Dow Chemicals and YPF Argentina have signed an investment agreement for the development of a pilot project on the "The Orejano" block, in the province of Neuquén, which will increase gas production in the country. "The Orejano" is located in the northwestern department Añelo, in Neuquén Province, and covers an area of 45 km2. Its location corresponds to the Vaca Muerta shale gas field. At peak production, the area could bring more than 3 mcm/d of gas (over 1 bcm/year). Under this agreement, Dow will invest US$120m in the development of the block over a 12-month period. In addition, YPF will invest U$68m, raising the total investment to US$188m. YPF will be the operator of the block. Initially, there will be 16 wells dedicated exclusively to the extraction of shale gas. This project adds to development YPF makes for extracting conventional and unconventional gas in different formations, including Sierras Blancas, Lajas and Vaca Muerta. The companies will work together to identify new projects in order to expand Argentina petrochemical industry.