Exxon to proceed with oil development in Argentina
[BENGALURU] Exxon Mobil Corp said on Tuesday it was going ahead with an oil development project in Argentina that could produce up to 55,000 barrels of oil-equivalent per day (boepd) within five years.
The project will include 90 wells, a central production facility and export infrastructure connected to a pipeline and refineries, the company said.
Exxon began a pilot project in the 99,000-acre Bajo del Choique-La Invernada block, located about 114 miles northwest of Neuquén city, in 2016 after successful results from an initial exploration.
The company's development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from US shale operations as well as government controls on natural gas prices.
However, the country last month awarded permits for hydrocarbon exploration in 18 areas off its southern coast to companies, including Exxon, to boost its reserves, which fell in the last decade due to regulations that discouraged foreign investment in the energy sector.
If the expansion is successful, Exxon said it could invest in a second phase in the block, which would produce up to 75,000 boepd.
ExxonMobil Exploration Argentina operates the block and holds a 90 per cent interest, while Gas y Petróleo del Neuquén holds the rest.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Oil settles higher as weak US economic growth offset by supply concerns
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard
Gold trades in tight range as market focuses on US economic data
Oil settles lower as US business activity cools, concerns over Middle East ease