Chevron Corporation(NYSE:CVX) has executed an agreement to work with YPF SA (ADR)(NYSE:YPF), Argentina's state-controlled oil company on evaluation process for some sites for developing projects for energy development.
Kurt Glaubitz, Chevron spokesman, via an email has confirmed on Last Friday that Cheveron and YPF has signed a MOU [memorandum of understanding] in order to move by a joint venture for exploring areas of interest and profit for both the parties for pursuing profitable ventures. No financial terms were disclosed by him and ne has not disclosed any other specifics regarding this joint venture.
YPF required funding for billions of dollars for running search project of unconventional oil and natural gas reserves. However Argentina’s decision of not paying $10 billion dollar amount has compelled other major oil companies to invest here in YPF funds for further working on finding sites for new projects. Spain's Grupo Respol says it is payable after Argentina confiscated Repsol's scheming stake in YPF in last April.
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In this context Argentina has also declared about launching of an extensive system of price regulation and has also declared that Government will take rigid decision about the allowance of making profits by any energy company operating in Argentina as Argentina possess largest shale reserves after China and United States. This imitative will be helpful in strengthening the fiscal condition of the country as well as will help in utilizing its natural resources for generating revenue for a strong and stable economy.