Chevron, YPF set terms for deal to develop Argentina shale oil
BUENOS AIRES -- Chevron and YPF set out conditions of a future deal that could see a multi-billion dollar investment in Argentina's shale oil development.
The agreement, which could be finalized in months, would set the stage for a $1 billion pilot program and could eventually have the two energy giants drill an estimated 2,000 wells at an estimated cost of around $15 billion. The project would export the expertise the U.S. has gained in shale development during the past few years to Argentina, a country estimated to have some of the largest shale oil and gas reserves in the world.
It would also put Argentina on a path it hopes will lead to energy self-sufficiency.
"Our goal is to move on this as soon as possible," said Ali Moshiri, Chevron's head for Latin America and Africa.
YPF, formerly a subsidiary of Repsol, was nationalized by the Argentinian government earlier this year. Repsol claims to have lost approximately $10.5 billion in assets as a result of the nationalization.
Dow Jones Newswires