US shale pioneer Harold Hamm is seeking to broaden his presence in Argentina’s Vaca Muerta oil basin, recognised as the site of the world’s most rapidly expanding shale boom, as per sources. Hamm’s Continental Resources Inc is poised to vie for shale blocks in an auction overseen by Neuquén Province, which hosts the majority of Vaca Muerta acreage, according to sources. Bids for 15 blocks in Neuquén are set to be opened on August 19. Continental refrained from providing a statement. The Neuquén provincial administration did not provide an immediate response to a request for comment.
Argentine government officials and oil executives have been promoting the Vaca Muerta in Houston, aiming to attract US shale producers and service companies to Patagonia as a viable alternative to the Permian Basin in Texas and New Mexico, where the availability of prime drilling acreage is diminishing. Fifteen years after the resources were proven viable, Vaca Muerta is experiencing rapid growth under President Javier Milei’s free-market reforms, which have successfully attracted investments and financing following years of regulatory controls that hindered development. The basin currently generates in excess of one million barrels per day of oil and gas.
A crucial export pipeline and port known as VMOS is set to be operational next year, enabling producers to increase crude production significantly. Plans for liquefied natural gas shipments are also being developed. Last year, Continental emerged as the inaugural US shale independent to venture into Argentina through a transaction to acquire assets from the local driller Pluspetrol SA. In January, a second transaction was executed to acquire stakes in blocks managed by Pan American Energy Group, which is partially owned by BP Plc.
Another US producer making a strategic move in Argentina is supermajor Chevron Corp, which has recently opted to expand its operations in the Vaca Muerta region, spurred by a Milei initiative that offers tax reductions and additional incentives. Argentine officials are yet to grant approval for Chevron’s application.