Argentina looks to recapture Vaca Muerta shale momentum

Investment in Vaca Muerta has slumped. A deal between Shell and YPF shows government efforts may be turning things around

Argentina's efforts to draw more investment into the Vaca Muerta shale play showed signs of paying off in late February when Shell, and state-owned YPF, struck a $300m deal to launch a new pilot gas project in the area. In a break with YPF's past shale joint ventures, it will cede operatorship over the project to Shell. Each company will take a 50% share in the Bajada de Añelo block, a lightly drilled area that sits adjacent to the Loma Campana block where YPF is working on a shale pilot development with Chevron and where most shale drilling has taken place. Shell will put up nearly 98% of the pilot programme's initial investment. Shell has quietly amassed a significant position in the hotte