Royal Dutch Shell Plc and Total SA will invest $550 million with Gas y Petróleo del Neuquén SA (GyP), an energy company owned by the Argentine province of Neuquén, to develop two shale oil and gas pilot projects, according to a Reuters report.
Shell Argentina plans to invest $250 million in exploring the Sierras Blancas and Cruz de Lorena blocks, Reuters said. Plans include drilling, along with a central oil and gas treatment plant with a capacity of 10,000 barrels per day.
Reuters noted that GyP also announced a $300 million investment with Total Austral for a separate Vaca Muerta oil and gas pilot project. The Vaca Muerta formation covers a total area of 30,000 square kilometers.