Qatar Petroleum (QP) has agreed to acquire 30% stake in US-based ExxonMobil’s two affiliates in Argentina for undisclosed amount.
Image: Qatar Petroleum will acquire stake in ExxonMobil Exploration Argentina and Mobil Argentina. Photo: courtly of Photo by rawpixel on Unsplash.
Under the terms of the deal, QP will acquire two ExxonMobil affiliates that hold different interests in hydrocarbon licenses in the Vaca Muerta play in the Neuquén basin in Argentina.
The two firms, ExxonMobil Exploration Argentina and Mobil Argentina, have rights with other partners for seven blocks under unconventional exploration licenses in the Vaca Muerta play.
Qatar Petroleum president & CEO Saad Sherida Al-Kaabi said: “We are pleased to enter into this agreement with our long-time partner ExxonMobil, and to participate in the further development of the Vaca Muerta unconventional resource in Argentina.
“This is an important milestone, as it marks Qatar Petroleum’s first investment in Argentina as well as its first significant international investment in unconventional oil and gas resources.
The Vaca Muerta shale is said to be one of the most prospective unconventional shale oil/gas plays outside North America.
Al-Kaabi added: “This agreement is an important milestone on the road to expanding our international footprint, which is an important part of Qatar Petroleum’s growth strategy.
“It goes hand in hand with the planned expansion of our local production from the North Field, which will further boost Qatar’s leading global position by raising its LNG production from 77 million to 100 million tons per year; and with the recently announced Petrochemicals Complex project, which includes the largest ethane cracker in the Middle East, and one of the largest in the world.”
ExxonMobil’s wholly owned subsidiary, XTO Energy, is providing operational support to the two ExxonMobil affiliates in Argentina.
The scope of the firm’s operational support to the affiliates include developing detailed appraisal and development plans for these assets, based on recently drilled wells and pilot production testing, Qatar Petroleum said.