Argentinian state-controlled energy company YPF is expediting its divestiture strategy, which includes the sale of controlling interests in offshore exploration ventures in Argentina and Uruguay, reported Reuters.
The company’s CEO, Horacio Marin, has indicated that YPF is shifting its focus towards the Vaca Muerta formation, aiming to initiate Argentina’s first liquefied natural gas (LNG) exports by 2027.
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YPF holds exploration rights in seven offshore areas, with six located off the coast of Argentina and one in Uruguay.
The divestiture plan is part of YPF’s efforts to concentrate on significant developments, particularly a substantial LNG project.
The strategy involves streamlining operations to support large-scale projects and reduce involvement in mature fields.
The company is currently in discussions with a foreign oil major to sell a portion of its stake in an exploration block in Uruguay.
YPF plans to retain smaller stakes in its offshore interests, which may be offered through a bidding process.
A crucial decision on the first floating LNG facility in Argentina is anticipated by June.
This facility is a component of the first phase of the LNG project, which aims to establish an LNG output capacity of six million tonnes per annum (mtpa) using up to two production vessels.
YPF intends to maintain a 25–30% stake in the entire LNG project, which is designed to reach a total capacity of 30mtpa over three stages.
Shell is potentially one of the main partners in this venture.
In addition to these developments, YPF reduced downstream costs by $405m last year and plans further reductions of $512m (431.91bn pesos) through 2026.
The company’s profits soared to $2.39bn last year, a turnaround from a $1.28bn loss the year prior.
YPF is set to invest around $5bn this year, maintaining the level of investment projected for 2024.
In December 2024, YPF partnered with Shell to advance the $50bn Argentina LNG project, the country’s first major LNG initiative for global export.
