December 13, 2013
Eurnekián: YPF talks go on
Corporación América looks to seal partnership
Corporación América continues to work with YPF on a potential US$500 million partnership with state-run YPF to “develop projects,” Eduardo Eurnekián said yesterday, without revealing many details.
The company that also manages the country’s airports had already signed a memorandum of understanding with YPF in late 2012, which Eurnekián yesterday insisted had not expired.
“We will establish a strategic partnership with YPF to develop oil and gas resources. A time-table has not yet been set up but we will start working on it. It will be an investment on areas agreed to with YPF,” he said. “I haven’t met with Galuccio in the past few week but members of my company have. A lot of investments like ours are needed to develop shale projects in Argentina.”
In a speech at the Argentine Oil & Gas Expo, Eurnekián didn’t specify when the deal with YPF would be sealed, although he did say it could possibly be before the end of the year.
Even though he didn’t say if the deal would focus on unconventional resources, he told journalists after the conference he would prefer to focus on conventional wells since they are “less risky.”
“We aspire that shale gas and oil become a boost for Argentina’s growth and us business leaders will have to respond with efficiency,” he said. “It’s a challenge that will require optimism, creativity and tolerance from business leaders.”
The head of Corporación América considered shale projects to be important but he emphasized it was more of a long-term strategy-
“Long-term is always the best way to think regarding unconventional oil and gas projects. Argentina will be able to develop its shale resources after some presidential periods,” he said.
Corporación América recently paid US$200 million for 81 percent of the shares of Compañía General de Combustibles.