Chevron plans to increase its oil production in Argentina’s shale play Vaca Muerta to about 30,000 barrels per day (bpd) by the end of the year, from around 25,000 bpd now, Ana Moneto, the U.S. supermajor’s Argentina country manager, said.
Vaca Muerta, one of the world’s largest shale formations, has enormous potential for development, Moneto said at the Argentina Oil & Gas conference in Buenos Aires.
However, the South American nation needs to become an attractive investment destination if Vaca Muerta is to fulfil its potential, the manager added.
“The regulatory environment must be more stable and predictable, allowing for capital movements, which will be critical in the long term, respecting existing investments, keeping costs competitive and maintaining free market policies,” Moneto said at the conference.
Chevron said last month it expects Vaca Muerta to play a larger role in its portfolio in the coming years.
“We remain focused on Argentina and Vaca Muerta, where today we have an enviable unconventional resource position that can be scaled into a core asset within a relatively short time frame,” said Javier La Rosa, previously managing director of Chevron Latin America, now president of Base Assets and Emerging Countries.
The booming Vaca Muerta shale play isn’t immune to the decline in oil prices and company spending this year. Drilling activity is set for a near-term slowdown as foreign firms and the biggest domestic producer YPF SA are pulling out some frac crews amid lower international oil prices and a major asset reshuffle with mergers and acquisitions in recent months.
But the long-term prospects of the Vaca Muerta shale resources remain bright, and Argentina is looking to monetize both the oil and gas production.
In the first quarter of 2025, Vaca Muerta built on last year’s strong production performance, with oil output surging 26% and gas production rising 16% year-on-year, according to Rystad Energy estimates.
YPF says it “can develop all of Vaca Muerta” at oil prices as low as $45 per barrel.
By Tsvetana Paraskova for Oilprice.com
