YPF says oil workers strike will cost $12M, hurt production

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

A one-day strike by 23K workers in the energy-rich Neuquen basin will cost YPF (YPF +2.9%) as much as $12M and cut production by 160K barrels of oil and 6M cubic meters of gas, the company says.

The workers are striking as provincial governors and federal authorities discuss changes to Argentina’s hydrocarbons law; the outcome will determine how revenue from the Vaca Muerta formation, which holds the world’s fourth-biggest shale oil reserves and second-largest shale gas reserves, are distributed.

The Neuquen basin is responsible for 40% of Argentina’s oil output and 56% of natural gas output, YPF says.