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Neuquen Executive:Russia,China Interested In Argentina Oil,Gas Shale

By Isabel Ordonez

Published November 08, 2011

HOUSTON -(Dow Jones)- Russian and Chinese national energy companies have shown interest in Argentina's emerging shale oil and gas sector, a top executive from the provincial company in charge of awarding exploration rights said Tuesday.

"We have talked with Gazprom, there are also some Chinese companies" interested, Ruben Etcheverry, chairman of Gas y Petroleo del Neuquen, told reporters on the sidelines of an energy conference in Houston.

The remarks highlight the rising interest among oil giants in Argentina, which is thought to hold vast quantities of oil and gas in tight sand and shale rock formations.

International oil companies such as Exxon Mobil Corp. (XOM) and Apache Corp. (APA) have recently acquired large shale positions in the southwestern province of Neuquen. On Monday, Repsol YPF S.A. (REP.MC) said it has found large reserves of shale oil in the province.

Etcheverry said shale gas development in Argentina could help the South American nation stop being dependent on expensive gas imports in five or six years.

Shale gas development in Neuquen doesn't face serious infrastructure challenges because it has underutilized pipelines that could be used to transport shale gas. Remaining infrastructure such as separation plants will be constructed by companies rather than by the government, Etcheverry said.

While it will take some time to commercialize shale gas, oil and liquids from Neuquen, shale oil is already being produced and sold, he added.

Copyright © 2011 Dow Jones Newswires

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