Continental and Mercuria invest in Argentina's shale oil
Continental Resources and Mercuria Energy Trading are each acquiring a 50% stake in Phoenix Global Resources to jointly develop shale oil production in Argentina. The partners plan to increase investment and output at the Vaca Muerta field, investing over $4 billion in the next five years.
Petrus
American independent company Continental Resources has signed an agreement with Swiss trading group Mercuria Energy Trading to acquire a 50% stake in the oil and gas company Phoenix Global Resources.
The possibility of such a deal had previously been discussed, as Continental aimed to expand its presence in Argentina’s Vaca Muerta shale formation. Both companies recently participated together in a bidding round for the development of Vaca Muerta, submitting proposals for six exploration blocks in the Neuquén Basin.
The deal involves a significant increase in Continental’s investments in Argentina. Upon completion, Mercuria and Continental will become equal owners of Phoenix. The financial details of the agreement have not been disclosed.
The new joint venture is expected to boost Phoenix’s production at the Vaca Muerta field from the current 28,000 barrels of oil equivalent per day to over 100,000 barrels per day within the next five years. The partners are considering investments exceeding $4 billion.
Phoenix operates four blocks in the Vaca Muerta field: Mata Mora Norte, Mata Mora Sur, Confluencia Norte, and Confluencia Sur.