Exxon to proceed with oil development in Argentina

(Reuters) — Exxon Mobil Corp said on Tuesday it was going ahead with an oil development project in Argentina that could produce up to 55,000 barrels of oilequivalent per day (boepd) within five years.

The project will include 90 wells, a central production facility and export infrastructure connected to a pipeline and refineries, the company said.

Exxon began a pilot project in the 99,000-acre Bajo del Choique-La Invernada block, located about 114 miles northwest of Neuquén city, in 2016 after successful results from an initial exploration.

The company’s development in Argentina has been slow due to several reasons, including the geographic remoteness of the country from U.S. shale operations as well as government controls on natural gas prices.