Chevron Corporation confirmed subsidiaries of the company have signed agreements with the Argentine oil company YPF S.A. to continue development of shale oil and gas resources from the Vaca Muerta formation located in the Neuquén province in Argentina.
"This is a significant step in our subsidiaries' joint efforts with YPF to develop one of the most exciting shale plays in the world today," said George Kirkland, vice chairman of Chevron Corporation.
"Vaca Muerta could become an important contributor to Chevron's long term production growth."
The agreements build off the progress made with the drilling program begun in 2013 and call for continued investment toward large-scale drilling and production in the 96,000-acre (388-sq. km) Loma Campana concession.
The agreements also call for exploration of shale oil and gas resources in the 49,400-acre (200-sq. km) Narambuena area located about 70 miles (100 kilometers) north of Loma Campana in the Chihuido de la Sierra Negra concession, one of the main producing areas in the Neuquén Basin of west-central Argentina.
"YPF is a reliable partner and operator that is advancing the project in the right direction," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.
"We are pleased with the progress achieved so far and look forward to continuing to provide our technical expertise and investment to help Argentina achieve its goal of energy self-sufficiency."