This was stated by the president of the company, Horacio Marín. He said that the company will focus on the exploration, production and marketing of oil, activities that constitute its strategic core.
YPF is the majority shareholder of Metrogas, with a 70% stake through Gas Argentina SA
Image: Argentine News
The oil company YPF has announced the decision to sell its shareholding in Metrogas, the main gas distributor in Argentina, as part of a strategy to reorient its resources towards the oil sector.
The statement was made by the president of the company, Horacio Marinduring a presentation at the Inter-American Council of Commerce and Production, where he stressed that YPF will focus on the exploration, production and marketing of oil, activities that constitute its strategic core.
At the moment, YPF is the majority shareholder of Metrogas, with a 70% stake through Gas Argentina SA (GASA), a company controlled by YPF. This ownership gives it control of the largest natural gas distributor in the country, which supplies more than two million customers, mainly in the Buenos Aires metropolitan area. The relationship between both companies began when YPF increased its participation in Metrogas and displaced private partners, consolidating its position in the gas market.
However, this relationship has been a source of debate in the sector, especially as a result of public policies that seek to avoid vertical integration in the energy sector. Argentine legislation prohibits the concentration of gas production, distribution and marketing activities in a single company to avoid monopolies and promote competition. In 2017, the national government had already recommended that YPF look for alternatives to divest from Metrogas, a call that the company has faced with various optimization strategies.
One of the main factors that have influenced YPF’s decision is the need to adjust to current regulations, which restrict the vertical integration of energy companies at different stages of the production and distribution process. These regulatory laws seek to prevent the same company from controlling multiple phases of the gas value chain, a regulatory framework that directly affects the relationship between YPF and Metrogas. Regulatory policies and pressures to promote a competitive gas market motivated YPF to evaluate, and eventually opt, to sell its stake.
In addition to regulatory pressure, YPF has noted the importance of reorienting its resources and focusing on the unconventional oil and gas sector, especially in the Vaca Muerta region, one of the largest shale reserves in the world. Vaca Muerta has become a key axis of YPF’s strategy, which seeks to optimize its production of unconventional hydrocarbons and consolidate itself as a leader in the Latin American energy market.
The development of Vaca Muerta requires significant and specialized investments, a factor that reinforces the need for YPF to focus its efforts and capital on oil and gas production.
Source: Ambito
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