The agreement was signed in China’s capital Beijing by YPF CEO Miguel Galuccio and Sinopec chairman Fu Chengyu.
As per the terms of the agreement, the companies will establish a joint venture in the areas of exploration, drilling, production, refining, regasification, distribution and sales.
The companies will develop conventional and non-conventional oil and gas projects. Sinopec is currently the fourth-leading oil producer in Argentina; however, it does not have experience in unconventional oil in the South American nation, reports Fox News Latino.
In August 2014, Sinopec and YPF agreed to "re-launch exploration and development activity" in the La Ventana area of the Vaca Muerta shale formation, which is located in southwestern Argentina.
YPF has entered into a tie up with Chevron and Malaysia’s Petroliam Nasional Bhd, for the development of shale oil in Vaca Muerta, which is considered to be one of the largest reservoirs of non-conventional hydrocarbons in the world.
Sinopec’s Argentina unit and YPF have commenced a technical audit of a few areas of Vaca Muerta which could be explored and if feasible, developed.
Image: YPF has signed a MoU with China’s Sinopec to develop oil and gas projects in Argentina. Photo: Courtesy of Stuart Miles/FreeDigitalPhotos.net.
