Chevron to Add Two Rigs at El Trapial in Argentina, Targeting $13.8 Billion Plan

Chevron plans to add a second drilling rig at its El Trapial block in Argentina in June and a third by early 2029, part of a $13.8 billion investment plan over 30 years, Reuters reported on October 23, 2026. The company aims to triple its Argentina production.

Chevron's El Trapial Expansion Plan

Chevron is bringing US workers, equipment and expertise to the Vaca Muerta shale formation, betting it can recreate the Permian Basin boom. The company hopes to accelerate its goal of tripling production from Argentina, with plans to go from one to three drilling rigs at El Trapial by early 2029, a company executive told Reuters. Longer term, Chevron is working to secure government approval for its plan to spend $13.8 billion over 30 years to increase production at the block, one of its three projects in the formation.

Chevron fully owns and operates El Trapial, which currently produces 40,000 barrels of oil equivalent per day. It also holds a 50% interest in both Loma Campana, which produces about 110,000 boepd, and Narambuena, which has not yet started production. YPF operates both.

Chevron said last year it would triple its output across Argentina by 2035 to 195,000 boepd. That timeline could accelerate if it adds the second rig in June and a third around early 2029 at El Trapial, Chevron's president of shale and tight, Gerbert Schoonman, said. "I'm hoping we can shave a year or two off," he said.

Chevron's Argentina Scale and Costs

Chevron is an integrated global energy company operating upstream oil and gas production, downstream refining and marketing, and emerging power generation for AI data centers, according to akta.pro company records. The company reported record output of 3,858 MBOED, a 15% year-over-year increase driven by Hess acquisition integration and Permian growth exceeding 1 million BOE/day. Chevron's Permian Basin production has surpassed 1 million BOE/day.

Bringing a well online in Vaca Muerta costs about 30% more than in the Permian, Chevron Argentina operations manager Juan Pablo Romano said during a September press tour of El Trapial. Sand used for hydraulic fracturing is delivered on trucks that travel nearly 2,000 kilometers from north of Buenos Aires, Schoonman said.

Earlier Chevron Developments

On October 22, 2026, satellite monitoring detected persistent methane plumes from Chevron's Gorgon LNG plant, with the latest pass recording about 7.8 tonnes per hour, and the UN warned Chevron, which said it was seeking clarity on the data, ABC reported. On October 21, 2026, Chevron said it was exploring the sale of older US Gulf assets, including stakes in Petronius, Tubular Bells and Llano fields, in a move that could raise about $1 billion, Reuters reported. Also on October 21, 2026, Chevron announced four executive changes effective January 1, 2027, including Eimear Bonner moving to president of oil, products and gas and Jeff Gustavson succeeding her as CFO, Store Dive reported.

Chevron's Next Steps in Argentina

Chevron envisions extending its contract for El Trapial's western section beyond its 2032 expiration and building additional facilities such as tanks to separate oil and water, country manager Ana Simonato said. The second rig is expected in June, with the third around early 2029.