Exxon to sell Vaca Muerta assets in Argentina to Pluspetrol – Reuters

Exxon Mobil (NYSE:XOM) has agreed on terms and conditions to sell its oil and gas assets in Argentina’s Vaca Muerta shale formation to Pluspetrol, Reuters reported late Wednesday.

Exxon (XOM) will sell five blocks in Argentina’s western Neuquen province, where Vaca Muerta is located, and its stake in Argentine oil pipeline operator Oleoductos del Valle, according to the report.

Local media outlet Econo Journal reports Pluspetrol acquired the assets for ~$1.7B, but the companies have not published any statements discussing the transaction.

Vaca Muerta is estimated to contain recoverable resources of 16B barrels of oil and 308T cf of natural gas, making it the world’s second-largest shale gas deposit.

Exxon (XOM) has drilled 40 wells at Vaca Muerta but only seven were producing; the company’s production totaled 7.3K bbl/day of oil and 103M cf/day of natural gas as of February.