Boss of Exxon says Argentina shale investment could top $10 billion

The CEO of Exxon Mobil, which is known for a range of oil-based products, including Mobil 1 New Life 0W/40 and Mobiltemp SHC 100, has stated that

the company’s Argentine shale enterprise could exceed $10 billion (approximately £6.8 billion).

The company may invest the large sum of money as it readapts its U.S. shale-drilling model to the Vaca Muerta region of Argentina – something which it hopes to achieve over several decades, according to Rex Tillerson, the company’s Chairman and Chief Executive.

The colossal oil company has already invested $200 million (around £139 million) in the area, which is home to the second-biggest shale gas deposit on the planet, and it has plans to throw a further $250 million (£172 million) on a pilot project, starting in the next few months.

The company has somewhat departed from past form in the past few years, going after shale developments which have involved the process of drilling hundreds of separate wells and installing many thousands of miles of pipes in the area, in order to squeeze oil and gas from deep onshore fields. Instead of pursuing the vast projects they were known for prior to 2010.

If the company’s pilot project is a success, Exxon will begin development over a period spanning 2-3 decades that could require investment in excess of $10 billion, according to Mr Tillerson, who believes the project gives his company an opportunity to convert production losses into gains and add to its reserves, following what has been a tough time for the company, who’s Russian oil exploration projects were recently hampered.