The state oil company YPF and the government of Santa Cruz are in a complex negotiation over the future of the oil fields in the province. The idea of the company led by Daniel Marín is to stop operating the wells it has in the Patagonian province. According to the specialized energy portal, Econojournal, the initiative was halted due to Governor Claudio Vidal's refusal to accept an operational restructuring and reduction of the areas.
The company CGC, the main producer of hydrocarbons in the province, has already shown interest in acquiring the assets and even designed a complete project to advance with the exploitation of the wells. However, the state oil company has implemented various strategies to transfer the operation of its fields in Santa Cruz to other companies but has encountered obstacles in negotiations with the provincial government.
The lack of agreement between the parties could generate a negative impact on hydrocarbon production and the economy of the region. In fact, the state oil company will lose 300 million dollars invested in 2023. The company argues that staying will make them lose even more dollars in the future. The loss of thousands of jobs and the need to find new operators to maintain production are some of the challenges posed by this situation.
YPF wants to force its exit from the fields starting in January 2025. Despite multiple attempts by YPF to relinquish the operation of these fields, the differences between both parties have prevented reaching an agreement. The refusal of Governor Claudio Vidal to accept an operational restructuring and YPF's millions in losses in the province further complicate the situation.
YPF's decision to abandon the operation of the fields in Santa Cruz has significant economic implications for the province and the company.
