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Released August 15, 2023 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Shale volumes continue to represent a larger share of the production for YPF (NYSE:YPF) (Buenos Aires, Argentina) as it focuses on midstream expansion to ease transportation bottlenecks.
YPF reported a net income of US$380 million in the second quarter of 2023, about 53.1% less than during the same period last year. However, this is the result of lower hydrocarbon prices worldwide. Overall, the Argentine company has registered a stable operational quarter.
Oil production during Q2 averaged 241,000 barrels per day (BBL/d), a 7% boost from the prior-year quarer. In comparison, natural gas output closed at 230,000 barrels of oil equivalent per day (BOE/d), slightly less than the 236,000 BOE/d last year.
Nevertheless, the company saw its shale production climb even higher. Non-conventional production accounted for 44.9% of the total hydrocarbons volumes, compared to 38.7% last year. Shale oil and natural gas volumes increased by 28% and 10%, respectively, compared to 2Q2022.
This is the result of developments in Argentina's Vaca Muerta, the world's second-largest natural gas shale and fourth oil reservoir.
According to YPF's Q2 result, the company invested slightly more than US$1 billion in upstream during the last quarter. About 66% of the funds were destined for drilling and workover, followed by 28% for new units and expansion, and 6% for exploration and other activities.
Thanks to these investments, the company drilled 90 new wells across operated blocks. Out of those, 41 were in shale areas, with 34 wells drilled for oil and the remaining for gas.
However, midstream development remains a crucial priority for the company to ease transportation bottlenecks, especially in Vaca Muerta. With the inauguration of the 11 million-cubic-meter-per-day Nestor Kirchner gas pipeline, YPF and other companies in the Vaca Muerta will be able to transport more of their production.
Moreover, this has not stopped YPF from continuing with other midstream developments. During Q2, the company reached 75% completion of the Vaca Muerta Norte gas pipeline, which will help transport production from Tratayen to Puerto Hernandez in the shale reservoir. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for more details.
Midstream development will remain essential for Argentina and YPF as higher oil and gas production is projected in the next years.
On the downstream front, YPF closed the second quarter with refinery runs of 305,000 BBL/d and a 93% utilization rate, on par with the previous quarter and 6.1% more than last year.
During Q2, the company allocated US$253 million for industrialization, including some US$143 million for refining.
YPF has continued with work related to new fuel specifications, which includes a new hydrotreater at the 189,000-BBL/d La Plata refinery. Subscribers to Industrial Info's Refining Project Database can click here for the project report. Additionally, La Plata refinery is in the final stages of finishing the renovation of its Topping D unit, which will allow higher shale oil processing. Click here for more information.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
YPF reported a net income of US$380 million in the second quarter of 2023, about 53.1% less than during the same period last year. However, this is the result of lower hydrocarbon prices worldwide. Overall, the Argentine company has registered a stable operational quarter.
Oil production during Q2 averaged 241,000 barrels per day (BBL/d), a 7% boost from the prior-year quarer. In comparison, natural gas output closed at 230,000 barrels of oil equivalent per day (BOE/d), slightly less than the 236,000 BOE/d last year.
Nevertheless, the company saw its shale production climb even higher. Non-conventional production accounted for 44.9% of the total hydrocarbons volumes, compared to 38.7% last year. Shale oil and natural gas volumes increased by 28% and 10%, respectively, compared to 2Q2022.
This is the result of developments in Argentina's Vaca Muerta, the world's second-largest natural gas shale and fourth oil reservoir.
According to YPF's Q2 result, the company invested slightly more than US$1 billion in upstream during the last quarter. About 66% of the funds were destined for drilling and workover, followed by 28% for new units and expansion, and 6% for exploration and other activities.
Thanks to these investments, the company drilled 90 new wells across operated blocks. Out of those, 41 were in shale areas, with 34 wells drilled for oil and the remaining for gas.
However, midstream development remains a crucial priority for the company to ease transportation bottlenecks, especially in Vaca Muerta. With the inauguration of the 11 million-cubic-meter-per-day Nestor Kirchner gas pipeline, YPF and other companies in the Vaca Muerta will be able to transport more of their production.
Moreover, this has not stopped YPF from continuing with other midstream developments. During Q2, the company reached 75% completion of the Vaca Muerta Norte gas pipeline, which will help transport production from Tratayen to Puerto Hernandez in the shale reservoir. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for more details.
Midstream development will remain essential for Argentina and YPF as higher oil and gas production is projected in the next years.
On the downstream front, YPF closed the second quarter with refinery runs of 305,000 BBL/d and a 93% utilization rate, on par with the previous quarter and 6.1% more than last year.
During Q2, the company allocated US$253 million for industrialization, including some US$143 million for refining.
YPF has continued with work related to new fuel specifications, which includes a new hydrotreater at the 189,000-BBL/d La Plata refinery. Subscribers to Industrial Info's Refining Project Database can click here for the project report. Additionally, La Plata refinery is in the final stages of finishing the renovation of its Topping D unit, which will allow higher shale oil processing. Click here for more information.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
