Chubut, Santa Cruz provinces terminate YPF oil contracts in four wells

Business, Política — By Felipe on marzo 15, 2012 at 2:00

The Governments of Chubut and Santa Cruz announced the termination of the contract of exploitation of four different oil wells that YPF handles in the Gulf San Jorge and that both provinces share. The oil giant has announced it will file a lawsuit against the measure.

The measure was taken by decree, according to Government officials of both southern provinces that attended a rally held at the borders between Neuquén and Santa Cruz and led by Governors Martin Buzzi and Daniel Peralta.

Both provinces thus furthered the dispute with YPF. The government accuses the oil company of lack of investments in the country and also of the downfall of gas and oil production of the last few years, as rumours regarding the possibility of the nationalization of the company grow.

Meanwhile the company, bought by Spanish giant Repsol in 1999, rejected the accusations, assured that it has invested US$ 350 M in Chubut in the last two years and vowed to file an appeal to guarantee the defence of its rights.

Buzzi signed decree 324/2012 on the Ramón Santos post over national route 3, which states the cancellation of the YPF exploitation contracts of oil wells “El Trébol-Escalante” and “Campamento Central-Cañadón perdido.”

The contracts will be terminated in ninety days and the decision was taken by the Chubut province Government based on grounds that the company did not comply with the promised investments.

Meanwhile, Santa Cruz governor Daniel Peralta announced the termination of the YPF exploitation wells in Los Monos and Cerro Piedra- Cerro Guadal Norte by means of decree 393/2012

During the rally, Peralta assured that the measures taken by both governments seek to redefine the oil movement and warned; “we are here to stop policies that trigger unemployment and social inequality.”

“We are tired of the permanent belittling, of the Spanish policies that order to extract oil of our beloved Patagonia,” Peralta added as he addressed the 13,000 people who attended the rally.

Source: Buenos Aires Herald