The federal government of Neuquen, a province that is southwestern most of the play is positioned, said late Aug. 13 so it granted ExxonMobil the concession for Los Toldos II Oeste, according to a declaration. ExxonMobil could be the operator associated with the block with a 90% stake, utilizing the rest held by Gas y Petroleo del Neuquen, Neuquen’s state oil company.
As part of the concession, ExxonMobil vowed to drill and finish two wells during a four-year pilot program on the 19,200-acre block in the volatile oil window aided by the view to drilling 44 wells as an ingredient of the change to development that is full-scale.
The test wells need 1,200-meter (3,937-feet) horizontal laterals and 20 frac stages, while the subsequent 44 wells has 3,000 meter laterals and 50 frac stages each, according to the statement.
A tight formation that lies just below Vaca Muerta as an section of the pilot, ExxonMobil will also drill a well into Tordillo. It’s going to also build facilities to process the production and acquire 3D seismic information for Vaca Muerta, the ational government that is provincial.
Los Toldos II Oeste is next to Bajo del Choique-La Invernada and Los Toldos I Sur, ExxonMobil’s oil that is most that is productive in to the play which have been driving its production development in the united kingdom.
ExxonMobil’s oil that is total in Argentina, where it truly is focused on Vaca Muerta, shot up significantly more than fourfold to 5,510 b/d in March — before a nationwide slump during the coronavirus lockdown of this economy that is nevertheless in effect — from 1,227 b/d in the year-earlier month, according to data from the Argentina Oil and Gas Institute, a business group. The data reveal over similar period, its fuel production significantly more than doubled to 1.8 million cu m/d from 703,000 cu m/d.
ExxonMobil’s decision to move into the pilot phase is “a vote of confidence” for Vaca Muerta’s potential, Gutierrez said.
He said the contract takes to 39 how many 35-year concessions in the province’s unconventional performs, which simply take into account 30% of this total acreage that can be acquired.
ExxonMobil entered Vaca Muerta in 2010 and after initial results showed the possibility for production growth, it launched its pilot that is very first on in Bajo del Choique-La Invernada, now its most productive for oil in Argentina. June in 2019, the company shifted into full-scale development on that block with intends to drill 90 wells and take production to 55,000 boe/d by 2024.
This 12 months and tighten capital controls ever since then, however, Argentina has fallen deeper into an economic and financial crisis, pushing it to default for several relationship repayments. A freeze on diesel and gasoline costs in August 2019 — its nevertheless in effect — has cut profit potential in the play, damping investment.
Even so, Daniel De Nigris, mind of ExxonMobil’s operations in Argentina, has said the ongoing business is betting on Vaca Muerta for long-term production growth because of its geological quality.
“We have a reservoir that is world-class we have been achieving productivity levels that may contend with the most effective wells in the US basins,” De Nigris reported at a power seminar last November. The government that is federal seeking to revive investment in Vaca Muerta, including by suspending the 8% taxation on crude exports, setting a price that is benchmark of45/b on domestic oil product product sales, and devising an incentives program for gas production and exports become implemented in September or October. ExxonMobil landed another 35-year concession in Vaca Muerta, which will increase their play in the area and help Argentina.