Argentine provinces seek to retain control over shale gas licensing

Three provinces of Argentina, controlling the bulk of shale oil and gas deposits (Neuquen, Mendoza and Chubut), have agreed to jointly oppose any move to shorten licensing process, as promoted by YPF. Since 2004, provinces have been allowed to auction oil leases, rather than federal authorities, to give them more control over their natural resources and a larger share of revenues from their exploitation. Argentina state-owned company YPF is now promoting a federal licensing system, which would remove the need to negotiate with two levels of government. YPF holds 37% of the Vaca Muerta concession areas, estimated to contain the fourth largest shale oil reserves and the second largest shale gas reserves worldwide. Most of the concessions will come up for renewal in the next few years. In 2013, a decree was adopted to enable a joint venture of YPF and Chevron to obtain rights to 3% of Vaca Muerta until 2048.