YPF & Shell Agree on a Project Development in Argentina

Shell Argentina President Teofilo Lacroze and YPF President Miguel Angel Gutierrez signed an agreement on preliminary terms and conditions for the development of non-conventional hydrocarbons in Vaca Muerta, Neuquen. Shell plans to invest in two phases for approximately $ 300 million.

The agreement was signed at the offices of YPF. In the course of the coming months, the parties will negotiate the definitive agreements that, subject to the pertinent regulatory approval by the authorities of the Province of Neuquen, among other conditions, will grant each company a 50% stake in Bajada de Add to the development of a pilot program that will be operated by Shell.

"It is a pleasure to partner with Shell, a company with extensive experience in developing shale oil and gas in North America," Gutierrez said during the signing. In addition, he stressed the importance of an alliance with a new partner in Vaca Muerta, for having materialized "after the signing of the addendum to the collective labor agreement," recently agreed among the main actors of the Neuquen basin.

For his part, Lacroze said: "Shell has demonstrated excellent results in the exploration of non-conventional, and has great interest in the local oil and gas market. In collaboration with YPF, we hope to improve our knowledge of the Vaca Muerta training and deepen our contribution to the development of the energy potential of our country. "

Bajada de Anelo is an area of 204 km2, located northwest of Loma Campana in a strategic area of Vaca Muerta, which has shale oil and shale gas resources.