ExxonMobil said Tuesday it will develop an onshore oil project in Argentina that could produce up to 55,000 barrels of oil-equivalent per day (Boe/d) within five years, Kallanish Energy reports.
The project will include 90 wells, a central production facility and export infrastructure connected to a pipeline and refineries, the company told Reuters.
ExxonMobil began a pilot project in the 99,000-acre Bajo del Choique-La Invernada block, located roughly 114 miles northwest of Neuquén city, in 2016.
The company’s development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from U.S. shale operations, as well as government controls on natural gas prices.
However, the country in May awarded permits for hydrocarbon exploration in 18 areas off its southern coast to companies, including ExxonMobil, to boost its reserves, which fell in the last decade due to regulations that discouraged foreign investment in the energy sector.
If the expansion is successful, ExxonMobil said it could invest in a second development phase in the block, which would produce up to 75,000 Boe/d.
ExxonMobil Exploration Argentina operates the block and holds a 90% interest, while Gas y Petróleo del Neuquén holds the rest.
This post appeared first on Kallanish Energy News.