Chevron Plans to Increase to 3 Rigs to Develop Argentina's El Trapial Oilfield

en.Wedoany.com Reported - On October 23, U.S. company Chevron announced expansion plans for the El Trapial oilfield in Argentina's Vaca Muerta shale oil region, planning to add a second drilling rig in June 2027 and deploy a third rig in early 2029. The oilfield currently produces about 40,000 barrels of oil equivalent per day. Chevron is applying for a development investment plan totaling $13.8 billion over a 30-year implementation period, intending to expand shale oil production by adding drilling equipment and supporting facilities.

Gerbert Schoonman, President of Chevron's Shale and Tight Oil business, said that after adding rigs, the company will build up a sufficient number of drilled wells to enable hydraulic fracturing crews to operate continuously in the oilfield, changing the current intermittent fracturing schedule. Chevron also plans to build additional production support facilities such as oil-water separation tanks and is seeking to extend the development contract for the western block of the oilfield, which expires in 2032.

Drilling costs remain the main challenge facing the oilfield's development. Juan Pablo Romano, Chevron's Argentina operations head, said that the cost of bringing a single well into production in the Vaca Muerta region is about 30% higher than in the U.S. Permian Basin. Currently, fracturing sand must be trucked nearly 2,000 kilometers from areas north of Buenos Aires because local sand sources cannot yet meet fracturing operation requirements. Chevron is introducing U.S. shale oil development equipment, technical personnel, and continuous drilling and fracturing operation experience.

Chevron previously set a target of increasing Argentina's daily oil and gas production to 195,000 barrels of oil equivalent by 2035. With the increase in the number of rigs at the El Trapial oilfield, the company is striving to achieve this target one to two years ahead of schedule. In addition to operating the oilfield independently, Chevron also holds 50% interests in the Loma Campana and Narambuena projects, both operated by Argentina's national oil company YPF, with Narambuena not yet in production.