Argentine provinces said to unite against YPF license bid

|About: YPF Sociedad Anonima (YPF)|By:, SA News Editor

Governors of the three provinces holding Argentina’s huge Vaca Muerta shale oil reserves say they will jointly challenge a push by state-owned YPF (YPF -1.2%) to take control of the auction and renewal of licenses.

The fight highlights political tensions caused by unclear rules governing Argentina’s budding shale boom; for prospective license holders, a single federal system would remove the need to negotiate with two levels of government.

YPF owns ~37% of Vaca Muerta concession areas, most of which are coming up for renewal in the next few years; the Argentine government has invited foreign companies including Chevron to help YPF’s shale exploration efforts.