The state oil company YPF signed an agreement with US oil major Chevron Corp to define the terms and conditions of Chevron’s investment of up to $1.5 billion in vast Vaca Muerta shale field.
The joint pilot project will include the drilling of more than 100 non-conventional wells over the next 12 months, YPF said in a statement. The two companies signed a letter of intent in December to partner on investments.
Anticipation of the announcement drove YPF shares up 12.26 percent in Buenos Aires trade.
«Chevron’s $1.5 billions investment is expected to go toward the massive development of non-conventional resources in Vaca Muerta, specifically in the areas of Loma La Lata Norte and Loma Campana in Neuquen province,» YPF said.
YPF aims to drill 132 oil wells at the Vaca Muerta shale formation in Patagonia this year.
Source: Buenos Aires Herald