ARGENTINA’S state energy company YPF is to invest US$30bn to boost hydrocarbon production in the country from 2018-22, under its new strategic plan.
The company says it will invest US$21.5bn directly, with the remainder coming from partners and investors. The objective of the strategic plan is to change the company’s operations and culture and create sustainable growth. YPF aims to increase oil and gas production overall by 5% annually, to 700,000 boe/d by 2022. In 2016, YPF produced 577,000 boe/d of hydrocarbons.
YPF has interests in 110 oil and gas fields in Argentina, and in 2016, produced 49.9% of the country’s oil and gas output. From 2018-22 it will develop 29 oil and gas projects and drill more than 1,600 wells. Some of the investment will be directed towards new exploration, with the aim of expanding reserves by 50%.
The company also plans to increase non-conventional production, from shale and tight gas, by 150%, with half of its output in 2022 coming from non-conventional sources like the Vaca Muerta shale formation.
Some of the investment will be directed towards power production as YPF seeks to become a leading electricity company in Argentina. It already has 1,300 MW of installed capacity, but US$2bn will be spent on doubling this, through conventional and renewable energy projects.
US$3.3bn will be spent on “operational excellence” and environmental protection measures.
"We are taking our company to a new phase, which will allow us to create value for the Argentinean people. YPF will be the leading integral energy company in Argentina,” said YPF president Miguel Gutiérrez.
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