Petronas Signs $550 Million Argentine Shale Deal With YPF
YPF SA (YPF) and Petroliam Nasional Bhd., state-controlled companies from Argentina and Malaysia, signed a $550 million deal to drill fields at the world’s fourth-largest shale oil deposit in Patagonia’s Vaca Muerta.
YPF, control of which was seized from Repsol SA in April 2012, is bringing in partners to finance development of a shale formation the size of Belgium that contains at least 23 billion barrels of oil. Chevron Corp. (CVX), the third most valuable oil company, entered into a partnership with YPF in July 2013 that now produces 35,000 barrels a day, while Dow Chemical Corp. is developing gas in an area called El Orejano.
The Petronas-YPF area is called La Amarga Chica and is located northwest of Loma Campana, the 290-square-kilometer venture with Chevron. Under terms of the arrangement, Petronas will invest $475 million in an initial phase of 35 wells to be operated by YPF. Spending will be shared equally if the venture moves beyond the pilot project.
- Published on:
- December 10, 2014
- Source url: