Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Argentina eyes $500 million train line to boost Vaca Muerta shale output


Juan Mabromata/AFP

Public-private partnership seen improving Vaca Muerta access. Trains to cut fracking costs in country's answer to Permian.

By Andres R Martinez , Jonathan Gilbert , and Jorgelina Do Rosario

BUENOS AIRES
Petroleumworld 03 26 2018

Argentina is readying a tender for a $500 million train line that could help unlock the potential of Vaca Muerta, one of the world's biggest shale plays, Transport Minister Guillermo Dietrich said in an interview.

The train would link towns in the heart of the Patagonian shale field to the Atlantic port of Bahia Blanca more than 400 miles away. Construction would be handled by a public-private partnership working with the government, and it would include both new rails and an upgrade of existing tracks.

The proposal was presented to President Mauricio Macri two weeks ago after being developed by state-run oil company YPF SA and Energy Minister Juan Jose Aranguren, Dietrich said. It needs Macri's approval before the government invites companies to bid.

Macri's administration has said it plans to raise $30 billion for dozens of PPP projects, including road and train networks, in three years. Winners of the first projects could be announced in a month. The railway, to be called the North Patagonia Train, has long been touted as a key to unlocking the potential of the Vaca Muerta, Argentina's answer to the Permian Basin.

Betting on Shale

YPF's output rises as well costs drop in Vaca Muerta

  • Output (1,000 boe/d)
  • Cost per well (Millions of dollars)

Source: YPF

The shale play, whose name translates into “dead cow” in English, has been slow to get off the ground because of problems with logistics and labor unions.

Drillers would be able to use the train to slash the cost of sand used in fracking, a process that fractures rock deep underground to force the release of oil and gas. It would also cut the cost of transporting steel tubes for drilling. The sand and tubes are currently brought in by truck.

Export Potential

The train would not go back to port empty, Dietrich said. Miners and fruit growers have expressed hope that it could be used for exports. Brazil's Vale SA had planned on building a similar line before ditching a potash project in 2013.

YPF controls roughly 40 percent of acreage in Vaca Muerta, with two sites in production. One is being developed for oil with Chevron Corp., and the second is being developed for natural gas with DowDuPont Inc. The company wants joint ventures with Malaysia's Petroliam Nasional Bhd and Schlumberger Ltd. to progress from pilot projects to full production this year as it seeks to reverse declining output .

It could take two years to achieve palpable results from Vaca Muerta as those pilots and several others begin producing, Guido Bizzozero, an analyst at Allaria Ledesma & Cia, wrote in an emailed research note on Friday.

“This is kind of a rebirth of the Argentine oil and gas industry,” YPF's Chief Financial Officer Daniel Gonzalez said in an earnings call on March 5. “The bulk of the growth will come from the unconventionals.”



Story by Andres R Martinez , Jonathan Gilbert , and Jorgelina Do Rosario from Bloomberg.

bloomberg.com /
03 23 2018

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.