Argentina’s Neuquen province to grant six new permits for Vaca Muerta exploration

Local government adviser Jorge Sapag, informed that six new exploration concessions are to be granted in Argentina’s Neuquen province, the site of Vaca Muerta shale play, before the end of the year.  Investments in Vaca Muerta are expected to reach US$27.3bn over the next four years, with Neuquen doubling Argentina’s oil production to reach annual revenues from exports of close to US$12bn.

Sapag informed that “there are 8,222 square kilometers of concessions for 35 years, which represents 27% of Vaca Muerta. There are 34 concessions right now, and by the end of the year, another six will be approved”.  Vaca Muerta is a key component in President Mauricio Macri’s plan to end Argentina’s need to import energy and become a net exporter instead.  Macri will seek re-election in October and is hoping to attract foreign investment, especially in the energy sector, after foreign companies were scared off by former president Cristina Fernandez’s interventionist policies.

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