Chevron Corporation confirmed its subsidiaries have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.
“This is a significant step in our subsidiaries’ joint efforts with YPF to develop one of the most exciting shale plays in the world today,” said George Kirkland, vice chairman of Chevron. “Vaca Muerta could become an important contributor to Chevron’s long-term production growth.”
The agreements build off the progress made with the drilling program begun in 2013 and call for continued investment toward large-scale drilling and production in the 96,000-acre Loma Campana concession. The agreements also call for exploration of shale oil and gas resources in the 49,400-acre Narambuena area, located 70 miles north of Loma Campana in the Chihuido de la Sierra Negra concession, one of the main producing areas in the Neuquén Basin of west-central Argentina.