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Chevron and YPF to invest $1.6bn in Vaca Muerta

Staff writer |
Chevron and YPF unveiled plans to spend another $1.6 billion to develop Argentina's Vaca Muerta shale formation for oil and gas projects.

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The investment comes on top of $1.2 billion Chevron agreed to spend last year for a shale pilot project.

The second phase of exploration calls for drilling 1,500 wells across 395 square kilometers in the hopes of producing 50,000 barrels of oil per day and three million cubic meters of gas per day.

"The agreement between YPF and Chevron is the most important ever reached thus far for non-conventional hydrocarbon resource development in the country," YPF said in a statement.

Vaca Muerta, in the southern Patagonia region, is a huge deposit that ranks Argentina second in the world for shale gas reserves and fourth for potential shale oil reserves.

"This is a significant step in our subsidiaries' joint efforts with YPF to develop one of the most exciting shale plays in the world today. Vaca Muerta could become an important contributor to Chevron's long-term production growth," said George Kirkland, Chevron vice-chairman.

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