*The investment announcement followed a meeting between Economy Minister Sergio Massa and Chevron officials.
*The Trapial block covers an area of 109 square miles (283 square kilometers).
*The Vaca Muerta shale formation is the fourth-largest shale oil reserve and second-largest shale gas reserve in the globe.
According to the Argentine Economy Ministry, Chevron will invest more than $500 million to develop the Trapial block in the Vaca Muerta shale basin in the western Neuquen province. The investment decision was taken following a meeting between Economy Minister Sergio Massa and Chevron representatives. The spending strategy is expected to begin before July.
— Giovanni Staunovo🛢 (@staunovo) June 10, 2023
Officials from Neuquen granted Chevron a concession for shale production in the region a year ago. Initially, the company planned to invest around $80 million in the first phase. Chevron will now increase its investment in the 283-square-kilometer (109-square-mile) Trapial tract.
The Vaca Muerta shale formation is the fourth-largest shale oil reserve and the second-largest shale gas reserve in the world. It is a significant source of both domestic energy and exports, establishing the South American country as a prominent player in the global energy market.