Neuquen, Repsol YPF Meet to Extend E&P Contract Periods

Argentina's Neuquen province governor Jorge Sobisch is meeting with executives from Spanish oil major Repsol YPF (NYSE: REP) this week to discuss the prospective sale of a 45% stake in its Argentine subsidiary YPF, Neuquen province's government said in a statement.

Sobisch aims to extend the production periods for existing concessions in the province to attract investors.

"If they there are expansions, there will be higher value. If there's only an eight-year horizon for reserves - the certain oil production period according to studies we have today - nobody will buy the company," Sobisch said.

"We have been working with the concessions for a year. If we can close some [deals], we will. If not, they will remain for closure by the next governor [Jorge Sapag], to whom I've already spoken," he added.

Sobisch highlighted the fact that Neuquen province produces 70Mm3/d gas, roughly half the country's output, and only the Loma de la Lata concession has a contract extension.

More than 30% of oil produced in Neuquen is without a contract extension, Sobisch said.

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