Chevron $1.24 Billion Deal Leads YPF Post-Repsol Shale Hunt

Chevron Corp., the world’s second-biggest oil company, signed the first agreement with Argentina’s government since it nationalized YPF SA in 2012 to help develop shale oil and natural gas in Vaca Muerta.

YPF’s American depositary receipts rose 5.7 percent today in New York after John Watson, Chevron’s chairman and chief executive officer, and YPF CEO Miguel Galuccio signed the accord late yesterday at YPF headquarters in Buenos Aires. The contract to develop the world’s second-largest shale gas deposit and fourth-largest shale oil reservoir finalizes terms for Chevron’s initial $1.24 billion investment, which may reach as much as $15 billion. The partnership was first formed in December.