Under the shale well agreement, Trafigura said Vista has also committed to supplying it with 380,000 barrels per month of crude for the Bahia Blanca refinery for 18 months. Medanito was assessed at $71.79/b June 29, up from $64.60/b April 19, following a rise in benchmark Brent prices. Spot Medanito crude prices have risen since mid-April, when S&P Global Platts launched its FOB Argentina assessment.
Vista exported 1.1 million barrels of Medanito, a light crude from Neuquen Basin, the southwestern home of Vaca Muerta, in the first four months of this year, compared with 2.5 million barrels in all of 2020 and 95,000 barrels in all of 2019, according to data from the Argentinian Energy Secretariat. The company set a target in February to end the year with 40,000 boe/d of oil and natural gas production, up from an average of 34,100 boe/d in the first quarter of 2021. Of that, 24,030 b/d came from Bajada del Palo Oeste. It produced an average of 32,930 b/d in April, according to the latest data from the Argentine Oil and Gas Institute, an industry group. Vista is seeking to ramp up production and exports. S&P Global Platts Analytics expects combined crude and condensate output to climb from roughly 500,000 b/d in 2021 to 1.1 million b/d in 2040. " will also help to generate more production, and thus continue to expand energy exports that are essential for generating foreign exchange that the country needs, whilst preserving and always supplying the local market," Vista CEO Miguel Galuccio said.Īrgentina's oil production is expected to rise over the next two decades. The deal marks the first such strategic agreement that Vista has made with another company to accelerate the development of its main shale oil block Trafigura said.
Vista has operated the block for over two years with 28 wells currently in production. Vista - Argentina's second-largest shale oil operator - has been focusing its investment on Bajada del Palo Oeste, its core asset in the play's oil window now producing about 24,000 b/d of crude, according to data from the Argentine Oil and Gas Institute. "This alliance allows us to strengthen our business in Argentina and integrate the supply of crude oil for our refinery and the subsequent supply of fuels for our network of service stations, wholesale clients and the export market to neighboring countries," the head of Trafigura Argentina, Martin Urdapilleta, said in a statement. Trafigura - the world's second-biggest independent oil trader - currently owns and operates Argentina's 31,500 b/d Bahia Blanca refinery near Buenos Aires, the Campana fuel terminal, and Puma Energy's network of 350 service stations. Vista will be the operator of the shale wells and keep 80% of the production from the wells while contributing the remaining 80% of the investments, it said without giving details of the expected volumes from the development. The remaining $50 million covers Trafigura's contribution to the development costs of the 20 wells, it said. Under the terms of the deal, Trafigura will invest around $75 million, of which $25 million is a purchase price for a 20% participation in the production of the wells covered by the agreement. Receive daily email alerts, subscriber notes & personalize your experience.įollowing a deal with operator Vista Oil & Gas - the third-largest crude producer in Argentina - Trafigura said it will help to develop 20 oil wells in the Bajada del Palo Oeste block as part of a $250 million joint investment.
0 kommentar(er)
