With a date of 25 January 2018, Argentina's YPF signed a farmout deal ceding 40% of its interest on the Charagua Block of the Tarija Basin to YPFB-Chaco, a partial subsidiary of national oil company YPFB. The block will now be 60% YPF and 40% YPFB-Chaco once final approvals of the deal are complete. In July 2017, YPF and YPFB signed a contract completing the final award of an exploration and production service contract for YPF on the Charagua Block. The first exploration period of the contract will last three years and require 1,200 work units. YPF has already obtained the environmental license for a 287 sq km 3D seismic acquisition project, which is scheduled to start in May 2018. The block was previously a YPFB reserved area. Charagua has an area of 992 sq km and is believed to contain 2.7 Tcfg in resources, with a possible production capacity of 360 MMcfg/d. In the case of a commercial discovery, a public private partnership would be formed between YPFB and YPF, with shareholdings of 51% and 49% respectively. The national oil companies of Bolivia (YPFB) and Argentina (YPF) on 16 January 2017 signed an exploration and production services contract to jointly explore and drill on the Charagua block. If a discovery is made and deemed commercially viable, the companies will invest around US$ 1.177 billion. 
YPFB-Chaco taken 40% of interest on the Charagua Block from YPF (->60%). 