Chevron Signs $1.24B Shale Deal in Argentina

by William White | July 17, 2013 11:33 am

Chevron Signs $1.24B Shale Deal in Argentina

ChevronLogo Chevron Signs $1.24B Shale Deal in Argentina[1]Chevron (CVX[2]) signed a deal Tuesday[3] with Argentina oil company YPF (YPF).

The deal has Chevron investing $1.24 billion into the development of Argentina’s shale oil deposits, and marks the first big oil investment in the country by a foreign company since last year, reports the Associated Press.

Chevron and YPF will start the joint venture by setting up a $300 million pilot hydraulic fracturing project that will have over 100 wells. The area the wells will be set up in already has 10,000 barrels a day extracted from it. YPF expects to have over 1,500 wells that will produce 50 million barrels of oil and 3 million cubic meters of natural gas each day by 2017, reports the Associated Press.

Argentina has the second most potential recovering of shale-gas reserves in the world, with China being number one. A study by the U.S. Energy Information Administration shows that the country has 802 trillion cubic feet of potentially recoverable shale-gas reserves, reports The Wall Street Journal[4].

CVX shares are up marginally as of noon Wednesday, continuing a 16% year-to-date increase.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/ChevronLogo.jpg
  2. CVX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVX
  3. signed a deal Tuesday: http://hosted.ap.org/dynamic/stories/L/LT_ARGENTINA_YPF_CHEVRON?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-07-16-18-05-05
  4. The Wall Street Journal: http://online.wsj.com/article/SB10001424127887324348504578610322993362936.html

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