YPF SA forms agreement with Dow Chemical
Argentina's largest corporation, YPF SA, together with Dow Chemical Co's Argentinean subsidiary, entered into a final agreement to jointly invest USD188 million in a shale gas extraction project located at the Vaca Muerta formation.
Dow Jones would be providing USD120 million in a year's time while YPF would be investing the remaining amount. The funds would be used to develop 16 shale gas wells according to the recently nationalized Buenos Aires based company. This agreement by YPF is the second of its kind, with the first one formalized with Chevron Corp.
Last April 2012, Argentine President Cristina Fernandez de Kirchner's government had seized 51% of YPF from Repsol SA of Spain. This decision was brought about by an energy deficit worth of USD5.4 billion through August 31, according to figures from the National Statistics Institute of Argentina.
According to YPF CEO Miguel Galuccio, "This agreement confirms the path we decided to tae when we presented our strategic plan. We said we needed to develop a shale gas pilot and today we are materializing it."