Argentina roundup: Santa Cruz investment, YPF LNG offtake

Santa Cruz

Upstream firm Pan American Energy (PAE) expects to invest US$90mn in Argentine province Santa Cruz this year.

Outlay targets area Cerro Dragón, said provincial governor Claudio Vidal on social media platform X. 

Vidal added that PAE inked an agreement to cede areas Piedra Clavada and Koluel Kaik to Crown Point Energía, which plans to invest US$41.5mn through 2026.

PAE exploration work at area Meseta Cerón Chico is also envisaged, he said.

YPF LNG

Argentine cabinet chief and state-controlled oil company YPF director Guillermo Francos said the firm would sign an LNG offtake MOU, local media outlet Clarín reported, citing comments made during an event in Córdoba province.

Government officials indicated that Anglo-Dutch giant Shell is the party involved, Clarín said. 

YPF has previously said it planned to begin production using floating units off the coast of Río Negro province, followed by construction of a plant onshore.

A question mark hangs over whether original partner, Malaysian counterpart Petronas, will remain involved or exit the project.

YPF has previously said that even if Petronas pulled out, the project would go ahead with other partners to help shoulder the heavy investment required.

YPF upstream investment is focused on the Vaca Muerta unconventionals hydrocarbons formation, chiefly oil.

PAE and Golar LNG also have plans to export LNG from Río Negro.