Vista Energy plans to invest about $1.1 billion (21.97 billion pesos) this year to expand its operations in Argentina’s Vaca Muerta shale formation, the company said. Reutersreferring to CEO Miguel Galuccio.
The investment is aimed at increasing production and reducing costs.
Speaking to the publication, Galuccio explained the company’s strategy for the project.
It is the company’s flagship initiative and a key part of Argentina’s efforts to address its chronic energy shortage.
The Vaca Muerta Shale Formation, said to be one of the the world’s largest shale gas developments outside the US, has experienced rapid growth since its early days.
Galuccio reflected on the transformation, noting, “In 2012, Vaca Muerta was for believers. Today, Vaca Muerta is for engineers.”
Vaca Muerta’s production has more than doubled over the past year, reaching 65,000 barrels of oil equivalent per day (boepd) in the second quarter (Q2) of this year.
Galuccio noted that growth is expected to continue. Production is forecast to reach 85,000 boepd in the fourth quarter and possibly 100,000 boepd in 2026. By the end of the decade, production is expected to reach 150,000 boepd.
To support this expansion, Vista Energy plans to develop additional wells and infrastructure in Argentina’s Neuquen province, where the company has already identified 1,150 new well locations across more than 200,000 hectares.
Earlier this year, Vista added a third rig to its operations at Vaca Muerta and plans to deploy a second fracking team by the end of the year.
Fracking, a technique that involves injecting sand, chemicals and water into shale rock to extract oil and gas, has been criticized by environmentalists for its potential impact on aquifers and its association with increased seismic activity.
Despite environmental concerns, Vista Energy is focused on optimizing extraction costs.
The company said second-quarter costs rose $4.50 per barrel and aims to reduce those costs by about 11% to $4 per barrel by 2026, compared with $18 per barrel when production first began.
Galuccio also highlighted infrastructure challenges, particularly limited pipeline capacity, which was a major bottleneck last year.
There are plans to address these problems by doubling the capacity of the Oldelval pipeline network and expanding the Vaca Muerta Sur and Norte pipelines.
He stressed the need for further investment and development in Vaca Muerta, stating: “Vaca Muerta needs more prospects and more investment” to fully exploit its potential and meet Argentina’s energy needs.
“Vista Energy Invests More Than $1 Billion in Argentina’s Vaca Muerta Shale” was originally created and published by Offshore technologya brand of GlobalData.
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