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Montevideo, September 24th 2018 - 14:16 UTC

Mexico confirms interest in joining YPF to develop of Vaca Muerta shale

Monday, December 2nd 2013 - 18:51 UTC
Full article 19 comments
“We are on track for a formal agreement” with YPF, admitted Fluvio Ruiz Alarcón “We are on track for a formal agreement” with YPF, admitted Fluvio Ruiz Alarcón

Mexico's government owned oil company Pemex is getting closer to an understanding with YPF after playing a crucial role in brokering a deal between Argentina and Spain regarding the April 2012 seizure from Repsol of a majority stake in YPF. Pemex apparently is interested in having a share at the Vaca Muerta oil and gas shale deposits in Patagonian Neuquén.

 In an interview with the Cristina Fernandez administration financed daily Tiempo Argentino, Pemex board member Fluvio Ruiz Alarcón is quoted saying that a technical team from the Mexican company is currently analyzing the potential of Vaca Muerta in order to figure out where investment opportunities may lie.

“We are on track for a formal agreement” with YPF, admitted Fluvio Ruiz Alarcón in the interview.

The Mexican official also talked about the compensation pre-agreement reached between Repsol and YPF brokered by the Mexicans. Pemex is a minority shareholder in Repsol and has been very critical of its management.

Ruiz Alarcón said he was glad that the “worst part, which was the preliminary agreement” between YPF and Repsol for compensation was over.

“Repsol’s initial reaction was not appropriate to the logical behavior of this century,” Ruiz Alarcón, also a member of Pemex’s Management Council, added.

In related news seized YPF reported the highest rate of oil production since May 2011, reaching 38,793 cubic meters per day. The previous peak in production came a year before the government expropriated a majority stake in the company from Repsol, which apparently accepted a deal offering a reported 5 billion dollars in compensation only last week.

Crude output in the province of Santa Cruz stood out at 10,970 m3 per day, a rate unmatched since February 20, 2010, while Chubut continued to equal the best results seen in the last 24 years with 5,536 m3 per day.

Meanwhile production at the Vaca Muerta shale oil and gas formation, estimated to be one of the largest unconventional deposits in the world, weighed in at 2,146 m3 per day.

In the third quarter of the year alone, YPF has drilled more than 20 wells at Vaca Muerta, with 19 more currently under development, illustrating how the state-controlled company is boosting activity in the promising area.

Top Comments

Disclaimer & comment rules
  • Think

    TWIMC

    No end for the flow of good news about YPF.....
    This company is HOT at the moment and in the foreseeable future...
    http://www.google.com/finance?cid=662043

    Meanwhile in London…….
    That “Great English Company” Premier Oil, in dire & deep financial straits, continues its long downward shareprice slide since their year long involvement in the Malvinas Oil Pirate Adventure…
    Down, again today with 1.44%...
    http://www.google.com/finance?cid=662043

    Dec 02nd, 2013 - 07:31 pm 0
  • Anglotino

    That's good.

    Argentina can ignore the Falklands now.

    But if I had to buy shares it would be in the companies that are exporting energy TO Argentina. Seems like a winner at the moment. Anyone know how many billions are year are being spent on that?

    Dec 02nd, 2013 - 07:43 pm 0
  • Condorito

    @1 Think
    Does Pemex investing in Argentina constitute (A) “good” investment, or is it (B) “bad” investment like that of Vale where the natural resources were best left “snug under the ground” for another day?

    Your post above seems to imply that it is (A) “good” investment.

    I agree in this case (not about Vale).

    Dec 02nd, 2013 - 07:47 pm 0
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