Argentina’s Neuquen Province Removes 3rd Oil Field From YPF

Argentina’s Neuquen province removed a concession from YPF SA (YPFD) to tap the Don Ruiz oil field, which straddles the Vaca Muerta shale oil deposit in the south of the country, according to a notice on the provincial website.

The field is the third concession that the provincial government withdrew from the Buenos Aires-based oil producer because it hasn’t invested enough there, it said. The other two were taken earlier this month by the province.

Don Ruiz is a 109 square kilometer (42.1 square miles) field that straddles the Vaca Muerta and Los Molles formations. YPF said Feb. 9 that a 8,000 square kilometer area of Vaca Muerta surveyed by external auditors holds at least 23 billion barrels of oil equivalent, with its share at 13 billion barrels.

YPF surged in trading yesterday after it announced the discovery of another 1 billion barrels of oil equivalent in neighboring Mendoza province. The company said the discovery proves the Vaca Muerta geology extends into Mendoza.

To contact the reporter on this story: Matthew Craze in Santiago at mcraze@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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