YPF Accelerates Divestiture and LNG Ambitions in Argentina

Argentina's YPF is expediting its divestiture plan, aiming to sell stakes in offshore projects and streamline its focus on large developments, including an LNG project set for 2027 exports. With cost reductions and potential partnerships, YPF's strategic shifts aim to boost profitability and concentrate efforts on high-impact ventures.

Argentina's state-controlled energy company, YPF, is accelerating efforts to divest controlling stakes in its offshore exploration projects, with intentions of reducing its footprint in mature fields. The company's CEO, Horacio Marin, has announced plans to eventually offer a gas distribution firm for sale.

YPF, which holds exploration rights in seven offshore areas, plans to concentrate its resources on significant developments such as the Vaca Muerta formation and an ambitious liquefied natural gas (LNG) project. The firm aims to commence LNG exports by 2027, marking a new phase for Argentina's energy export potential.

Negotiations with an unnamed foreign oil major for selling a stake in a Uruguayan exploration block are underway, with a bidding round for offshore interests anticipated. YPF intends to retain a 25% to 30% stake in the LNG project, potentially partnering with Shell. Cost reductions and profitability boosts underscore the company's strategic pivot towards high-impact, large-scale developments.

(With inputs from agencies.)