Repsol YPF

Exploration and Production

YPF explores and produces in Argentina in the Neuquina, Cuyana, San Jorge Gulf, Austral and Nordeste basins with a yearly production of hydrocarbons in 2006 of over 246 equivalent barrels of oil and gas. The company has mining rights in over 106 blocks in the country. At present, the company is developing its Plan Integral de Desarrollo de Activos, PLADA (Integral Assets Development Plan), based on an improved recovery factor of oilfields under development and the operating excellence of oilfields and mature basins, which will allow it to fulfill its strategic objectives.

In this regard, YPF is currently implementing a 4,600 million dollar exploration and production investment plan for the 2007-2009 triennium, the main objective of which is to add larger reserves and increase hydrocarbon production.

As part of the strategic plan, YPF recently completed the three-dimensional seismic exploration campaign in the Colorado Marina Basin, for the purpose of creating a subsoil map to search for hydrocarbons on the continental platform and slope. The survey lasted 82 days at full cycle and covered a surface area of 1,970 Km2, which required over 8,000 kilometers of navigation to complete it.

At present, the data obtained to create a three-dimensional map of the subsoil beneath the seabed is being digitally processed, all in Argentina. YPF invested 27 million dollars in first stage and, if the results of the exploration are successful, the subsequent drilling of exploratory wells could represent investments of over 30 million dollars for each well, which clearly demonstrates the significant challenge of this process.

In addition, YPF invested 85 million dollars this year in the acquisition of five new automatic drilling units, the average drilling range of which reaches 1,800/2,000 meters in depth, which shall be incorporated during the last quarter of 2007 to increase the efficiency of hydrocarbon production.

These acquisitions are incorporated to the existing equipment, which already includes two units equipped with the latest technology that have been in service since the start of 2007, and required an investment of 32 million dollars. In this manner, YPF is the first company in Argentina to use this technology on a massive scale, with new equipment in local oilfields.

In addition to these investments, another 40 million dollars were invested in the acquisition of ten new Work Over units, capable of working at depths of up to 3,600 meters, to continue with the repair and reactivation work on wells in Argentina.

The Work Over units shall be operative from the first quarter of 2008, for the purpose of increasing the resources allocated to the country's hydrocarbon production. YPF envisages the use of this equipment in strategic areas where they are present, such as the Neuquina Basin, the Neuquén and Mendoza provinces, and the San Jorge Gulf Basin, in Chubut and Santa Cruz.

In order to implement their investment plan, YPF began the search for 500 professionals at the beginning of this year for its main projects from 2007-2009. The employment of over half of applications received demonstrates the desire and ability of professionals from different backgrounds to occupy the company's vacant posts.

Among its main assets, YPF operates the Loma La Lata oilfield, considered one of the largest gas reserves of the American continent, covering a surface area of over 39,000 Km2 located in the Neuquén Province. 

The Neuquina basin includes, among other fields, the Sierra Barrosa, Aguada Pichana and San Roque fields, and supplies 57.9% of Argentina's total gas market demand, thanks to a production that during the winter peak demand reached 85 million m3 per day.