Energy in ArgentinaEnergy Dialogue European UnionArgentinaJuly 2019

UNCONVENTIONAL HYDROCARBONS: THE RISE OF VACA MUERTA Leonardo Javier MastronardiNational Director of Scenarios and Energy PlanningUndersecretariat of Energy Planining

July 2019

Energy in ArgentinaEnergy DialogueEuropean UnionArgentina

ENERGY POLICY FROM DECEMBER 2015 TO DATEMONETIZATION OF DOMESTIC RESOURCES – UPSTREAM OIL AND GAS

Undersecretariat of Energy Planining

Argentina posesses world-class unconventional oil and gas resources, particularly in Vaca Muerta

Argentina’s technically recoverable unconventional gas and oil resources rank among the largest in the world

ENERGY POLICY FROM DECEMBER 2015 TO DATE MONETIZATION OF DOMESTIC RESOURCES – ARGENTINA HYDROCARBON RESERVES AND RESOURCES

Undersecretariat of Energy Planining

ENERGY POLICY FROM DECEMBER 2015 TO DATE VACA MUERTA KEY PROJECTS

Undersecretariat of Energy Planining

In 2019, there are eleven projects in development phase.

Source: Wood Mackenzie

PROJECT OPERATOR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201 Loma Campana YPF2 El Orejano YPF3 Aguada Pichana Este Total4 Cruz de Lorena-Sierras Blancas Shell5 La Amarga Chica YPF6 La Escalonada Total7 Rincon la Ceniza Total8 Fortin de Piedra Tecpetrol9 Bajo del Choique-La Invernada ExxonMobil

10 Bandurria Centro PAE11 Bandurria Sur YPF12 Pampa de Las Yeguas I ExxonMobil13 Rincon del Mangrullo YPF14 La Ribera I YPF15 La Ribera II YPF16 Aguada Federal Wintershall17 Bandurria Norte Wintershall18 Aguada de la Arena YPF19 Punta Senillosa Tecpetrol20 Aguada Pichana Oeste - Aguada de Castro PAE22 Coiron Amargo Sur Oeste GyP23 Bajada de Anelo Shell24 San Roque Total25 Bajada del Palo Oeste Vista Oil&Gas26 La Calera Pluspetrol27 Puesto Rojas El Trébol

ENERGY POLICY FROM DECEMBER 2015 TO DATE MONETIZATION OF DOMESTIC RESOURCES – UPSTREAM OIL AND GAS

Undersecretariat of Energy Planining

Only 4% of Vaca Muerta’s acreage has entered the development phase yet

ENERGY POLICY FROM DECEMBER 2015 TO DATE MONETIZATION OF DOMESTIC RESOURCES – UPSTREAM OIL AND GAS

Undersecretariat of Energy Planining

Vaca Muerta is comparable to the best unconventional plays in the US

Play TOC [%] Thickness [m]Reservoir pressure

[psi]

Vaca Muerta 3—10 30—450 4,500—9,500

Barnett 4—5 60—90 3,000—4,000

Haynesville 0.5—4 60—90 7,000—12,000

Marcellus 2—12 10—60 2,000—5,500

Eagle Ford 3—5 30—100 4,500—8,500

Wolfcamp (Permian)

3 200—300 4,600

Sources: Energy Information Administration (USA), 2013 & YPF, 2014

ENERGY POLICY FROM DECEMBER 2015 TO DATE MONETIZATION OF DOMESTIC OIL & GAS RESOURCES – SHALE FRACTURE EVOLUTION

Undersecretariat of Energy Planining

In the first half of 2019, fractures increased 40% on average, compared to 2018.

Source: Luciano Fucello, Country Manager NCS Multistage

PRODUCTION OF OIL AND NATURAL GASLAST RESULTS FROM MAY ‘19

Undersecretariat of Energy Planining

In may 2019, shale gas production nearly doubled, whereas shale oil production increased 63%.

INVESTMENT OPPORTUNITIES AND POLICIES

Undersecretariat of Energy Planining

TANGO FLNG: LNG FOR THE WORLD – 1ST CARGO LAST JUNE

Undersecretariat of Energy Planining

UPSTREAM INVESTMENT OPPORTUNITIES

Undersecretariat of Energy Planining

5-10 Bn USD annual investment opportunity to join Vaca Muerta’s development

New players and independent producers are particularly welcome to achieve full scale development

MIDSTREAM INVESTMENT OPPORTUNITIES

Undersecretariat of Energy Planining

Investment opportunities in infrastructure to debottleneck evacuation of upcoming O&G production

Thank you.

Subsecretaría de Planeamiento Energético

Contacto: Luciano Caratori, Subsecretario. privadaplaneamiento@energia.gob.ar

Dirección Nacional de Escenarios y

Planeamiento Energético

Dirección Nacional de Evaluación de

Políticas y Proyectos Energéticos

Dirección Nacional de Información

Energética

Contacto: Leonardo Mastronardi, DN

lmastronardi@energia.gob.ar

Contacto: Oscar Natale, DN

onatale@energia.gob.ar

Contacto: Fernando Pino, DN

fpino@energia.gob.ar

Últimas versiones y datos actualizados:

https://www.argentina.gob.ar/energia/planeamiento-energetico

http://datos.energia.gob.ar/