Qatar Petroleum acquires 30% equity in two ExxonMobil affiliates in Argentina

DOHA -- Qatar Petroleum has entered an agreement with ExxonMobil to become a 30% equity holder in two ExxonMobil affiliates in Argentina, which hold different interests in hydrocarbon licenses for seven blocks in the world-class Vaca Muerta play in the onshore Neuquén basin.

The relevant agreements were signed by Saad Sherida Al-Kaabi, president & CEO of Qatar Petroleum, and Andrew P. Swiger, senior V.P. and principal financial officer of ExxonMobil Corp., at a ceremony held in Doha, in the presence of senior executives from both companies.

Upon closing, the signed agreements will give Qatar Petroleum a 30% shareholding in two ExxonMobil local affiliates in Argentina, namely, ExxonMobil Exploration Argentina S.R.L. and Mobil Argentina S.A., which hold rights with other partners for seven blocks under unconventional exploration licenses with active drilling plans, as well as exploitation licenses with pilot drilling and production.

The Vaca Muerta shale in the Neuquén province in western Argentina is considered among the most prospective unconventional shale oil/gas plays outside North America. Activity in the basin has picked up recently, mainly due to governmental incentives and rising domestic energy demand. A number of international operators have established presence in the basin and announced ambitious investment plans.