Argentine state-run oil company YPF and US company Dow Chemical’s local unit will invest $500 million in shale gas exploration in the South American country in 2016, the two announced Tuesday.

YPF, Dow enter Argentina shale play

BUENOS AIRES, December 16, 2015 – Argentine state-run oil company YPF and US company Dow Chemical’s local unit will invest $500 million in shale gas exploration in the South American country in 2016, the two announced Tuesday.

The two companies have already invested $350 million in a joint shale gas venture and expect total investment to reach $2.5 billion in the coming years. The joint venture produces about 750,000 cubic metres (26.5 mcf) per day. The companies aim to triple this amount to 2 mcm (70.6 mcf).

 

As part of the venture, YPF and Dow have drilled 19 shale gas wells in the shale oil and gas-rich region in Neuquen province. Thirty more wells are lined up for next year. Argentina has the second-largest recoverable shale gas reserves in the world with 22.7 tcm (802 tcf).

YPF has a number of other joint shale projects lined up with Chevron, Malaysian operator Petronas and Russia’s Gazprom. The projects will yield more than $24 billion in investments over the next 15 years.

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