Unocal, YPF to explore tracts off Argentina

Unocal /YPF Argentina Joint Venture Area [89,810 bytes] Unocal Patagonia Ltd., a subsidiary of Unocal Corp., and YPF SA have signed a joint operating agreement to explore and develop two permit areas off Argentina. The CGSJM Blocks 1 and 2 cover 19,300 sq km, or about one-third of the offshore extension of the San Jorge basin. The onshore portion of the basin has produced more than 2.5 billion boe. Unocal claims the blocks have a postulated potential of more than 1 billion bbl of recoverable

Jan. 12, 1998

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Unocal /YPF Argentina Joint Venture Area [89,810 bytes]

Unocal Patagonia Ltd., a subsidiary of Unocal Corp., and YPF SA have signed a joint operating agreement to explore and develop two permit areas off Argentina.

The CGSJM Blocks 1 and 2 cover 19,300 sq km, or about one-third of the offshore extension of the San Jorge basin.

The onshore portion of the basin has produced more than 2.5 billion boe. Unocal claims the blocks have a postulated potential of more than 1 billion bbl of recoverable oil.

Exploration in the offshore area includes 17 wells drilled in the 1970s that found hydrocarbons; five of those wells were classified as discoveries.

Unocal and YPF will start with appraisal work on the blocks, including acquisition of 3D seismic data.

Within a year of when the 3D survey work is completed, the two companies will follow up with an undisclosed number of appraisal wells.

Each company has a 50% working interest in the joint venture.

The E&D deal is the second such joint venture agreement between Unocal and YPF in Latin America. In 1996, Unocal became a coinvestor with YPF and Chilean state oil company Empresa Nacional del Petroleo in the 265-mile TransAndean Pipeline, which transports oil from Argentina to a terminal on Chile's coast.