The continued interest of the supermajors in the Vaca Muerta shale play will support Argentina’s gas production.
The government of Argentina expects $6-8 billion to be invested in Vaca Muerta during 2017. In June, Pan American Energy – a subsidiary of BP – announced to spend almost $400 million on exploration and production in the acreage this year. This followed an announcement by Total in April that the French major had increased its stake in its Aguada Pichana licence in Vaca Muerta and was starting development there. Argentina’s marketed gas output rose by 5.2% on an annual basis in 2016, to 42.3 bcm. GGA expects it to increase to 44 bcm in 2017.