Govt: Repsol YPF Plans US$1.1bn for Santa Cruz in 2007-09

Spanish oil major Repsol YPF's (NYSE: REP) Argentina, Bolvia and Brazil (ABB) division plans to invest US$1.1bn in Argentina's Santa Cruz province in 2007-09, the provincial government said in a statement.

ABB general director Enrique Locutura met with Santa Cruz deputy governor Carlos Sancho to announce its investment plan.

The new investment would represent an increase of US$154mn from the company's 2006 investment in the province.

Repsol YPF aims to increase its reserves and hydrocarbons output in the region through the reinterpretation of hydrocarbons-bearing basins and the incorporation of new offshore production, the statement said.

The investment is part of the company's US$6bn planned for Argentina over the three-year period, US$4.6bn of which will go to E&P.

Repsol YPF believes crude production in the country could reach 390,000b/d and gas output 62Mm3/d through the investment plan.

In 2005, Repsol YPF's net hydrocarbons liquids production in the country was 134Mb, according to the company website, or roughly 368,000b/d.

The company produces 11,700m3/d of oil (99,702b/d) and 3Mm3/d of gas in Santa Cruz province.


Meanwhile, Locutura also met with Rio Negro province governor Miguel Saiz, announcing plans to invest US$65mn in E&P in the province in 2007-09, the province said in a statement.

Projected investment in the province is a sharp jump from the company's 2006 investment of US$7mn.

Repsol YPF produces 1,700m3/d of hydrocarbons liquids and 150m3/d of gas in the province.

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