Despite the recent drop in global oil prices, YPF CEO Horacio Marín remains confident in the strength of Argentina’s energy sector, especially the potential of Vaca Muerta. In an interview with Infobae en Vivo, Marín emphasized that YPF can stay profitable even if oil prices fall to $40 or $45 per barrel. “We made ourselves resilient at less than $40 a barrel, and at $45, we can develop all of Vaca Muerta,” he said.
YPF has shifted its focus from aging, less productive fields to the more promising unconventional shale assets, aiming to compete with the Permian Basin in the U.S. Marín credited the company’s improved efficiency to years of local experience and strategic decisions to invest in areas with the highest returns.
While private analysts have warned that a $10 drop in oil prices could cost Argentina’s energy sector up to $2.5 billion, Marín downplayed this risk for YPF. He acknowledged slimmer profit margins but assured that the company would remain financially positive. However, Marín pointed out that access to financing is a more pressing concern than oil prices. “If you want to issue a bond this week, it’s complicated,” he said.
Marín also discussed YPF’s long-term growth plan, aiming to quadruple the company’s market value in four years—what he calls the “four-by-four” strategy. This plan includes overcoming infrastructure challenges, digitizing operations, and increasing LNG exports. YPF has drilled only 10% of its potential wells in Vaca Muerta and sees over $200 billion in investment opportunities.
YPF is also leading a $3 billion pipeline project—Vaca Muerta Sur—the largest private infrastructure project in Argentina without government funding. Additionally, the company is progressing on three LNG projects, including joint ventures with Shell and Pan American Energy.
Marín concluded by affirming that YPF operates independently under the current government. He stated that the government has not interfered with the company’s strategic decisions, which he believes is crucial for maintaining profitability in a volatile global market.
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