Lipstick on a pig?

31 August 2012 By Raul Gallegos

Repsol’s old stake in the energy company was snatched by the government. But now YPF is touting itself as a well run, commercial operation. It wants to borrow in international markets and needs partners like Exxon and Chevron. They have a chance to strike decent deals.

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Argentina

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YPF officials on Aug. 30 said the Argentine energy company is in talks with Chevron about business opportunities. The company is offering international partners 50 percent stakes in projects as it seeks to develop its massive Vaca Muerta shale formation. The company also plans to issue debt locally in the first week of September and plans a foreign debt sale sometime during the fourth quarter or early in 2013, Chief Executive Miguel Galuccio said. The plans are part of YPF’s $37.2 billion, five-year investment plan.

Chevron plans to begin a three-year campaign to drill 120 wells in Argentina, its Latin America and Africa head, Ali Moshiri, said on Aug. 23. Argentina’s government has imposed tighter restrictions on oil companies in recent months, reserving veto power over their investment plans.

Executives at Exxon and Apache are expected to meet with YPF officials in late September to discuss potential deals, according to Bloomberg.

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