Argentina state-owned energy company YPF and Dow Chemical have signed a memorandum of understanding jointly to develop shale gas in the Vaca Muerta. In December, YPF and Bridas, an Argentina-based oil and gas company 50% owned by China National Offshore Oil Corporation, agreed to invest $1.5 billion over the next 24 months to begin development in the shale oil deposits in the region. (Earlier post.)
Under the agreement, YPF would cede 50% of its share to the development in the formation comprising 41 km2 (10,131 acres). The commitment would cover the development of the first shale gas pilot project in Argentina.
Dow Argentina and YPF will also work together to identify new projects to expand the petrochemical Argentina in areas of mutual interest, focusing on the availability of new raw materials.
YPF put into production its first shale gas well Friday, 1 March, with a connection to the Pacific Pipeline.