The agreement to develop tight and shale hydrocarbons in Argentina sets out the principles for cooperation for a final accord that could be signed in the Russian spring.
(Bloomberg) -- YPF SA Chief Executive Officer Miguel Galuccio and his counterpart at Gazprom PJSC Alexey Miller signed an agreement to develop projects in Argentina.
The agreement to develop tight and shale hydrocarbons in Argentina sets out the principles for cooperation for a final accord that could be signed in the Russian spring, Sergei Kupriyanov, Gazprom’s spokesman, said after the signing ceremony Friday in Vladivostok, Russia.
The accord, signing Friday in Vladivostok, Russia, sets out the conditions for developing tight and shale projects in Argentina and the companies may reach a final agreement by March, according to Gazprom.
YPF, the state-run energy company, is seeking partners to finance development of a shale formation the size of Belgium known as Vaca Muerta that contains at least 23 billion barrels of oil. Chevron Corp. is now producing 43,000 barrels of oil equivalent a day with YPF while Dow Chemical Corp. is developing gas in an area called El Orejano. Similar deals have been signed with Malaysia’s Petroliam Nasional Bhd. and China Petroleum & Chemical Corp.
The accord will provide “a significant impulse for the development of the republic’s oil and gas industry,” Gazprom Miller said in the statement.
Argentine President Cristina Fernandez de Kirchner and Russia’s Vladimir Putin attended the signing of a memorandum between the two companies in April.
To contact the reporters on this story: Pablo Gonzalez in Buenos Aires at firstname.lastname@example.org; Elena Mazneva in Vladivostok at email@example.com To contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org Torrey Clark, Rob Verdonck.
Copyright 2016 Bloomberg News.
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