Exploration & Production

Argentine currency crash will slow down Vaca Muerta development

The crash in the value of the Argentine peso is likely to slow the development of the Vaca Muerta shale formation, an expert has said
By Staff reporter 17 July 2018 0 31773

The crash in the value of the Argentine peso is likely to slow the development of the Vaca Muerta shale formation, according to an expert quoted by Platts.

This is because Argentina’s central bank has hiked its benchmark interest rate to 40% in response to the currency crisis, which has in turn pushed corporate borrowing rates as high as 70%.

“There are not many companies that can handle such a high financing cost,” Federico MacDougall, a director at First Corporate Finance...