Another step forward in shale gas explorations in Argentina

Dow Chemicals and YPF, the Argentina State-run oil company, have announced a big investment in shale gas explorations, the total amount of which is around $500mln. The joint venture is the leading shale gas project of its kind in Argentina, with daily production of about 750,000 cubic meters. The aim is to triple that next year to about 2 million.
YPF and Dow have already drilled 19 shale gas wells in Vaca Muerta, a massive shale oil and gas rich region in the province of Neuquén. They will drill 30 new wells next year and eventually increase that to more than 180 wells in the years ahead.
This agreement is the latest in a long series of cooperations held, among the others, by YPF with Petronas, Gazprom and Chevron, in shale gas explorations, for a total investment that can easily overtake $25bln.
After years of divestment by oil and gas companies, Argentina’s government expropriated YPF in 2012 and began a push to raise oil and gas production.
The lack of investment had turned Argentina into a net oil and gas importer and led the government to spend billions of dollars every year to import energy. That, in turn, led to a shortage of U.S. dollars available to import other goods and make debt payments.