• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 1 hour IMO 2020 could create fierce competition for scarce water resources
  • 14 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 1 min Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 7 hours Theresa May to Step Down
  • 11 hours IMO2020 To scrub or not to scrub
  • 14 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 22 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 12 mins Total nonsense in climate debate
  • 11 hours Devastating Sanctions: Iran and Venezuela hurting
  • 3 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 13 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 9 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry

Chevron Agrees $15 Billion Deal with YPF to Help Develop Vaca Muerta

Chevron Corp. is finalising the details of a giant investment which will help to make Argentina energy independent by developing what is considered the world’s second largest shale oil reservoirs.

Ali Moshiri, the head of Chevron’s Latin America, Middle East, and Africa division, spoke to reporters in Buenos Aires, saying that, “some people think China is the second-largest shale oil. I believe after the U.S., Vaca Muerta holds the largest shale oil in terms of reserves.”

The Vaca Muerta shale formation has been estimated to hold at least 23 billion barrels of oil equivalent.

Moshiri met with Miguel Galuccio, the chief executive officer at state-owned YPF SA, to sign a contract which establishes the terms for a partnership that will begin with an investment of $1.5 billion, and could grow to as much as $15 billion as development of the field progresses in the future.

The deal faces threats from the fact that both parties are involved in large lawsuits, which may result in large payments of compensation being made in the future. Repsol currently has 40% of its Argentine assets frozen as punishment for failure to pay Ecuador the $19 billion in damages it has been ordered to pay as recompense for environmental damage.

Moshiri failed to explain how Chevron intends to operate in Argentina without its funds being seized, only stating that “at the end of the day the right decision will be made by the people in Argentina, the government and the judiciary system.”

YPF is also in the middle of a lawsuit being held against it by Repsol, whom lost its controlling shares in the Argentine energy company when President Kirchner illegally seized them in 2012.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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