Chile, Argentina’s YPF Ink Deal to Import Oil via Trasandino Pipeline

(Reuters) — Chilean state oil company National Petroleum Company (ENAP) said on Monday it has signed a temporary agreement with Argentine oil firm YPF to import crude through the Trasandino pipeline, a key step for both countries' trade.

(Image: YPF)

The Trasadino pipeline, known as OTA-OTC or OTASA, connects the huge Vaca Muerta shale formation in the western Patagonian province of Neuquen with Chile, and is co-owned by ENAP, YPF, and Chevron Corp.

Vaca Muerta, the world's second largest shale gas reserve and fourth largest for shale oil, is seen as key to Argentina's push to lessen reliance on pricey energy imports.

The contract, which is valid for 45 days, would enable the Chilean firm to buy 41,000 barrels of oil per day between May and June.

ENAP said in a statement that, although the deal is a "regular purchase operation," it is an initial step for the renewal of "energy-oil interconnection between the two countries in the long term."

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