ExxonMobil has been given approval for the development of a 35-year unconventional exploitation concession offshore Argentina.
The Neuquén Province government approved the investment plan for the Los Toldos I South block last night.
The initial investment of about $200million calls for a pilot project that brings up to seven wells to production, the construction of production facilities and development of export infrastructure.
“We are very optimistic about this resource and the provincial government’s approval enables us to do the necessary work to continue expanding our operations,” said Sara Ortwein, president of ExxonMobil’s XTO Energy.
“We look forward to continuing to work with the government and our partners to develop the country’s energy resources.”
ExxonMobil and its partners, Gas y Petroleo del Neuquén and Americas Petrogas Argentina S.A (APASA), are looking for opportunities to further develop this block and bring wells into production.
If the pilot project is successful, it could lead to a staged development of approximately 300 horizontal wells of up to 3,000 meters in length.
The block could have estimated production of 11 million cubic meters per day of gas when at full production.
Los Toldos I South is located 85 kilometers north west of Añelo and 175 kilometers north west of Neuquén city.
ExxonMobil Exploration Argentina S.R.L (EMEA) is the operator and holds 80% interest in partnership with Gas y Petroleo del Neuquén, which holds 10% interest, and APASA (Tecpetrol), which also has 10%.
To date, ExxonMobil’s investment in exploration and early development of its Vaca Muerta operations has exceeded $500 million.
“ExxonMobil has been in Argentina for more than 100 years, and an active player in the Neuquén basin since 2010,” said Daniel De Nigris, Argentina general manager.
“We are actively analyzing additional opportunities to accelerate gas production in other blocks and look forward to making further progress.”
Recommended for you
