Argentina's state-owned energy company YPF produced 577 kboe/d in 2015, a 3% increase over 2014, thanks to a 2.1% hike in crude oil production (to 250 kb/d) and a 4.1% growth in gas production (to 44.2 mcm/d).
Proven reserves increased by 1.2% to 1,226 mboe, with tight and shale resources accounting for 11% of total P1 reserves. Liquids reserves rose by 0.6% to 679 mbl and gas reserves by 1.9% to 547 mboe. YPF processed an average of 299 kbl/d in 2015 (+2.9%) and sales of refined products rose by 3.6%, despite stable diesel sales.
The company is continuing to develop shale oil and gas resources, with 424 shale wells in production at year-end 2015 and 173 wells drilled during the year. Shale production ramped up from 19 boe/d in the first quarter of 2014 to 38 boe/d in the fourth quarter of and to 51 boe/d in the fourth quarter of 2015. Tight gas production accounted for 12% of total gas production in 2015.
In 2016, the company will adapt to degraded market conditions (falling oil prices) by cutting capital expenditures by 20% to 25%. It will stabilise its hydrocarbon production with focus on natural gas and focus on cost reduction opportunities. YPF will finalise its new US$950m coke project to increase diesel production by 10% in the second half of 2016; the project is expected to significantly reduce Argentina’s diesel imports.