Argentina’s shale oil production from its huge Vaca Muerta formation grew by nearly 36% in March from a year earlier, official data showed on Friday, a bright spot for the South American country’s ailing economy.

Vaca Muerta’s shale oil output last month reached 300,400 barrels per day (bpd), which was also up roughly 3% from February.

The shale formation’s March gas output, meanwhile, grew by about 14% to reach 52.3 million cubic meters per day (cmd).

Located in the western Patagonian province of Neuquen, Vaca Muerta is the world’s No. 2 shale gas reserve and the fourth-biggest shale oil reserve. Officials see its growing production as key to the country’s push to lessen reliance on pricey energy imports.

In a statement, Energy Secretary Flavia Royon noted that Vaca Muerta wells pumped 47% of the country’s total oil production and 41% of total natural gas production.

While its oil output has recently grown sharply, Argentina is one of Latin America’s mid-range producers, behind leaders Brazil, Mexico and Colombia.

Royon added that growing domestic production this year should allow the country to reach a balance between energy exports and imports, and overcome a deficit that reached some $5 billion in value terms last year.

Including both conventional and shale production, Argentina’s oil output overall increased 12% in March to total about 641,000 bpd, while gas production grew nearly 3% in the same month to reach 128.8 million cmd.
Source: Reuters (Reporting by Eliana Raszewski; Editing by David Alire Garcia and David Gregorio)