International
Argentina’s Vaca Muerta shale play set to double production by 2018

Wood Mackenzie expects horizontal wells to become the development of choice, as operators are increasingly able to target the most productive intervals of the Vaca Muerta.
“YPF and its JV partners continue to decrease drilling and completion costs aiming to move into ramp-up and development phases,” says Horacio Cuenca, Research Director for Latin America at Wood Mackenzie based in Rio de Janeiro.
In the Loma Campana block the average horizontal IP30 rate currently the average is around 646 barrels of oil equivalent per day (boe/d), up from 443 boe/d in 2014. To compare, in the Karnes Trough of Texas’ Eagle Ford Shale, the first hundred wells had an IP30 rate of 420 boe/d, while the average rate today is more than double.
Cuenca adds that more joint venture deals will be necessary to fully develop the Vaca Muerta as YPF will need outside assistance to develop the 6.3 million acres (larger than the state of Maryland) it holds.
The following are other key considerations from Wood Mackenzie’s development study:
- In 2016, we estimate total capex at US$1.2 billion as companies prepare for full development.
- The heavy impact of unions on labor costs and political uncertainty remain the largest impediments to international investment. We expect 200 wells to be brought online in 2015, and fewer in 2016 as vertical wells are phased down. Currently there are approximately 460 producing wells.
- The condensate window, including the Loma Campana block, drives value. We estimate a total remaining NPV10 of US$9.7 billion for the Vaca Muerta.
-
Banking & Finance1 week ago
Oman Arab Bank Announces Increase of Authorised Capital to RO500mn and Paid‑In Capital Boost of RO50mn
-
Renewables2 months ago
Jindal Renewables and OQ Alternative Energy Sign Joint Development Agreement to Advance Integrated Renewable Power Projects in Oman
-
Bahrain1 week ago
SPIEF 2025 focused on global and regional economic processes, market transformation, new tech, investment climate, financial policy and people
-
Alamaliktistaad Magazines1 month ago
Al-Iktisaad, May 25
-
OER Magazines1 month ago
OER, May 2025
-
Leaders Speak2 months ago
OERLive SPOTLIGHT: Oman Sustainability Week 2025 and Oman Petroleum & Energy Show
-
Business2 months ago
St. Petersburg International Economic Forum 2025 unveils its Business Programme
-
Renewables2 months ago
Sembcorp’s 588MW Solar Power Plant In Oman Begins Commercial Operation
You must be logged in to post a comment Login