• 15 mins DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 1 hour Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 4 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 10 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 15 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 19 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 23 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
Alt Text

Is Big Oil Going Green?

Big Oil, ranking among the…

Alt Text

U.S. Gulf Coast Refiners Are Bouncing Back

The U.S. Gulf Coast has…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Argentina’s YPF Ousts ‘’Magician’’ In Favor Of Banker

Argentina’s YPF Ousts ‘’Magician’’ In Favor Of Banker

As Argentina tries its luck as the next potential venue for a shale boom, the country’s new government goes for a major overhaul of the state-run oil giant, YPF, ousting its president, splitting the position into two and replacing him with a banker.

Miguel Galuccio, president and CEO of YPF, has resigned from both positions and will be replaced as president by Miguel Angel Gutierrez, a finance industry veteran, former head of the Argentina unit of Spain’s Telefonica and partner at the hedge fund Rohatyn Group. Related: Solar Power Is About To Get MUCH Cheaper

The shuffle is part of efforts by President Mauricio Macri’s government to reorganize the biggest energy company in the country, which was nationalized a few years ago by Macri’s predecessor, Cristina Fernandez de Kirchner.

Some media reports claim that new Energy Minister Juan Jose Aranguren—a former Shell Argentina chief--held a grudge against Galuccio, mainly because of the debt that the company accumulated during his term. In its 2015 financial statement, YPF said its debt to EBITDA ratio at the end of the year was 1.35x. Media sources have also noted Aranguren’s general criticism of the Fernandez government and its policies that were viewed as anti-business, and not friendly enough to oil.

Whatever the cause of the antagonism between Aranguren and Galuccio, his replacement signals that the government wants to steer YPF in a new direction, and many hope this will translate into a renewed shale push. Related: Iran Aims For Highest Oil Production Since 2008

Much of the new debt that the now former head of the company had taken out since 2012 was invested in the development of a huge shale gas field, the prized Vaca Muerta. He had big plans for the country’s shale development, and he was commonly referred to as “The magician” in company circles. After all, he was credited with restoring YPF’s profitability and boosting oil and gas production. In short, he managed to turn the company around in the space of four years under a government that did not encourage foreign investment.

It’s hard though to track success in this current price environment. That said, Argentina’s fixed oil prices have certainly helped the country weather the oil price storm, but only since 2014. Before that, these same fixed prices were holding investment back.

So either this replacement marks the end of Galuccio’s usefulness to YPF and a new lease on life, or it represents oil-friendly Macri’s attempt to strengthen control over the state-run giant by placing his own people at the helm—or both.

With the Magician’s magic having run out, what’s next for YPF with a new leader? Related: Choking And Lifting Preventing The Decline In U.S. Shale?

Well, for one thing, everyone will be closely watching the YPF deal with Chevron, the details of which have never been publicly disclosed and are the focus of a Supreme Court judgment. There were some that felt these details should be known to the public, but YPF fought to suppress it in the name of protecting competitiveness.

The Supreme Court recently ordered that YPF had to disclose the contract for the development of massive shale reserves in the Vaca Muerta. But then the head of Argentina’s anti-corruption office, Laura Alonso, did an about face, deciding that YPF was justified in holding back the details. This all came about at the same time more or less that the YPF head announced his resignation.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News