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YPF buys a Petrobras Neuquén/Mendoza block with production of 10.000bpd

Tuesday, February 4th 2014 - 08:47 UTC
Full article 14 comments
YPF CEO Miguel Galuccio has the task of cutting Argentina's energy import bill YPF CEO Miguel Galuccio has the task of cutting Argentina's energy import bill

Argentina oil company YPF has bought out Brazil player Petrobras to take over full ownership of an exploration block in Neuquen and Mendoza provinces. YPF agreed to pay 40.7 million dollars for Petrobras' operatorship and 38.45% stake in the Puesto Hernandez block, cutting short a joint venture due to expire in 2016, according to the Argentina explorer.

 “YPF, in becoming the operator of the area, could accelerate the investment plans to optimize its productive potential,” the company said in a securities filing.

The concession runs through 2027 on the field, which currently produces around 10,000 barrels of light crude per day. Petrobras had a 38.5% stake and YPF the rest.

YPF has pushed to the forefront of exploration in the country since being renationalized by the government of Cristina Fernandez. In 2012 a majority stake in YPF was seized from Spain's Repsol, a move which is still in litigation.

Petrobras has reported multiple finds in Argentina's emerging shale sector but has its hands full at home with a 237 billion dollars capital spending plan to develop Brazil's resources offshore.

The Brazilian giant recently reported that oil production was down during 2013, although gas output experienced a slight increase.

Last May the company's board rejected a proposal to sell Argentina assets, which include dozens of projects as well as a refinery. However with this latest deal Petrobras Argentina is shedding 19.4% of its proven oil reserves and 8.9% of its oil production, respectively.

Top Comments

Disclaimer & comment rules
  • Anglotino

    Petrobas is smart enough to get out now.

    Come back when it's bargain basement.

    Feb 04th, 2014 - 09:12 am 0
  • yankeeboy

    As I have said, Int'l companies are running for the exits. The last one out is going to be sorry.

    Feb 04th, 2014 - 02:00 pm 0
  • Conqueror

    Hang on. YPF has “agreed to pay”? Hasn't yet paid then? Will it ever? Where's that money come from? More criminal activity?

    Feb 04th, 2014 - 03:38 pm 0
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