Argentinian shale deposit could host 23 billion barrels of oil

Oil tycoon Repsol YPF lifted its oil and shale gas resources at the Vaca Muerta giant field in southwestern Argentina. The deposit, discovered last year, may host 23 billion barrels of oil equivalent, or nearly half the reserves at Brazil’s sub-salt layer, estimated at about 50 billion barrels. It could give Argentina conditions to become a global power on gas and unconventional oil output.

It is unclear, however, the quantity that could be extracted from the area. Last November Repsol had estimated the reserves at 927 million barrels and had already said its exploration would require a huge expansion of the Argentinian oil industry. Thousands of wells and hundreds of drilling probes would be required, and the country would need skilled workforce, equipment and investments as well.

The Spanish-Argentinian company even mentioned that some US$ 25 billion could be invested per year. So far, Repsol has only developed a small portion of the Vaca Muerta, with plans to drill 20 wells, alone or teaming up with partners, aiming to find out more about the resources.