The president and CEO of Petronas, Tan Sri Dato 'Shamsul Azhar Abbas; and President and CEO of YPF, Miguel Galuccio signed in Kuala Lumpur, Malaysia, an agreement of terms and conditions for the development of unconventional oil in Neuquen province.
Prior to the signing, President's Office, Cristina Fernandez de Kirchner, held a telephone conversation with Prime Minister of Malaysia, Najib Tun Razak, in which they exchanged information about the scope of this new project.
During the first phase of three annual phases, the project envisages the development of a pilot of shale oil in the block The Bitter Girl, in the province of Neuquén, with a total investment of 550 million dollars, of which Petronas will contribute $ 475 million. The block covers an area of approximately 187 km2.
During the pilot stage more than 30 wells will be drilled, including both vertical and horizontal. The pilot will begin once initialed the final documents and fulfillment of certain conditions precedent relating to the ownership of the area, the concession term and the tax framework for the project, with the aim of initiating pilot activity in the first quarter of 2015 . YPF is the operator area and assign a 50% of the concession to exploit the block.
Behind this pilot stage companies provide, in accordance with the results expected, the continuity project in factory mode, which would lead to more than one billion dollars in the first 5 years investment.
Simultaneously, both companies evaluate strategic partnership to expand other exploratory areas with potential for unconventional resources.
"In line with our Strategic Plan and with the proper development we are doing in Loma Campana, seems a huge opportunity for the country YPF and Petronas add a strategic partner, a company with world class standards and one of the largest producers of oil and gas world, to promote the development of unconventional in Argentina "Galuccio said after the signing.
Meanwhile, his pair of Petronas, Tan Sri Dato 'Shamsul Azhar Abbas, considered: "We are very pleased to celebrate our entry into the shale . oil through this partnership with YPF in the Neuquén Bitter Girl We see as a very prolific area with great potential for growth that will surely greatly benefit Argentina. "
President YPF from Malaysia said: "We're putting in production by resource that can change the energy future of our country. Unconventional activity requires a large capital investment and a strong human resource development and technology and this partnership represents a new support for this activity led by YPF, and especially the huge potential that the country has. This agreement means more jobs, more income and more production to Neuquén. "
Governor of Neuquén, Jorge Sapag, was optimistic about the new agreement reached by YPF with the company Petronas, whose president received with Miguel Galuccio few months ago. "We will work with the Nation and YPF to comply with the conditions precedent necessary for the realization of this new agreement for the development of unconventional resources in our province," said Sapag.
"We are convinced that this new agreement is to attract more investment, more jobs and more resources for the province of Neuquén, as has been happening in the last two years. This is what the country needs and our province, "concluded Sapag.
YPF sum with this new agreement with Petronas as the first national company for this type of development, following agreements with Chevron and Dow Chemical.
Since the beginning of the new YPF management spanning more than 245 wells drilled and have 21 active drilling equipment for the development and exploitation of unconventional resources (compared to 4 that was in April 2012), with a daily output of more than 25,000 boes. The company is conducting the first large-scale development of unconventional type and the most important in the world outside North America in the area Loma Campana, already became the second largest deposit of oil production in the country.
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