YPF Inks Agreement with Chevron, YPF Shares Down 4%, Pressured by the Deal's "Fine Print"
According to Reuters, YPF ( YPF ) has signed a partnership deal with Chevron Corp. ( CVX ) today. The precise details of the deal have not been released, as both companies are reportedly negotiating a permanent deal over the next four months.
There have been expectations that the two companies would sign a deal since earlier this month when YPF's CEO publicly stated that his company would finalize a deal by the end of the year. YPF shares, meanwhile, are down 3.2% to $15.33 following this recent announcement, perhaps pressured by a concurrent statement by YPF's CEO and CVX's head of operations for Latin America and Africa that this agreement is only a "pilot phase."
According to the letter of intent exchanged between YPF and CVX, the companies envision drilling 100 non-conventional oil wells at a cost of $1 billion.
CVX shares are up 0.39% to $110.53.