Argentina’s state-run oil company YPF SA has announced that it has reached a preliminary deal with Royal Dutch Shell Plc to develop oil and gas assets in the Vaca Muerta shale field, involving a USD $300 million investment from Shell.
Both companies will take a 50 per cent stake in the Bajada de Añelo field to develop a pilot program, which will be operated by Shell, YPF said in a statement. The agreement is subject to approval by provincial authorities, and Shell’s investment will come in two phases, YPF said.
The deal comes after President Mauricio Macri recently reached an agreement with oil companies to stimulate investment in Vaca Muerta, which his government hopes can narrow Argentina’s energy deficit and reduce costly gas imports.