Schlumberger and Argentina’s YPF Form Shale Oil Venture

The world’s largest provider of oilfield services firm Schlumberger signed an agreement to form a joint venture for the launch of a shale oil pilot project with Argentinian energy company YPF, the Houston, TX-based company announced Wednesday.

Under the agreement, Schlumberger will invest $390 million through phases in the site at Bandurria Sur Block in Vaca Muerta, situated in Argentina’s Neuquen province. YPF will operate the block. The new venture will work to carry out various technical studies, the drill 26 pilot wells, as well as build 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,” YPF Chairman Miguel Angel Gutierrez said in a Schlumberger press release. “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.”

Schlumberger said the companies will iron out the definitive agreements in the coming months, with the Houston firm set to assume a 49% interest in the venture.

“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.”

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