Argentina's YPF to Invest US$25 Billion in Vaca Muerta

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Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

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Summary

Argentina's YPF plans to invest US$25 billion over 15 years to boost Vaca Muerta output to 240,000 bpd for export. Argentina's hydrocarbon production has gained further relevance with growing instability in the Middle East.

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More Vaca Muerta Spending

Argentina's YPF plans to invest US$25 billion over 15 years in developing the Vaca Muerta shale region's hydrocarbon production and export capacity. The project, named LLL Oil, was submitted to Argentina's Incentive Regime for Large Investments (RIGI) program in May, representing the largest application so far. The RIGI is a scheme introduced by the Argentine government aimed at attracting foreign investments to major projects in exchange for fiscal and legal benefits.

Industrial Info Resources data show 63 oil and gas upstream projects owned by YPF in Argentina, valued at US$9.63 billion.

The Argentine company's plan calls for drilling 1,152 oil wells and producing 240,000 barrels per day (bpd) of oil by 2032. The oil production increase will be fully destined to exports through the Vaca Muerta Oil Sur pipeline (VMOS) Project, a midstream development led by YPF, while the natural gas production will be sent to the domestic market.

These exports are expected to generate US$6 billion annually starting in 2032 and create around 6,000 direct jobs.

LLL Oil is not a single field but an integrated cluster of contiguous YPF-operated areas in Vaca Muerta that will share surface facilities, drilling rigs, frac sets, and sand and water logistics. The area covered under the project includes the La Angostura Norte, La Angostura Sur II, La Angostura Suroeste, La Angostura Sur I, and the Barreal Grande blocks.

"This is much more than an investment. It is the beginning of a new chapter. Everything we have done so far pales in comparison to what lies ahead over the next two years," said Horacio Marin, YPF's chief executive officer, on social media.

Besides hydrocarbon production facilities, YPF has also launched and partnered in several midstream developments across Argentina, including VMOS and liquefied natural gas (LNG) export facility.

This midstream expansion is designed to ease Vaca Muerta evacuation bottlenecks and connect rising oil and gas production to domestic, regional and export markets. As part of this, Industrial Info Resources has mapped 246 oil and gas pipelines as well as terminal projects across Argentina, amounting to US$9 billion.

Recently, Marin discussed YPF's 4x4 plan which aims to help Argentina exceed US$30 billion in annual energy exports by 2031, mainly through Vaca Muerta oil, LNG and efficiency gains.

Argentina's Oil Production

Argentina has seen its hydrocarbon production increase significantly thanks to the growing shale output from Vaca Muerta. In 2025, Argentina produced almost 800,000 bpd of oil and 141.3 million cubic meters of natural gas per day, with shale volumes accounting for 62.5% and 53.22%, respectively, according to the Ministry of Energy data.

Despite its capital intensity, Argentina and Vaca Muerta have been gaining international attention not only because of their vast resources, but also the logistical advantages that their production adds.

With the closure of the Strait of Hormuz and the disruption of global oil flows, refiners have increased their interests in alternative crude sources outside the Middle East, including Vaca Muerta's light oil. At the same time, the impact of the Middle East conflict on Qatar's LNG infrastructure also places Argentina as a key medium-term and stable alternative for gas markets.

Finally, the RIGI and the government's efforts to further attract investments to the country have also increased Argentina's attractiveness to international players.

Key Takeaways

• YPF targets a US$25 billion investment in Vaca Muerta over 15 years.
• The company is aiming for 240,000 bpd production by 2032 and expects US$6 billion in annual exports.
• LLL Oil is the largest project under RIGI.

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