Pan American Energy is set to invest US$1.4 billion in Argentina’s oil and gas industry, according to a report in the Wall Street Journal.
Pan America is involved in the Cerro Dragon field, Argentina’s largest oil field, which produces around 95,000 barrels of oil per day.
The company is also involved in shale gas projects in the province of Neuquén, including Vaca Muerta, one of the world’s leading resources of unconventional oil and gas.
Argentina has some challenging geology and the investment will bring a range of new technology to the region aimed at accessing hard to reach reserves.
According to the report, Pan American will invest around $900 million in boosting production at its oil field in Chubut province, with the rest being allocated to shale gas projects in Neuquén.
Argentina has proven natural gas reserves of 430 billion cubic metres, the 33rd biggest reserves in the world and the second most abundant in South America.