Argentine state-controlled energy company YPF said it has been granted an extension of its concession contracts for oil fields in the southern province of Chubut.
The agreement with the provincial government covers the Restinga Ali, Sarmiento, Campamento Central-Cañadon Perdido, Manantiales Behr and El Trebol-Escalante concessions, the company said Thursday in a filing with the Buenos Aires Stock Exchange.
Those concessions had been due to expire between 2015 and 2017, but YPF said in a statement that it reached an agreement to extend those contracts for 30 years.
As part of the accord, YPF pledged to pay Chubut a $30 million extension bond and a Compensation Bond for the Sustainable Development of Hydrocarbons equivalent to 3 percent of the wellhead value.
The company said it also pledged to comply with a "minimum investment commitment" in the concessions covered by the extension agreement during the period from 2018 to 2027, maintain a minimum number of drilling rigs contracted and active during the period of 2014 to 2018, and drill 20 exploratory wells between 2014 and 2018.
Chilean state oil company Enap-Sipetrol, co-owner of the Campamento Central-Cañadon Perdido concession, also signed the extension agreement "in order to ratify and agree to assume its portion of the commitments corresponding to its participation percentage in such exploitation concession," the filing said.
YPF has been under state control since the Argentine government expropriated a 51 percent stake in the company in 2012 from Spain's Repsol, which maintains a 12 percent interest in its former unit.