The area under discussion is the Amarga Chica block, a 187-square kilometre tract prospective for oil in Neuquen province.

It is north-west of Loma Campana, one of YPF's core unconventional areas where the company signed a $1.24 billion exploration agreement with US supermajor Chevron last year.

YPF chief executive Miguel Galuccio on Tuesday met at the company's Buenos Aires headquarters with Petronas chief executive Tan Sri Dato Shamsul Azhar Abbas and executive vice president of exploration Dato Wee Yiaw Hin.

The