Rystad reports that Argentina's Vaca muerta region has achieved record oil production during the third quarter.
Rystad, a consultancy, said that Argentina's Vaca Muerta shale formed produced a record 400,000 barges of oil per day (bpd), in the third quarter.
This figure represents a 35% increase in production year-over-year, thanks to improvements in productivity and evacuation capability. The formation is on track to reach its goal of 1,000,000 bpd, by 2030.
YPF, the state-owned oil company of Argentina, led the production in the area with 55% Vaca Muerta’s oil output during the third quarter. This contributed to the strong results for the company in its third quarter.
Data showed that Vista Energy's Bajada del Palo Oeste oil field contributed to more than 20% of growth in oil production.
The number of horizontal oil wells that came into production increased throughout the year. They averaged 40 per month, up from 34 in the second-quarter, and reached a new record in September with 46.
Argentina, with its increasing production, is looking to increase its evacuation capacity. This has been a bottleneck for its oil and natural gas development. Earlier this year, YPF announced that it was seeking $2 billion for financing of its Vaca Muerta Sur pipeline which could increase capacity from the region to export ports.
The report stated that the gas production rose by 24% on an annual basis to approximately 2.5 billion cubic feet a day. This was largely due to an increase in production from independent operators, such as Pluspetrol.
Pluspetrol's acquisition of ExxonMobil assets in the area has quadrupled its holdings in the region, to 160,000 acres. It could expand to 215,000 acres should QatarEnergy decide to divest.
Argentina hopes to be a gas-exporting powerhouse. On Wednesday, it signed a joint agreement with Brazil and Bolivia's YPFB for the export of gas from Vaca Muerta. However, major infrastructure obstacles could stymie its dreams. (Reporting and editing by Louise Heavens, Alexander Villegas)
(source: Reuters)
