December 11, 2013
After nyt storyFriday, October 25, 2013
YPF: ‘No secret clause’
YPF’s deal with Chevron to develop the Vaca Muerta shale oil and gas formation spanning Neuquén and Mendoza was placed under scrutiny yesterday as many commentators picked up on an item written in The New York Times that many saw as evidence of the much talked-about secret clause in the controversial agreement.
Yet the truth is that the clause in question had been openly discussed by YPF CEO Miguel Galuccio at a news conference in late August.
The paragraph in The Times’ piece read as follows: “Argentine oil officials said that the Chevron-YPF deal will shield the American company from financial loss connected to a change in the political winds. After the company invests US$1.2 billion, 18 months later it can withdraw from operations without penalty and continue to receive net profits of 50 percent of the production from the initial wells in perpetuity.”
YPF insisted yesterday the issue had been openly discussed and the measure would not be applicable until the end of the concession.
“YPF ratifies that, contrary to media reports released today, the agreement signed with Chevron for the development of the first cluster of shale in Vaca Muerta does not contain secret clauses,” YPF said.
YPF’s response pointed out that several local media outlets had already reported the news that was now being touted as new and part of a supposedly secret clause.