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YPF Said to Plan 2016 Spending Cut as $77 Crude Disappears

  • Argentina domestic crude price may drop to $66 a barrel
  • Adjustment would be announced after presidential election
Updated on

Argentina’s YPF SA will cut spending by as much as 20 percent next year if a new administration lowers the domestic oil price nearer to international levels, according to three people familiar with the plans.

The state-controlled company would lower its 2016 budget from this year’s $6 billion, mainly in operations at the Vaca Muerta shale formation, a YPF official said, asking not to be named as the company’s business plan has yet to be approved. The next administration plans to lower the nation’s crude price to $66, triggering the YPF budget cut, said an official from provinces which own shares in YPF.