by Daniel J. Graeber
Washington (UPI) Aug 25, 2017
Norwegian energy company Statoil said Friday it signed an agreement with Argentine company YPF to explore parts of the "world-class" Vaca Muerta shale basin.
Statoil under the terms of the agreement took a 50 percent stake in the Bajo del Toro exploration permit in the Neuquén Basin alongside YPF. The Norwegian company said it would fund all of the costs associated with activities in the region.
This is the first formal step for Statoil into one of the largest unconventional oil and natural gas basins in the world.
"This is a light oil exploration project in a world-class unconventional resource play, the Vaca Muerta formation," Tom Dodson, Statoil's vice president for exploration and production, said in a statement. "The opportunity has an excellent fit with Statoil's sharpened strategy, and is in line with our exploration strategy of delivering profitable, high-quality resources."
Vaca Muerta, located in Neuquén province, is considered one of the best shale basins in Latin America. Analysis from consultant group Wood Mackenzie found parts of the basin are producing on average 646 barrels of oil equivalent per day, representing a mix of oil and natural gas. The study from Wood Mackenzie found production increases will be slow, but advances should accelerate by 2020.
All told, the Vaca Muerta shale contains about 16 million barrels of oil and 308 trillion cubic feet of natural gas. Statoil last year signed a technical study agreement with YFP to map exploration opportunities.
RBC Capital Markets said shale reservoirs in Argentina may have development costs that are considerably higher than their U.S. counterparts, but higher productivity could offset some of the expense.
Statoil reported adjusted earnings for the second quarter of $3 billion, up from the $913 million reported in the same period last year. The company attributed the gains to strong operational performance, improved production and higher prices for oil and natural gas.
Caracas (AFP) Aug 25, 2017
Venezuelan President Nicolas Maduro on Thursday warned the armed forces in his crisis-hit country against "fissures" in their ranks, ahead of war games seen as a show of strength after US President Donald Trump's threat of military action. Maduro launched the warning in a speech to his top military leadership, including General Vladimir Padrino, his defense minister, and General Remigio Ceba ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|