President Mauricio Macri announced yesterday that oil companies YPF and Dow Argentina have reached an agreement to drill for shale gas in “El Orejano,” located in the Vaca Muerta region in Neuquén Province. The moment you had been waiting for so long has finally arrived. (Just kidding.)
The agreement was signed in the Olivos presidential residence in the presence of Treasury and Finance Minister Alfonso Prat-Gay, Energy Minister Juan José Aranguren, YPF CEO Miguel Galuccio and Dow CEO for South America Gastón Remy, among others.
According to Fortuna, both companies’ commitment to invest US$500 million in the joint venture over the next year will allow them to triple current gas production by late 2016, reaching an average of 2 million cubic meters a day. Talking about gas is fun, isn’t it?
Macri praised the agreement for being a “joint effort between an Argentine company like YPF and a highly respected multi-national like Dow.”
“The production increase will allow them to grow, generate jobs and contribute to Argentine development,” Macri continued. He added that this particular investment is important in light of the country’s “delicate energy situation,” a subject Aranguren tackled later on in the day by declaring an “energy emergency.” (Yes, we went from “delicate situation” to full-out “emergency” in a matter of hours. Long live political rhetoric.)
YPF and Dow Argentina have been working in the area since 2013, when the first agreement was signed.