YPF, Dow To Invest $400 Million-$500 Million In Argentina Shale In 2016--Source

By Taos Turner 

BUENOS AIRES--Argentina's state-run oil company, YPF SA, and Dow Argentina, the local unit of Dow Chemical Co., plan to invest between $400 million and $500 million to explore for shale gas, a person familiar with the matter said Tuesday.

The companies, which are already involved in a joint venture, are expected unveil details of the plans after meeting with Argentine President Mauricio Macri later Tuesday, this person said.

The transaction will represent the first significant foreign investment in Argentina since Mr. Macri took office last week. His administration is seeking to dismantle key policies of his predecessor and boost investor confidence in a bid to kick-start a moribund economy.

The joint venture between the companies is the leading shale gas project of its kind in Argentina, with production of about 750,000 cubic meters a day. The aim is to triple that next year, raising it to about 2 million daily, this person added.

Write to Taos Turner at [e-mail]

(END) Dow Jones Newswires

December 15, 2015 09:26 ET (14:26 GMT)

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