YPF - YPF to spend up to $7B on infrastructure to lift oil exports CEO says

2023-04-20 17:49:50 ET

YPF ( NYSE: YPF ) plans to spend $6B-$7B with partners to build pipelines and other infrastructure to increase oil exports from Argentina's Vaca Muerta shale play, CEO Pablo Iuliano said Thursday, according to S&P Global Platts .

"We are de-bottlenecking the system," Iuliano said, as the state-run company will contribute 40% of the planned spending on getting supply out to the market, including a proposed terminal in southern Argentina that can load very large crude carriers.

YPF's ( YPF ) $1.2B Vaca Muerta Sur project, a 380K bbl/day pipeline and port facilities on the Atlantic, will allow the company to load crude on VLCCs, which can transport "practically double" that of Suezmax and Panamax carriers, and dramatically cut the costs of logistics and transport, Iuliano said.

Argentina's crude production, led by Vaca Muerta, is on track to reach 1.2M bbl/day in the next few years, up from 627K bbl/day in February, the CEO said.

YPF ( YPF ) shares are still a value with more upside ahead as valuation remains compelling while the chart appears bullish ahead of quarterly earnings, Mike Zaccardi writes in an analysis posted on Seeking Alpha .

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