Chevron and Shell Eye Stake in Argentina's Vaca Muerta Project

Chevron Corporation CVX and Shell plc SHEL are undergoing discussions about buying a stake in Argentina’s signature $3 billion Vaca Muerta Sur project to boost crude oil exportsfrom its promising shale fields. Both companies are in conversation with a consortium of companies led by YPF Sociedad Anónima YPF to build a new transcontinental pipeline and a floating Atlantic terminal that would transform Argentina’s oil export potential.Investment in the shale project by big oil players like CVX and SHEL, both carrying a Zacks Rank #3 (Hold) currently,would signify more foreign investments from companies around the globe, which were restricted till now due to Argentina’s restricted capital investment regulations.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.An Insight Into Argentina’s Vaca Muerta and Its Ambitious ProjectThe Vaca Muerta, known for playing a pivotal role in turning Argentina into a powerhouse of energy, has the second-largest shale gas reserve worldwide. The shale patch has the potential to cut back Argentina’s dependence on oil and gas imports.The proposed pipeline under the YPF-led Vaca Muerta Sur project would transport half a million barrels of crude daily by late 2027, almost similar to existing transport capacity from Argentina’s Patagonian shale hub. The project already has backing from the Pan American Energy Group, which consists of BP p.l.c. BP, holding a 50% stake in the group and other energy partners like Pampa Energia SA and Vista Energy. The consortium plans to finance 70% of the project through international banks, with partners contributing 30%.Argentina’s Pro-Business Reforms to Attract InvestorsArgentina’s President, Javier Milei, has been struggling to convince the big multinationals to invest in Argentina despite its business reforms because of the inherited strict regulations relating to currency and capital controls.Now, the president is extending the key reforms to attract foreign investments. The key reform initiatives include 30-year exemptions to currency restrictions and tax breaks protected by law.Meanwhile, with companies like Tenaris SA already set to deliver pipes by next year, the Vaca Muerta Sur project is poised to elevate Argentina's energy sector, drawing closer to its 20-year-old oil and gas production peak.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks