BUENOS AIRES, March 4 (Reuters) - Argentina’s state-controlled oil company YPF will cut its capital expenditure in 2016 to mitigate the impact of the global oil price rout, its chief executive said on Friday after the firm announced a fourth quarter loss.
“We do not see a meaningful production growth this year, we will be cutting capex,” Chief Executive Officer Miguel Galuccio told an investor conference call.
He did not immediately give further details but said some working rigs had already been put into standby mode.
Galuccio forecast the cost of drilling horizontal wells in the Vaca Muerta shale formation would fall to $10 million per well this year from $13 million last year. (Reporting by Richard Lough; Editing by Chizu Nomiyama)