YPF negotiates an agreement with Exxon to exploit the largest reserve Argentina
YPF oil company, controlled by the Spanish Repsol, Exxon Mobil negotiates with an agreement to exploit oil and unconventional gas deposit in the Vaca Muerta in Argentina’s Neuquen province, told sources of the company.
“We have a definitive agreement with Exxon. We are in negotiations to exploit oil and unconventional gas in Vaca Muerta, but no specific terms yet to sign an agreement”, the sources consulted.
Negotiations began two years ago as part of YPF contact with oil majors looking for partners to exploit the Vaca Muerta deposit in Neuquén, considered one of the areas of unconventional resources in the world.
Talks between YPF and Exxon are maintained despite the clash of the government of President Cristina Fernandez with the oil company controlled by Repsol, accusing it of failing to invest enough to ensure domestic supply.
Because of this confrontation, regional authorities have withdrawn the operating licenses for YPF in ten areas of six provinces in Argentina, including Neuquén.
Last year YPF announced the discovery of unconventional oil and gas deposit in the Vaca Muerta, where in 2011 drew about 700,000 barrels of unconventional oil equivalent.
YPF has added to its inventory reserves 116 million barrels of oil equivalent of the Vaca Muerta formation.
According to assessments of the Ryder Scott audit, resources and reserves in Vaca Muerta, in a study area of 8,000 square kilometers, amounting to 22.807 million barrels of oil equivalent.
According to YPF, the exploitation of the Dead Cow reserves that Argentina could increase by 50 percent its current oil production, but would require some investment by 28,000 million for the drilling of 2,000 oil wells.
In the case of gas, the development of Vaca Muerta could also make Argentina’s production will increase by 50 percent, with an investment of 14,000 million dollars.
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