VACA MUERTA: POISED FOR LIFTOFF

摘要

In 2018,oil production in Argentina reached nearly 500,000 barrels per day(bbl/d),up 2% from 2017 and halting a multiyear decline.Approximately 15% of the 2018 production was from unconventional sources.So far,except for a couple of wells drilled in the San Jorge Basin in the D-129 shale formation,the majority of shale exploration and development has centered on the Neuquen Basin,specifically in the Vaca Muerta shale formation.Recent announcements from YPF,Petronas and Shell indicate moves toward full-scale development.Additional announcements from Chevron Corp.and YPF on investments totaling $800 million to drill 20 wells in the Vaca Muerta in 2019 further support the play's prospects for growth.Longer term,Stratas Advisors estimates production could ramp to more than 600,000 barrels of oil equivalent per day(boe/d),up from 97,000 boe/d in 2017.Incentives to invest and develop the Vaca Muerta to support the”New Gas Plan”and an agreement with the Provincial Government for reduced labor costs underpin this growth outlook.Plans to reduce import tariffs on facilities for oil field exploration and production and efforts to contain and reduce costs provide additional tailwinds for operators.Total well counts are expected to climb to about 5,800 by 2030.