By Marianna Parraga
HOUSTON, April 30 (Reuters) - Argentina's Neuquen provinceexpects major global energy companies, including Royal DutchShell, Chevron Corp and Exxon Mobil Corp, to bid in a May auction of 11 oil blocks, its energyminister said on Wednesday.
The exploration and development blocks include conventionaland unconventional oil and gas resources, most of them in thevast Vaca Muerta shale formation, considered one of the world'sbiggest shale deposits.
The results are expected for August.
"For unconventionals, the players will be the majors,"Neuquen Energy Minister Guillermo Coco said in Houston on a roadshow to attract foreign capital. "Chevron, Exxon, Shell haveshown interest in Vaca Muerta. They will compete for sure."
Companies interested in participating would have to formjoint ventures with the provincial oil company, Gas y Petroleode Neuquen (GyP), with 50-90 percent stakes, depending on theblock size and resources.
"We want to be the minority stakeholders in all theunconventional projects and also be an important stakeholder inconventional developments," Coco added.
According to Argentine law, it is possible for companies toform consortia to develop conventional and unconventionalresources separately in a single block.
President Cristina Fernandez has given the provinces moreleeway to set up energy development programs, a reflection ofthe huge resources needed to exploit the fields.
The Neuquen basin's crude output was 224,000 barrels per day(bpd) in 2013, more than a third of the country's production,and it also produced 2.2 billion cubic feet per day, accordingto the regional government's figures.
The first bidding round in Neuquen was held from 2008 to2009 and there have been another two rounds since. At least 57blocks have been assigned and some of the properties given backto GyP are being re-offered.
In the first round, the regional government did not demandaccess bonds as will be the case in this round. Companies couldpay as much as $80 million to access mid-sized areas.
The crude produced in the new areas has to be sold torefineries in Argentina through individual supply contracts, theminister added.
He expects that this will not be an issue, even though thecontrolled internal gas price is the cause of frequentcomplaints from operators working in the country.
U.S.-based Chevron has been the most active foreign oilcompany in Vaca Muerta in partnership with Argentine state-run company YPF SA. (Reporting by Marianna Parraga; Editing by Terry Wade and AndreGrenon)
