Project Profile

Value: US$3.35 billion
Location: East of the Neuquen Province, Anelo department, Argentina
Area: 97 square kilometres
Start-up Year: -

The Basf oil and gas subsidiary Wintershall and the Gas y Petroleo del Neuquen (GyP) finalised their joint venture agreement by which the German company will take the operator role to develop shale gas in the Block Aquada Federal as part of the Vaca Muerta basin. Wintershall signed a major farm-in agreement with GyP that should lead to invest US$3.35 billion capital expenditure in the Block Aguada Federal. Located at the east of the Neuquen Province, in the Anelo department, this Block Aguada Federal covers 97 square kilometres.  In September 2013 Wintershall and GyP has signed a non-bidding letter of intend to establish this joint venture providing that they should agree on the final terms of the agreement and they should get all the necessary regulatory approvals.

According to the final terms of the contract, GyP will retain the Block Aguada Federal exploration permit and future concession and Wintershall will hold 50% interests of the operating joint venture. During this first phase of exploration Wintershall is planning to drill six additional wells at its own expenses in the next two years. In order to define the most efficient operating model for the future production, Wintershall will combine two vertical wells with four horizontal. Assuming this first exploratory phase being successful, Wintershall and GyP will test a pilot project with 20 wells. Then Wintershall and GyP should move into the full field development of the Block Aguada Federal with 320 wells over the next 10 years. In March 2015, Wintershall and Gas y Petróleo del Neuquén signed an agreement under which Wintershall increased its interest in Argentina\'s Aguada Federal Block from 50% to 90%.

Operators:

Joint Venture with 100% interest operatorship:

Wintershall: 90% interest
Gas y Petroleo del Neuquen (GyP): 10% interest