Policy & Regulation

Gas subsidy cuts push YPF to oil investment

YPF says it will boost investment in crude production at the expense of gas because it is "disappointed" by cuts to gas-focused subsidies.
By Staff reporter 10 November 2017 0 28332

Argentina's state-run giant YPF has said it will boost investment in crude oil production at the expense of gas because it is "disappointed" by cuts to the country’s gas-focused subsidies.

Chief Financial Officer Daniel Gonzalez told investors during the company's Q3 2017 earnings call on Thursday that YPF could reduce investment in unconventional gas production where it cannot obtain the full subsidy of $7.5/MMbtu.

"With the new gas rules, we will probably see more growth in crude oil than in natural gas vis-a-vis what we were envisioning...