Biggest Shale Play Outside of Texas Gets $5.1 Billion Lifeline
- Government will pay drillers $5.1 billion over four years
- Natural gas subsidy to boost Vaca Muerta, energy chief says
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Argentina’s cash-strapped government says it can find $5.1 billion to give to natural gas drillers in a bid to resuscitate the country’s Vaca Muerta shale patch and prevent a jump in imports of the fuel.
The four-year subsidy program that was announced last week will cost Argentina more than $1 billion annually, including $1.5 billion in 2021, at a time when the government is struggling to recover investor confidence following a debt restructuring and hasn’t posted a monthly fiscal surplus in a year.