Continental Resources targets Argentina shale auction

Continental Resources Inc., the US shale company founded by billionaire Harold Hamm, is participating in an auction for 15 shale blocks in Neuquén Province. The province, which holds the bulk of Vaca Muerta acreage, opened bids for the blocks on August 19.

The move signals a deeper commitment to Argentina from a company that only established a footprint there last year. Continental initially acquired assets from local driller Pluspetrol SA. In January, it expanded by purchasing stakes in blocks operated by Pan American Energy Group, a company half-owned by BP Plc.

Hamm's decision to bid directly for state-owned acreage reflects a broader shift in US oil capital. With some of the best drilling locations in the Permian Basin of Texas and New Mexico running out, Argentine officials and oil executives have been actively courting US shale producers and service companies in Houston. They are positioning the Patagonia region as a direct substitute for the Permian.

This pitch is gaining traction due to macroeconomic policy changes under President Javier Milei. His free-market reforms have unlocked investments and financing that were previously blocked by years of strict capital controls. The government is actively sweetening the pot for foreign operators; Chevron Corp recently opted to develop more Vaca Muerta acreage specifically because of a Milei initiative offering tax cuts and other benefits. That application is still awaiting formal government approval.

For investors, the appeal of Vaca Muerta is increasingly tied to imminent infrastructure upgrades that will solve historical export bottlenecks. The basin already produces more than one million barrels a day of oil and gas, but the VMOS export pipeline and port scheduled for next year will remove a major cap on crude production. Additionally, plans for liquefied natural gas shipments are progressing, opening a second revenue stream for producers in the world’s fastest-growing shale patch.