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Montevideo, April 24th 2019 - 00:46 UTC

YPF and China's Sinopec sign memorandum to develop shale oil and gas in Patagonia

Thursday, January 29th 2015 - 07:38 UTC
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The MOU is a “great step forward” that opens new possibilities for the long-term development of Argentine oil and gas resources, said Galuccio (R) The MOU is a “great step forward” that opens new possibilities for the long-term development of Argentine oil and gas resources, said Galuccio (R)

Argentine state-controlled energy company YPF said it signed a memorandum of understanding Wednesday with China's Sinopec pertaining to the eventual development of conventional and non-conventional oil and gas projects in Patagonia.

 Signed in Beijing by YPF CEO Miguel Galuccio and Sinopec Chairman Fu Chengyu, the agreement expresses the companies' intention to form a joint venture in the areas of exploration, drilling, production, refining, re-gasification, distribution and sales, the statement said.

The MOU is a “great step forward” that opens new possibilities for the long-term development of Argentine oil and gas resources within the “particular context” of the recent plunge in global crude prices, Galuccio was quoted as saying.

Sinopec and YPF agreed last August to “re-launch exploration and development activity” in the La Ventana area of the massive and highly promising Vaca Muerta shale formation, located in southwestern Argentina.

The Chinese company's local unit, Sinopec Argentina Exploration and Production, and YPF also have begun a technical audit of some areas of Vaca Muerta that could be potentially explored and developed.

YPF has already signed similar agreements with U.S. oil super-major Chevron and Malaysia's Petronas for the development of Vaca Muerta, one of the world's largest reservoirs of non-conventional hydrocarbons.

Top Comments

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  • Captain Poppy

    All these MOU's and yet.........the dead cow remains frozen in time and barely a blemish. Awesome drilling in the past few years.

    Jan 29th, 2015 - 11:02 am 0
  • Ramon

    Isn't the La Ventana area in the Cuyo Basin of Mendoza, where there is no Vaca Muerta?

    Jan 29th, 2015 - 12:10 pm 0
  • Pete Bog

    Are these MOUs like the numerous accounts of support for the Malvinas myth that never translates to anything actually happening?

    Argentina it seems, is run on photo opportunities.

    Jan 29th, 2015 - 01:16 pm 0
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