Oil billionaire Hamm seeks to expand in Argentina’s shale patch

Oil billionaire Harold Hamm is set to expand his operations in Argentina's Vaca Muerta oil basin, according to sources familiar with the matter. The basin, known for its fast-growing shale boom, is located in Neuquén Province. Hamm's company, Continental Resources Inc, will compete for shale blocks in an auction managed by the provincial administration.

Fifteen blocks in Neuquén will be up for bid on August 19. Continental has not commented on the matter, and the provincial administration has not yet responded to a request for information. Argentine officials and oil executives have been promoting the Vaca Muerta to US shale producers as an attractive alternative to the depleted Permian Basin in Texas and New Mexico.

The Vaca Muerta, which began producing more than one million barrels a day of oil and gas a decade ago, is expected to benefit from Argentina's recent free-market reforms. A key export pipeline and port called VMOS is expected to be operational next year, enabling producers to increase crude output. Additionally, plans for liquefied natural gas shipments are underway.

Continental made its first foray into Argentina last year by acquiring assets from local driller Pluspetrol SA, and in January, it bought stakes in blocks operated by Pan American Energy Group, which is jointly owned by BP Plc. Chevron Corp, another US producer, is also exploring opportunities in Argentina due to a tax incentive program introduced by Argentine President Javier Milei.