Petrobras To Slash Costs, YPF Partners with Chevron: Energy Business Review
Petrobras (NYSE:PBR) intends to reduce costs by $15.4 billion in the next four years to curb the impact of sliding output and increasing debt on its expansion plan. Cost reduction will concentrate on 39 areas that 43 billion reais of spending last year and will try to shrink these costs by about 8 billion reais per year according to a statement the public company released on Wednesday.
The Argentine energy firm YPF Sociedad Anonima (NYSE:YPF) is partnering with Chevron Corporation (NYSE:CVX) through which to get ready for major investment — a pilot program to drill 100 non-conventional oil wells at a cost of around $1 billion — in Argentina’s vast shale oil resources. YPF Chief Executive Miguel Galuccio said earlier in December that he anticipated that his firm should finalize a joint venture agreement with Chevron prior to the end of 2012.
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On Wednesday, Cabot Oil & Gas Corporation (NYSE:COG) said that for the first time in its history, its Marcellus operations have exceeded one Bcf of gross production per day which also resulted in the firm’s total company net production surpassing the one Bcfe per day level, representing a new record high. Chairman, President and Chief Executive Dan O. Dinges commented that, “The successful collaboration of our employees and members of the Williams’ team made this accomplishment possible. Throughout the month of December, we have been gaining production momentum and month-to-date our total Company average net production rate is 930 Mmcfe per day, which is above our exit rate expectation expressed in our third quarter call.”
Vanguard Natural Resources (NYSE:VNR) reports that a third party elected to exercise its preferential rights to acquire certain non-operated oil and natural gas assets in the Bakken trend of Montana. The firm had previously announced the entering into a definitive agreement in November with an unidentified seller to purchase these Bakken assets at $131.0 million.
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