Vaca Muerta shale formation propels Argentina closer to energy self-sufficiency, analysts say
Vaca Muerta, a vast unconventional oil reserve, is pivotal for Argentina to cut costly imports and bolster its economy. Oil output there climbed 26% year-on-year to more than 447,000 barrels per day in March, Rystad estimates showed.
New drilling increased only marginally, Rystad said, partly as existing pipelines were unable to handle more volume - a constraint expected to ease with an April pipeline expansion.
Production of dry gas – natural gas primarily composed of methane after heavier liquids and water are removed – in the first quarter jumped to 2.1 billion cubic feet per day, up 16% from a year ago.
"Gas is stealing the spotlight," said Radhika Bansal of Rystad Energy, noting Argentina "could soon become a pivotal player in global gas supply."
The burgeoning output is key to Argentina's plan to meet LNG demand abroad, Rystad said.
Initiatives underway include the Southern Energy (SOU.V), opens new tab LNG project, which plans two floating LNG vessels with a combined 6 million metric tons per annum capacity, with first output targeted for late 2027.
State-owned YPF (YPFDm.BA), opens new tab is also making headway on larger projects with partners Shell (SHEL.L), opens new tab and Eni (ENI.MI), opens new tab, with Rystad projecting them to reach full capacity by the late 2030s.
Norwegian energy firm Equinor (EQNR.OL), opens new tab also reversed an earlier decision to exit Vaca Muerta, citing improved infrastructure and export viability, which Rystad said signals renewed investor confidence in the zone.
Vaca Muerta is attracting sizeable investments, Rystad argued, adding that in the first quarter, merger and acquisition deals in the formation accounted for 43% of all upstream, or oil and gas exploration and production, transactions across Latin America.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
3 hours ago
- Reuters
Argentina's Gualcamayo gold mine eyes $665 million investment under incentive program
JACHAL, Argentina, Aug 19 (Reuters) - Argentina's Gualcamayo gold mine is aiming to build a new $665 million project it hopes will qualify for a new government incentive program, executives said in a recent press tour of the site. Only two mining projects, both in lithium, have so far been approved for Argentina's Large Investment Incentive Regime, or RIGI, which went into effect in October under President Javier Milei. Gualcamayo originally proposed a $1 billion investment under the scheme, but scaled back its application in June following government talks about how to best meet the RIGI requirements, Ricardo Martinez, executive director of project owner Minas Argentinas, said in an interview earlier this month. Minas Argentinas, a part of Aisa Group, bought the mine in 2023 when it was close to closing, but now produces 50,000 to 55,000 ounces of gold a year from secondary recovery, a process of leaching ore that has already gone through a first cycle of extraction. The plan includes construction of a new mine, a pressure oxidation plant, and a 50 megawatt solar park to feed the project. RIGI was designed to kick-start investments only through July 2026, with a possible one-year extension. It offers lengthy tax breaks and access to international dispute courts for investments exceeding $200 million. "It's important that we have the RIGI for legal security," Martinez said, adding that the main challenge is for current mining regulations to remain in place. The new mine, called Carbonatos Profundos, will be located under the current one and will produce gold from sulfides rather than oxides. The company aims to produce 120,000 ounces of gold annually starting in 2029 with a 17-year lifespan, yielding about $400 million in exports a year, executives said. Gold production has dipped across Argentina as mines grow older and lose their high-quality ore. Still, the metal is Argentina's top mining export, accounting for 68% of the total. Gualcamayo aims to start construction of the new mine and processing plant in 2027, Martinez said, adding that the mine has 2 million ounces of economically viable gold reserves, part of 5 million ounces of certified resources found in 3% of the 40,000-hectare property. The rest has yet to be explored. Martinez said high global demand and prices for gold have made the company optimistic. "Today, the gold you produce is taken out of your hands," he said.
BBC News
3 hours ago
- BBC News
Bayer Leverkusen agree loan deal to sign Echeverri
Bundesliga side Bayer Leverkusen have agreed a season-long loan deal to sign midfielder Claudio Echeverri from Manchester Argentine teenager, 19, made three appearances for City last season, including his debut as a substitute in the FA Cup final defeat by Crystal scored his first City goal in the 6-0 thrashing of UAE side Al-Ain at the Club World Cup in signed Echeverri from River Plate for £12.5m in January 2024, but the player will now continue his development in Germany under ex-Manchester United manager Erik ten Hag. Further City outgoings before deadline day? Last week, City boss Pep Guardiola reiterated the need for a smaller squad saying leaving players out is "not healthy" and that he "cannot create a good atmosphere to compete".Tottenham have been in talks to sign winger Savinho, but sources have told BBC Sport that City don't want to sell the Brazilian unless they receive a free worth Ederson has been heavily linked with a move to Galatasaray and the 32-year-old missed the opening game victory over Wolves because of is understood the Turkish champions have also reached out to City expressing an interest in signing defender Manuel a sale would only be sanctioned if the offer is right and the 30-year-old Swiss international indicates a desire to leave Etihad side Wrexham have agreed a deal worth up to £8m to sign City defender Callum transfer window closes on Monday 1 September at 19:00 BST.
Reuters
5 hours ago
- Reuters
Databricks eyes over $100 billion valuation as investors back AI growth plans
Aug 19 (Reuters) - Analytics firm Databricks said on Tuesday its valuation was set to jump 61% to more than $100 billion in a funding round less than a year after its last, underscoring strong investor demand for artificial intelligence startups. The San Francisco, California-based company — with 15,000 customers, including payments firm Block (XYZ.N), opens new tab, energy giant Shell (SHEL.L), opens new tab and electric-vehicle maker Rivian (RIVN.O), opens new tab — said it has signed a term sheet for a Series K round, but did not disclose the amount it was raising. Late last year, Databricks had raised $10 billion in one of the largest venture capital funding rounds in history, which valued it at $62 billion. The company expects to use a portion of the latest funds in product development and for mergers and acquisitions in the AI segment, as corporations and governments worldwide rush to leverage efficiencies from the nascent but rapidly evolving technology. "Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies' data into goldmines. We're thrilled this round is already over-subscribed," said Ali Ghodsi, co-founder and CEO. Startups are choosing to stay private for longer amid higher interest rates and unpredictable market appetite for initial public offerings over the past few years. Capital is also available for larger late-stage rounds as private market investors sit on record levels of dry powder. OpenAI is also in talks to close an employee share sale, which would value the ChatGPT parent at around $500 billion, Reuters had reported earlier this month.
