YPF Says Vaca Muerta Breakeven Under $40
Argentina’s YPF says its break-even cost in the Vaca Muerta formation is under $40/barrel of oil equivalent (boe), compared with around $60/boe a couple of years ago, while at the company’s most important field, Loma Campana, it’s under $35/boe, CEO Daniel Gonzalez said March 12 at IHS Markit’s CeraWeek in Houston.
“It has been a turn-around year for us as we went from a shale play with plenty of potential to a reality,” Gonzalez said. “The unconventionals were the factor behind allowing us to increase our reserve base by 16% this year.”
Gonzalez remains optimistic his company can increase gas production further in coming years.
“YPF could boost its shale gas production by 30% in the next four years if the company has a market, which we don’t,” he said. “So, we are seriously considering some medium-term measures like building a pipeline and thinking seriously about a LNG facility to really unlock these huge natural gas reserves we have.”