YPF and Petronas sign agreement to advance in the development of LNG in Argentina

PRESS RELEASE from YPF
September 1, 2022

(Please note that this is a machine translation of the original release, issued in Spanish)

YPF signed today with Petronas, the Malaysian national oil and gas company, a Joint Study and Development Agreement (JSDA) for an integrated LNG project in Argentina that will cover the Upstream with non-gas production. conventional, the development of gas pipelines and infrastructure, the production of LNG, as well as international marketing and logistics.

Argentina has the second largest unconventional gas reserves in the world. Therefore, both companies are interested in developing the "LNG Project", taking advantage of YPF's leadership in the development of Vaca Muerta and the experience and knowledge accumulated by the Petronas Group in the operation of LNG liquefaction facilities, both onshore and offshore all over the world. This LNG project will meet the global demand for gas, where it will replace more carbon-intensive energy sources, helping to reduce greenhouse gas emissions.

YPF and Petronas believe that the combination of their efforts with a long-term perspective will generate more efficient operations, optimize investments and allow them to capture better market opportunities.

Since 2014, both companies have been associated in the development of the La Amarga Chica block in Vaca Muerta, today with a production of more than 40,000 barrels of oil and 1 million cubic meters of gas per day.

YPF CEO Pablo Iuliano said: "I am very proud of the strategic alliance we have had with Petronas since 2014 and today we take another step to continue building the energy solutions that the world and Argentina need."

"We hope to strengthen our successful alliance with Petronas and join forces once again to develop this strategic project," said Pablo González, Chairman of the Board of YPF.

The LNG project will release the full potential of Vaca Muerta, generating a huge positive impact on the Argentine economy, creating thousands of jobs, multiplying economic activity and developing a new export business.

In addition to this Agreement (JSDA), YPF and PETRONAS signed a Memorandum of Understanding (MoU), to continue collaboration in Argentina in other areas such as oil production, petrochemicals and clean energy solutions.