Profile: YPF SA (YPF.N)
24 May 2013
YPF SA is an Argentinean integrated oil and gas company. Its business is structured in six activities: Exploration and Production, operating hydrocarbons exploration and production sites in the Neuquina, Cuyana, San Jorge Gulf, Austral and Nordeste basins; Refining and Logistics, controlling the refineries of La Plata, Lujan de Cuyo and Plaza Huincul, located in the provinces of Buenos Aires, Mendoza and Neuquen respectively, as well as it holds interests in the Refinor industrial plant in Salta; Marketing, offering a range of automotive, aeronautics, naval, farming and industrial fuels; Chemicals, manufacturing a variety of industrial products, including a diverse group of raw materials for chemical, industrial and agricultural activities; Lubricants, dedicated to the development, production, distribution and sale lubricants, asphalts and derivates, and YPF Gas, comprising the retail distribution of liquefied petroleum gas (LPG). The Company’s majority shareholder is Repsol YPF SA.
Exploration and Production
The Exploration and Production segment’s sales to third parties in Argentina and abroad include sales of natural gas and services fees (primarily for the transportation, storage and treatment of hydrocarbons and products). During the year ended December 31, 2009, approximately 86% of the proved crude oil reserves in Argentina are concentrated in the Neuquina (54%) and Golfo San Jorge (32%) basins, and approximately 95% of the proved gas reserves in Argentina are concentrated in the Neuquina (73%), Noroeste (16%) and Austral (6%) basins.
As of December 31, 2009, YPF held 107 production concessions and exploration permits in Argentina. YPF directly operates 71 of them, including 61 production concessions and 10 exploration permits. As of December 31, 2009, YPF held 16 exploration permits in Argentina, 11 of which are onshore exploration permits and five of which are offshore exploration permits. YPF has 100% ownership of three onshore permits, and its participating interests in the rest vary between 50% and 63%. YPF’s interests in the offshore permits vary between 30% and 35%. As of December 31, 2009, YPF had 91 production concessions in Argentina. YPF has a 100% ownership interest in 54 production concessions, and its participating interests in the remaining 37 production concessions vary between 12.2% and 98%.
As of December 31, 2009, the Company had mineral rights in 63 blocks in the United States, comprised of 58 exploratory blocks, with a net surface area of 857 square kilometers and five development blocks, with a net surface area of 17 square kilometers. The Neptune Field is located approximately 120 miles from the Louisiana coast within the deepwater region of the Central Gulf of Mexico. In 2009, YPF Holdings Inc. (YPF Holdings) participated in the drilling of the Northwood exploration prospect in the Gulf of Mexico with a net interest of 3.5%. As of December 31, 2009, the Company held through YPF Guyana Ltd, a wholly owned subsidiary of YPF International, S.A., an undivided participating interest of 30% in a petroleum prospecting license (the Petroleum Prospecting License) and a petroleum agreement (the Petroleum Agreement) in Guyana, with a surface exploratory area attributable to the working interest of 2,520 square kilometers, which represents approximately 622.7 thousand undeveloped acres.
Refining and Marketing
During 2009, the refining and marketing activities included crude oil refining and transportation, and the marketing and transportation of refined fuels, lubricants, LPG, compressed natural gas and other refined petroleum products in the domestic wholesale and retail markets and certain export markets. The segment includes refining and logistic division, domestic marketing division, and LPG general division.
The Company wholly owns and operates three refineries in Argentina. The La Plata refinery is located in the province of Buenos Aires. The Lujan de Cuyo refinery is located in the province of Mendoza. The Plaza Huincul refinery is located in the province of Neuquen.
The crude oil transportation network includes nearly 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products. As of December 31, 2009, the Company owned two crude oil pipelines in Argentina. One connects Puesto Hernandez to the Lujan de Cuyo refinery (528 kilometers), and the other connects Puerto Rosales to the La Plata refinery (585 kilometers) and extends to Shell’s refinery in Dock Sud at the Buenos Aires port (another 52 kilometers). It also owns a plant for the storage and distribution of crude oil in the northern province of Formosa with an operating capacity of 19,000 cubic meters, and two tanks in the city of Berisso, in the province of Buenos Aires, with 60,000 cubic meters of capacity. As of December 31, 2009, YPF held through Oleoducto Transandino Argentina S.A. and Oleoducto Transandino Chile S.A., an interest in the 428-kilometer Transandean pipeline, which transported crude oil from Argentina to Concepcion in Chile.
As of December 31, 2009, the Company also owned 33.15% of Terminales Maritimas Patagonicas S.A., operator of two storage and port facilities: Caleta Cordova (province of Chubut), which has a capacity of 314,000 cubic meters, and Caleta Olivia (province of Santa Cruz), which has a capacity of 246,000 cubic meters. It also have a 30% interest in Oiltanking Ebytem S.A., operator of the maritime terminal of Puerto Rosales, which has a capacity of 480,000 cubic meters, and of the crude oil pipeline that connects Brandsen (60,000 cubic meters of storage capacity) to the ESSO refinery in Campana (168 kilometers), in the province of Buenos Aires.
In Argentina, the Company also operates a network of multiple pipelines for the transportation of refined products with a total length of 1,801 kilometers. It also owns 16 plants for the storage and distribution of refined products with an approximate aggregate capacity of 1,023,122 cubic meters. It operates 53 airplane refueling facilities (40 of them are wholly owned) with a capacity of 24,000 cubic meters, own 27 trucks, 112 suppliers and 16 dispensers. In January 2010, YPF completed the construction of tanks and facilities for the reception and blending of ethanol in the storage plants of Lujan de Cuyo, Montecristo and San Lorenzo.
The trading division sells refined products and crude oil to international customers and oil to domestic oil companies. Exports include crude oil, unleaded gasoline, diesel fuel, fuel oil, LPG, light naphtha and virgin naphtha. The division’s export sales are made to Brazil and the United States.
The Company, through the marketing division, markets gasoline, diesel fuel, LPG and other petroleum products to retail and wholesale customers. The LPG division obtains LPG from natural gas processing plants and from its refineries and petrochemical plant. It also purchases LPG from third parties.
Petrochemicals are produced at our petrochemical complexes in Ensenada and Plaza Huincul, as well as in Bahia Blanca, where Profertil’s petrochemical complex is located. The petrochemical production operations in Ensenada are closely integrated with the refining activities (La Plata refinery).
Macacha Guemes 515
BUENOS AIRES C1106BKK