Petronas Evaluates Exit from Argentina’s Shale Oil Venture

Petronas is considering exiting its shale oil venture in Argentina, amid industry adjustments. YPF plans to divest offshore exploration projects and anticipates a 15% increase in adjusted EBITDA for 2024. Additionally, Equinor may sell its shale assets to YPF as part of the ongoing organizational changes in the energy sector.

Petronas, the Malaysian oil and gas company, is reportedly considering exiting its shale oil venture in Argentina. This discussion comes amid a broader trend of adjustments within the energy sector, particularly regarding exploration and production projects. According to a report from Bloomberg News, this potential withdrawal follows prior announcements of various companies reevaluating their investments in the region due to the shifting economic landscape in Argentina.

In related news, YPF, Argentina’s state-owned energy company, plans to divest from offshore exploration projects, indicating a strategic pivot towards optimizing its asset portfolio. The CEO has revealed that the company aims to focus on its core operations to enhance profitability. More details concerning YPF’s financial outlook indicate that it anticipates a 15% increase in adjusted EBITDA for the year 2024, projected at approximately $4.65 billion.

Other developments in Argentina’s oil sector include reports that Equinor is in discussions to sell its shale assets to YPF. As the energy market faces various challenges, including layoffs and labor strikes, companies are actively exploring transactions to reshape their operational focuses, which may further impact the country’s energy landscape in the coming years.

In summary, Petronas is evaluating its continued involvement in Argentina’s shale oil sector amid a wave of strategic shifts within the industry. Concurrently, YPF is making moves to streamline its operations while projecting positive EBITDA growth for 2024. As the energy environment in Argentina evolves, companies are reassessing their positions and potentially rebalancing their asset portfolios to adapt to the changing market conditions.

Original Source: www.marketscreener.com