Royal Dutch Shell's ( RDS.A ) said Thursday its Argentine unit will commence full-scale development of unconventional oil fields in the Vaca Muerta basin as the energy major bets on shale play to boost oil and natural gas production in the South American country.
The Anglo-Dutch company will target shale oil in the six-year program that will cover Sierras Blancas, Cruz de Lorena and Coiron Amargo southwest blocks, which have potential to reach production of more than 70,000 barrels per day (b/d) of oil equivalent in 2025. That would be an increase from output of 4,500 barrel of oil equivalent (boe/d) per day in 2018. The more immediate target is to reach 40,000 boe/d in 2021, said Shell.
Shell is planning to drill more than 300 wells in 38 locations on the blocks, which cover a total of 400 sq. km.
The company has a 90% interest in Sierras Blancas and Cruz de Lorena and 80% interest in Coiron Amargo Sur Oeste.
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