Good news for Argentina?

[nicoenarg]

http://www.washingtonpost.com/busin...b98934-ee07-11e1-b624-99dee49d8d67_story.html

The above report shows how Chevron is showing willingness to work with YPF on expoliting shale oil.

Is this good for Argentina? For YPF?

I am thinking this could be a positive move actually not only for the oil companies involved but for the whole country. I just can't seem to put together the details in which the Argentine government, who is in control of YPF, will use any future profits honestly.

 

[Rich One]

The Title is very misleading , in the body of the article, there is no mention of a letter of intent, only Galucio's interest to reach an agreement with Chevron. However an agreement may be reached down the line, actual production of Shale Oil/Gas would materialize no sooner than five years from now.?

 

[nicoenarg]

Dude the title has a "?" in it. How the hell would that be misleading? I've linked to the article I was referring to. Not claiming anything else. Or did you fail to see the bunch of "?"'s in both the title and the body of my post?

 

[Rich One]

I was referring to the Title of the W.P. article. Not the Title in your Post. (sorry for the misunderstanding).

"YPF, Chevron executives move toward strategic accord on exploiting Argentine shale oil and gas!

It makes it sound like Chevron and YPF are ready to sign the dotted line...!!

 

[scotttswan]

Chevron would be mad to trust the current government, although how would the US move to protect a US companies interests if things went wrong?

 

[Iznogud]

Ask yourself where all the hard currency from the oil royalties went when the Ks were the governors of the province and why is it that they never returned to the country, even less so to the treasure of the originating province after all these years, too many of them with the K gang as rulers of the whole land.

Then, do you still need to answer if any YPF deal will be good for the country?

 

[Dipoots]

In general, the shale assets in Argentina are too good for majors to ignore. Majors are interested to come here to do exploration but not necessary production, not yet. For exploration, it will take some time (3-4 years) before they need to make additional investments for production. By the time they need to make additional investments, there could be a change of government and a return to more market oriented policies... Also, companies like Chevron know that YPF definitely need external expertise and financing, and can work with govt to get more favorable terms. Chevron is well known for taking less confrontational approach to such issues like nationalization. They didn't walk out when Chavez nationalized all energy assets in the country, Exxon and ConocoPhillips did. Instead they will work behind to scene to push for more favorable terms.

Currently, the taxes for oil production are very high and not economical for new development. If the govt does make good of its claim to provide incentives to encourage production, it is quite OK to invest provided there is certainty in regulations. Taxes in Russia and Nigeria for example, borders around 50%, but then again, these countries have large proven reserves.

Chevron would be mad to trust the current government, although how would the US move to protect a US companies interests if things went wrong?