Continental Resources, the shale driller founded by billionaire Harold Hamm—widely regarded as one of the pioneers of the U.S. shale revolution after unlocking North Dakota's Bakken formation—is positioning to expand its presence in Argentina's Vaca Muerta formation as international energy companies compete to develop one of the world's most prolific shale basins. The move comes after Hamm took Continental private in late 2022, giving the Oklahoma City-based company latitude to pursue long-cycle international investments without quarterly market scrutiny.

According to sources familiar with the matter who spoke with Bloomberg, Continental plans to participate in this year's licensing round for Vaca Muerta acreage—the largest auction the basin has seen in a decade. Bids are scheduled to be opened on August 19.

The province of Neuquén, where the majority of Vaca Muerta lies, has put 15 blocks on offer, more than double the number available in the previous auction. The expanded offering comes amid surging interest in the basin, driven in part by President Javier Milei's administration, which has introduced tax cuts and other investment incentives that have supported steady oil and gas production growth over the past two years. Milei's deregulation package, enacted in mid-2025, also eased capital repatriation rules that had long been a deterrent for foreign oil and gas investors.

Vaca Muerta has become a priority destination for oil and gas companies, including major U.S. shale operators, thanks to its de-risked geology and strategic advantage of being located far from supply chokepoints such as the Strait of Hormuz and other Middle East shipping corridors. The basin already hosts major international players including Chevron, ExxonMobil, and Shell, alongside national oil company YPF.

Continental's Growing Argentine Footprint

Continental Resources established a presence in Argentina and began accelerating its expansion earlier this year. In January 2026, the company acquired stakes in four Vaca Muerta blocks as part of its broader strategy to grow its shale operations outside the United States.

"Vaca Muerta is one of the most compelling shale plays in the world, and we're thrilled to continue to invest in Argentina and build Continental's position through this agreement with Pan American Energy," said Continental Resources president and CEO Doug Lawler at the time, as reported in the company's press release.

"We take a long-term view of resource development, regardless of geography. As I like to say, 'The rock doesn't know what country it's in.'"

Continental is now seeking to further increase its Vaca Muerta holdings through the current licensing round, which concludes this month.

Vaca Muerta's Rising Profile

According to analysis by Rystad Energy published earlier this year, Vaca Muerta ranks at the top of the list of regions expected to supply the next generation of reliable oil barrels, particularly amid the global supply disruptions seen in 2026. The consultancy notes that the Argentine shale play is already outperforming major U.S. formations—including the Permian, Bakken, and Eagle Ford—on well productivity metrics, and projects that crude production from Vaca Muerta will exceed 1 million barrels per day (bpd) by the end of the decade.

After a slow start earlier in the decade, Vaca Muerta is now in a boom phase. The most recent production data showed crude oil output reached an all-time high of 887,227 bpd in May, representing a 19% increase from the same month a year earlier. Rising Vaca Muerta output has also helped Argentina reverse years of energy trade deficits, with the country posting energy trade surpluses in recent months as shale production displaced imports.

"Argentina is offering international companies their best organic entry point into Vaca Muerta in a decade," said Jai Singh, Head of U.S. Oil & Gas Research at Rystad Energy, referring to the 2026 bid round. "The basin is maturing fast, infrastructure is being built at pace, and the bid terms are designed to attract operators who can bring North American shale expertise to bear."

Singh added: "This bid round is the moment that the world's most important non-U.S. shale play formally invites the world in."

Infrastructure Buildout and LNG Ambitions

Vaca Muerta has already propelled Argentina to the position of the fourth-largest oil producer in Latin America—a ranking that could rise further as the government prioritizes domestic energy industry development and supports infrastructure projects designed to expand the basin's offtake capacity. The infrastructure push is critical because production growth has at times outpaced pipeline capacity, creating bottlenecks that limited export volumes in previous years.

Key infrastructure plans include the Vaca Muerta Oil Sur (VMOS) pipeline, which is designed to transport over 180,000 bpd of crude in its first phase and up to 550,000 bpd once Phase II is completed.

Additionally, Argentina's state-owned company YPF, Italy's Eni, and the United Arab Emirates' XRG are advancing plans for an integrated upstream-midstream project known as Argentina LNG, aimed at producing, exporting, and marketing Vaca Muerta's natural gas resources.

By Tsvetana Paraskova for Oilprice.com.