MercoPress. South Atlantic News Agency

YPF, Pan American, Petrobras to explore Malvinas basin

Argentina's YPF, Brazil's Petrobras and Pan American Energy signed several agreements for the joint oil and gas exploration offshore in the San Jorge Gulf, the Malvinas basin and along the South Atlantic coastline, according to a report released Wednesday in Buenos Aires.

The initial overall investment will demand 220 million US dollars and includes surveying an area of 1.320 square kilometres and drilling four exploratory wells in the next two years. The first agreement was signed between YPF's Executive Vicepresident Sebastian Eskenazi and Petrobras Argentina CEO Decio Oddone with YPF acting as the operator and holding 67% of the association, and Petrobras the remaining 33%. The two companies have earmarked an additional 120 million US dollars for their joint undertaking. The other agreement between the three companies involves exploratory seismic surveys in a strip extending from Rio Grande do Sul, Brazil southern most state, all the way to Tierra del Fuego. Two exploratory wells have been planned for next year, demanding 100 million US dollars investment. "If exploration is successful the companies anticipate significant investments to develop the off-shore reserves", said the release. Finally a third agreement involves YPF, Petrobras Brazil and Petrobras Energy and will begin exploration activities in several blocks of the Malvinas basin, more than 200 kilometres off-shore Tierra del Fuego. In related news next December 20, Argentina's energy company Enarsa and YPF are scheduled to begin drilling off the coast of Santa Cruz province, according to the Ministry of Federal Planning.