(Energy Analytics Institute, 8.Dec.2021) — YPF’s CEO Sergio Affronti said the state oil producer was looking at “unlocking the Vaca Muerta’s full shale gas potential,” during the 23rd World Petroleum Congress (WPC) in Houston.
What follows are highlights from his speech on 8 December 2021 at the WPC held in the George R. Brown Convention Center in downtown Houston, the so-call energy capital of the US:
— 51% of YPYF’s shares are owned by the Argentine government, the 49% remaining floats on the NYSE and the Buenos Aires stock exchange.
— YPF is Argentina’s largest producer w/ production of around 496 Mboe/d in 3Q:21
— Argentina is a world-class shale producer, the largest outside North America w/ production of around 166 Mboe/d.
— Argentina’s shale oil resources: 16.2bn bbls.
— Argentina’s shale gas resources: 308 Tcf.
— Of YPF’s production of 496 Mboe/d in 3Q:21 (shale represented 1/3 and will continue to rise in the future).
— YPF holds around 50% of Argentina’s refining capacity w/ three refineries and holds about 55% of mkt shr in retail fuel sales w/ over 1,600 gas stations across Argentina.
— Capex in 2021E: $2.7bn (80% towards upstream mostly unconventional activities).
— Lifting and development cost both trending down since 2015 reaching an average of about $9/bbl for development cost and about $4/bbl in lifting cost in 2021.
— “We have clearly managed to transform Vaca Muerta from an interesting province into a profitable reality becoming a game-changer for Argentina while giving YPF a unique opportunity to position itself as a competitive global oil and gas player.”
— In terms of Vaca Muerta oil, “in the oil market we are working with oil players to enlarge midstream transportation and processing capacities to supply local consumption hubs while also enabling further exports securing output evacuation both to the east and west.”
— “We expect to reach a net crude surplus by the end of 2023 and become a structural crude exporter in 2024 onwards.”
— “Argentina as a whole could reach an oil plateau of around 1 MMb/d in the next five years with 70% coming from Vaca Muerta… being able to export about half of that.”
— “We’re looking to unlock the Vaca Muerta’s full shale gas potential.”
— Considering ags reserves of 308 Tcf and domestic demand of just around 2.4 Tcf per year, Argentina has gas reserves to cover more than 120 years of local gas consumption.”
— Argentina is seeking to create further demand for its shale gas.
— “In the short and medium term we shall work on enlarging transportation capacity to overcome current bottlenecks and supply markets out of Vaca Muerta with a next step focus on expanding the transportation network to further supply regional markets mostly Chile, Brazil and Uruguay profiting from existing connections and enlarging them as necessary.”
— “To profit from seasonality in local gas demand, we are also undertaking different feasibility studies related to underground gas storage projects. In the long term we foresee an industrial hub expansion leveraging our abundant and competitive gas.“
— “We should also begin to seriously consider an LNG terminal to target the global energy market by exporting to Asia and the world.”
— “YPF is committed to reducing our carbon footprint and becoming more sustainable while advancing new low carbon technologies.”
— “YPF looking to revamp its refineries to reduce sulfur in our fuels and optimize bioethanol; YPF looks to reduce venting and flaring and improving its gas processing plants.”
— “In the energy transition we see our vast natural gas resources as the transition fuel with the potential to contribute to the carbonization path for our neighboring countries and Asia once we achieve LNG export capacity.”
— “Argentina jointly with Chile and Bolivia account for more than 50% of the mineral resources of lithium worldwide and over 30% of its production in what is named the lithium triangle.”
— “We see a unique opportunity to be part of the lithium value chain.”
— YPF, through YPF Tech, is collaboratively working on Argentina’s blue and green hydrogen roadmap.
— “YPF is working hard to unlock Argentina’s full energy potential both in accelerating our oil and gas core, mainly by developing Vaca Muerta, as well as advancing the energy transition with new low carbon solutions.”
— “The future is full of opportunities for YPF as an energy exporter.”
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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.
