Argentina's YPF, Chevron sign pact to develop non-conventional petroleum in Patagonia

Argentina's state oil company has signed a deal with Chevron Corp. for "massive development" of non-conventional petroleum sources in the Vaca Muerta area of Patagonia.

YPF President Miguel Galuccio and Chevron's Latin America and Africa chief Ali Moshiri signed the deal on Wednesday.

They plan to start on a shale pilot project by drilling more than 100 wells within 12 months. The Argentine company hopes the effort will help it boost production to meet the country's growing energy demands.

The companies say development of the pilot plan will cost a shared $1 billion, while full development of the zone could cost more than $15 billion.