30/01/2026 by Thomas Clark
Recent reports suggest that British oil and gas major, Shell, is considering exiting the Vaca Muerta, a shale play situated in Argentina.
According to sources, both a full exit and partial asset sale are possible outcomes, with deals potentially earning billions.
After the Permian Basin in the US, the Vaca Muerta play is the world’s largest shale oil and gas formation. Consequently, it has become a major draw for many energy companies and has seen “Big Oil” players like Shell invest heavily in developing its resources.
Operating a majority stake in four blocks at present, the company established a presence in Vaca Muerta back in 2012. In 2024, its oil and gas production from the play was recorded at 15.6 million barrels.
An oil and gas supermajor, Shell operates in over 70 countries and has a trusted lubricant brand supplying a suite of specialised solutions that include agricultural oil, refrigeration compressor oil and mould release oil.
The name Vaca Muerta means “dead cow” and was bestowed by US geologist, Charles Weaver, for the resemblance created by its rocky outcrops. The formation dates between the Late Jurassic age and the Early Cretaceous age and is based in northern Patagonia’s Neuquén Basin. While many refer to it as the “Argentinian Permian”, its geological properties are closer to the Eagle Ford formation in South Texas.
Vaca Muerta has estimated recoverable resources of 308 trillion cubic feet of natural gas and 16 billion barrels of oil. As a result of the shale play’s resources, Argentina enjoyed its highest ever oil production rate of more than 816,000 barrels daily last year, making it Latin America’s fourth largest oil producer.
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