Rio Negro terminates YPF oil exploitation contract

Business, Política — By Felipe on marzo 28, 2012 at 2:00

Río Negro announced it would terminate an YPF exploitation contract in Los Caldenes area, following a meeting between Federal Organization of Hydrocarbon Producer States on Tuesday.

The decision was made following ‘a meticulous revision of the documentation provided by the oil company’, a press release stated, indicating that the main reason behind it was the lack of investment.

YPF has lost ten oil concessions in the last few weeks, as national and provincial governments accuse the oil giant of lack of investment

Rio Negro Governor Alberto Weretilneck explained that the exploitation contract was originally drawn in 2002 and was supposed to last until 2026, but the analysis of the documentation provided by the Spanish oil giant “did not comply with the province’s expectations.”

Weretilneck also said that all of the province’s oil exploitation areas are currently under revision.

Source: Buenos Aires Herald