Vaca Muerta revives and expects investments for u$s125 Billions

The Governor of Neuquen together with Shell executives inaugurated the early production plant in the Sierras Blancas area in Vaca Muerta. The province expects u$s 125 billion investment for the next 10 years only for 10% of the area of Vaca Muerta if the current 19 concession areas in non-conventional for pilot tests go to production stage. This was anticipated by the Minister of Energy, Public Services and Natural Resources of the province, Alejandro Nicola.

Nicola stressed the importance of gas development, as it represents "80% of the country's energy matrix." In this sense, the development of infrastructure in the Neuquen basin was highlighted by the national government, which finances 2/3 of the works that are carried out to improve the area and favor the arrival of private investors. "We are working on routes, in works with social impact because we hope that with Vaca Muerta also grow the population and localities of the area," said Nicola.

"A?elo (a town that is in the heart of Vaca Muerta) has tripled its population in 5 years and in Neuquén we work with electrical and sewage works because we expect growth," Nicola said. The minister said that only by exploratory phases the province has committed investments for us$ 8 billion and that there are companies that are reducing the deadlines for disbursements "because the results are successful." Along the same lines, Governor Gutiérrez said they expect to receive proposals to bring more companies to Vaca Muerta after the business round he held in Houston.

For Shell the Vaca Muerta formation is the second most important in the field of non-conventional and the new facilities have a processing capacity of up to 10,000 barrels of crude oil per day. This investment is part of the us$ 300 million upstream plan until 2019.