YPF and Sinopec ink collaboration agreement

Submitted by Paddy Harris on Wed, 2015-01-28 17:25

28th January 2015

YPF, Argentina’s state oil and gas company, has signed a collaboration agreement with China’s Sinopec to jointly develop opportunities across Argentina’s oil and gas supply chain

Sinopec intends target the potentially lucrative shale plays present in Argentina’s Vaca Muerta region

The president and CEO of YPF, Miguel Galuccio, and president of Sinopec, Fu Chengyu, signed a Memorandum of Understanding (MOU) to create a strategic partnership to develop conventional and unconventional oil and gas projects across Argentina.

Signed in Beijing, the agreement envisions collaborations in the both the upstream and downstream segments of the oil and gas supply chain.

In particular, Sinopec intends to use its Argentinian subsidiary, Sinopec Exploration and Production Argentina SA (SAEPSA), to target the potentially lucrative shale plays present in Argentina’s Vaca Muerta region.

The contracts also builds the fiscal framework for continued investment from China.

Sinopec already works with YPF in the Mendoza province. There, the two companies are driving new projects including the completion of 3D seismic surveying, the drilling of exploratory and development wells and the construction and refurbishment of treatment plants; injecting more than USD 300m into the regional industry.