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Argentina energy sector good investment amid oil slump: YPF

ISTANBUL |

 

Amid a global rout in oil prices, Argentina's energy sector remains an attractive investment option thanks to state subsidies and regulated oil and gas prices, a senior official at state-run Argentine energy company YPF said in an interview.

Latin America's third-largest economy is seeking to ramp up investment in its energy sector to eradicate an energy deficit it started running in 2011, which is draining its perilously low foreign reserves.

Strategy Officer Fernando Giliberti said YPF was always looking for partners to develop in particular the Vaca Muerta shale oil and gas formation, thought to be one of the biggest such reserves in the Western Hemisphere.

He added that YPF was hopeful the 47 percent tumble in international crude oil prices since June should not impact investors' appetite for Argentina.

"We have hopes because of two things," Giliberti said on Thursday in Istanbul on the sidelines of a preparatory meeting for next year’s 9th NOC forum which YPF will host in Argentina.

"We have a support in the natural gas price in Argentina ... And the government has also decided to support the development of unconventional energy, allowing us to have internal prices which are higher than international prices."

 

read the full article here: http://www.reuters.com/article/2015/03/05/us-argentina-ypf-idUSKBN0M11ZO20150305