Gas y Petroleo del Neuquen (GyP), the state oil company of Argentina’s province of Neuquen, has agreed to swap its unconventional deposits in the Vaca Muerta formation with the YPF’s conventional reserves – Platts reported yesterday.
GyP will exchange its minority stakes in Bajada de Anelo and La Amarga Chica for YPF’s interests in Puesto Cortadera, NI Loma Negra, Cutral Co Sur, Neuquen del Medio, Collon Cura Bloque I and Bajo Baguales.
Argentina’s state-run energy company YPF is betting hard on the country’s unconventional deposits, hoping that Argentinian shale gas will reverse the country’s declining hydrocarbon production. According to EIA estimates, Argentina has 437 trillion cubic feet (tcf) of technically recoverable shale gas, and 27 billion barrels of shale oil.
YPF is already producing about 31,000 b/d of oil equivalent, mostly of light crude, from Vaca Muerta in partnership with Chevron. For the newly acquired La Amarga Chica, YPF is planning to join forces with Malaysia’s state-owned Petronas. Platts reports that – providing the deposits don’t disappoint – the two companies are plannning to invest more than $1 billion in the project over the next five years.
When it comes to Bajada de Anelo, no partner has been announced yet, but it is believed that a partnership with the Chinese giant CNOOC is on the cards.
The Neuquen legislature still has to approve the swap before it can be finalized, GyP said.
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