Qatar Buys Stake in Argentine Shale Assets (Update)
updates with EU's October 3 approval in final para
Qatar Petroleum said April 4 it has bought stake in two ExxonMobil affiliates in Argentina that hold interests in shale assets in Vaca Muerta play in the onshore Neuquén basin. The company did not provide details about the value of the investment.
The agreement, signed in Doha June 3, will give Qatar Petroleum a 30% shareholding in ExxonMobil Exploration Argentina S.R.L. and Mobil Argentina S.A., which hold rights with other partners for seven blocks under unconventional exploration licenses with active drilling plans as well as exploitation licenses with pilot drilling and production, Qatar Petroleum said.
“We are pleased to enter into this agreement with our long-time partner ExxonMobil, and to participate in the further development of the Vaca Muerta unconventional resource in Argentina. This is an important milestone, as it marks Qatar Petroleum’s first investment in Argentina as well as its first significant international investment in unconventional oil and gas resources,” Saad Sherida Al-Kaabi, CEO of Qatar Petroleum, said.
The Vaca Muerta shale in the Neuquén province in western Argentina is considered among the most prospective unconventional shale oil and gas plays outside North America, said Qatar Petroleum, adding that activity in the basin has picked up recently, mainly due to governmental incentives and rising domestic energy demand.
“This agreement is an important milestone on the road to expanding our international footprint, which is an important part of Qatar Petroleum’s growth strategy. It goes hand in hand with the planned expansion of our local production from the North Field,” Al-Kaabi added.
ExxonMobil’s wholly owned subsidiary, XTO Energy, is providing operational support to the two concerned ExxonMobil affiliates in Argentina, including developing detailed appraisal and development plans for these assets, based on recently drilled wells and pilot production testing.
Update October 3 2018: The European Commission has given EU approval for QP's entry into the shareholding structure of ExxonMobil's upstream (including shale) businesses in Argentina.