ExxonMobil gets nod for US$200mn Neuquén investment

Argentina's Neuquén province has authorized ExxonMobil's investment plan for the development of a 35-year unconventional concession in the Los Toldos I South block.

The initial investment of around US$200mn, for which the US major had filed a request in September, involves a pilot project to bring up to seven wells into production, the construction of production facilities and development of export infrastructure, ExxonMobil said in a press release on Wednesday.

ExxonMobil and its partners, provincial company Gas y Petróleo del Neuquén and Tecpetrol's Americas Petrogas Argentina, are looking for opportunities to further develop the block and bring wells into production, the Texas-based company said.

If successful, the pilot project could lead to a staged development of approximately 300 horizontal wells of up to 3,000m in length, and the block could have estimated production of 11Mm3/d of gas, it added.

Los Toldos I South is located 85km northwest of Añelo and 175km northwest of Neuquén city.

ExxonMobil Exploration Argentina is the operator and holds an 80% interest, while Gas y Petróleo del Neuquén and Tecpetrol each hold a 10% interest.

ExxonMobil's investment in exploration and early development in its Vaca Muerta operations has exceeded US$500mn, the company said.

"ExxonMobil has been in Argentina for more than 100 years, and an active player in the Neuquén basin since 2010," Argentina general manager Daniel de Nigris said.