YPF, Yacimientos Petrolíferos Fiscales, is studying the possibility of making a large capital expenditure for its new flagship project, which is Vaca Muerta, located to the southwest of the capital city of Argentina, Buenos Aires and covers the provinces of Neuquén, La Pampa, Río Negro and Mendoza; This would be an expense of approximately 3,600 million dollars between the years 2019 and 2023.
This was what the executive director of the company, Daniel González, commented from New York. At a crossroad with the media and after having met with investors, Daniel said that the company is analyzing the possibility of doubling the annual dividends over the next three years so that these are comparable with other companies in the sector.
The Reuters agency commented that Argentina is a country that depends a lot on the development of Vaca Muerta, this is a region that occupies a size similar to that of Belgium in the country and that is located in the province of Neuquén, this is important because it will help with the increase in energy production and also reduce imports at this time is very important, as the country’s president, Mauricio Macri, recently spoke about reducing the fiscal deficit to zero.
The company also details that it occupies 45% of the total oil produced in the country and we must add 39% of gas production.
YPF, which was also nationalized in 2012 when the former president Cristina Fernández was in office, will invest approximately 3,400 million dollars annually in the production of hydrocarbons, according to González, with 69% of the amount destined to the unconventional.
Juan García Portero, professor of geology, added that unconventional hydrocarbons are very important energy resources that are located in areas that are very complicated extraction, because they are sediments, sands, coal or shale formations that encyst in the rocks.
On the other hand, Miguel Gutiérrez, director of YPF, pointed out that the company will have a much faster growth, because they will do it in a much more disciplined way, they will take the time to significantly reduce the debt and they will also propose the growth of the dividends of The company, but even more important, will focus on generating much more cash to continue with investments in new projects.
The executives of the company commented that they are examining the option of buying other areas that are not entirely conventional, such as Golf or San Jorge and offshore exploration, these are the main goals of the company. For the next 5 years, the multiplication by 7 of the unconventional crude production is proposed and also the multiplication by 4 of the unconventional gas is proposed.
In aggregate terms, such as exploration, extraction, and petroleum gas production, the state company will have between 4 and 5 billion dollars per year until 2023.
The increase planned by the company is approximately 7% per year, this is the highest growth in unconventional production, all due to the clear and strong investment of YPF in Vaca Muerta, this could also be one of the most important reserves of the world, according to Reuters.