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ExxonMobil gives green light to long-term development project in Vaca Muerta shale
EXXONMOBIL is set to expand its develop- ment project at Bajo del Choique-La Invernada, an oil-bearing block in Argentina’s southwestern Neuquen province.
In a statement dated June 11, the US-based supermajor indicated that it had decided in favour of starting commercial development operations at the block, which lies within the Vaca Muerta shale formation. It said its new production plan called for building a central production facility and drilling 90 wells at Bajo del Choique-La Invernada over the next ve years. ese steps should bring the block’s out- put levels up to 55,000 barrels of oil equivalent per day, it reported.
ExxonMobil also said it intended to estab- lish an export infrastructure network connect- ing the site to the Oldelval pipeline, which runs from Allen in the Neuquen province to Bahia Blanca on the Atlantic coast. is network will help bring oil from Bajo del Choique-La Inver- nada to re neries and other customers.
e US company did not reveal exactly when it would launch commercial operations at the block. It did say, though, that it would expand production if the development project was suc- cessful. e second phase of work would boost the Bajo del Choique-La Invernada block’s out- put levels by 75,000 boepd, it stated.
Staale Gjervik, the senior vice president of unconventional resources at ExxonMo- bil, expressed satisfaction with the company’s decision. “We are encouraged by the excellent results of our Neuquen pilot project and look forward to increased production through this signi cant expansion,” he said.
ExxonMobil has been working at Bajo del Choique-La Invernada since 2015, when it won a 35-year concession for the block from the Neuquen provincial government. It began work on a pilot exploration programme in 2016 and then brought a production facility, oil terminal and gas pipeline on stream the following year. e US-based giant now has three producing wells at the block and intends to double that
number in the near future.
Equity in the project is split between Exx-
onMobil Exploration Argentina, with 90%, and Gas y Petroleo del Neuquen, with 10%. e former company is 70% owned by ExxonMobil, and the remaining 30% is in the hands of Qatar Petroleum. ™
LMNeuquen.com
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