Argentina nearly doubles Vaca Muerta oil estimate in boost to export strategy

Officials said the higher figure does not mean new oil was discovered underground, but that it reflects how much the industry now knows about the formation after a decade of drilling, as well as better technology that allows companies to extract more oil from the same rock.

According to the study, the area considered suitable for drilling has grown by 22%, extending into parts of southern Mendoza and Rio Negro provinces. The estimate also rose because companies now identify more layers of rock as productive.

At the same time, the share of oil that can realistically be extracted with current technology increased by 54%, helped by improvements in well design, drilling and hydraulic fracturing.

BUENOS AIRES, Aug 13 (Reuters) - Argentina said on Thursday that a new study found its vast Vaca Muerta shale formation contains 30.17 billion barrels of recoverable oil, almost double the 16.22 billion barrels estimated in 2013 by the U.S. Energy Information Administration.

The new estimate is a major boost for Argentina, which is counting on Vaca Muerta - one of the world's largest shale deposits - to raise oil exports, bring in badly needed foreign currency and strengthen its position as an energy supplier.

The study was prepared by the Argentine Institute of Oil and Gas (IAPG) at the request of the energy secretariat, with input from major producers including YPF YPFDm.BA, Chevron CVX.N, Vista VISTAA.MX and Pan American Energy PNRG.CD, as well as university and government specialists.

Argentina's government has made Vaca Muerta central to its long-term energy strategy, betting that expanded pipelines, export terminals and liquefied natural gas projects will help turn the shale field into a major source of export revenue.