Continental, Geopark among bidders for Argentina shale blocks
Interest amid Argentina’s largest offering of exploration licences in more than a decade. Leer más
Continental Resources Inc, a prominent US shale oil company, along with Colombia’s Geopark Ltd, were among the bidders for Argentina’s most extensive set of exploration licences in more than a decade. The auction, conducted by Gas y Petroleo del Neuquén SA (GyP) – the provincial oil company in Neuquén, which houses the majority of the Vaca Muerta oil fields – saw Continental partnering with Phoenix Global Resources Plc, a unit of global trading house Mercuria Energy Group Ltd. Geopark, on the other hand, bid for two blocks.
This is the largest single offering of drilling areas since 2010, as production in the Vaca Muerta region is rapidly increasing and foreign operators are taking notice. Although supermajor Chevron Corp is expanding its presence in the area, it did not participate in the bidding. Neuquén Province's officials opened the bidding on Wednesday, with a likely announcement of winners expected by the year's end.
GyP President Guillermo Savasta stated that this initiative aligns with the province's strategy to unlock the value of its oil and gas resources. The auction aims to capitalize on the growing interest in the Vaca Muerta, the best drilling acreage in the region, as the best drilling acreage in the Permian Basin in Texas runs out.
US tech billionaire Peter Thiel recently reported a substantial stake in Argentine shale driller Vista Energy SAB, further highlighting the region's development. However, only eight of the 15 blocks received bids, indicating that US drillers will be selective about the areas they pursue. The most sought-after areas include Corralera Northwest and Northeast. GyP will acquire a 10 to 20 percent equity stake in the awarded blocks.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
