Vaca Muerta bidding round kicks off

NEUQUÉN, May 23, 2017 – Argentine provincial hydrocarbons company Gas y Petróleo del Neuquén (GyP) put out a call to bid on Monday for several blocks in the country’s prolific Vaca Muerta unconventional play.

The bidding round, which is the fifth under the Neuquén province’s New Horizon’s Plan, offers seven blocks for oil and gas exploration: Parva Negra Oeste, Cerro Arena Sur, Las Tacanas Norte, Bajo del Toro Este, Aguada de Castro Oeste 1 and 2, and La Tropilla 1.

The provincial player announced that bids must be submitted on September 14 at its headquarters in Neuquén. Interested parties have until July 21 to request access to a list of terms and conditions, and until September 13 to obtain the relevant technical documentation on the blocks, which is available from GyP for a fee of USD 10,000.

Through its latest licence offer in the basin, GyP hopes to raise USD 200 million in investments. The minimum work requirement for five of the blocks includes the drilling of at least two multistage fractured horizontal wells.

The company will retain a participation of 10% in the blocks, which will be compensated to the operator during the production phase of development. GyP expects to sign contracts with successful bidders before the end of the year.

Situated mostly in Argentina’s Neuquén Basin, the 30,000-square-kilometre Vaca Muerta formation is one of the largest shale deposits in the world. The play is thought to contain technically recoverable shale gas reserves of 8.72 tcm (308 tcf), in addition to 16 billion barrels of oil and condensate.

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