Argentina
News

Vista sees 15-20% annual growth in oil output

Bnamericas Published: Friday, October 28, 2022

Mexico-headquartered upstream company Vista Energy expects annual oil production to grow around 15-20% over the next several years and affirmed an output projection of around 80,000b/d for 2026.

Vista’s oil output rose 35% year-on-year in Q3 to 41,900b/d, with growth driven by flagship acreage Bajada del Palo Oeste in the Vaca Muerta unconventional formation in Argentina's Neuquén basin. The expected 2022 exit rate is around 54,000b/d.

The firm has previously said it was sharpening its focus on exports, which tend to be more lucrative. New Vista production is exported, with around 60% of output expected to eventually be shipped abroad.  

For the quarter, exports of 1.9Mb (million barrels) accounted for 48% of total oil sales volumes and 56% of oil revenues. Domestic refinery demand is already met. Because of processing limitation factors, Argentina tends to import some premium-grade gasolines, and diesel.

MIDSTREAM

Overall output growth in the basin is expected to hinge on the expansion of dispatch infrastructure, currently strained on account of rapid production increases.

Midstream concessionaire Oldelval is working to boost capacity between the basin and export facilities in Buenos Aires province.

Oldelval is currently investing US$750m in a new duct and pumping infrastructure that will double capacity to 72,000m3/d (452,866b/d) from 36,000m3/d.

Vista is participating in a process to secure capacity on the new duct. CEO Miguel Galuccio told the company’s Q3 results call: “We remain super confident in that allocation.” 

Vista transports around 42,000b/d via Oldelval and also dispatches some 5,000b/d oil using a fleet of around 25 trucks, the call was told.   

On use of road transport, Galuccio said: “It’s costly, but taking into consideration the netback we’re having, it’s super profitable for us to use that option.”

Among other options, as part of a consortium, Vista is also looking into exporting to Chile. An Argentine-Chile export duct is being demothballed and is expected to be brought back online next quarter. 

Other upstream firms are looking to ramp up production further to tap the export market. 

REVENUE

Overall Vista hydrocarbons revenue was US$334mn in 3Q22, up 91% year-on-year, driven by higher oil output and a “substantial improvement” in realized prices.

Realized domestic and export prices averaged US$64.2/b and US$90.2/b, respectively. Vista expects the average realized price to dip 5% this quarter compared with Q3.

CAPEX

Vista is working on capex forecasts for next year. The company said capex for 2023 was likely to be in line with expected 2022 outlay of US$500mn or slightly above. Vista would also need to make some advance cash payments this year and next associated with the acquisition of Oldelval capacity.  

Natural gas production was down 6% year-on-year to 1.32Mm3/d. The average price for the quarter was US$4.4/MMBTU, up 7% year-on-year.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: Oil & Gas (Argentina)

Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: Oil & Gas (Argentina)

Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Pluspetrol S.A.  (Pluspetrol Argentina)
  • Pluspetrol, S.A. (Pluspetrol Argentina) started operations in Argentina in 1976 and is headquartered in Buenos Aires. It is ultimately controlled by the Dutch holding company Pl...
  • Company: Promaíz S.A.  (Promaíz)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Intragas Energy S.A.  (Intragas Energy)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Consorcio CMA-1
  • Consorcio CMA-1 is a company formed by Pan American Energy LLC (25%), Total Austral SA (37.5%), and Wintershall Dea Argentina SA (37.5%) for the execution of the Campo Fénix pro...
  • Company: ManPetrol S.A.  (ManPetrol)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...