Argentina’s Shale Ambitions Hang In Balance
- State-run driller has to find more cash for Vaca Muerta wells
- Debt swap didn’t free up enough for $2.7 billion capex target
Photographer: Diego Giuice/Bloomberg
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YPF SA, Argentina’s state-run oil company, needs to come up with more than $1 billion to spur drilling in Patagonia, where it’s leading development of the biggest shale patch outside the U.S.
It’s not going to be easy. YPF restructured bonds last week to free up money to spend on shale, which demands a relentless cycle of drilling and fracking. But relatively few creditors took the new notes, and the company could only get $630 million of relief from debt payments over the next two years. It wanted more than that and will have to take extra steps to achieve spending targets, according to a person familiar with the matter.