The signing ceremony in Vladivostok was overseen by the prime ministers of both nations.

Gazprom and YPF sign Vaca Muerta accord

VLADIVOSTOK, September 7, 2015 – Russian energy corporation Gazprom and Argentina’s state-run oil and gas company Treasury Petroleum Fields (YPF) signed an agreement on Friday to develop the South American country’s shale oil reserves.

The agreement targeted YPF’s holdings in the Vaca Muerta shale field. It contains an estimated 23 billion barrels of oil equivalent in recoverable reserves, and remains largely untapped. The deal signed on Friday sets out the principles for co-operation. A final deal should be ready by March.

Outside of North America, Argentina has the largest unconventional oil and gas developments. US operator Chevron and Malaysian oil and gas producer Petronas are already operating in Argentina’s shale developments, and by bringing Gazprom in, the country hopes to upgrade the facilities with access to their pipeline developments, logistics, and other technologies.

Signing the deal will provide “a significant impulse for the development of the republic’s oil and gas industry,” Gazprom’s CEO Alexey Miller said in the statement announcing the deal.

In an email from Vladivostok, where the agreement was signed, YPF CEO Miguel Galuccio said, “Gazprom can bring to YPF its know-how and its financial strength as the biggest player in gas on the planet.”

Image courtesy of Gazprom

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