27 Feb Argentina’s YPF and Shell take 50% share each in Vaca Muerta project
Argentina’s state-run oil company YPF and Royal Dutch Shell (LSE:RDSB) have reached an agreement to develop oil and gas reserves at the Vaca Muerta shale field in Patagonia.
Both companies will take a 50% stake in the shale field at Bajada de Añelo, where Shell will develop and operate a pilot programme, representing an investment of US$300 million.
The deal was made when YPF chairman Miguel Ángel Gutiérrez and Shell Argentina chairman Teófilo Lacroze signed a preliminary agreement in Buenos Aires.
“We are very pleased to partner Shell, a company that has vast experience in shale oil and gas development in the United States,” said Gutiérrez during the signing.
Lacroze also commented on the deal, stating: “Shell has demonstrated excellent results in unconventional exploration in Vaca Muerta, and considers the local domestic gas market of high interest.
“In collaboration with YPF, we expect to gain further understanding of the Vaca Muerta play.”
Last month, Argentina’s President Mauricio Macri announced the country had secured a $15 billion-a-year investment agreement in its oil and gas assets with a host of international oil majors, after granting state subsidies.
The Vaca Muerta site contains the second largest shale gas reserves in the world and spans roughly 30,000 square kilometres.