Petronas Signs On With YPF to Invest in Argentina Gas Shale

Petronas Signs On With YPF to Invest in Argentina Gas, Shale

Petronas has expressed interest in a shale oil field in Neuquen province at the foot of the Andes in western Argentina, said a statement from YPF, which was nationalized in 2012 at the expense of Repsol.

BUENOS AIRES -- Malaysian oil giant Petronas today signed a preliminary agreement with Argentinian firm YPF to invest in the giant gas and shale oil field at Vaca Muerta, a statement said.

Petronas has expressed interest in a shale oil field in Neuquen province at the foot of the Andes in western Argentina, said a statement from YPF, which was nationalized in 2012 at the expense of Repsol (IW 1000/49).

Argentina has launched a global drive for foreign investment in Vaca Muerta, seen as one of the most potentially lucrative fields in the world.

German firm Wintershall, U.S. giant Chevron (IW 500/2) and Chinese-Argentinian company Bridas have already announced more than $5 billion worth of investment seeking to exploit unconventional hydrocarbons at Vaca Muerta.

French company Total (IW 1000/9) is conducting exploration at the site, while Russia's Gazprom (IW 1000/16) and Mexico's Pemex have also been approached.

Argentina reported an energy deficit in 2013 of $8 billion and is keen to boost domestic production to limit imports.

Copyright Agence France-Presse, 2014

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