Neuquén and Buenos Aires, Argentina, 28 June 2021 - Vista Oil & Gas and Trafigura Argentina announced today the signing of a joint investment agreement for the development of 20 oil wells in the Bajada del Palo Oeste block. This joint investment of approximately USD250 million represents an important capital investment in Vaca Muerta Shale which is located in the Argentine Patagonia and one of the most important shale formations globally.
Vista, the third largest crude producer in Argentina and the second largest shale oil operator in the country, has operated the Bajada del Palo Oeste block for over two years. This is the first strategic agreement that Vista has made with another company to accelerate the development of its main shale oil block which has 28 wells currently in production.
Trafigura is one of the world’s leading independent commodity trading companies, trading over six million barrels of oil per day. In Argentina, Trafigura owns and operates the Bahía Blanca Refinery, the Campana terminal and Puma Energy’s network of more than 350 service stations and 50 agroservices.
Trafigura will invest around USD75 million - of which USD25 million are a purchase price for the 20 percent participation in the production of the wells covered by the agreement, and the outstanding amount the contribution of 20 percent of the investment for their development.
Vista will be the operator of the wells, will keep 80 percent of the production from the wells, and will contribute 80 percent of the investments.
"This agreement further validates the performance of our company and the excellence of its management team, which has allowed us to lead the development in Vaca Muerta and to be the partner of choice of a global company for the development of shale in Argentina, with safe, efficient and sustainable operations,” highlighted the President and CEO of Vista, Miguel Galuccio.
“It will also help to generate more production, and thus continue to expand energy exports that are essential for generating foreign exchange that the country needs, whilst preserving and always supplying the local market,” concluded Miguel Galuccio.
“This alliance allows us to strengthen our business in Argentina and integrate the supply of crude oil for our refinery and the subsequent supply of fuels for our network of service stations, wholesale clients and the export market to neighboring countries,” said Martin Urdapilleta, General Manager of Trafigura Argentina. “Our strategic agreement with Vista will contribute to the development of Vaca Muerta, continuing its operational excellence and compliance with the highest safety and environmental standards. This initiative is part of our ambitious investment plan for Argentina that began in 2013 and that we plan to continue executing during the following years, showing our long-term commitment to the country," concluded Martin Urdapilleta.
Under the same agreement, Vista has committed to supply Trafigura with 380,000 barrels per month of crude oil for its refinery in Bahía Blanca for 18 months.
For further information, please contact:
Trafigura Press Office: +41 22 592 4528 or email@example.com
Vista Press Office: +54 9 11 2798 8235 or firstname.lastname@example.org
Vista is an independent Latin American oil and gas company, which operates since April 4, 2018 and it is listed on the Mexican Stock Exchange and the NYSE. The company develops high-quality assets in Argentina. In Vaca Muerta, Bajada del Palo Oeste block is its main shale oil development in which there are currently 28 wells in production and an inventory of approximately 550 wells.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.
With circa 850 shareholders, Trafigura is owned by its employees. Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.