Vesna Marinkovic U.
Tecpetrol’s business development manager assures that Vaca Muerta’s biggest problem currently is not investment but gas demand, and looks to Europe and Asia as potential markets.
1What are the projections of Vaca Muerta in the midst of the energy transitions?
The potential supply of gas from Vaca Muerta is very high, and will depend on the demand of gas that occurs in Argentina and in neighboring countries.
2Is Vaca Muerta a very expensive project? Are there enough potential investments available to develop the reservoirs and produce in expectable conditions?
Among tenders published for the development of gas projects in Vaca Muerta, until very recently, prices were around US$3.5/MMBTU, which makes it a very competitive gas. At this point, it is not a problem of investment but of gas demand.
“…The Vaca Muerta formation located in Argentina, is consider a huge potential source of Oil &Gas production in Latin America”
3Does the Argentine hydrocarbons regulation hinder this project in any way?
Today it works well and the regulation does not affect the development of production. The restriction for Vaca Muerta is the expansion of the transportation system, from Vaca Muerta to the local markets or export markets for neighboring countries, where the Government had to invest in the construction of the Nestor Kirchner Gas Pipeline, since private companies are not sure of recovering their investment because of the current regulated rate in Argentinian pesos, and due to some difficulties related to financing.
4What does the Vaca Muerta project require to rebound in the region?
Continue to expand transportation capacity to consumer markets.
5If Vaca Muerta gets stronger, what would be the most important markets for Argentina?
An important market for the potential production of Vaca Muerta would be exporting LNG to Europe and Asia.
6What is your point of view on the situation of the hydrocarbons industry in Latin America and the Caribbean?
Currently, beyond Brazil’s large offshore oil production and potential, Argentina with Vaca Muerta is a very large potential source of oil and gas production in Latin America.
