US Billionaires Pour Billions into Argentina's Vaca Muerta Shale
US billionaire Harold Hamm is making a massive bet on Argentina's Vaca Muerta shale formation, acquiring a 50% interest in Phoenix Global Resources through his company Continental Resources. This deal creates an equal joint venture with commodities giant Mercuria Energy Group and will invest over $4 billion over five years.
The combined portfolio will cover approximately 163,000 net acres across six Vaca Muerta blocks, increasing production from over 28,000 barrels of oil equivalent per day to over 100,000 boed. This investment is a testament to the rapid growth of Vaca Muerta, with Argentina's recent revision of technically recoverable oil resources in the formation reaching 30.17 billion barrels - an increase of 89% from the previous estimate.
Hamm's expertise in horizontal drilling and hydraulic fracturing, honed through Continental's work in US shale, will be applied to Vaca Muerta. This move highlights growing foreign confidence in Argentina's economic reforms under President Javier Milei, with Chevron and other international producers also expanding their exposure.