Fracking Argentina

La Evolución de la Fracturicación Hidráulica en el País y el Mundo

Apr 9, 2015, By: Carl Surran

Shale oil output from Argentina’s vast but barely tapped Vaca Muerta formation has increased, but low world oil prices and high drilling costs threaten profitability, YPF CEO Miguel Galuccio says.
“It is not profitable with an $11M well and prices at $50/bbl. We drilled our vertical wells with the expectation that they would be profitable at $84/bbl and with wells that cost $6.5M-$7M,” the CEO says.
YPF has said lower global oil prices have not affected its exploration plans, defying the industry trend of multibillion-dollar spending cuts.
Vaca Muerta’s March output rose to 44K-45K bbl/day of oil from 41K bbl/day reported in February.

However, the cost of drilling wells in Argentina’s Vaca Muerta shale oil and gas formation will fall at least 10% by the end of 2016, after already cutting drilling costs at the vast formation to $6.9M per well from $11M, YPF CEO Miguel Galuccio says.
YPF currently imports fracking sand from China, the U.S. and Brazil, but Galuccio says Argentina will produce all sand it needs for shale drilling by the end of 2016, which the CEO says will on its own save 10% on well drilling costs.

Source: http://seekingalpha.com/news/2418916-output-at-argentinas-vaca-muerta-up-but-ypf-says-profitability-in-question

Categories: Fracking en Argentina

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