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BP and Bridas Corporation have signed a preliminary agreement to combine their interests in Argentina-based oil company Pan American Energy (PAE) and refiner Axion Energy to create a new firm called Pan American Energy Group (PAEG).
The merger, first announced in September, will make PAEG the largest privately-owned integrated energy company operating in Argentina.
PAE is currently owned 60% by BP and 40% by Bridas, while Axion is wholly-owned by Bridas. There will be no payments for the equity exchange but BP will be relinquishing 10% of PAE to pick up half of Axion Energy.
YPF president Miguel Ángel Gutiérrez met with governor Omar Gutiérrez in Neuquén province, along with members of his cabinet, to review the company's investments in the province.
YPF made public its decision to invest in 2018, along with its partners, US$1.53bn to develop 12 wells, 9 operated by YPF and another three by its partners.
The completion of a well with a 3.2km horizontal branch was also announced. It will be the most extensive so far carried out in Vaca Muerta and in all of Argentina, with a total of 6.5 km.
The agreement grants a period of exclusivity until December 31 this year during which the joint venture will negotiate further agreements for the provision of the drilling unit and vendor financing.
Chile's environmental regulator SMA approved a compliance program presented by Enap Refinerías, owner of the Aconcagua refinery located in Valparaíso region (V). The environmental changes to the project will require a preliminary investment of US$36mn, including measures to reduce atmospheric emissions and noise pollution.