In the presentation of quarterly results, the company also detailed that its exports improved 111%. How its investments are progressing and what the company’s next steps will be
According to YPF, during the third quarter of the year, shale oil production averaged 126 thousand barrels per day, a growth of 36% compared to the same period of the previous year and an improvement of 11% compared to the second quarter of this year. Today, it represents 49% of YPF’s total oil production.
Meanwhile, Medanito oil exports increased 111% in the quarter compared to the July-September 2023 period and 37% compared to the previous quarter. “Exports averaged 39 thousand barrels per day, 15% of total oil production.” explained from YPF.
During this period, the energy company invested 1,353 million dollars. More than 70% went to the Upstream segment, mainly in shale activities for drilling and workover, in line with the 4×4 strategy.
In financial terms, adjusted EBITDA was US$1,366 million, which gave a sequential growth mainly driven by higher seasonal gas sales, higher shale hydrocarbon production and better local fuel prices, partially offset by higher costs in real terms and lower conventional production, especially because July was affected by adverse weather conditions in Patagonia.
“In year-on-year terms, the remarkable EBITDA growth of 47% is mainly explained by the recovery in local fuel prices, the growth in shale production and refinery processing levels, partially offset by higher costs in local currency and lower conventional production,” the company said.
Progress of YPF’s main projects
In its results report, YPF detailed the progress of two of its main projects under execution. One of them is the Andes Project, for which 9 sale and purchase agreements have already been signed for 25 areas. Recently, 7 areas located in the province of Tierra del Fuego were added. In addition, provincial approval was obtained for one of the clusters in Chubut.
Regarding the construction project of the Vaca Muerta Sur oil pipeline, the construction of the first section (Vaca Muerta – Allen, 130 km) has reached a level of progress of 50%, with a total investment of approximately 200 million dollars. The second section consists of a pipeline dedicated to exports (Allen – Punta Colorada, 440 km), storage tanks and monobuoys to operate VLCCs, with an investment of around US$ 2,500 million in conjunction with Vista, Pan American Energy (PAE), Pampa Energía, Chevron and Shell. The company is a few months away from starting construction.
Negotiations in progress
The Chief of Cabinet, Guillermo Francos, recently announced that YPF, controlled by the State, is about to sign a major agreement for the sale of a third of the gas it will produce in Vaca Muerta.
“Probably, in the next few hours a Memorandum of Understanding (MOU) would be signed with one of the most important oil companies in the world, which would imply a total income of USD 140 billion for Argentina in a term of two decades”, said the official, while specifying that ‘this company can buy a third of Argentina’s gas exports, which is equivalent to about USD 7 billion per year for 20 years, which would guarantee an enormous financial stability for the country’.
Although the Government and YPF avoided specifying details about the MOU, the counterpart could be Shell, Chevron, Exxon Movil or Total, since they are the big players in the market.
This agreement would take place in the context of the continuous growth of production in Vaca Muerta, which registered a historical record in May with 2.4 billion cubic meters of gas.