Continental Ups Vaca Muerta Stake as Argentina Auction Lures Global Giants

Continental Resources is increasing its stake in Argentina's Vaca Muerta shale play by bidding on acreage in the biggest auction in a decade. The company, founded by billionaire Harold Hamm, has already seen success in the region after doubling down on its investment earlier this year.

The province of Neuquén is offering 15 blocks up for grabs as part of the licensing round, which will be opened on August 19. This is more than double the number of blocks offered in the previous auction.

Argentina has become an attractive destination for oil and gas companies due to tax cuts and other benefits introduced by the government under Javier Milei. Vaca Muerta is considered a de-risked basin with proven geology, far from relying on Middle Eastern shipping corridors.

Rystad Energy analysts expect crude production from Vaca Muerta to top 1 million barrels per day (bpd) by the end of the decade, outperforming US plays such as the Permian and Bakken.