NEW YORK ( The Deal) -- Chevron Corp. (CVX) has agreed to invest an initial $1.24 billion to develop a shale gas field owned by YPF SA (YPF), setting up a clash with Spain's Repsol SA, which said it will seek damages against any company that partners with its former Argentine subsidiary.
The agreement to jointly develop 96,000 acres of the Vaca Muerta, or dead cow, field is the first agreement signed by YPF since the Argentine government seized Repsol's 51% stake in May 2012.
"This strategic investment will allow Chevron to take part in the Vaca Muerta, one of the most exciting shale oil and gas plays in the world today," Chevron vice chairman George Kirkland said in a statement.
Madrid-based Repsol has filed claims for about $10.5 billion of compensation from the Argentine government. Repsol also filed suits in Madrid against Chevron and Bridas Corp. earlier this year after the two companies announced preliminary deals with YPF."We have sued Chevron in N.Y. and also in Spain for tortious interference and unlawful competition," Repsol spokesman Kristian Rix said. "This agreement
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV