Gulf oil company acquires stake in ExxonMobil affiliates

06 June 2018

Qatar Petroleum (QP) has acquired for an undisclosed price a 30 per cent stake in two ExxonMobil affiliates in Argentina.

The move marks the Gulf energy operator’s first investment in Argentina, and its first international capital allocation into unconventional oil and gas resources.

The companies signed the agreement in early June in Doha. Upon closing, QP will be a shareholder in ExxonMobil Exploration Argentina and Mobil Argentina, gaining access to seven blocks in the Vaca Muerta shale play in western Argentina.

The affiliates’ assets include exploration licenses with active drilling, pilot drilling and production plans. They are supported Exxon subsidiary XTO Energy, which is developing detailed appraisal and development plans for these assets based on recently drilled wells and pilot production testing.

Vaca Muerta, in the Neuquén Province, is among the most prospective unconventional shale oil and gas plays outside North America.

Activity in the basin has picked up recently, mainly due to government incentives and rising domestic energy demand.

A number of international operators have established a presence in the basin and announced ambitious investment plans.

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