International
Vista and Trafigura invest USD 250 million to develop oil wells in Argentina
Seetao 2021-06-30 10:50
  • Vista and Trafigura develop oil wells in Argentina, Vista will be entitled to an 80% share of oil well production
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Vista Oil & Gas and Trafigura Argentina will jointly invest approximately US$250 million to develop 20 oil wells in the Bajada del Palo Oeste block in the Vaca Muerta shale basin in Argentina. This is the first time that an Argentine oil and gas company has reached a strategic agreement with another company to accelerate the development of its main shale oil block. Vista Oil&Gas started to develop the block in the second half of 2018, and there are currently 28 wells in production. It is said that the company has marked nearly 550 new well positions in the Bajada del Palo Oeste block.

Trafigura Argentina, a subsidiary of the Swiss commodity company Trafigura, will invest nearly 75 million U.S. dollars. Among them, it will pay 25 million US dollars for the acquisition of 20% of the participating shares of oil well production as part of the agreement. The remaining amount will be used to contribute 20% of the investment required to develop the oil well. Vista Oil & Gas will become the operator of the oil well and will be entitled to 80% of the oil well's production share. The company has agreed to provide 80% of the investment for the Vaca Muerta development project.

Miguel Galuccio, President and CEO of Vista Oil&Gas, said: “This agreement further validates our company’s performance and the excellence of its management team, which allows us to lead the development of Vaca Muerta and become the preferred partner worldwide. The company is in Argentina The development of shale, safe, efficient and sustainable operation. It will also help to generate more output, thereby continuing to expand energy exports, which is essential to create the foreign exchange needed by the country, while maintaining and always supplying the local market. "

Martin Urdapilleta, General Manager of Trafigura Argentina, said: "This alliance allows us to strengthen our business in Argentina and integrate the supply of crude oil from our refineries and the subsequent fuel supply for our network of service stations, wholesale customers and export markets to neighbouring countries. Country. Our strategic agreement with Vista will help Vaca Muerta develop, continue its operational excellence and comply with the highest safety and environmental standards."Editor/Baohongying

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