YPF to produce shale gas in Argentina with Chevron, negotiates with Gazprom
BUENOS AIRES. Sept 17 (Interfax) - The oil company YPF SA, nationalized earlier this year by the Argentinean government, has reached an agreement on developing a shale gas deposit in Argentina with Chevron, the Financial Times writes.
YPF is also negotiating a shale-gas partnership with Gazprom and the Argentinean energy company Bridas, half of which is owned by China's CNOOC.
"YPF has agreed a memorandum of understanding with Chevron to work together to develop its vast Vaca Muerta shale reserves in western Argentina," the Financial Times reports.
Details of the agreement have not been revealed. "However, signing up a large US group as a partner, particularly after the acrimonious circumstances of the nationalization, is a success for YPF," the paper says.
Chevron has the money and the technical know-how for extracting gas from shale strata, considering its experience working such deposits in the United States.
"With partners of the weight and importance of Chevron, and finding paths to allow synergies between both companies, I am sure that this is just the first step in a relationship which will be long and important." With partners of the weight and importance of Chevron, and finding paths to allow synergies between both companies, I am sure that this is just the first step in a relationship which will be long and important," YPF CEO Miguel Galuccio is quoted by the paper as saying.
Before YPF's nationalization this spring, the company Repsol held a 57.43% stake in the company, but was left with just 6.4%. It now has 12% and a single seat on the YPF board of directors. Repsol "is fighting for some $10 billion in compensation from Argentina and has written to other large international oil companies warning them that any investment in YPF or its assets will send lawsuits flying," the Financial Times reports. "Repsol will take legal action against this agreement. We do not plan to let third parties benefit from illegally confiscated assets. Our legal teams are already studying the agreement," the Spanish company is reported as saying.
