Petrobras Argentina Discovers New Oil Reserve
Petrobras, the Argentinian subsidiary of Brazil’s Petroleo Brasileiro, has announced the discovery of 6 million barrels of oil.
The La Cancha reserve is located in the Santa Cruz province’s Agua Fresca oilfield and is Petrobras’ second project in the province. It is estimated to produce 3,000 barrels of crude oil, and 90,000 cubic meters of gas per day. Petrobras is planning to invest $800 million over the next 4 years in the region.
Brazil’s increased investments into Argentina’s oil and gas industry come only months after the Argentine government nationalized Spanish YPF Repsol. This move prompted many foreign investors to reconsider Argentina, just as they did after Hugo Chavez rose to power in Venezuela.
However YPF’s shares have done well lately, especially after Mexican billionaire and world’s richest man Carlos Slim invested $345 million for an 8.4% share of YPF.
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