Rocca confirmed that Tecpetrol will produce 30% more Vaca Muerta gas

The CEO of the Techint Group, Paolo Rocca, confirmed the decision to invest U $ S1.300 million "in the next fifteen months" to make progress in the development of hydrocarbon sources in the unconventional Fortín de Piedra deposit, from the Geological Vaca Muerta formation in the Neuquén basin.

The entrepreneur stated that this investment aims to achieve a production of 17 million cubic meters of natural gas per day by this end of the year (13 percent of the total land supply of this resource), and against it. end of 2019 reach 22 million cubic meters. "

Tecpetrol, the oil arm of Techint, who is in charge of the project, had announced a production platform for Fortín de Steen of 17 MMm3 / day shale gas, which would be reached in May 2019.

Rocca & # 39; s statements show an acceleration and expansion of these plans, so that according to the entrepreneur, Tecpetrol will produce 30% more Vaca Muerta gas than originally planned: 22 to 17 MMm3 / day originally reported

During a day of the Argentine Business Association (AEA), the director pointed out that for the industrial group he leads – identified with the steel industry and constructions – the bet he makes in Vaca Muerta, via Tecpetrol, implies a certain change in his company profile because of the strong invasion of the energy sector 19659008] In fact, Rocca emphasized the results achieved in Fortín de Piedra, stating that "since March 2017 we have already invested 1,400 million dollars. estates, of which 650 million in the installation of pipelines and a gas treatment plant, and more of 700 million in the development of the fields, where today more than 11 million cubic meters of gas is produced. "

The realization of additional investment, he said, required They are based on maintaining the current contractual conditions, framed by Resolution 46 (from 2017), which has drawn up a program to encourage investment to tight gas and shale gas to be produced in the Neuquén river basin under subsidized price conditions.

In the meantime, Rocca emphasized the "positive macroeconomic impact" that Vaca Muerta's development will have in the coming years, due to its contribution to reducing the deficit caused by the lower imports of natural gas, liquefied natural gas (LNG) and fuel oil and gas oil used for generating electricity.

The new gas, he said, will contribute "in the next two years to a significant reduction of the costs (locally) to generate electricity. "And also" to a fall in inflation due to lower production costs, "he said.

Rocca was excited to be emphasize that the development of Vaca Muerta will enable the export of gas and thereby improve the country's accounts.

"You can think of a country that already produces 200 million cubic meters of gas and 1 million barrels of oil in five years, and in this connection the turnover of the sector would be in the order of 30 billion dollars and the exploitation of 15 billion. "

Techint's CEO said that" the speed of development of investment projects in Vaca Muerta depends on maintaining the rules of the game, the perception of stability with changes in government, and access to credit. "

" To attract businesses, it is important to convey a vision of a country that has reduced macroeconomic imbalances and that there is a state that promotes investment. "

In agreement with the government, Rocca confirmed that "my conviction is that this storm is with investment, production and responsibility of everyone."

"In five years time the economic structure can be changed, what (with the development of Vaca Muerta) is an important driver for the growth of the country, "he noted.