ExxonMobil has secured approval from the Neuquén Province Government in Argentina for its investment plan in connection with the development of a 35-year unconventional exploitation concession in the Los Toldos I South block.
Under the investment plan, the company intends to make an initial investment of about $200m for a pilot project that brings up to seven wells to production.
The investment will also see the construction of production facilities, as well as the development of export infrastructure.
ExxonMobil XTO Energy president Sara Ortwein said: “We are very optimistic about this resource and the provincial government’s approval enables us to do the necessary work to continue expanding our operations.
“We look forward to continuing to work with the government and our partners to develop the country’s energy resources.”
The company, in collaboration with its partners, Gas y Petroleo del Neuquén and Americas Petrogas Argentina SA (APASA), is contemplating further development of the block and bringing wells into production.
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By GlobalDataDepending on a positive outcome from the pilot project, the company intends to undertake a staged development of around 300 horizontal wells of up to 3,000m.
At full production, the block is expected to have an estimated production of 11 million cubic metres per day of gas.
Located 85km north-west of Añelo and 175km north-west of Neuquén city, the block is operated by ExxonMobil’s subsidiary ExxonMobil Exploration Argentina (EMEA) with an 80% interest.
The remaining 20% interest is equally owned by Gas y Petroleo and APASA.
In Argentina, ExxonMobil also has interest in Vaca Muerta operations, where it has so far invested more than $500m towards exploration and early development.