Argentina-focused Vista looks to up crude exports

Argentina-focused upstream company Vista Oil & Gas pegged 2022 capex at US$375-400mn, up around 20% from 2021 guidance.

Vista deployed US$324mn in capex last year, below expected outlay of US$330mn.

The 2022 uptick reflects “additional activity” at the Aguada Federal license in the Vaca Muerta shale play, CEO Miguel Galuccio said during the company’s Q4 results call. 

“This capex is partially front-loaded during the year as we build infrastructure for our new production, impacting free cash flow in the first two quarters.” 

In January, Mexico-headquartered Vista said it had bought the remaining 50% stakes in the Aguada Federal and Bandurria Norte licenses from Germany’s Wintershall Dea for US$140mn. 

Vista had obtained a 50% non-operating stake in the two blocks last year with the purchase of ConocoPhillips’ interests. 

The company has begun work on projects – which include a pipeline – to integrate the new acreage into its flagship Bandurria del Oeste cluster, Galuccio said.

Vista plans to tie-in 24 wells this year: 16 in Bajada del Palo Oeste, two at Bajada del Palo Este, two at Águila Mora and four at Aguada Federal.

Production is expected to grow 20% to 46,000-47,000boe/d this year. The firm also plans to ramp up oil exports 77% to 5.5Mb (million barrels), which would constitute 40% of crude oil sales volumes.  

Vista revenue in 4Q21 rose 146% year-on-year to US$196mn, supported by 51% and 70% increases in average crude oil and natural gas prices, respectively.

In terms of Neuquina basin oil transport capacity – which the federal energy department last year said needed boosting to support rising output – Galuccio said the company did not currently face dispatch restrictions.

“But we need to act because everybody is growing,” the CEO said. Pipeline operator Oldelval, a central midstream player at the basin, last year announced plans to boost pumping capacity.

Argentina’s total oil production was an estimated 570,000b/d in January the highest monthly reading since December 2011. Unconventionals, which have driven growth, accounted for 224,000b/d, a historic high, the department said.

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Vista also has assets in Mexico’s Macuspana basin.