Wednesday, January 8th 2014 - 05:58 UTC

Germany's Wintershall joins Patagonia's Vaca Muerta shale gas and oil rush

Germany's Wintershall signed on Tuesday a farm-in contract with the Argentine Patagonia province of Neuquén to explore Vaca Muerta’s shale gas and oil field. Under the terms of the joint-venture agreement Wintershall together with Gas & Petroleo de Neuquen will explore and develop the Aguada Federal block and are committed to invest 80 million Euros.

Board members from Wintershall sign the terms of the contract with Neuquen province authorities

 The block comprises 97 square kilometers of the prospective Vaca Muerta shale located in the Añelo department to the east of Neuquén province. Wintershall acquires a 50% participation interest from G&P in the Aguada Federal block and assumes operatorship.

During the exploration phase and in case of a further development, GyP will retain ownership of the exploration permit and eventual exploitation concession, while Wintershall will have a 50% participation in the joint venture agreement and will be the operator of the area.

GyP has been performing exploration activities in this area since 2012, including the drilling of one well. In the next two years Wintershall and GyP will evaluate the potential of the Vaca Muerta formation in a first exploration phase – including drilling of up to six wells with an investment of about €80 million. Following a successful exploration phase, GyP and Wintershall will continue with further development of the resource.

“This commitment and the partnership with GyP underline once more that Wintershall Energía S.A. is determined to continue investing in Argentina on a long-term basis to develop the country’s hydrocarbon resources”, said Martin Bachmann, Member of the Board of Executive Directors of Wintershall Holding GmbH and responsible for Exploration & Production.

He added that ”it also represents an excellent opportunity to deploy our technical experience in unconventional reservoirs in the promising and fast growing Vaca Muerta shale projects in the Neuquén Basin, one of the most prospective shale oil and gas regions in the world.”

Wintershall has been in Argentina since 1978 with natural gas production the main area of its activities and has working interests in 15 oil and gas fields with an annual production of 26 million barrels of oil equivalent (boe).

The greatest share of production comes from offshore fields off the coast of Tierra del Fuego where Wintershall is participating in the development of the Total Austral operated new gas field Vega Pleyade, which is set to begin production in 2016.

Wintershall is also well placed for future growth in the region with the world’s third-largest reserves of unconventional resources. The company holds a significant acreage position in the promising Vaca Muerta shale oil and shale gas play where it just started exploration work. At the beginning of 2012, Wintershall Energía was awarded two exploration permits as operator for the blocks CN-V and Ranquil Norte in Mendoza province, where first exploration activities with 3-D-seismic were done in spring 2013.

13 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Comments should refer to article. Thank you.

1 Anglotino (#) Jan 08th, 2014 - 09:27 am Report abuse
Ooh Nostril's dreams of autarky have been pushed further back..... again!
2 ChrisR (#) Jan 08th, 2014 - 10:46 am Report abuse
It’s all a ploy to entice the foreign money into the country.

Just think of it like Hotel California!

Ha, ha, ha.
3 yankeeboy (#) Jan 08th, 2014 - 11:01 am Report abuse
That is a huge land concession for such a little amount of $. The Rgs are trading the family jewels for peanuts.
No matter If I remember correctly they need U$35B a YEAR for 20 Years to develop the VM area. 80M Euros is a rounding error.
My guess is the OG Exploration companies will try to make a deal like this, huge concessions with little money then slow walk the exploration until CFK is gone.
That's what I would do.
Then they hope for a sane gov't to deal with when they actually extract the oil.
No likely but hope
Plus these OG guys are used to dealing with corrupt ego maniacal dictators BUT even then they are staying away from Arg. It really tells you something!

In any other country this tiny investment wouldn't even make local news.
4 Briton (#) Jan 08th, 2014 - 11:32 am Report abuse
all's well that ends well,

until she gets fed up and nationalises it..lol
5 Captain Poppy (#) Jan 08th, 2014 - 12:57 pm Report abuse
80 million Euros....that's like thew pennies from the pocket one tosses in a jar.
6 Optimus_Princeps (#) Jan 08th, 2014 - 03:02 pm Report abuse
80 Million is a toe in the water. 1-2 Billion would represent what they would put in, if they were confident in this venture.

It seems like a “gambling budget” where you expect to lose everything, but if you do, it's not going to be a major hit on your company.
7 Vestige (#) Jan 08th, 2014 - 04:13 pm Report abuse
yap yap yap yap

the yapyap barometer indicates good to very good news for Argentina.
8 Pugol-H (#) Jan 08th, 2014 - 04:44 pm Report abuse
@ 7 Vestige
I suppose the present situation of Argentina is such, that this probably does constitute good news for them.

That and Beckham going to show them how to play football, are the highlights at the moment.

Make no mistake though, 80m Euros is less than a drop in the ocean of what is required here.

Better spend it quickly, before the Euro devalues again, when you have to buy equipment in £ or USD.
9 Briton (#) Jan 08th, 2014 - 06:30 pm Report abuse
On the one hand they want nothing from us or Europe,

On the other hand they take what they can get,

Seem one hand does not know what the other wants..

Still,
CFK should have told the Germans and all the rest to Soddy offy,
But,
Beggars cant be choosey .lol
.
10 golfcronie (#) Jan 08th, 2014 - 09:52 pm Report abuse
@9
Hang on there , was it not Argentina that gave them a home after WW2, perhaps just returning the favour.:-)
11 Briton (#) Jan 09th, 2014 - 11:00 am Report abuse
a very good point,
perhaps a loose argy may yet comment lol.
12 Pete Bog (#) Jan 11th, 2014 - 07:39 pm Report abuse
@7

“he yapyap barometer indicates good to very good news for Argentina.”

Especially when the fracking messes up the water supply-but as with GM crops Argentina does not give jack squit about its own people sufferring from chemical contamination, especially children.
13 ChrisR (#) Jan 11th, 2014 - 10:06 pm Report abuse
STOP PRESS!

Capitan Dismal the Cabinet Chief has “gone on stage” (love that term) to DENY that Miguel Galuccio, the YPF CEO is going to resign!

But given the fact that anything like the pantomime being shown in the picture usually has Galuccio and his rictus grin in it, I wonder if Capitan Dismal is telling porkies, or La Camping It Up have having a word in his shell-like just to “straighten” things out such as his newly acquired broken fingers.

Ha, ha, ha. The end is nigh!

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!

Advertisement

Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!

Advertisement