Argentina: First steps taken in Pan American Energy and GyP joint venture

Argentine oil company Gas y Petróleo de Neuquén and Pan American Energy have reached an agreement on joint exploration work, as they look for viable sources of ‘tight gas’.

PAE will bear the costs of the investment, with initial plans calling for a single horizontal well dug at a cost of approximately 15 million dollars. Should the drilling be successful, the companies will have the option to request commercial development licenses for the area, forming a Joint Venture which will give PAE a 90% stake in the deposits.

GyP’s president Alberto Saggese announced the deal, remarking that the company had long been looking at expanding alongside either PAE or Petrobras, the companies with the most experience in this kind of drilling.

Source: Argentina Shale

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