Join the conversation:

Chevron expanding to Argentina

Chevron expanding to Argentina

Posted by Liliana Castaño on April 10, 2014

Chevron Corp. (CVX), the world’s third-largest oil company, signed an accord with Argentina’s YPF SA to invest $1.6 billion this year in shale development and become the country’s largest foreign producer of shale oil and natural gas.

Chevron and state-run YPF plan to drill 170 wells in a 96,000-acre area this year in Argentina’s Vaca Muerta formation, the world’s second-largest shale gas deposit and fourth-largest shale oil reservoir, both companies said today in separate statements.

Argentine President Cristina Fernandez de Kirchner’s government expropriated a 51 percent stake in YPF from Spain’s Repsol SA (REP) in April 2012 after saying the Spanish oil company hadn’t invested enough in exploration. Repsol’s board agreed in February to accept $5 billion in compensation for Argentina’s expropriation of the unit. Ending the two-year international dispute may help attract investors to the country.

“This is a significant step in our subsidiaries’ joint efforts with YPF to develop one of the most exciting shale plays in the world today,” Chevron Vice Chairman George Kirkland said in the company’s statement. “Vaca Muerta could become an important contributor to Chevron’s long-term production growth.”

Link To Full Article: 

Facebook comments



Monthly newsletter featuring articles hand picked by our country managers from the best content across PanamericanWorld.



Monthly newsletter featuring articles hand picked by our country managers from the best content across the Caribbean Region on PanamericanWorld.

PANAMERICANWORLD COUNTRIES