YPF and Dow Chemical sign memorandum to develop shale gas in Patagonia
Argentina’s nationalized energy company YPF on Tuesday signed a memorandum of understanding with the local subsidiary of the US Dow Chemical to develop the shale gas deposits in the southern Nequen province.
The agreement states that both companies will negotiate terms and conditions for a joint venture in which YPF will give Dow Chemical a 50% stake in developing the 42 square kilometer El Orejano bloc.
The memorandum was signed by YPF CEO Miguel Galuccio and his peer from Dow South Latinamerica Regional Office Jorge La Roza.
“This agreement strengthens Dow’s competitive position, consolidates our relationship with YPF, and reflects our commitment and contribution to the economic and industrial development of Argentina,” said CEO La Roza.
YPF said the deal is for shale reserves in more than 10,000 acres in Neuquen province. The development deal was described as the first shale gas project in the province.
“The agreement between both companies is fundamental for the development of shale gas in the country,” YPF said in a statement.