Saturday, February 16th 2013 - 20:34 UTC

Nationalized YPF in 2012 cut oil production decline and showed modest increase

Argentina’s nationalized oil and gas corporation YPF said oil output rose 2.5% last year, compared with an 8% decline in 2011 while natural gas output fell 2.3% on the year, versus an 11% decline in 2011. According to the statement YPF aims to boost oil production by 4% and gas output by 1.8% in 2013.

CEO Galuccio confident YPF is ready to grow and strongly

The latest data from Argentina's energy secretariat indicate YPF increased oil production by 3% to about 11.6 million cubic barrels in 2012. In contrast, the company's natural gas output fell 2.6% to 10.3 billion cubic meters from 2011, according to the data.

The stats were released this week when the inauguration of a well YPF is drilling in search for unconventional oil and gas in the province of Neuquen, The exploratory well will demand an investment equivalent to 12 million dollars.

“This is the first time YPF has drilled a well of this kind in Chubut. The well will stretch down more than 3,000 meters in a bid to uncover oil and gas”, said YPF CEO Miguel Galuccio during the inauguration ceremony that was attended by President Cristina Fernandez, Chubut governor Martin Buzzi among other top officials.

CEO Galuccio used the well's inauguration to highlight the company's achievements over the past year. He said YPF had boosted oil output for the first time in many years.

“We have reversed the decline and we're ready to grow” CEO Galuccio said, noting that oil and gas production across the country have plummeted over the past decade.

The declining output has coincided with rising demand for oil, gas and fuel, converting Argentina into a net energy importer and forcing the government to spend billions each year on gas and fuel imports. In 2011 Argentina spent more than 9 billion dollars on imported energy, leading the government to take drastic measures, including a crackdown on the currency market and the seizure of the majority share of YPF from Spain’s Repsol in April 2012.

Galuccio's top goal at the company has been to boost output and end the need to spend money on energy imports. He voiced confidence in YPF future while also acknowledging that things will not always be easy.

“You don't measure increases in oil output from one day to the next. You measure it in years,” he said. “Everything we do is long-term. We're heading in the right direction and we're going to recover our energy sovereignty. It's not that we're going to have setbacks and problems. We're going to have them.”

Galuccio said YPF also boosted fuel production by 2.6% last year, compared with a 6.9% decline in 2011. Meanwhile, refineries processed 1.6% more crude in 2012 compared with an 11.5% decline the previous year.

The higher output helped YPF cut gasoline and diesel imports by 54% and 33%, respectively, from 2011, YPF said in a release.

13 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 LEPRecon (#) Feb 16th, 2013 - 09:15 pm Report abuse
Is this an INDEC stat I wonder? LOL

I like this bit.

“You don't measure increases in oil output from one day to the next. You measure it in years,” he said. “Everything we do is long-term.”

Yet they expected Repsol to increase output and invest immediately.

I smell a rat.
2 golfcronie (#) Feb 16th, 2013 - 09:26 pm Report abuse
Don't understand, I thought Neuquen and Chabut were seperate provinces
3 surfer (#) Feb 16th, 2013 - 10:03 pm Report abuse
You know it's going to be BS numbers with an intro like this;

'The latest data from Argentina's energy secretariat indicate...'
4 Captain Poppy (#) Feb 17th, 2013 - 02:03 am Report abuse
Of course they increased production, yet funny how the entire country is in one constant and continual roving black out, no brown outs, black outs because they cannot fuel the power plants. I will believe this when the electricity is on consistently and continually.
5 ChrisR (#) Feb 17th, 2013 - 11:25 am Report abuse
The overall figures indicate NO increase at all: up on oil down on gas (if the figures are true).

This is what TMBOA went on TV last week to shout about and how 'we don't need foreigners to tell us how to run our businesses'.

Yes, so what about the unknown method of fracking for the new discoveries: YPF going to come up with the answers? Of course, silly me THAT’S WHAT CHEVRON IS GOING TO DO!

So everything is going steaming ahead!

Ha, ha, ha.
6 Xect (#) Feb 17th, 2013 - 02:01 pm Report abuse
It's the comedy show that just keeps giving....

Argentine stats are about as reliable as an Argentine manufactured Fiat!

Lets see how well they are doing in a few years....
7 yankeeboy (#) Feb 17th, 2013 - 03:48 pm Report abuse
With no significant fields being found they are just pumping more from the ones that were driled in the 80/90. Most companies what a 30yr depletion rate out of their wells.
Do the math
If they don't up their reserves immediately they are toast.

Hello Khomeini want some soy for oil?
8 Pirat-Hunter (#) Feb 17th, 2013 - 06:59 pm Report abuse
Another chip for CFK. No more line up for gas at the gas station. I guess reporters aren't too bright or maybe they never consider history while writing BS. Keep up the good job CFK.
9 reality check (#) Feb 17th, 2013 - 07:53 pm Report abuse
Yes, keep up the good work CFK.
10 surfer (#) Feb 17th, 2013 - 08:41 pm Report abuse
CFK is doing a REALLY good job.
11 Captain Poppy (#) Feb 17th, 2013 - 09:10 pm Report abuse
# 8 gas lines are still a half hour....and worse in the boonies
12 Room237 (#) Feb 19th, 2013 - 09:57 am Report abuse
Because Repsol weren't getting a fair price for the oil and gas they just turned the taps down. All YPF has done is turn them on full again. This will only provide a short term gain for them, and you also run the risk of depleating the reservoir pressure to quickly, damaging the field.
13 Simon68 (#) Feb 19th, 2013 - 04:20 pm Report abuse
Strangely enough I'm sitting in my car in a fuel queue and have been here for the last 3 and a half hours, and have still 150 metres to the petrol pumps!!!!

This is in Neuquén, the major petroleum producing province of Argentina!!!!

I'm afraid that we are not out of the woods yet, by a very long chalk!!!!!

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!