Mendoza Province Grants Contract Extension to YPF

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laht-YPFBy Laht.com

The western Argentine province of Mendoza has granted YPF, a unit of Spanish oil major Repsol-YPF, a contract extension through 2027.

The contract covers oil exploration in 16 zones.

In exchange, YPF pledged to pay an additional royalty, including an initial outlay of $135 million and another $16 million for “corporate social responsibility” actions, the provincial government said Thursday on its Web site.

The royalty hike represents a 3 percent increase over the 12 percent rate set in the original contracts, which were set to expire in 2017.

YPF also pledged to comply with a requirement to carry out its activities in the province by using “a minimum of...Read Full Article

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