OGM Exclusive Interview: Moshiri on Vaca Muerta – One of the World’s Most Exciting Shale Oil and Gas Plays

“Mr. Ali Moshiri, President of Chevron’s Africa and Latin America Exploration and Production, explains the potential and opportunity of Argentina’s Vaca Muerta shale play in the Neuquén Basin.”

Q: What key parameters made Chevron an early entrant?

A: Chevron affiliated companies have operated in Argentina for decades, developing long-standing business relationships with YPF.  Our relationship with YPF and our recent arrangement to develop Vaca Muerta is a win-win for Argentina, YPF shareholders and Chevron businesses.  Chevron remains committed to helping Argentina achieve its goal of energy self-sufficiency.

Q: Why should investors chose to invest in Argentina compared to other Latin American countries?

A: Argentina is estimated to hold some of the world’s largest shale oil and shale gas resources.  The Vaca Muerta shale is the most well-known of the formations.  In fact, Vaca Muerta, alone, is expected to be large enough to make Argentina energy independent for decades.  According to EIA estimates, it is believed to hold 16.2 billion barrels of shale oil and 308 trillion cubic feet of shale gas resources.

Q: When will the decision be made to advance investment in Argentina and how much?

A: On April 10, Chevron confirmed that subsidiaries of the company signed agreements with YPF to continue development of shale oil and gas resources from the Vaca Muerta formation. YPF is a reliable partner and operator that is advancing the project in the right direction. We are pleased with the progress achieved so far and look forward to continuing to provide our technical expertise and investment to help realize the potential the Vaca Muerta field?

Q: What will it take for Argentina’s oil and gas industry to attract more foreign investment?

A: Argentina is having conversations with many companies and they have recognized that without increased investment in Argentina’s energy sector, the nation will pay more for its oil and natural gas and, as consultancy Wood Mackenzie forecast, import it from abroad.  That means Argentina will be subsidizing the development of resources in other countries, instead of its own.  And, the economic benefits of that resource development will go elsewhere.  The government knows that and has taken positive steps to make the energy industry competitive.