MercoPress. South Atlantic News Agency
Pemex confirms interest in YPF shale deposits, but nothing formal yet
YPF CEO Galuccio urgently needs partners to help overcome Argentina’s energy bills Pemex, Mexico’s state oil and gas monopoly and the world’s fifth-largest crude producer, would consider an offer to partner with YPF in developing shale projects in Argentina, said a director of the corporation.
A joint venture with YPF, the company that Argentina seized from Spain’s Repsol last year, would give Pemex experience in shale oil and gas fields and generate foreign investment for Argentina, Fluvio Ruiz said at a conference in Buenos Aires.
“We just need to receive an offer and we would decide in a few months if there was an appealing formal offer tendered” the Pemex board member told the conference.
YPF CEO Miguel Galuccio, seeking partners to help finance projects that would reverse declining output said last week he is willing to form a partnership with Pemex to develop deposits in the Vaca Muerta shale formation. While the two companies have held informal talks, Pemex board would need a formal offer from YPF to analyze, Ruiz said.
After YPF sealed its first shale accord with Chevron Corp on July 16, Galuccio said Argentina needs more investors like the San Ramon, California-based company to stop a production decline that contributed to the biggest plunge in the central reserves since 2002.
Pemex is a minority shareholder in Repsol, which is lobbying against prospective Vaca Muerta partnerships. The Madrid-based producer rejected on June 25 an expropriation compensation offer that included a 47% stake in a Vaca Muerta project valued by Argentina at 3.5 billion dollars, as well as 1.5 billion for development, according to a regulatory filing.
Repsol has filed lawsuits in Madrid and New York seeking 10.5 billion in compensation for the seizure of a majority stake in YPF.
“We don’t agree with Repsol’s approach to potential YPF deals and regarding this particular potential JV as state-owned companies have their right to discuss their energy policies,” Ruiz said. “I hope they don’t react by opposing once we receive a formal offer from YPF.”
Repsol filed a request in July to the International Centre for Settlement of Investment Disputes, asking the arbitrator to instruct Argentina to abstain from developing strategic YPF assets seized from the Spanish oil producer.
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Read all comments“We don’t agree with Repsol’s approach to potential YPF deals and regarding this particular potential JV as state-owned companies have their right to discuss their energy policies,” Ruiz said. “I hope they don’t react by opposing once we receive a formal offer from YPF.” For some reason this made me smile too much XD .
Sep 08th, 2013 - 12:29 am 0But seriously, If YPF has yet to paid back Repsol is one thing, but another very different situation is to block them from making commercial deals on their own. Repsol and YPF need to get together to solve their problem IMO.
@ 1 Elena
Sep 08th, 2013 - 10:40 am 0Repsol have not been paid anything by TMBOA whole stole their assets, even though her own constitution requires payment at a commercial valuation be given to the owner BEFORE any expropriation takes place.
What is to say that if PEMEX makes a deal with The Dark Country that Repsol will lose out again if TMBOA stole the assets on the PEMEX deal? She has a history of doing this, Repsol could be said to be helping the Mexican monopoly from making similar misjudgements that they have made in the past that resulted in 70 years of mismanagement and the last NINE years where the oil output has fallen YoY to the lowest output for 18 years.
PEMEX of course is looking for experience from the Chevron / YPF deal as they have none to bring to the table themselves.
So you could say that Galuccio is simply after their money. He is desperate for funds because despite all the promises TMBOA gave him before he agreed to take on the job, he now finds there is no money even for buying LNG to heat homes so there is NO prospect of money for YPF.
Plus, PEMEX making a “decision” within months of any “offer” made by YPF just smells of distraction: PEMEX want their cake and eat it.
PEMEX and YPF are just in the “negotiations stage” , no decisions are being done yet.
Sep 08th, 2013 - 02:42 pm 0My point was about Repsol not having the argument for bloking YPF from making deals with either Chevron, PEMEX, or etc. Just that they do have the right to get paid for their assets.
About PEMEX, they have deals in co-participation with Petrobras, negotiations with YPF , some others with Russia, and some deals with oil companies at US.
Also, with all that has been said and exagerated for the sake of the energy reform as always happens with all political initiatives, PEMEX real problem is one of an administrative nature. Politicians are just arquing over if it´s better to make deals and share risk with private companies or re invest PEMEX capital to contract and adquire better technology. There are some national and foreing companies interested in the first option and some others also interested in the second, those that are especialized in developing petroquimic technology for oil companies for example.
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