Exploration & Production

Argentina up against the clock in Vaca Muerta

Buenos Aires has rolled out the red carpet for producers in Vaca Muerta. However, companies will need to act fast for maximum rewards Buenos Aires has rolled out the red carpet for producers in Vaca Muerta. However, companies will need to act fast for maximum rewards.
By Chris Noon 4 May 2017 0 25763
A well in the Vaca Muerta formation. Argentina’s government has offered generous incentives to drill there. (YPF)

Argentina’s government is expecting the bulk of investment pledges for its giant Vaca Muerta shale play to be made between now and the end of 2018 because generous incentives are set to be wound down in coming years, analysts have said.

"The way that the gas price is structured clearly incentivises investments early on," Elena Nikolova, a Latin America upstream research analyst at Wood Mackenzie, told Interfax Natural Gas Daily. "But the motivation is to create momentum in 2017 and 2018, before the price starts dropping...