Industryweek 4019 Dowchemcialhq595
Industryweek 4019 Dowchemcialhq595
Industryweek 4019 Dowchemcialhq595
Industryweek 4019 Dowchemcialhq595
Industryweek 4019 Dowchemcialhq595

Dow Chemical Signs Agreement to Develop Argentine Shale Gas

March 27, 2013
Deal with state-run energy company YPF gives Dow 50% stake in developing the 42-square-kilometer El Orejano bloc

BUENOS AIRES -- Argentina's state-run energy company YPF said Tuesday it signed a memorandum of understanding with the local subsidiary of Dow Chemical (IW 500/22) to develop shale gas in the southern Nequen province.

The Neuquen basin, located at the northern end of Patagonia, is thought to hold some of the world's richest oil and shale gas reserves. It includes the 30,000 square kilometer Vaca Muerta (Dead Cow) shale reserve.

The agreement states that both companies will negotiate terms and conditions for a joint venture in which YPF will give Dow Chemical a 50% stake in developing the 42-square-kilometer El Orejano bloc.

"This agreement strengthens Dow's competitive position, consolidates our relationship with YPF, and reflects our commitment and contribution to the economic and industrial development of Argentina," said Jorge La Roza, Dow Argentina's CEO for southern Latin America.

YPF put into production early this month its first unconventional hydrocarbon well in Vaca Muerta, the statement added.

"Unconventional" refers to oil and gas deposits like oil shale, where the hydrocarbons are tapped not by conventional wells but instead must be released by methods like fracking, designed to free the reserves by fracturing the source rock.

Argentina seized YPF from Repsol in 2012, accusing the Spanish oil giant of allowing oil and gas production to lapse and forcing Argentina's oil import bill to rise.

The Vaca Muerta reserve places Argentina third, behind the United States and China among 32 countries listed in a U.S. Energy Department study of unconventional hydrocarbon resources.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Capitalize on Energy Flexibility with These Four Strategies

Feb. 4, 2024
Energy flexibility – the ability to temporarily reduce or shift energy use – can unlock revenue, lower energy costs, and more. Learn how to capitalize on energy flexibility with...

The Customer Is Still King! Improving Service to Maximize Revenue, Reduce Costs, Boost Loyalty!

Feb. 26, 2024
Join this webinar to learn how to deliver frictionless customer service (CX) amid changes to supply chains, unpredictable buyer demand, and the adoption of automation and AI.

Service Lifecycle Management – Challenges and Opportunities

Feb. 18, 2024
Gain insights into the next wave of aftermarket optimization with Harvard Business Review’s whitepaper, in association with Tavant. Get an in-depth look at AI-powered Service ...

Cloud-Based OT Data Management to Enable Analytics & Optimization

April 9, 2023
Can you rapidly move all of your company's OT data to the cloud at scale at a reasonable cost? Read the white paper to find out how!

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!