Chevron uses Permian playbook to revive Argentina’s ‘Dead Cow’ oil region
CVX•Chevron plans to add a second drilling rig at its El Trapial block in June next year and a third by early 2029, aiming to accelerate its goal of tripling Argentina production. The company has submitted a $13.8 billion, 30-year investment plan for the block, which currently produces 40,000 barrels of oil equivalent per day.
1. Rig expansion plans
Chevron aims to accelerate its goal of tripling production from Argentina by adding a second drilling rig at El Trapial in June next year and a third around early 2029, company executive Gerbert Schoonman said. Chevron said last year it would triple its Argentine output to 195,000 barrels of oil equivalent per day by 2035; Schoonman said the new rigs could help it shave a year or two off that timeline.
2. Investment and operations
Chevron has submitted a $13.8 billion investment plan for El Trapial, one of its three projects in the Vaca Muerta formation, and is seeking government approval to spend the money over 30 years. Chevron fully owns and operates the block, which produces 40,000 barrels of oil equivalent per day. The company also holds 50% stakes in Loma Campana and Narambuena, which are operated by YPF.
3. Costs and constraints
Bringing a well online in Vaca Muerta costs about 30% more than in the Permian, though higher oil productivity helps close the gap, Chevron Argentina operations manager Juan Pablo Romano said. Sand for fracking is trucked nearly 2,000 kilometers from north of Buenos Aires because local sources have not produced satisfactory results. Schoonman said the second rig would allow Chevron to build enough drilled-well inventory for a fracking crew to work continuously on site.
