Skip to main content

Exxon Mobil Corp said on Tuesday it was going ahead with an oil development project in Argentina that could produce up to 55,000 barrels of oil-equivalent per day (boepd) within five years.

The project will include 90 wells, a central production facility and export infrastructure connected to a pipeline and refineries, the company said.

Exxon began a pilot project in the 99,000-acre Bajo del Choique-La Invernada block, located about 114 miles northwest of Neuquén city, in 2016 after successful results from an initial exploration.

Story continues below advertisement

The company’s development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from U.S. shale operations as well as government controls on natural gas prices.

However, the country last month awarded permits for hydrocarbon exploration in 18 areas off its southern coast to companies, including Exxon, to boost its reserves, which fell in the last decade due to regulations that discouraged foreign investment in the energy sector.

If the expansion is successful, Exxon said it could invest in a second phase in the block, which would produce up to 75,000 boepd.

ExxonMobil Exploration Argentina operates the block and holds a 90 percent interest, while Gas y Petróleo del Neuquén holds the rest.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Discussion loading ...

Cannabis pro newsletter