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    Argentina’s YPF expecting strong Q4: press

Summary

The head of the company told Reuters that performance was driven by an increase in oil and natural gas production.

by: Daniel Graeber

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Argentina’s YPF expecting strong Q4: press

The head of Argentine energy company YPF told the Reuters news service December 2 that it expected fourth quarter revenue to increase on the back of production gains.

"We are going to have a profit higher than in the previous quarter," YPF president Pabo Gonzalez said in an interview. “The firm recorded a $237mn net profit in the third quarter.”

YPF said early this year that $1.5bn in investments would target operations in Neuquen province, near the western border with Chile, and boost production from the Vaca Muerta shale by 56% for oil and 70% for unconventional natural gas.

Spanning an estimated 7.5mn acres in total, the Vaca Muerta shale basin is among the largest in the world. Research from the US Energy Information Administration finds the basin holds 308 trillion ft3 of natural gas and 16bn barrels of oil and condensate.

Argentina envisions export potential from an LNG terminal that will put Vaca Muerta reserves on the international market. The terminal could have an initial liquefaction capacity of 5mn metric tons per year, rising to 10mn mt/yr under a potential second stage.

In September, Argentine president Alberto Fernandez sent a bill to the national congress that promotes investments in a bid to boost production from Vaca Muerta.

This is a deal with a “very great ambition” that gives “maximum impetus to oil and gas activity,” the president said.

Gonzalez added that performance in the fourth quarter was driven by an increase in natural gas production.

“The sale of fuels is almost [at] pre-pandemic levels. Plus the higher production of crude oil," he added. "The fact we are showing a recovery of this type this year, I think it's good."