YPF to put $1.1-bln in Vaca Muerta

BUENOS AIRES, March 9, 2018 – YPF plans to invest USD 1.1 billion to launch 20 pilot wells in Vaca Muerta this year, local media reported on Thursday.

“We are developing our Vaca Muerta resources with more than 20 pilots that we are going to do this year, nine of them operated by other companies and another 11 operated by YPF,” said Miguel Gutiérrez, the company’s president, at an event to promote an agreement with the Ministry of Production under the Supplier Development Programme.

The company aims to not only boost its shale hydrocarbons production, but also facilitate the participation of more local oil and gas suppliers through these projects.

“The important thing is to be sure that the growth that this industry is going to have in the coming years will be complemented by the development of national companies,” Gutiérrez said. “This agreement with the Ministry of Production allows us to make sure that we understand the value chains well and that we support them to ensure that they can grow with the industry.”

YPF plans to develop seven or eight of the new pilots under Argentina’s unconventional gas production stimulus scheme, which ensures a price of USD 7.50 per million Btu in 2018, eventually resting at USD 6 per million Btu in 2021.

Earlier this week, YPF CFO Daniel Gonzalez provided the locations of five planned pilot projects: Bajada del Toro, Cerro Las Minas, Salinas del Huitrín, Cerro Arena and Las Tacanas.

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