Chevron (CVX) signed a deal Tuesday 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.
CVX shares are up marginally as of noon Wednesday, continuing a 16% year-to-date increase.