On June 28-30, 2016 the Gazprom International delegation, headed by Andrey Fick, the Managing Director, went on a working visit to Argentina.
During the visit, a series of meetings were held with the representatives of the Argentinian government: Horacio Reyser, Argentina’s President Mauricio Macri’s adviser on foreign investments; Jose Luis Sureda, the Secretary for Hydrocarbon Resources in the Ministry of Energy and Mining; Marcos Pourteau, the Under-Secretary of State of the Ministry of Energy and Mining; and Juan Martin Procaccini, the Executive Director of the Argentina Investment and Trade Promotion Agency.
The major event arranged within the visit was the meeting with Miguel Angel Gutierrez, the new President of YPF S.A., Argentina’s state-owned petroleum company, appointed at the shareholders meeting at the end of April.
Representatives of the Argentinian government and the senior management of YPF confirmed the orientation of the new authorities on the development of the mutually beneficial partnership with Russia and the willingness to promote cooperation with the Gazprom Group within the implementation of the Memorandum on Cooperation of April 23, 2015 and the Framework Agreement on joint exploration and production projects of September 4, 2015, drawn up between PJSC Gazprom and YPF S.A.
Argentina has the largest natural gas market in South America. Annual domestic consumption of this type of fuel is 53.5 billion cubic metres.
Since 2012, the Gazprom Group has been carrying out LNG supplies to Argentina.
Production of natural gas in Argentina amounts to 42.33 billion cubic metres. Argentina’s proven reserves of natural gas total about 330 billion cubic metres, with around 283 million tonnes of oil reserves. Argentina ranks second in the world after China in potentially recoverable reserves of shale gas (more than 800 trillion cubic feet/22.6 trillion cubic metres), and has the fourth largest reserve of shale oil, estimated at 23 to 27 billion barrels (3.2 to 3.7 billion tonnes).
YPF S.A. is the largest oil and gas company in Argentina. It currently occupies the leading positions in all field sectors (exploration, production, refining, distribution and sales). The company’s share of the domestic market exceeds 43%.
YPF manages three refineries at key strategic locations as well as an extended network of over 1,500 filling stations.
In April 2014, Alexey Miller, Chairman of the Management Committee of PJSC Gazprom, and Miguel Galuccio, former Head of YPF, signed a Memorandum on Cooperation in the presence of Vladimir Putin, President of the Russian Federation and Cristina Fernandez de Kirchner, President of Argentina. The Memorandum outlines the main areas of the companies’ interaction, including cooperation in the fields of geological exploration, hydrocarbon production and transportation in Argentina and other countries.
In September 2015, at the Eastern Economic Forum in Vladivostok Gazprom and YPF signed a Framework Agreement of Cooperation in exploration and production projects in Argentina.