BUENOS AIRES May 15 Argentine energy company
YPF signed an agreement with U.S. oil major
Chevron Corp on Wednesday to define the terms and
conditions of Chevron's investment of up to $1.5 billion in
Argentina's vast Vaca Muerta shale field.
The joint pilot project will include the drilling of more
than 100 non-conventional wells over the next 12 months, YPF
said in a statement. The two companies signed a letter of intent
in December to partner on investments.
Anticipation of the announcement drove YPF shares up 12.26
percent in Buenos Aires trade.
"Chevron's $1.5 billion investment is expected to go toward
the massive development of non-conventional resources in Vaca
Muerta, specifically in the areas of Loma La Lata Norte and Loma
Campana in Neuquen province," YPF said.
YPF, which was renationalized last year as Argentina battles
to reverse a long decline in natural gas and oil output, aims to
drill 132 oil wells at the Vaca Muerta shale formation in
Patagonia this year.