KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and YPF SA have signed a memorandum of understanding (MoU) to collaborate in Argentina on an integrated liquefied natural gas (LNG) project and in other sectors, such as upstream oil, petrochemicals, and renewable energy solutions.
YPF is Argentina's largest integrated oil and gas company.
The MoU was formalised by Petronas president and group chief executive officer Datuk Tengku Muhammad Taufik and YPF chairman and president Pablo Gonzalez.
Also present at the signing ceremony were senior management from Petronas and YPF.
In addition to the MoU, YPF and Petronas' operating entity in Argentina, Petronas E&P Argentina SA, executed a joint study and development agreement (JSDA) towards the research and potential development of the Argentina Integrated LNG project, which will encompass dedicated upstream gas production, dedicated pipeline and infrastructure development, LNG production as well as marketing and shipping.
Petronas said the project's final investment decision would be undertaken after a diligent technical and commercial assessment, backed by conducive fiscal terms, legislation and policies.
Tengku Taufik said the collaboration signifies a continued aspiration to achieve shared business growth and provide sustainable and cleaner energy solutions.
"Petronas is focused on expanding and diversifying our integrated opportunities to capture key markets.
"Petronas' expertise in integrated LNG and unconventional plays will add value to the intent and synergy of both parties in further exploring potential LNG opportunities in Argentina, leveraging Vaca Muerta's vast unconventional gas resources," he said in a statement yesterday.
Petronas' strategic alliance with YPF began in 2014 through its partnership in the La Amarga Chica project, Vaca Muerta, as part of its growth aspirations in the Americas.