December 9, 2013
Miguel GaluccioWednesday, September 4, 2013
YPF CEO says he has held Pemex meetings
YPF chief executive Miguel Galuccio said that Mexico’s state-run Petroleos Mexicanos “would be a good partner” for the state-run Argentine company, telling the Bloomberg News agency that he had “many business meetings in the last few months” with Pemex’s CEO Emilio Lozoya.
“YPF is open to creating all the agreements needed to put into production the huge resources from Vaca Muerta, and Pemex could be a good partner,” Galuccio said. “We had many business meetings in the last few months.”
The national government signed a deal with US oil company Chevron to exploit Vaca Muerta, a shale oil and gas formation, mostly located in the province of Neuquén. Chevron will put in US$1.24 billion to launch a joint pilot hydraulic fracturing project in a new area known as the “Enrique Mosconi.” If all goes well, a second phase in the project would require some 1,500 wells and US$15 billion that the two companies would split equally.
In addition to Chevron’s agreement, Galuccio said Argentina needs more partners like the California-based company to stop a production decline that has forced billion-dollar energy imports.
“In order to develop reserves we need investment from partners to reverse the natural decline of fields,” Galuccio said. “The development of shale gas and oil requires a huge amount of cash and the sharing of risks and expertise.”
Pemex is the world’s fifth-largest crude oil producer but like Argentina is experiencing a decline in production at mature fields