Hopes of Argentina’s new president Alberto Fernandez of bolstering exports to spur growth and pay debts face a speed bump from the crop industry, which accounts for more than a third of shipments. Drought has ravaged the wheat and barley crop on the Pampas growing belt that rakes in key export revenues over the new-year period.
Vaca Muerta has the capacity to generate some $10 billion a year in exports by 2024, according to YPF’s estimates, a number that could rise to $20 billion by 2029- 2030, providing much needed hard cash. But there are challenges ahead, sources in the industry suggest some $15 billion to $20 billion are needed yearly to fully tap into its potential.
Argentina’s YPF has drilled the longest horizontal well to date in the oil window of Vaca Muerta, where the state-backed energy company is focusing its investment for oil and natural gas production growth. According to a company source, the well was drilled with a lateral of 3,890 meters (12,762 feet) in the shale play, and it is on Bandurria Sur, which YPF is developing in a joint venture with US-based Schlumberger.
Argentina’s incoming Economy Minister Martin Guzman should meet as soon as possible with the country’s private sector creditors amid fraught talks over restructuring, said the Institute of International Finance CEO Timothy Adams. Argentina’s new government is bracing for negotiations with creditors including the International Monetary Fund (IMF) to restructure around $100 billion in debt.