Argentina's state-controlled energy company YPF has unveiled a US$ 30bn five-year investment plan to boost oil production and sharpen its focus on electric power generation. Some US$21.5bn will come from YPF's own coffers, with the remainder to be sourced from its project partners, the company said in a statement on Wednesday.
Argentina's state-controlled energy company YPF plans to invest US$21.5 billion in the country from 2018 to 2022 and increase oil production by 26%, the company said in a statement on Wednesday.
Investment in the country's energy sector by companies in partnership with YPF is projected at US$8.5 billion during the period, bringing total expected investment to US$30 billion through 2022, the statement said without giving further details.
By the end of that time the company expects to have drilled 1,600 new oil and natural gas wells, it said.
The objective of this plan is to transform the operations and culture of the company to achieve sustainable growth that will allow the Argentine public access to more energy and better services, the statement said.
YPF will also be closely watching Brazilian state-owned cohort Petrobras’ plan to spin off its fuel distribution arm in the coming months as well as its potential deals in refining and other areas.
“We may look at a number of opportunities of reshuffling the portfolio across different business lines,” YPF Chairman Miguel Gutierrez revealed.
YPF's CEO resigned in late August. Since then the company has been run by its six-member executive committee. YPF is the main company exploring the Belgium-sized shale formation of Vaca Muerta in Patagonia, which Argentina is counting on to help it become a net oil exporter after years of running an expensive energy deficit.
Attracting investment to develop Vaca Muerta is a key priority for Argentina's business-friendly President Mauricio Macri, who took office in December 2015. Macri has implemented a number of free-market reforms, including the reduction of costly subsidies for home gas and electricity consumption.