Two people shaking hands at an event, next to an image of an oil field with a pumpjack. — PAE bets on shale gas in Chubut with an investment of US$250 million | La Derecha Diario

Camara — PAE bets on shale gas in Chubut with an investment of US$250 million | La Derecha Diario

Pan American Energy will invest 250 million to exploit shale gas in Chubut

Pan American Energy found shale gas in Chubut. There will be investment, employment, and a new boost for the energy south

16/04/2025 13:18:00h

Editorial Team

Pan American Energy announced the discovery of shale gas in Cerro Dragón, province of Chubut. The initial investment will be 250 million dollars and is expected to create new jobs.

The discovery reactivates the Gulf of San Jorge basin and positions southern Argentina as a key area for unconventional energy production.

An older man in a dark suit and tie speaks while holding documents in a professional setting with a blue background.

Alejandro Bulgheroni, president of Pan American Energy | La Derecha Diario

What did they find in Cerro Dragón?

The company confirmed that it is unconventional gas housed in shale formations, similar to Vaca Muerta. This type of resource requires special extraction techniques like fracking.

Pan American Energy has been operating in the area for decades. The discovery gives a twist to a region that seemed depleted in terms of conventional gas.

Million-dollar investment

The 250 million dollar investment will be allocated to the opening of five wells. This will be the first step for deeper exploration throughout the Gulf of San Jorge basin.

An oil pumpjack in a desert landscape under a blue sky.

The 0 million investment will be allocated to the opening of five wells | La Derecha Diario

According to initial estimates, the province of Chubut will receive nine million dollars in royalties during the first stage of the project.

What does this discovery mean for Argentina?

The discovery is considered strategic. It adds significant reserves and enhances the country's export profile in natural gas.

A worker with a hard hat, safety glasses, and ear protectors holds documents in an industrial plant with metal pipes in the background.

This finding adds significant natural gas reserves | La Derecha Diario

Argentina could expand its energy capacity without relying exclusively on Vaca Muerta, which diversifies sources and improves energy security.

Impact on the local economy

The project will generate direct and indirect employment in the region. It will also encourage the development of local suppliers and energy infrastructure.

For a province that was in decline in conventional production, this discovery represents a concrete opportunity for reactivation.

An oil drilling platform in an arid landscape with a clear sky.

The project will generate direct and indirect employment in the region | La Derecha Diario

The role of the provincial government and the spillover effect

Governor Ignacio Torres has already signed a decree to rezone the exploitation area. This allows progress with necessary permits and authorizations.

Other oil companies are expected to start showing interest in the area. The spillover effect could multiply private investment in the coming years.

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