Political Risk Latin America Blog @PolRiskLatam

YPF makes major gas find in Argentina

Posted in News and Articles, Political Risk by politicalrisklatam on December 7, 2010

by Jude Webber for Financial Times – Beyond Brics, December 7th, 2010.

Argentina’s former state energy monopoly, YPF, has announced a major discovery of so-called unconventional gas. The news is a significant boost for Argentina’s troubled energy sector, where production has been sinking by about 6 per cent a year.

YPF, which is majority owned by Spain’s Repsol, is teaming up with Brazil’s Vale do Río Doce to develop part of the new discovery, and the companies will jointly invest some $140m in the initial phase. YPF shares are up over 8 per cent since Friday, following leaks of the announcement, while Vale’s São Paulo shares have reached a seven-month high.

In the first phase, 4.5 trillion cubic feet of gas have been discovered, meaning that Argentina’s reserves can now cover 16 years of reserves instead of six. And YPF said in Tuesday’s announcement that further exploration could ensure that Argentina has gas for decades to come. (continue reading… )

 

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