• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 4 hours New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 4 hours ..
  • 9 hours Summit: Kim, Putin To Meet Thursday in Russia’s Far East
  • 3 hours Countries with the most oil and where they're selling it
  • 9 hours Iran Sabre Rattles Over the Straights of Hormuz
  • 4 hours Section 232 Uranium
  • 2 hours Nothing Better than Li-Ion on the Horizon
  • 17 hours Don't Climb Onto the $80+ Oil Price Greed Roller Coaster, Please.
  • 7 hours China To Promote Using Wind Energy To Power Heating
  • 2 hours How many drilling sites are left in the Permian?
  • 6 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 12 hours "Undeniable" Shale Slowdown?
Texas Has A New Favorite Energy Source

Texas Has A New Favorite Energy Source

Texas, known world-wide for its…

Can Saudi Arabia Still Sway The Oil Market?

Can Saudi Arabia Still Sway The Oil Market?

As large customers like China…

Statoil, YPF Finalize Joint Vaca Muerta Development Deal

pipeline gauge

Norway’s Statoil and Argentine YPF have finalized a deal for the joint development of a block in the Vaca Muerta shale oil and gas play, the second-largest in the world. Under the deal, the partners will each take a 50-percent interest in the 38,800-acre Bajo del Toro block, with YPF acting as the operator.

The deal, which was first announced last August, is Statoil’s first project in Argentina. Under its terms, Statoil will pay YPF US$30 million to cover the costs the Argentine company has already incurred with relation to the block, and also pledge US$270 million for future capital expenditure.

The Vaca Muerta formation is estimated to hold some 16.2 billion barrels of crude oil and 308 trillion cu ft of natural gas, which makes it the second-largest in terms of gas reserves globally.

Among the Big Oil players who have declared interest in taking part in the development of Vaca Muerta are Chevron and Exxon. They have already invested in exploration there: Exxon has ponied up $250 million and plans to add another $10 billion to this over the next 20-30 years. Chevron invested $1.5 billion when it struck a joint venture deal with YPF three years ago.

YPF also has joint ventures with Total, BP, Shell, Schlumberger, and Wintershall in Vaca Muerta, on which the Argentine company is focusing as a means of ensuring long-term oil and gas production growth.

The state oil and gas company of Argentina plans to spend US$21.5 billion on new oil and gas production over the next five years in the hopes of increasing crude oil production by 26-percent.

YPF will sell some assets to gather the funds necessary for this ambitious production-raising plan, and it will also enlist the help of other companies, which will contribute an estimated US$8.5 billion to its five-year investment program.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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