YPF announces massive exploration program and calls on private investors
Argentina’s nationalized oil and gas corporation YPF announced it has plans to drill 250 wells in the next five years to further advance the country’s “hydrocarbons frontier”. During a presentation at a posh hotel in Buenos Aires under the heading of “Argentine Exploration Plan”, YPF CEO Miguel Galuccio called on investors to trust him and support the plan.
“This is a historic day, Argentina’s energy future for the next 20 years is now being defined; we have a long and short term consistent exploratory plan underway” said Galuccio, adding that YPF is back exploring like in the old days, “with a record level of drilling activity, high risk exploration and increasing the challenge”.
During his speech, Galuccio urged the businessmen who attended the meeting to believe in him as the company's leader “as I'm always going to defend your investments. Believe me gentlemen that we can grow and make money together”.
In terms of energy plans Galuccio recognized that ”Argentina's hydrocarbons production has been decreasing by 6% yearly for the past years“, and added, ”That's why the share holders' interests must be aligned with those of the State“.
Furthermore, Galuccio welcomed ”any potential new partners willing to work in our country“, and emphasized, ”We need both strategic and logistics partners capable of providing the necessary equipment, plus financial partners.”
Galuccio said the new plan is focused on the “revision of the exploratory potential of the Argentine wells, the further examination of gas and oil basins and a prospective map of exploration at the provinces”.
He then went on to give a description of that potential and YPF’ plans.
“With the exception of Cordoba (central Argentina) all other basins have opportunities and potential, and we will explore for oil in Chaco, for deep gas in Salta, Formosa, Jujuy and Tucuman; gas and oil in San Juan and La Rioja and gas and coal in the province of Buenos Aires”.
“In Buenos Aires YPF will contract 700 kilometres of 2D seismic surveying and drill an assessment well” said Galuccio who added that exploration in the traditionally oil provinces such as Santa Cruz and Chubut will be significantly increased.
Federal Planning minister Julio De Vido also present at the conference said the purpose of the plan was to ensure oil and gas production and energy self sufficiency and later return to exports.
De Vido strongly defended the seizing of YPF from Repsol because the Spanish company was ‘manicuring’ the books while it was emptying the company of its assets. Last May the Argentine government took over 51% of YPF shares from Repsol which retains a 12% stake in the now nationalized company.
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87 comments Feed
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So since's it's nationalisation no international private firms or investors have touched it with a barge pole, even CFK's new friend the Chinese wouldn't touch it, and Venezula also hasn't got enough money to invest.
So CFK has now turned to the private Argentine citizen to try and get them to front up the money.
But not once have they looked at why no one is willing to invest. Why should anyone give Argentina money, when their profits from the venture would ever be nothing or next to nothing.
To all you Argentines who want to invest your money, buy shares in the Falklands Oil and Gas company, because there the future looks bright, and you get to keep the profits and not have it stolen by the government.
China and Russia will only invest in something they have high confidence in getting a high return and it seems they obviously lack confidence in getting that from YPF rather unsurprisingly.
Seems they've run out of money once more....
I'm not so sure. Announcing that you are going to do something is a far cry from actually doing. I don’t know if you saw it but YPF released a statement which said the productivity/production for the first part of the year was up but then slumped around the beginning of June and hasn’t risen. If you’ll remember, YPF was expropriated around that time. Since then they haven’t had the capital or tools to increase production. You can see this from the following statement from Galuccio who has a good previous record and is respected:
“We need both strategic and logistics partners capable of providing the necessary equipment, plus financial partners.”
In business speak this says “we have neither the necessary equipment, nor the cash to buy it or cash with which to operate properly.” This is quite an admission for someone heading up the company and the message has changed since the expropriation and the endless roadshows which they have undertaken to get people to invest. Unfortunately quite a few institutional investors have laughed out loud at their business plan and left mid presentation as their plan won’t work as it relies on private capital subsidising YPF with a minimal chance of profits.
So BK, can you explain, with reference to facts, how it is doing so much better.
Give it away, mate. She's a lost cause. There must be lots of Scottish Lassies where you live that are far prettier than CFK.
What makes you think he is Scottish ? Just because he makes hints.
I have asked him time and time again to tell me the school he went to, approx. where he lives or any other details that would convince me of his origin. Studiously ignored ! I am quite happy to tell him where I live - except for actual street address and email.
Until he reveals anything of proof, he is an Argentinian and his postings should be received in that context.
As to your remarks about prettier lassies, I would add prettier 70 year old women. Botox and collagen are not fashionable here !
YPF needs consultancy advice from the FIG, or to buy shares in FOG as @1 has advised.
In fact if you ask FOG nicely they will help Argentina get investment for their oil development.
Message= If Argentina continues to be aggressive to the FI the islanders will prosper regardless and bypass Arg from their equation.
If Argentina has the sense to pay the Islands as consultants=FIG will show you how to run a country properly, where none of its citizens are poor, have a good income and quality of life, and how to make the most of resources and become wealthy, and how to get external investment.
Simple really.
@3 YPF-no investment, Kirchner-sympathy illness, oh yeah doing a wonderful job much better than i predicted keep up the outstanding work im sure your people appreciate her contribution.
maybe just maybe theres far too many conditions for investors to accept, putting the obvious insecurity of investment in Argentina to one side, my guess is argentina will push investors to agree for drilling beyond its borders causing a conflict with not only the UK but wider afield, who wants to invest in that? not forgetting a company that the Argentines manic government has sole control, and will steal shares in a blink of an eye, yet again.
I also believe that BK is Scottish, one of them who believes that scotland should be independent, and is a great friend to Argentine posters everywhere.
I have to agree with Clyde15 on this, BK is an Argentine troll although I concede that he may well live in the UK. Even the most rabid Scottish nationalist I've met wouldn't give the Argentinians the time of day, let alone admire them the way BK does.
The battle of Tumbledown is still firmly fixed in the Scottish pysche.
A magnificent victory and a tough battle well fought by the Scots Guards, but they still remember the cost of that victory was paid in Scottish blood.
It's just like when the Argentines tried to get the Welsh Assembly and Plaid Crymu to side with them. Immediately the hands went up and it was 'remember the RFA Sir Galahad' and 'remember the Welsh Guards'.
The Falklands were liberated and the cost was British blood. The Argentinians don't understand that British means Scottish, Welsh, English and Irish. All 4 nations of the UK liberated the Falklands, not just the English and all 4 nations are willing to keep the Falklands free of Argentine oppression.
However, enough of that, back to the thread.
BK is deluded. We all said that the Argentinians wouldn't find anyone to invest. Last month, the Venezulans were riding to their rescue, but now they realise that they don't have the capital either.
So now they are practically begging Argentine citizens to invest in YPF. A company were all the profits go directly into the governments pockets and not to the investors.
But hey, that's CFK miracle economic model at work.
Argentina has smashed spain's investment prospects, Repsol's share values, any chance of foreign investment but at least Argentina gets to keep its oil reserves... in the ground.
You may well be right about B_K.
l had not given it too much thought. l disagree with most of his posts but he said that he was Scottish & l had no reason to doubt him/her.
Yes he probably is Argentine, although l had pictured him as an old Scottish communist infatuated with a younger woman.
Although shes not that young!
His posts are far too erdudite to be LatAm educated.
Just a pity he is a bastard traitor.
1) A total idiot.
2) A rabid kirchnerist.
3) A totally idiotic nationalist.
4) A totally idiotic patriot.
The government cap on the wellhead price of crude is US$42 pb, which is aproximately 50% of the international WH price. Exploration and exploitation costs would be something in the range of US$38 - US$40 pb, so the deal would be practically break-even except that you have to factor in taxes.
Mr. Galuccio, I suggest you go back to Schlumberger which is a real oil company and would welcome you with open arms. Yuo're wasting your time with YPF!!!!!
1) YPF will get investment
2) BK is Scottish
Oh Lord that means I agree with BK...someone please help me out here!
On point 1, stopping investment getting to oil is like stopping gravity. As oil leaks out of a million leaky well, investment will leak to YPF. Welsh Wizard, don’t get too excited about the leaks or leeks. CFK will have to “lower her pants” as we say here (what a dreadful image), but money follows oil like BK follows CFK.
On point 2: BK is Scottish. I can remember once he replied to a post of mine about Brazil and made reference to Scotland’s 2-1 defeat in the opening match of the 1998 world cup. Who else would remember that!
To understand his position you only need remember that he is of the George Galloway clan, so everything the Anglophone does is bad, everything Israel does is bad, choice in society is bad. With these 3 points you can understand his world. Thankfully it is not a real place.
Unless they setup some type of sinking funding via a third party independent banker, equal to the amount of investment, I don't see it happening. They are screwing with China as it is now and Sinopec is about to shutoff all production.
Oil companies may flock to drops of oil like sharks to seals, but with the risks Argentina poses based on their history toward business.......unlikely. It will take more than written guarantees as Argentina contracts are as meaningful as their peso, it is good to wipe your ass with.....nothing more.
If it goes bad you lose
If it goes well you lose because it will get Nationalised at zero compensation.
Nah best to stick with investing in the Falkland islands. A much safer bet.
Fear we all here... in the USA have...if the gasoline price increase..
who can afford to drive...
the electricity cost are high costing $500 per month
gasoline keeps costing the consumer to pay high price for food
to the fact that only the wealthy can afford to eat well,
as we all can see, hard times ahead are for all of us,
be sure to tight your belt as soon as you can!
I guess you are there to tell SA's how bad it is and they will never know the difference.
I can't do anything about your illegal status and I definitely can't fix stupid (don't be sad), bet I can report your meth lab to the sheriff's dept.
This is a fact like it or not...
I sold my 18oo sq foot 7 rooms house with swiming pool and jacuzzi in Tucson Arizona because I cannot longer afford to pay the electric bill!....
Referenced to whatever claims you have against me, go head, ...what are you waiting for....remember soon I am moving back to my country to enjoy a better life with good quality food.
I hope you enjoy your last years!
www.washingtonpost.com/business/ypf-chevron-executives-move-toward-strategic-accord-on-argentine-shale-oil-and-gas/2012/08/24/50b98934-ee07-11e1-b624-99dee49d8d67_story.html
They may be able to work it out eventually or gosh sakes they deal with scumbag dictators all the time.
Yankeeboy is obviously in a state of denial. I Think a little bit teased by the “sad news”. With Mr . Galuccio visiting China and Asia next month Chevron obviously backtracked on it's claims and sees that light, that this train ain't passing through this station again. Let's move on lads, make way for the expensive drilling equipment. DRILL, DRILL, DRILL!
I don't see it happening without the US escrow in a non related RG banking system. That would be a fiduciary irresponsibility to it's stockholders. RGs go begging for DEEP POCKETS and think they will dictate terms. As for China, RG better take care of Sinopec before the travel to China.
Chevron Texaco has a great shipping fleet though.
“Chevron Texaco has a great shipping fleet though.”
Won’t need’em. YPF will certainly bring great benefits to the Argentine shipbuilding industry. Will need a bunch of those tankers like the ones being built in Rio Santiago for Venezuela. www.youtube.com/watch?v=wMCdRubqPNI
Hey...I am single...is more fun...Mr.Conqueror
Why don't YOU dump your 'inlaws” and start feeling better
“Chevron discuss shared Argentina strategies”
news.yahoo.com/ypf-chevron-discuss-shared-argentina-strategies-162048016--finance.html
But RG's need to grasp at straws. Right ProRG S American?
www.dolaraldia.com/cotizaciondolarhoy/
May be she is your beloved friend Mike.
1) It is not “Avenida Florida” it’s “Calle Florida”
2) You can get a much better “Run for your Money” at Fuerte Apache…..
Any taxi driver will be happy to drive you in…. ;-)
3) Tell the first hoodies you’ll encounter that you’re from Liverpool and you are after some “Black Market” action……..
Easy……………..
* real estate sales down 46% this time last year in Beunos Aires
*Argentine Governer Scioli wants to charge extra for more expensive cars and houses
* mexico adds complaint to WTO over argentine protectionism
* Argentina doubles up tax burdening importing companies
* basic food basket measure “useless” by INDEC director, Ana Maria Edwin who in 2007 removed EPH director and its staff for critising INDEC data collecting.
* Argentine president defends militarising school youth and prisoners, giving
“El Gaucho” fanatsy speech. in preparation for what?
* argentina to allow 16 year olds and foreigners to vote.
* protest against Abal Medina in cordoba turns violent
*cabinet chief Abal Medina & President laughed at in conference for businessman
www.ieco.clarin.com/economia/Gobierno-busco-mostrarse-amigable-empresarios_0_761323916.html
* Argentina to raise taxes on dollar transactions
* Chavez threats of civil war if not re-elected
* Argentine Timerman supports ecuadors rapist bid.
The apathy of the citizens is astounding! What is the breaking point 10/1 or getting paid in Patacones? There is a trigger I guess I just need a bit more time to see what it is..
Gads they are so pathetic.
Seriously, not even an amoeba takes you seriously with comments like this.
You come from a country where there have been at least a half-hundred mass shootings in the last 3 months, with HUNDREDS dead... and not one public protest, not one person in government held responsible, not a single citizen led action, march, not one official political action. NOTHING.
The supine, phlegmatic indifference and apathy is borderline criminal. What a pathetic excuse for a society.
But, hey, now with the new summer package being offered in the travel agencies, one may at least profit from such utter ineptitude to deal with such an obvious societal problem: it's called the “Shootout round North America”... You ONLY get to visit the locations where a mass shooting was commited.
The tour costs a fortune and last 6 months... it visits every single state and all major cities, I get to go everywhere, from the Empire State Building to the largest mall, to the top universities, it is the most comprehensive package on Earth.
In other oil news, what a tragedy at Venezula's largest refinement at Amuay.....24 dead God rest their souls. I hate seeing anyone die from only doing their job.
This translates into a million barrels a day out of production. With Chubby Chavo already strapped for cash (he is rationing petro) this certainly will further crimp his spending and help to his mercosur serfs.
However I see this as being a rally call that the evil gringos are coming for him. Of course if they had individual freedom of thought they would realize that cutting of oil would be the last thing we do.
Back to the article, I see this explosive spiking oil prices. I wonder how this will translate in Chevron negotiations with Argentina/YFP with capped barral prices at below market
WTF has another American shooting got to do with this story? Nothing.
Count them and get back with me.
How many? Sounds pretty dangerous.
As for this story though. If Argentina can manage to exploit loads more of their natural resources, all the better. I don't wish them harm, I just wish they'd leave me and my country alone.
Absolutely - I have nothing against them personally but this fantasy that they pursue helps no-one. I notice it has all gone quiet on that front - am I tempting fate?
I am waiting.
Pathetic loser.
Yes, you're right. It HAS gone quite again. Effectively they are leaving us alone. Even at the height of their BS in the last 12 months we felt very little tangible effect. The intangibles were greater but how does that saying about sticks and stones go?
I think CFK realised that she had no other option than to try to recruit the whole world to stand as one and tell the UK to hand us over. When that didn't happen she was beaten and knew it.
Like I said the other day on here, nobody much in the Falklands takes any notice of Mercopress any more and I think that, as funny as it seems, is a good litmus test of the effect the Argentine government has had on us.
Every fifth MP news is from the Malvinas/Falklands, probably more than your own local paper, plus they give the news a right twist before they post them. How can this not please you?
It pleases me a lot. There is less news appearing on the Falklands tab now than there was over the last 12 months and a lot of it is pretty trivial compared to all of the “CFK is going to get the islands” type crap that was being put on here a while ago. I was not making a criticism of Mercopress at all. Rather, I was merely making the observation that newsworthy Falklands vs. Malvinas stories have dropped right back down to the normal pre-30th anniversary levels.
As for Mercopress giving the stories a right twist: that is in your opinion.
I'm waiting for MercoPress's usual “Malvinas Demining Update”...
They usualy come every third fortnight...
Must be the long winter...
Well you wouldn't have to wait for a “Falklands Demining Update” if you Argentines hadn't put the mines there in the first place, would you my dear little malvinista?
Can you understand what it ( 52 Truth_Telling_Troll ) is saying? It seems to be trying to communicate by using words of some kind.
I've seen all of those words before, just not used in that order.........
www.businessweek.com/articles/2012-06-04/falling-oil-prices-are-no-mystery
Where do you live . At my local filling stations the price of diesel has gone up by 1p every 5 days for the last6 weeks !
Plenty of that crap in the UK press over the last few days 'supported' by companies who have a track record of oil speculation.
Once the speculators have taken their profits out of the margin the price will drop again, unless yet another war flares up.
Come on Isolde, that is you again!
....get lost estupida!
Can you be more specific where as an “American” are you working in the oil fields in Argentina?
Why don't you check my ISP against Isolde's ISP and you will see that we are nowhere near each other. Oh, yes, I forgot, you aren't smart enough to figure out how to do that!
en.mercopress.com/2012/08/27/opinion-poll-shows-cristina-fernandez-rapidly-loosing-support-crime-and-inflation-main-concerns?utm_source=newsletter&utm_medium=email&utm_campaign=daily
You've caught me out silly soozy.
l am really Think(&Marcos & Pirat-Hunter & just too many to list)
ln fact the only one l am not is Zhivago & you. ha ha ha.
But l'm working on it. Soon l will be the WHOLE World.
Mine, mine, its ALL mine! l'm coming to get you Sooooooooooozy-sweet.
Apart from that, have a nice day!
Go back to the top there is a drop down list for regions. Select Argentina and scoll down. The article you are referring to is there, and it can still be accessed.
You may just have a problem with your hyperlink.
@74 Right now I am down in Neuquen, but also work up north in Tartagal, but the Neuquen area has the largest shale play.
@78 As of now, they do not have the equipment or infustructure for the shale play, my company has been trying for months to get epuipment in country, but the process is mind numbing dealing with the coustoms poeple
Bakers Hughs CEO said that if oil strikes below 80, a lot of shale drillers will be pulling rigs. Every major explorer considers it the most expensive oil to drill and refine.
Hahahaha, Fred the poor purse salesman now is an expert in shale gas :-)))
Lots of people have different talents.
My eldest brother is a trade qualified butcher, then he got a degree & now he is a mining engineer.
Argentina has had their barrel price capped at 42 and barrel.
If CFK had not snatched Repsol, then they would have been investing whereas now, they would not trust the CFK government with a barge pole.
Secondly, if Argentina had been a responsible neighbour, rather than an aggressive wanna be dictator / colonialist county, I am sure Falklands Oil and Gas may have gone into a deal, however this will also never happen due to the way CFK has been.
It will also be ironic if Argentina is unable to import oil and gas easily and have to purchase from the Falklands. Would they let a falklands or UK flagged vessel dock then?
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