December 6, 2013
YPF, Dow sign accord for El Orejano’s shale gas joint venture
State-owned oil company YPF has signed a final agreement with the Argentine unit of The Dow Chemical Company to explore shale gas reserves in El Orejano, Neuquen.
Dow Argentina will invest 120 million dollars over the next year, while YPF will contribute $68 million to the joint venture.
The decision was announced today by the YPF CEO Miguel Galuccio and Dow vice-president Jim Fitterling, putting an end to negotiations which began in March.
As YPF will act as the area operator, initially the company will develop 16 gas wells for the shale gas extraction. Both sides estimate extracting three million cubic metres per day during peak periods.