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Montevideo, May 22nd 2019 - 06:50 UTC

Argentina should be self-sufficient in energy in five/six years says YPF

Monday, March 18th 2013 - 21:13 UTC
Full article 26 comments
CEO Miguel Galuccio is hoping to develop the Vaca Muerta shale deposits CEO Miguel Galuccio is hoping to develop the Vaca Muerta shale deposits

Argentina’s energy self-sufficiency can be expected in five to six years said Miguel Galuccio, CEO of YPF, the oil and gas corporation which was nationalized a year ago when the government of President Cristina Fernandez seized a 51% majority from Spain’s Repsol.

“We can think of recovering self-sufficiency in oil and gas in 5 to 6 years”, said Galuccio who pointed out that “much depends on planning, an investment plan and putting all our energy to substitute all we are purchasing now with local energy which will be far cheaper”.

YPF is planning to invest 5bn dollars in “exploration and production of gas and oil” said Galuccio. “We need to transform those reserve resources so that they become exploitable. In 2013 we are planning to drill 113 wells to generate the sufficient scale production so that it becomes profitable”.

“If we can manage to exploit Vaca Muerta we can think of a 20/25 year horizon in reserves” he added in reference to the non conventional shale oil reserves in the province of Neuquen considered some of the largest in the world.

However despite the long path to self sufficiency that lies ahead, Galuccio said that YPF has managed to stop the decline of production after several years. According to YPF crude production last year was up 2.2% compared to a downfall of 7.6% in 2011, while gas production was down 2.3% compared to a contraction of 10.2% in 2011.

YPF that has announced a long term investment of 7bn dollars annually from 2013 to 2017 is currently under the Argentine government control since las May when Congress approved a bill nationalizing 51% of Repsol shares, which nevertheless retains 12% of the current package.
 

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  • ElaineB

    There are a LOT of 'ifs' in that statement.

    I wonder where most of that $5 billion will disappear to? In 5 to 6 years the K's and the money will be gone.

    Mar 18th, 2013 - 09:27 pm 0
  • LEPRecon

    Isn't this the same man who didn't realise that drilling equipment was very expensive to buy, hire and maintain?

    So now he's saying that Argentina is going to go from being an importer of fuel to being completely self-sufficient in 5-6 years? Well the Pope maybe Argentine, but even he couldn't pull of a miracle like that.

    Argentina doesn't invest in it's future, various people steal the investment money at each level of bureaucracy until the money vanishes into thin air.

    This is just another 'bold' statement by a CFK flunky to try and divert attention away from the god-awful mess they've made by 'nationalising' (aka stealing) YPF from Repsol.

    Mar 18th, 2013 - 09:35 pm 0
  • Anglotino

    5/6 years to reclaim what it once had?

    I love predictions that are just a little too far in the future to be verified for several years.

    Mar 18th, 2013 - 09:39 pm 0
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