Argentina's YPF to resume Patagonia oil operations

About a third of the 250,000 barrels of oil per day produced by YPF come from the fields affected by the strike

Argentina's YPF to resume Patagonia oil operations

Argentine energy company YPF will resume operations at its oil fields in the Patagonia region after workers agreed to end a two-week-old strike, a company source said early on Saturday.

The labour dispute forced YPF, a unit of Spain's Repsol , to halt operations at several sites in the Patagonian provinces of Chubut and Santa Cruz, putting fuel supplies at risk in the South American country.

"They will return to work tomorrow and we'll resume production in Chubut and Santa Cruz," a company source told Reuters, asking not to be identified.

State news agency Telam quoted YPF union sources as saying that they would comply with a government request to suspend the strike.

YPF's senior employees in the two provinces had staged the walkout to press for higher wages.

The company said violent incidents involving striking workers had forced it to halt operations. The protesters blockaded a crude oil storage facility used by other energy companies, including U.S. Exxon Mobil's local unit Esso, which had to reduce refining activity.

About a third of the 250,000 barrels of oil per day produced by YPF come from the fields affected by the dispute.

YPF is the largest energy company in Argentina.

Reuters

Last Mod: 18 Aralık 2010, 16:00
Add Comment