PRESS RELEASE

Macri led the first sectorial table of Vaca Muerta

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Wednesday, August 29, 2018

This Argentine government press release was published using an automatic translation system.

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President Mauricio Macri led the first sectorial table of Vaca Muerta, with the participation of representatives of companies and unions in the sector, as well as authorities from the provinces of Neuquén, Río Negro, La Pampa and Mendoza.

In January 2017, the government signed an agreement with all the actors involved for the development of unconventional oil and gas. After the agreement, operating costs decreased, investment projects multiplied and exploration and exploitation levels increased. In June 2018, non-conventional gas and oil production grew by 162% and 54% vs. June 2017, respectively. In five years, it is expected to double production, reaching 260 MMm3 per day, and exporting 100 MMm3 per day, which would allow for the addition of some 500,000 new jobs linked to the field.

The objective of the sectoral roundtable is to continue with the agenda set out in the agreement and to deepen the policies that allow continuing to reduce operating costs, achieve a higher level of activity, develop local suppliers, improve infrastructure and enhance investments. The meeting took place in Loma Campana, Neuquén, a project operated by YPF.

"Today we took another step forward among the oil companies, governments, sectoral chambers and unions to advance the obstacles that arise in the development of dead cattle, and we are sure that we are taking the fundamental steps to achieve the potential of this lighthouse. Argentina and generate clean energy, abundant and affordable, "said Javier Iguacel, Minister of Energy and Mining of the Nation.

For his part, the Minister of Production of the Nation, Dante Sica, said that "with these production projections, the Argentine industry will be favored by the improvement in the price of gas, fundamental input for many sectors." But also, Vaca Muerta It is already impacting upstream in the industrial value chain. " Argentina has more than 3,500 companies that supply industrial goods and services, 500 of them with solid capabilities and tradition in the oil and natural gas sector, which employ more than 40,000 qualified direct jobs.

Based on the scenario foreseen 2018-2023 by the Ministry of Energy, Vaca Muerta is expected to generate at least US $ 1.4 billion per year of direct activity for national suppliers, boosting local productive capacity. Sica stressed that after the signing of an agreement signed at the beginning of the year between YPF and the Ministry of Production of the Nation for the development of suppliers, the energy company brought together the SMEs that make up its value chain and presented the main guidelines of its supply plan for the year and the critical items for the improvement of its competitiveness and its investment plan. This gives predictability to SMEs when planning their operations.

Work agenda

The sector table has six working axes: upstream, midstream, infrastructure, ecosystem of suppliers, gas and social, labor and environmental market. For the follow-up of each of these axes, specific work groups were formed with representation of all the actors involved.