Argentine oil company YPF, under state control after a 51 percent stake was expropriated from Spain's Repsol, said it plans to invest $3.1 billion over the next five years in the southern province of Santa Cruz.

The company pledged that level of investment after reaching a deal with the provincial government to extend concession periods in some areas.

"The accord guarantees a longer-term horizon with record investment and lasting sources of employment, as well as increased tax revenue for the province," YPF said in a statement Thursday.

The agreement stipulates that the company's investment outlay in Santa Cruz, one of Argentina's leading oil-producing provinces, will exceed "$3.1 billion over the next five years, thereby doubling YPF's average (annual) investment in the province during the past five years," the statement said.

"This decision drastically reverses the planned disinvestment by the previous controllers of this company in that province," YPF said.

The company has been under Argentine government control since Congress voted in May to approve the seizure of a 51 percent stake from Spanish oil major Repsol, whose interest in its former unit has been reduced to 12 percent. EFE