Argentina Uncovers Vaca Muerta Interest in US Tour

Argentina has identified $270mn of potential new projects in its Vaca Muerta shale gas formation, Francisco Uranga, director of the country’s Investments and International Trade Agency, said November 16 at the conclusion of a US investment road show.

The road show, comprised of a delegation of 35 Argentine companies and sector officials, met with more than 50 US companies in Houston and New Orleans, and also visited the Permian Basin in Texas, according to the Argentine energy secretariat, which organised the tour.

“It was a very successful mission on the investment side,” Uranga said. “The Permian visit was key to visualize the real size of Vaca Muerta after 10 years of unconventional exploitation, and to see first hand the technology, the dynamism and the economic impact of current operations in the US.”

The visit was aimed at seeking investments in Argentina’s unconventional and conventional oil activities and was also an opportuntity for businesses from both countries to share their experiences and best practices in the exploration and production of unconventional deposits.

Argentina is among just four countries, including the US, Canada and China, that commercially produce shale resources. Further development of Vaca Muerta will allow the country to boost production and exports, generate more than 500,000 jobs by 2024, and cover its domestic energy demand for 150 years, according to Argentina’s ministry of production and labor.

Argentina’s energy secretary Javier Iguacel said the road show made it possible to highlight the potential of Argentine companies both in their technical as well as human resources capacities as they seek strategic alliances with US investors looking for a foothold in Argentina.