Thursday, March 28

Argentina’s YPF aims to double oil output in five years, says CEO


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BUENOS AIRES — Argentina’s state-run oil company YPF plans to sharply grow its crude output over the next five years to reach some 450,000 barrels per day, the firm’s top executive said on Monday, amid an oil price rally and widespread geopolitical uncertainty.

“Our goal is to be able to double our current production in five years,” said YPF Chief Executive Officer Sergio Affronti in a speech at an energy event in the capital Buenos Aires.

YPF currently pumps some 220,000 barrels per day (bpd), and Affronti said he is targeting 450,000 bpd by 2026.

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The chief executive added the national oil company expects total investment this year to reach $3.8 billion, with $1.6 billion focused on shale projects.

YPF is the primary operator of Vaca Muerta, the world’s fourth-biggest shale oil reserve and No. 2 deposit for shale gas.

The company’s oil output has soared during the beginning of this year to average about 571,000 bpd in February, up slightly from the 570,000 bpd pumped in January.

The two months mark the highest level of monthly output since December 2011, according to energy ministry data.

About 40% of the output comes from the country’s shale reserves. (Reporting by Eliana Raszewski; Editing by David Alire Garcia and Chris Reese)



financialpost.com