Despite its rising potential, energy experts Bud Weinstein and Michael Economides on Thursday warned U.S. oil companies against making deals with Argentina's renationalized oil company YPF, which they say has a reputation for failing to honor contracts and refusing to abide by court judgments, FuelFix reports.
BUENOS AIRES, Argentina (AP) — Argentina's state-controlled YPF energy company reached a strategic accord Tuesday with Russia's Gazprom, the world's leader in natural gas production.
YPF announced no specifics following the meeting in Moscow led by YPF President Miguel Galuccio and Gazprom board president Alexey Miller, but said the accord could lead to partnerships with the Russians in drilling for shale oil and gas in the South American country, as well as more supplies of Russian liquefied natural gas for Argentina's energy-hungry economy.
BUENOS AIRES, Argentina (AP) — The CEO of Argentina's state-controlled oil company says he'll personally defend any investments made by foreign partners willing to place long bets on developing the country's huge shale oil reserves.
It's a tough sell for YPF chief Miguel Galuccio, who needs many billions of dollars to go after the unconventional oil and natural gas.
The world's richest man, Mexican telecommunications billionaire Carlos Slim, has acquired an 8.4 percent stake in Argentina's newly state-controlled oil and gas producer, YPF S.A., but it's unclear what he intends to do with it.
While it could be seen as part of a recent buying spree of assets in Europe and Latin America, Slim's office is coy about whether he intends to keep the YPF shares. Slim has a reputation for purchasing under-valued companies and distressed assets in times of crisis to later sell them off. But he also has a real interest in the oil industry, with companies like Swecomex providing offshore oil platforms and equipment.
A small group of leftist protesters have burned a British flag outside the headquarters of Argentina's oil company, saying YPF should stop using oil tankers that fly flags from the British commonwealth.
For years, the company has used the Stela Polaris, which flies a Bermudan flag, to carry its oil. Argentine lawmaker Liliana Fadul says that violates Argentine rules designed to punish companies that support offshore oil development in waters claimed by both Argentina and the Falkland Islands Government.
The chief executive of Argentina's newly state-controlled energy company announced an ambitious investment plan Tuesday, saying YPF will need to spend up to $7 billion annually for the next five years to recover from declining oil and natural gas output.
CEO Miguel Galuccio said YPF is expected to record 6 percent growth annually with 1,000 wells drilled beginning next year. That would be the first time the company has drilled so many since 1996, before it was privatized.
Argentina’s YPF oil company, at its first shareholder meeting since being expropriated by the government, named a board of directors reflecting the stunning reversal of fortune of its former owner, Spain’s Repsol, The Associated Press reports.
Liberal watchdog group Checks and Balances Project said the State Department inspector general is investigating potential conflicts of interests in the department's environmental review of the Keystone XL pipeline, The Hill reports.