Santa Cruz and Chubut build a stronger front against YPF

Argentina, March 10, 2012

Martin Buzzi, governor of Chubut, met with Daniel Peralta, his pair of Santa Cruz, to build a stronger political front to pursue the claim with YPF on the concession areas that have problems of investment and oil production.

The meeting was held in Santa Cruz at 7 pm yesterday, lasting nearly three hours. The meeting was also attended by state prosecutors of both provinces. The leaders said that “the oil company is entrusted with the general law and the law says that if you do not meet the grant you shall not have the concessions.”

Buzzi, who is also chairman of the Federal Organization of Oil Producing States (Ofephi), is responsible for carrying out the initiative of the Casa Rosada against YPF by a fall in domestic production of hydrocarbons.

In this sense, he said “if someone does not meet the commitment, the areas automatically return to the State for better development.”

The intent of retaliating against YPF is mixed. While Buzzi intended to remove from them the areas of exploration, Peralta discussed the possibility of withdrawing wells where are problems of disinvestment and lack of productivity and production.