YPF announces $1.15 bln investment in Argentina
19 July 2017
Together with Pan American Energy, Total Austral and Wintershall Energía, we signed an agreement with Neuquén to promote the development of non-conventional hydrocarbons of Vaca Muerta, in the areas of Aguada Pichana and Aguada de Castro. The project includes investments of US $ 1.15 billion through December 2021, which will add to the US $ 500 million invested between 2014 and 2016, totaling an investment of US $ 1.65 billion.
"We have high expectations. This agreement ratifies our commitment to the country's energy development. The teamwork of the companies, the national and provincial governments and the unions was the key to value the area and to summon the necessary investments ", affirmed our president Miguel Gutiérrez, who emphasized the great effort that made possible this agreement. Omar Gutiérrez, the governor of Neuquén; Marcos Bulgheroni, Executive Director of Pan American Energy; Jean Marc Hosanski, CEO of Total Austral, and Gustavo Albrecht, CEO of Wintershall Energía, accompanied our president in signing the agreement.
Through the agreement, the province approved the subdivision of the Aguada Pichana area, to date formed by a UTE operated by Total Austral (27.27%) and integrated by YPF, Wintershall Energía (27.27% each) and Pan American Energy (18.18%). In this way, the area was subdivided into two: the area Aguada Pichana Este and Aguada Pichana Oeste, which - together with the Aguada de Castro area - are subject to the agreement reached.
The Aguada Pichana Este area, with 761 km2, will have Total Austral (41% and operator), YPF (22.5%), Wintershall (22, 5%) and Pan American Energy (14%). The new Aguada Pichana Oeste and Aguada de Castro areas, with an extension of 605 and 163 km2 respectively, will both have Pan American Energy (45%) and partners will be YPF (30%) and Total Austral ( 25%). The planned investment will total $ 1.65 billion. The disbursement of 1,150 million dollars is contemplated between June 2017 and December 2021, distributed in 675 million dollars in the Aguada Pichana Este area and the remaining 475 million dollars in the Aguada Pichana Oeste and Aguada de Castro blocks. This investor program adds the 500 million dollars invested in Aguada Pichana Este between 2014 and 2016 by the signatory companies of the agreement.
"This agreement is the result of a year of hard work and demonstrates our confidence in the hydrocarbon basin," said the governor Neuquino. This investment generates possible new investments, production and genuine work. The agreement shows that when working as a team, the collective development of the country is being built. "
The work plan until 2021 in Aguada Pichana Este, operated by Total Austral, will consist of the drilling of 48 horizontal wells with Vaca Muerta objective, to be added To the 12 holes already drilled.
In the areas of Aguada Pichana Oeste and Aguada de Castro, whose operator will be Pan American Energy, drilling is expected until 2021, Of 24 horizontal wells aimed at the Vaca Muerta formation and the construction of the surface facilities necessary to initially transport the production to the treatment plant located in Aguada Pichana Este.
Through the agreement, the province granted three concessions for Non-Conventional Hydrocarbons Exploitation for 35 years, in accordance with the terms established in article 9, subsection b) of National Law No. 27,007.