BUENOS AIRES (Reuters) - Royal Dutch Shell PLC (RDSa.L) inaugurated on Tuesday a treatment plant for shale oil and gas in Argentina’s Vaca Muerta shale play, one of the world’s largest.
The plant, announced in 2014, has a capacity to process up to 10,000 barrels per day from the Sierras Blancas, Cruz de Lorena and Coiron Amargo Sur Oeste blocks operated by Shell, the company said in a statement.
“(The plant) receives output from the wells of these blocks, processing the oil and gas to leave it ready for commercialization,” the statement said.
Investment has been picking up in Vaca Muerta in recent months after President Mauricio Macri’s government announced a deal with labour unions to lower costs and defined price supports. [nL2N1H01Z1]
Shell said in September it planned to invest $300 million per year through 2020 in Argentina in exploration, refining, distribution and marketing. [nE6N178023]
Reporting by Juliana Castilla and Caroline Stauffer