Argentine President Mauricio Macri on Tuesday announced a commercial agreement between YPF and Dow Argentina. Under the agreement, both companies move toward a new stage for the massive “El Orejano” development. the country’s first shale gas project. It is located in the province of Neuquén and has a surface area of 45 square kilometers.
This accord will make it possible to triple current production of gas from the block by the end of 2016, to 2 million cubic meters per day.
The American company will also invest $500 million next year, in addition to the $350 million that have already been put into the project.
The President said he sees the agreement as that of two companies that “work together, one an Argentine company, YPF, and a highly respected multinational that is Dow.”
He said the gas that it produces will be a basic ingredient “for their industrial activities,” which will enable it to “grow, create jobs and contribute to Argentine development.”
Macri said this investment “is particularly welcome” because “the energy situation in the country today is delicate.”
Both companies have been working on this project since 2013, when they signed their first agreement.
The signing of the accord was done this morning in the Olivos Residence. The President, Finance Minister Alfonso Prat-Gay, Energy Minister Juan José Aranguren, Production Minister Francisco Cabrera, and Interior Minister Rogelio Frigerio were present at the ceremony, as well as the head of YPF, Miguel …
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