YPF, Petronas reach deal to develop Vaca Muerta shale in Argentina

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

Argentina's YPF and Malaysia's Petronas have agreed to jointly develop shale oil in Argentina's Vaca Muerta formation and will sign a deal today, WSJ reports.

The deal is believed to include an initial investment of more than $500M, and state-run YPF and Petronas could invest up to $9B over the next decade to develop the full potential of the La Amarga Chica field within Vaca Muerta.

The deal is expected to be structured similarly to a joint venture YPF signed last year with Chevron, which are developing the nearby Loma Campana field and has become the second biggest producer of unconventional oil outside North America