U.S. energy giant Chevron Corp. (CVX) reached an agreement on Wednesday on the commercial terms and conditions for an up to $1.5 billion investment to develop shale deposits in Argentina held by Argentinian state-controlled energy company Yacimientos Petroliferos Fiscales SA or YPF SA (YPF).
The agreement was signed by YPF CEO Miguel Galuccio and Chevron's Head of Latin America, Middle East and Africa Ali Moshiri after their visit to the Vaca Muerta shale field, where they saw strong momentum and substantial increase in activity.
Argentina, which has the world's third-largest shale gas reserves after the U.S. and China, requires large amounts of foreign capital and technology to bring those reserves into production.
The two companies are now close to striking a final deal for the investment, nearly five months after Galuccio and Moshiri inked a letter of intend in December to negotiate a deal.
The deal will see YPF transfer a 50 percent stake in the Loma La Lata Norte and Loma Campana areas in the vast Vaca Muerta shale field in the province of Neuquen to Chevron in return for the $1.5 billion investment.
YPF said that the joint pilot project will see the drilling of more than 100 non-conventional wells over the next twelve months.
The deal is expected to close during July 2013 and is subject to definitive documentation, regulatory issues and the ratifications by the respective boards of both companies.
Chevron already produces crude oil and natural gas in Argentina through its wholly owned subsidiary, Chevron Argentina S.R.L., which is the sixth-largest producer of oil in the country. Chevron Argentina has operated interests that range from 18.8 percent to 100 percent in four concessions in the Neuquén Basin.
According to reports, Norwegian energy company Statoil ASA (STO) and Bridas Corp. are also in talks for investing the development of shale deposits of YPF.
YPF is currently in the process of finalizing investment deals to fund its $37 billion expansion plan to develop the Vaca Muerta shale that reportedly contains at least 23 billion barrels of oil.
A deal with any of these partners would be seen as a success for Argentina after the country angered the EU and Spain following its nationalization of a 51 percent stake in YPF from Spanish oil company Repsol (REPYY) in May.
The Argentine government expropriated 51 percent of YPF's stock from Repsol in May, ignoring threats of strong retaliation by the Spanish government as well as the European Union.
The government's move to re-nationalize YPF, which provides about a third of the country's oil and a quarter of its gas requirements, came a year after the company announced the discovery of large swathes of shale oil and gas fields.
YPF closed Wednesday's regular trading session at $13.40, up $1.14 or 9.30% on a volume of 0.74 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.