Friday, October 03, 2008
YPF Is Cooking
Repsol YPF is on the move in Argentina. The country's largest producer, refiner and marketer by far, apparently sees a bright future in the country.
- There is a strong rumor that Shell and Total in Europe are trying to buy the 20% of Repsol shares owned by a Spanish group. Both companies are strong in offshore E&P, and Total has a large offshore field off Tierra del Fuego, with plans to further exploration in that area. Both are also experienced in working in difficult third-world environments. They would both be a good match.
- YPF is preparing to drill offshore Argentina for the first time in 30 years. That has caused some excitement in the local industry. If they are successful, there will be a boom.
- The Argentine office of YPF has just issued an additional $150 million in long term bonds, as part of the $1 billion investment package announced earlier this year, to be spent on increasing reserves and production in Argentina.
- The Peterson Group, who just raked in a very tasty net profit of $715 million for the first half of this year, up 6.62% over last year, is actively seeking as many additional shares of YPF as they can get.
- YPF is carrying out large seismic programs in several provinces, with many more planned for the coming summer. The majority of the work is high density 3D.
- They have also signed recently a long-term renewal of their concessions in Neuquen, the heart of the Argentina oil industry. It will be subject to approval by YPF directors and the provincial legislature, but it will go through.
- There is a strong rumor that Shell and Total in Europe are trying to buy the 20% of Repsol shares owned by a Spanish group. Both companies are strong in offshore E&P, and Total has a large offshore field off Tierra del Fuego, with plans to further exploration in that area. Both are also experienced in working in difficult third-world environments. They would both be a good match.
- YPF is preparing to drill offshore Argentina for the first time in 30 years. That has caused some excitement in the local industry. If they are successful, there will be a boom.
- The Argentine office of YPF has just issued an additional $150 million in long term bonds, as part of the $1 billion investment package announced earlier this year, to be spent on increasing reserves and production in Argentina.
- The Peterson Group, who just raked in a very tasty net profit of $715 million for the first half of this year, up 6.62% over last year, is actively seeking as many additional shares of YPF as they can get.
- YPF is carrying out large seismic programs in several provinces, with many more planned for the coming summer. The majority of the work is high density 3D.
- They have also signed recently a long-term renewal of their concessions in Neuquen, the heart of the Argentina oil industry. It will be subject to approval by YPF directors and the provincial legislature, but it will go through.
