Sarah Mordland, Reuters
EnergiesNet.com 08 15 2023
Argentina’s state-run oil company YPF on Friday said it expects government policy to remain supportive of the energy sector following the outcome of general elections this October.
A primary vote that will decide the candidates is slated for Sunday.
“We would expect policy to remain supportive for our sector,” a top executive said in a quarterly earnings call, adding that several presidential hopefuls had commented on the strategic value of the Vaca Muerta formation.
YPF leads the development of Vaca Muerta, a Belgium-sized formation in Patagonia’s Neuquen province, which analysts believe could in a few years help the country reverse a multi-billion dollar energy deficit and become a net energy exporter.
YPF saw its crude exports increase over the second quarter thanks to the May launch of operations at the Transandino pipeline which connects Vaca Muerta with Chile’s Pacific coast.
The company predicts the pipeline will pump out some 70,000 barrels per day by the end of this year and continue growing in 2024 towards its full capacity of 110,000 bpd.
YPF said its oil output should remain fairly flat in the third quarter before increasing in the final three months of the year.
On Thursday, the company reported a net profit in the second quarter that fell 53% from the same period last year, hit by higher costs and maintenance projects while crude prices fell internationally.
YPF said higher production should help offset costs, which it expects to remain stable through the remainder of this year.
Oil firms across the region saw earnings plunge during the quarter, with Mexico’s Pemex (PEMX.UL) reporting a profit that was down almost 80%, while Colombia’s Ecopetrol (ECO.CN) reported a 61% drop and Brazil’s Petrobras’ profit (PETR4.SA) slid 36%.
While YPF expects Argentina’s policy to remain favorable to oil and gas, governments across Latin America have differing views. At a summit this week, Colombia’s push to end new oil developments across the Amazon met hesitation from Brazil, which is weighing a potentially huge offshore find off its northern coast.
Reporting by Sarah Morland; Editing by Brendan O’Boyle and Paul Simao
reuters.com 08 11 2023