Continental and Mercuria invest in Argentina's shale oil
American company Continental Resources and Swiss firm Mercuria are each acquiring a 50% stake in Phoenix Global Resources, with plans to boost production at the Vaca Muerta field and invest over $4 billion in Argentina. The financial details of the deal have not been disclosed.
Petrus
The American independent company Continental Resources has reached an agreement with the Swiss trading group Mercuria Energy Trading to acquire a 50% stake in the oil and gas company Phoenix Global Resources.
Previously, the possibility of such a deal was discussed when Continental was considering options to expand its presence in the Argentine Vaca Muerta shale field. Both companies recently participated in a bidding round for blocks in Vaca Muerta, submitting projects 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 Global Resources. 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 manages four blocks in Vaca Muerta: Mata Mora Norte, Mata Mora Sur, Confluencia Norte, and Confluencia Sur.