HOUSTON, April 12, 2017—Schlumberger President of Operations, Patrick Schorn, and YPF Chairman, Miguel Ángel Gutiérrez, signed today an agreement to start a shale oil pilot project in Bandurria Sur Block in Vaca Muerta, Neuquén.
The agreement, signed in YPF´s offices in Buenos Aires involves a USD 390 million phased investment by Schlumberger, which includes a material contribution in kind of its services at market price. The block will continue to be operated by YPF. In addition, the commitment foresees the execution of different technical studies, the drilling of 26 pilot wells, and the construction of new infrastructure.
“Bringing a new partner like Schlumberger to Vaca Muerta is strategic for YPF because they offer vast experience in the most important unconventional plays around the globe and a work team that facilitates strengthening our know-how,” stated Gutiérrez when signing the agreement. He also highlighted: “This joint venture, in addition to those signed with other large corporations, reaffirms YPF’s leadership in developing unconventional resources and our commitment to continue working in the pursuit of energy self-sufficiency.”
Patrick Schorn commented, “We are very pleased with the opportunity of working more closely with YPF. By leveraging our reservoir knowledge and track record in unconventional completions, we expect to create operational efficiencies and further reduce development costs in the world-class Vaca Muerta play.”
In the next months, the parties will negotiate the definite agreements. Schlumberger will acquire a 49% interest in the joint venture, while YPF will retain 51%.
YPF is the leading energy company of Argentina, producing 43% of the total oil and gas in the country and supplying 56% of the fuel markets through a network of 1500 gas stations and other assets. YPF is leader in the production of unconventional resources. It is an integrated energy company that generates a large offering consisting of natural gas, electricity, fuels, petrochemicals, lubricants and products for agriculture, among others. www.ypf.com
Schlumberger is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 people who represent over 140 nationalities, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance.
Schlumberger Limited has principal offices in Paris, Houston, London and The Hague, and reported revenues of $27.81 billion in 2016. For more information, visit www.slb.com.
For further information, contact:
Simon Farrant – Schlumberger Limited, Vice President of Investor Relations
Joy V. Domingo – Schlumberger Limited, Manager of Investor Relations
Tel: +1 (713) 375-3535
Joao Felix – Schlumberger Limited, Director of Corporate Communication
Tel: +1 (713) 375-3494