The deal with PAE, which is partly owned by BP and Bridas, should provide a 4.3% increase in annual gas production from 2013 to 2017 said the Argentine government.
“The agreement with PAE means a fiscal savings of 4.3bn dollars and will help avoid having to invest 6.8bn dollars in gas and liquid fuel imports”, said Federal Planning minister Julio De Vido.
He added that under the terms of the deal in four to five years Argentina will have recovered 20 million cubic metres of gas, which must be added to the 40 million already recovered by YPF.
Under the terms of the agreement with the Bulgheroni brothers, Bridas will drill 130 wells in 2013 and 2014 under a pilot program in the Vaca Muerta formation in Neuquen, followed by as many as 1000 additional wells, YPF Chief Executive Miguel Galuccio said at a press conference.
The agreement would see YPF eventually transfer a 50% interest in two areas that together comprise 663 square kilometres in Vaca Muerta, which is home to most of Argentina’s shale oil and gas deposits. (mercopress)