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Trafigura, Vista to expand Argentina shale drilling

  • Märkte: Crude oil, Natural gas
  • 29.06.21

Trafigura has partnered with Latin American independent Vista Oil & Gas in a $250mn integrated drilling project in Argentina's Vaca Muerta shale formation.

Trafigura will invest $75mn, including $25mn for a 20pc stake in five pads of four wells each in the Bajada del Palo Oeste block operated by Vista. The remaining $50mn will pay for 20pc of the drilling costs, the two companies said this week.

Trafigura has the option to participate in an additional two pads for $5mn each.

Vista will remain the sole holder of the Bajada del Palo Oeste concession with rights to more than 80pc of the hydrocarbons production.

In a parallel agreement, Vista will sell Trafigura 380,000 bl per month of light sweet Medanito crude from the block starting in July and running through December 2022.

Trafigura operates a 30,500 b/d refinery in the petrochemical hub of Bahia Blanca, a port city in Buenos Aires, and owns a network of 350 service stations across the country under the brand name Puma Energy.

"We believe this transaction will help Vista accelerate its development in Bajada del Palo Oeste, contribute towards the supply of Trafigura's refinery and generate incremental crude volumes for export," Vista said.

Vista, a company founded in 2017 and headed by former YPF chief executive Miguel Galuccio, has quickly emerged as one of the biggest actors in Vaca Muerta and is the third-largest crude producer in the country.

Bajada del Palo Oeste is the company's main shale oil development and currently has 28 wells in production.


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