August 22, 2014
Total vows to increase investment in Vaca Muerta
French energy company Total will be increasing investment in the country, President Cristina Fernández de Kirchner said yesterday, when she met with the company’s CEO Christophe de Margerie.The company “has decided to boost investment in the country toward offshore drilling and also in its partnership with YPF,” the president said.
Fernández de Kirchner praised the opportunities that exist in the country’s energy sector, saying that “Argentina has become a true oil country” because “we have the second largest reserve of shale gas and the fourth in shale oil.”
Total was Argentina’s largest natural gas producer until this month, when YPF finalized the purchase of Apache’s assets in the country.“We have to continue, but if they ask me to produce more gas tomorrow, I don’t know how to do it, the day after tomorrow, yes, but not tomorrow,” said De Margerie after the meeting, adding that the “great issues of the future, on how to develop enormous reserves” were discussed. Foreign Minister Héctor Timerman said the company had “ratified to the president that it will invest to increase energy production in Argentina” at Vaca Muerta and in Tierra del Fuego.
De Margerie said that technical issues were brought up, including Total’s access to dollars to acquire equipment, and that the company is currently producing gas at full capacity, also emphasizing an intent to cooperate with Chevron, YPF and others to reduce costs, “which are skyrocketing worldwide.”