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YPF Discloses Terms of Its Agreement With Santa Cruz Province

YPF SA said today its signed agreements with Santa Cruz province to extend concessions have received local legislature approval and were published in the provincial official gazette.

Argentina’s largest energy producer has obtained a 25-year extension for the concessions it has in the province, YPF said in a regulatory filing today.

The concessions represented 16.9 percent of YPF’s total reserves as of Dec. 31 2011, the filing said. YPF is based in Buenos Aires.

In exchange for the extension, YPF agreed to pay 15 percent in royalties for its oil and natural gas output and 10 percent in royalties for its shale production, YPF said.

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