YPF after Chinese cooperation for development of Vaca Muerta shale deposits
Federal Planning Minister Julio de Vido announced that several members of the Argentine Government would be flying to China in September in order to close several cooperation agreements between Chinese oil companies and YPF, intended to deepen the bilateral relations.
De Vido said that “surely next month” he would be flying to China along with the YPF CEO Miguel Galuccio and Deputy Economy Minister Axel Kicillof.
The meeting is conducted “in order to continue with the process began during the visit of the Chinese prime minister Wen Jiabao,” who last month met with President Cristina Fernández.
De Video made the announcement in the Foreign Ministry building, where he was meeting with Foreign Minister Héctor Timerman and the vice-president of the Chinese National Committee of Development and Reform, Zhang Xiaoquinag.
The Chinese top official and his delegation later met with CEO Galuccio to begin talks on potential agreements for the exploitation of oil and gas resources in Argentina.
“The officials considered the importance of advancing in consolidating the enormous potential of YPF shale oil and gas reserves in the Vaca Muerta basin which extends for 30.000 square kilometres in the provinces of Neuquén and Mendoza.
CEP Galuccio also received a Venezuelan delegation headed by Rafael Ramirez, who is president of the country’s largest oil corporation, PDVSA, and also Energy and Petroleum minister.
“Following the presentation of the assets from both companies that potentially could be integrated, it was understood that since they are assets of world magnitude, their development needs of complex engineering studies and advanced technology, such as those currently applied to the heavy crude of the Orinoco belt in Venezuela and the shale in Vaca Muerta”.
A report from the US Energy Department has Argentina figuring in third place behind the US and China out of a list of 32 countries, regarding reserves of non conventional hydrocarbon resources.
On Tuesday in Brasilia Presidents Cristina Fernandez and Hugo Chavez announced a strategic agreement for the incorporation of YPF to the exploitation of the heavy crude in the Orinoco belt, the enormous reserve that also includes shale oil.
Nationalized YPF is the leading oil hydrocarbons corporation in Argentina and has a 54% control over the fuels’ and refining market.
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The Chinese could get 'quite upset'.
Not that environmental issues would be much concern for either of these countries.
The Chinese have to be just as worried as every other company, why spend Multi U$ BILLIONS, Waste Time, Devote Precious Resources to something that can be taken away by Presidential decree “FOR THE GOOD OF THE PEOPLE”. They obviously see that RGs don't honor contracts or treaties. So why put up the U$ for no return? Hmm why?
It will be interesting to see how this develops.
If CFK needs investment in YPF why the hell did she nationilse the company from Repsol who had the money and were quite prepared to inevst in the Vaca Muerta project. The current situation of having to go cap in hand to any and all govements for investment is the bigegst decleration of failure by the CFK camp on the decison to nationilse YPF. Yes it is not now owned by Spain, nbow it is owned by China and Venezula.
It is true that the hisotrical process was very hit and miss but the technqiue is being refined daily and has now been used succesfuly in many countries. The trick is to have sutible regulations such as those the US EPA are currently devloping.
I freely admit I am no engineer/geologist, but it has caused some significant problems here. As in the early years of Nuclear industry, I am sure the process will get safer. There are many states, NY, VT. The North East is fairly densely populated. The states have complete rights over the Feds here on this particular issue, even throm the state level, if allowed the locals can deny the process.
There are many lawsuits over this process. And many are the companies themselves suing communites to frac. I really do think that communities themselve can and should be able to determine who wand what can be done on their land. I had a well in the first place I built, a deep water well. But it was surrounded by 150 ft of clay and another 60 ft of arcose. An old Lake Hitchcock all underwater now. Not every has their wells naturally protected.
It might not be random, but it is only recently that fracking has become so wide spread.
In the UK, Cuadrilla Resources has accepted that its operations caused a small tremor. That’s the very seismically stable UK. I live in the world’s most seismically active country across the border from Mendoza province and would not be happy about fracking being used here.
They should tread very carefully before applying this technique to seismically active areas. Mendoza itself is prone to earthquakes.
4 Yankee
The Chinese haven’t gone soft like the West. If Argentina pulled a repsol style stunt on the Chinese, the RGs could expect to see more power cuts than normal and cyber attacks on its infrastructure. I understand that some western govt have to expend a lot of resource defending themselves against Chinese cyber attacks. I doubt Argentina is adequately protected in this realm.
All these environmental issues can be solved, BUT it is going to cost a great deal of money to do it, and CFK is determined that the well head price of the barrel should not go over US$42.
At that price the Chinese are not even going to come to look at the site and no sane US/EU/UK/Canadian, etc. country will get involved with that sort of price.
So the only possibility that CFK has is Don Hugo, who can probably swing the investment money which will only be another nail in his coffin (with appologies to Think).
Environmental regulations are much more voracious when there is a foreign company to shake down.
I am sure YPF will manage to meet all environmental concerns, one way or another ;)
Quite funny you mention that. Repsol are about to produce unconventional oil on USA, if you are to believe themselves, that is...
www.repsol.com/es_en/corporacion/prensa/notas-de-prensa/ultimas-notas/20122011-repsol-producira-hidrocarburos-no-convencionales-en-eeuu.aspx
Quite amusing how you Brits/Yanks/Westerners live after 'Do as I say and not as I do' ;)
Enlighten me how this is contra to “do as I say not as I do”. What is illegal here and what law is a cabinet member breaking?
On the other hand thanks Cristina obviously Repsol has a bit more cash to put into the USA! Free markets work.
#2 was having a go at Arg for drilling unconventional oil, I was merely showing him you westerners do the same :)
Don't try to cheat the Chinese. lol
I don't think (me that is, not the liar The Turnip In Chief) that the Chin are likely to be taken in by this bunch of no-hopers.
IF the Chin invest in Argentina and especially the 'oil',I would be very worried if I were The Mad Bitch Of Argentina that my 'colleagues' would screw things up leading to all sorts of financial and other troubles for ME.
We all now it is ME, ME, ME with the stupid bitch.
Ha, ha, ha.
Where are the “Malvinas”? can't see them on any map here in Chile.
Is that your Argie stealth technology already deployed!!
Malvinas Low Observable Islands. JAJAJAJA.
I'm sure you're right, if we can change our Constitution so easilly, I don't think our evironmental laws will be any problem!!!!!
Because they weren't investing. Do keep up
#14 “So the only possibility that CFK has is Don Hugo, who can probably swing the investment money which will only be another nail in his coffin”
Why??
Investing, look always you know nothing, why are you breathing. With production costs easily hitting 40 a barrel and crude capped by the disgusting bovine, KFC, 42 a barrel. The remainder was for the government and taxes. Need a calculator?
That cancer stick of a pig has financial woos himself. They export crude but cannot refine it. Almost all their petrol, gasoline and refined oil is imported from the USA. Now that fat shining armor is coming to save the day by extracting shale oil with is even more expensive to get? PALEASE! Venezula is now rationing gas because they cannot afford to keep buying itat market prices, despite being a major OPEC country.
Go back in your hole BK and by the trator to your nation that you are and we all love hating.
China has huge oil deposits in its own territorial waters in the S.China seas.
Why should they want to take the risk of drilling in Argentine waters with a dodgy govt. as partners ?
“In time they might even share nuclear and stealth technologies”
I thought that your navy and air force had stealth technology as they appear to be invisible !
Why do you need China to share nuclear technology with you.
You always assert that you can manufacture H-Bombs, Nuclear Submarines, delivery systems etc. on your own.
Again, why would China help you with this. What advantage would there be to them to have another nut case adolescent country with nuclear weapons on the loose. By your own words, you would wish to use one on the Falklands or, if you could paddle your canoe 8,000 miles, use one on the UK.
Do you seriously think China would help you with this ?
Dream on !!!!!
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