues its operations in the Neuquén basin under a joint venture (JV) agreement with Qatar Petroleum, which holds a 30% interest in ExxonMobil’s Argentina upstream affiliates.