Sunday, August 24, 2014

China/Argentina: YPF, Sinopec Argentina Exploration and Production Agree to 70%-30% Split Until 2027

According to The Latin American Tribune, Argentine state-controlled oil company YPF and Sinopec Argentina Exploration and Production agreed to re-launch exploration and production activity in the La Ventana area of the western Argentine province of Mendoza, YPF said.

“YPF and Sinopec (August 22) signed an extension of their joint operation agreement for the area until 2027,” the company said in a statement.

“Both companies are seeking to promote new projects that will include 3D seismic surveying, exploration and production well drilling, and the construction and reconditioning of treatment and injection plants for more than $300 million,” it added.

COMMENT: As a result of China having virtually unlimited cash assets with which to engage in virtually unbridled global economic domination as the US remains one of the most indebted developed nations in the world, owing 17 TRILLION dollars, China's domination is assured for perhaps the next 50 to 100 years.

Essentially, that means that President Obama and First Lady Michelle Obama will reap millions, if not billions, over the next 30 years as a bulging federal bureaucracy leaves the majority of Americans with less quality of life than their parents.

Such a "sweet-heart" deal will also guarantee Beijing virtually all of its energy needs for the foreseeable future, as it continues to prey on cash-strapped, populist Latin American governments.

Under the terms of the deal, YPF will have a 70% stake in the joint venture and the local unit of China’s Sinopec Group will have the remaining 30% interest.

La Ventana is a 480-sq.-kilometer (185-sq.-mile) production area that is located in the northern part of Mendoza province some 1,200 kilometers (745 miles) west of Buenos Aires.

The Mendoza find has 239 producing wells and 70 injection wells and produces roughly 6,000 barrels of crude per day.

Sinopec Argentina Exploration and Production is a unit of Sinopec International Exploration and Production Corporation and is the fourth-largest crude producer in Argentina.