Continental Resources and Mercuria Form Joint Venture to Expand Vaca Muerta Production

U.S. oil company Continental Resources and Swiss energy group Mercuria have announced a joint venture to expand production in Argentina's Vaca Muerta shale formation. Under the agreement, Continental will acquire a 50 percent stake in Phoenix Global Resources, a company controlled by Mercuria. The partnership aims to increase current production from approximately 28,000 barrels of oil equivalent per day to over 100,000 barrels per day within the next five years. To achieve this goal, the companies plan to deploy more than 4 billion U.S. dollars in capital over that period.

The joint platform will manage approximately 163,000 net acres across six blocks in Vaca Muerta. These include assets in Mata Mora Norte, Mata Mora Sur, Confluencia Norte, Confluencia Sur, Los Toldos II Oeste, and a portion of the Bajo del Toro Este block. The venture involves several key figures, including Continental founder Harold Hamm and former Argentine Interior Minister Jose Luis Manzano. Continental's entry into the region began in late 2023 with the purchase of the Los Toldos II Oeste block from Pluspetrol.

While center right sources emphasize the scale of the investment and the strategic growth of the partnership, a center source frames the move by highlighting Harold Hamm's political ties as an ally of Donald Trump.