YPF CEO says Vaca Muerta drill cost has fallen - interview

domingo 14 de septiembre de 2014 12:25 GYT
 

BUENOS AIRES, Sept 14 (Reuters) - The cost of drilling Argentina's massive Vaca Muerta oil field has fallen, the chief executive of state-controlled energy company YPF said in an interview published in an Argentine newspaper on Sunday.

Perforating the vertical wells was costing below $7 million each, Miguel Galuccio told La Nacion. That was lower than a cost he had given earlier this year of $7.5 million.

Horizontal well perforation was costing between $14 million and $15 million per well, he said.

Galuccio also said that a new government bill that aims to attract investors to help it develop its oil reserves by extending license periods and freezing royalties was "important", adding that an investment-friendly framework was necessary.

"I know the importance that legal and fiscal stability has for them (investors), clear rules and transparency. But confidence is generated not only by rules, but by complying with them," he told the paper.

Argentina is seeking international investors to help it develop Vaca Muerta in Patagonia, potentially one of the planet's largest reserves of shale oil and natural gas.

Last month YPF agreed a $550 million deal with Malaysia's Petronas, and it has also secured a $1.24 billion deal with U.S. oil major Chevron. (Reporting by Maximilian Heath, Writing by Rosalba O'Brien; editing by Ralph Boulton)