UPDATE: YPF Announces Strategic Partnership with Chevron to Develop Vaca Muerta Shale
YPF (NYSE: YPF) and Chevron (NYSE: CVX) sealed a historic partnership for development of unconventional hydrocarbon production in the province of Neuquén. President and CEO of YPF, Miguel Galuccio, President and CEO of Chevron Corporation, John S. Watson, and President of Chevron operations in exploration and production in Africa and Latin America, Ali Moshiri, signed an agreement that involves an initial outlay of 1.24 billion dollars. This will allow the development of the first phase in an area of 20 km2 of a new area called General Enrique Mosconi, located in Loma La Lata Norte and Loma Campana. The first driver includes the drilling of over 100 wells. After the signing, the senior management of both companies met with the President of Argentina, Cristina Fernandez de Kirchner, and informed the scope of the agreement. Together with the already disbursed by YPF in the region, this new addition adds a total investment of 1.5 billion dollars in the pilot, where there are already 15 rigs and draws more than 10,000 barrels of oil equivalent per day. Once granted the concession by the province of Neuquen, Chevron disburse the first $ 300 million. After the pilot program, the companies could continue to develop Enrique Mosconi total cluster. The total area of Vaca Muerta is about 30 000 km2, of which YPF has a net equivalent of 12 000 km2. develops rider the first stage, and the committed investment, an area of about 20 km2, a total of 395 km2 of the area affected the project for which the grant is requested. In a second stage, the total development area will require the drilling of additional wells over 1500 to reach, in 2017, a production of 50 000 barrels of oil and 3 billion cubic meters of associated gas per day, making it the main productive asset YPF and potentially, of Argentina. "Vaca Muerta is a world class asset and fits perfectly to our strong portfolio of unconventional resources," said John Watson, president of Chevron Corporation. "It is consistent with our strategic objective to enter attractive new areas early in the process." "This partnership is strategic for the company and for Argentina. We are putting into production a resource that can change the energy future of our country. Unconventional resources require intensive activity, in addition to investment, technology and human capital. This agreement is also a show of confidence from a major international company, "said Galuccio. YPF president added: "Chevron also make your professional and technical contribution, added to the knowledge of our products, we located in the highest levels of global development in unconventional. " Meanwhile, Ali Moshiri said: "We feel pleased to accompany this new project of YPF. Chevron is committed to helping Argentina to return to energy self-sufficiency. YPF's success will benefit the entire industry. The exploitation of unconventional resources can revolutionize the energy paradigm of Argentina, as in the United States. In addition, this partnership will allow the development of new technologies through joint efforts of the members of our technology center wit
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.