Argentina’s YPF SA plans to spend $12 million to drill an unconventional well in Chubut province, marking YPF’s strategy to expand beyond Neuquen province in its search for unconventional oil and gas.
Other exploratory drilling for unconventional resources has been in Argentina’s southern Neuquen basin to test the Vaca Muerta shale and possibly other formations (OGJ Online, July 11, 2012).
President Cristina Fernandez de Kirchner, Chubut Gov. Martin Buzzi, and YPF Chief Executive Miguel Galuccio announced the well spudded on Feb. 13, saying YPF also is moving to reverse declining oil and gas production in Argentina.
This is the first time YPF has drilled a well for unconventional oil or gas in Chubut province, Galuccio said. He expects the well will be drilled to more than 3,000 m.
Kirchner nationalized energy producer YPF in April 2012, seeking to stop declining output (OGJ Online, Apr. 23, 2012).
During a speech from Chubut province. Galuccio said YPF’s gas production dropped while YPF, based in Buenos Aires, was controlled by Spain’s Repsol SA.