State-owned petroleum company YPF has reached a u$s 1 billion deal with Russia’s Gazprom for gas exploration and production, Argentina’s Industry Minister Débora Giorgi announced.

Wednesday, October 8, 2014

YPF signs u$s 1 billion deal with Russia's Gazprom

Argentina''s Industry Ministry Débora Giorgi and Gazprom President Alexéi Miller in St. Petersburgters (Photo credit: Industry Ministry)

State-owned petroleum company YPF has reached a u$s 1 billion deal with Russia’s Gazprom for gas exploration and production, Argentina’s Industry Minister Débora Giorgi announced.

Gazprom head Aléxei Miller has pledged to share the Russian company’s experience with its Argentine counterpart through staff trainings and announced that experts will be travelling to Argentina in November, the Industry Ministry reported.

Speaking at the St. Petersburg International Gas Forum, Giorgi celebrated the agreed “heavy machinery and equipment technology transfer that Argentina needs” and pointed out that there is a “u$s 10,000 million energy deficit which opens (investment) possibilities for the sector.”

“We are looking for partners to finance projects not only in Vaca Muerta but also in other unconventional reservoirs,” the minister added.

Giorgi explained that Argentina “already buys liquefied gas from Gazprom through Enarsa energy company” and stressed that bilateral ties with Moscow were strengthened after the visit of Russia’s president Vladimir Putin to Buenos Aires last July.

An old Gazprom’s partner, Wintershall energy firm –which belongs to German Basf- is also expected to join the deal. It is currently responsible for 9% of gas production in Argentina.