Chevron: Argentina's costs are still challenging, despite reform progress

Mark Nelson, Vice Chairman of Chevron, said that the cost of doing business remains high in Argentina despite the promising geology. The government of Javier Milei has made progress to promote the oil industry. Mark Nelson, Vice Chairman of Chevron, said that the geology in Argentina is excellent despite the progress made by the government under President Javier Milei to promote the oil economy.

Chevron holds exploration and development interest in the Vaca Muerta Formation in southern Neuquen Province, where the estimated ultimate recovery is 50% higher per well than the average in the Permian Basin in Texas.

Nelson stated that the crude produced in this area is competitive with Arab Light and highly desirable when blended. The company still sees costs for drilling a well in the Permian that are 35% higher.

Nelson stated that they hoped that the capital controls, tax burden and flexibility of workforce would all be reduced. This would allow them to better manage their people and reduce taxes. Sheila Dang reported from Houston, and Nathan Crooks edited the story.

(source: Reuters)