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Yo-yoing.
If the sp wasn’t yo-going, then it wouldn’t be President Energy.
Data room
The process that YPF has now designed aims to contribute to the development of operators that have this type of expertise . The company created a kind of data room with the most relevant data from each cluster . “In general, the secondary areas of YPF are under-exploited because they do not make a fix with a company of its size. Many, in addition, are oversized in structure. You have to have more creativity and more discipline in costs in order to be successful, ”explained an entrepreneur who is in talks with YPF, who requested confidentiality.
The next few weeks will be key to knowing that YPF's asset sale process is strengthened. It is not the first time that the company faces an initiative of this type. On previous occasions, disinvestment in marginal areas - a measure agreed upon by most of the industry, including provincial governments - ended up being frustrated because it did not receive the approval of politics at the national level and also due to some internal resistance from the Upstream area. of the oil company, which is always reluctant to give up the asset operation.
This time, there are different incentives: YPF needs to focus its efforts on more profitable projects. Its cash does not allow to continue covering operations in conventional fields that do not add value to a structure as large as the company's. With little chance of obtaining international financing, the association with smaller companies in which the development of secondary areas can be delegated is a reason for recurring consultation by international investors, who have long demanded that the oil company focus on the most profitable assets of its portfolio.
N SEARCH OF MORE EFFICIENT OPERATORS FOR THOSE FIELDS
Exclusive: YPF negotiates the sale of mature fields with independent oil companies
By Nicolas Gandini
April 30, 2021
The state-controlled oil company designed at least four clusters made up of secondary areas in different provinces. It is committed to divesting in these fields to focus on developing more profitable projects, mainly in Vaca Muerta. Although the process is incipient, YPF has already signed confidential agreements with several independent oil companies and also with service companies that could re-become operators.
YPF, the state-controlled oil company, finally launched in April a divestment process in mature fields or secondary areas in different basins of the country. The CEO of the company, Sergio Affronti , had advanced the measure during the presentation of results at the end of last year. For YPF, it is a decision that makes sense with its strategic vision : the oil company aims to more efficiently house capital —which is limited by the general situation of the country and the particular situation of the company— in projects with a more competitive rate of return. like those led by the oil company in Vaca Muerta.
YPF operates 98 hydrocarbon blocks throughout the country, of which about 60 produce less than 200 cubic meters a day (m3 / day) of oil , according to statistics from the Argentine Institute of Oil and Gas (IAPG) for February. The Special Projects area, led by Fernando Giliberto, selected some of those from fields and formed at least four clusters of areas in different provinces of the country.
Private sources explained to EconoJournal that YPF signed confidentiality agreements with at least five companies interested in operating those blocks . The list includes independent oil companies such as President Energy , a small British oil company that controls eight areas in the Neuquina basin and another three in the Northwest basin; as well as some service companies that are already in charge of the operation and maintenance of oil fields are interested in going one step further and taking over the operation of those blocks.
“ Different forms of association are contemplated. From traditional farm-in and farm-out contracts to franchise schemes or partnerships for incremental production. The process is just in its first stage, ”explained sources close to the state-controlled oil company.
Better costs
The transfer of marginal or secondary areas to smaller companies, which can reduce operating costs and put a greater focus on the development design of the fields , has been a pending issue for YPF for years. The company chaired by Pablo González manages OPEX (operation and maintenance) and overhead (structure) costs that, in many cases, make the exploitation of these areas so expensive that it is uneconomical .
Thanks ecclescake, I was just nipping out to cast my vote. It does look interesting but would prefer some investment outside of Argentina.
Ppc would take over operations rather than an acquisition,interesting.
Ecclescake Thank you.
Worth a read as you'll find a number of interesting article on Argentina
https://econojournal.com.ar/
The article in question
https://econojournal.com.ar/2021/04/exclusivo-ypf-negocia-la-venta-de-yacimientos-maduros-con-petroleras-independientes/