YPF reveals five year plan

YPF CEO, Miguel Gallucio has presented a five-year plan for profitable growth, with a 32% increase in oil and gas production projected for the next five years, which will, in turn, increase production of diesel and gasoline by 37%. YPF hopes to create 10,000 new jobs in the process as well. 

Exploration

The company plans to invest more than US$ 1.4 billion in the next five years in exploring productive basins, unconventional assets, offshore assets and international river basins. This investment will hopefully allow the company to drill 250 exploration wells in the next five years. 

The company has also announced plans to invest in gas exploration specifically, and will invest US$ 6.5 billion dollars between 2013 and 2017 to drill 1160 wells. 

Self sufficiency

Chief Executive Officer Miguel Galuccio also announced that by 2014 the company hopes to replace the current levels of fuel imports with domestically produced natural gas.

Investment

The company is planning investment of up to US$ 37.2 billion in increasing oil shale production in Argentina’s Vaca Muerta shale basin and in other unconventional deposits, of which YPF will fund US$ 32.6 billion, the rest will be paid for by exploration partners in Argentina’s oil shale license areas. 

In spite of the international uproar generated by the nationalisation of YPF, Mr Galuccio remains confident that international investors can be found to form strategic agreements with. YPF are apparently in talks with Chevron and Chinese investors as well about the possibility of signing deals to develop Argentina’s conventional and unconventional resources.

So far nothing has been said about how Repsol will be reimbursed for what it sees as the expropriation of its assets earlier this year and it is pursuing the case through the international courts.

Adapted from press release by Peter Farrell.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/31082012/ypf-unveil-five-year-oil-production-plan/