Reuters reported that Chevron (NYSE:CVX) and YPF SA (NYSE:YPF) have signed a memorandum of understanding to explore for natural gas and shale oil in Argentina’s Vaca Muerta field. Repsol SA, which had its stake in YPF seized by the Argentinian government earlier this year, plans to take legal action against Chevron.
As quoted in the market news:
Argentina’s left-leaning government seized a controlling stake in YPF, the country’s No. 1 energy company, from Repsol in May and the Spanish firm has vowed to take legal action against companies that invest in YPF.
Repsol reacted swiftly to Friday’s accord with U.S.-based Chevron. The possible partnership is good news for YPF as it seeks deep-pocketed partners to help fund an ambitious five-year investment plan aimed at boosting production.
YPF and Chevron confirmed the signing of a memorandum of understanding but declined to comment on the legal threat.