YPF to invest $7bn a year until 2017

Miguel Galuccio Mr Galuccio, a former executive at oil services giant Schlumberger, was appointed last month to run YPF

Related Stories

The new head of Argentina's state-controlled energy company, YPF, has said the firm will need to spend $7bn (£4.5bn) a year for the next five years to boost oil and natural gas output.

Miguel Galuccio said 1,000 wells would be drilled next year, the most since 1996, before privatisation.

The investment aims to boost production by more than a quarter by 2017.

Argentina seized control of YPF from Spain's Repsol in April, accusing Repsol of investing too little.

Mr Galuccio blamed Repsol for Argentina's huge drop in crude oil and natural gas output over the past decade.

"We need to be realistic. Although I'd like to be able to double the production of [natural] gas and fuel overnight, I'm not a magician," he said.

"In this industry, every extra barrel requires investment, technology and above all, hard work."

He added that YPF needed to "recover its leadership and vision in the country" and vowed to make the company "professional and competitive".

YPF, which made a net profit of 5.3bn pesos ($1.2bn; £767m) last year, did not give specific details about how it would meet the required investment.

"We're going to have to go out and look for partners. For that reason, we're designing business models that allow us to accommodate different types of partners," Mr Galuccio said.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • GiftsGifts that give

    Could the present you've received also be a good investment?

Programmes

  • Hollywood actor Alan CummingHARDtalk Watch

    Actor Alan Cumming discusses how his father physically abused him as a child

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.