Vaca Muerta Pushes Argentina's Hydrocarbon Production, New Projects Announced

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

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Summary

Argentina's hydrocarbon production is close to 900,000 BBL/d with hopes of reaching the million mark by year-end. Companies are announcing major projects in Vaca Muerta to expand production and midstream capacity.

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Oil Production Up

Argentina produced 865,000 barrels per day (BBL/d) of oil in February 2026, some 15.3% more than during the same month in 2025. Natural gas volumes reached 139 million cubic meters per day (m3/d), about 3.6% below February 2025 levels.

Neuquen province, where Vaca Muerta is located, remains the driving force behind Argentina's production growth. In February 2026, oil volumes reached 603,800 BBL/d and 97.7 million m3/d, up 30.3% and 0.18% from February 2025, respectively.

Overall, shale production from Vaca Muerta accounted for 68.4% of the oil and 55.9% of the natural gas produced in Argentina throughout February.

The continuous growth of the shale reservoir has catapulted Argentina's volumes near record levels and placed Argentina on the energy map.

More Growth on Horizon

The production boost is backed by fresh investment plans aimed at expanding production, transport, and export capacity.

Among the latest announcements is Tecpetrol's Los Toldos II East oil field, located in Vaca Muerta, which is set to add another 70,000 BBL/d of capacity. Phase I of the project aims for production of 35,000 BBL/d by the first quarter of 2027, with the full ramp-up planned by mid-2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

Tecpetrol's chief executive officer (CEO) said during CERAWeek in Houston that his company has submitted the project to Argentina's Incentive Regime for Large Investment (RIGI), with total investments of US$2.4 billion, based on media reports.

The RIGI program offers fiscal and legal benefits to companies investing more than US$600 million in oil production assets in Argentina.

In line with growing investments in unconventional production, YPF's CEO Horacio Marin projected investments between US$5.5 billion and US$5.8 billion this year, with 70% destined to shale production, according to information shared during the fourth-quarter earnings call. Similarly, Vista Energy, a Mexican company, plans to invest US$1.5 to US$1.6 billion per year from 2026 to 2028, with the aim of boosting production from 115,000 barrels of oil equivalent (BOE/d) in 2025 to more than 200,000 BOE/d.

YPF's Marin forecasts investments of US$130 billion in hydrocarbon infrastructure through 2031 and US$50 billion in energy exports by 2031, according to Reuters.

He also expected Argentina to reach 1 million BBL/d in oil production by year-end.

Midstream Escalation

To cope with Vaca Muerta's growing volumes, several midstream projects have been announced to enable Argentina to transport, and more importantly, export its production. Among the developments are the Vaca Muerta Oil Sur Pipeline, Southern Energy and YPF's Argentina LNG project. Subscribers to the Pipelines and Production databases can access all related project reports by clicking here.

Argentina could become one of the continent's major oil and liquefied natural gas exporters. This is a beneficial position given the escalation of conflict in the Middle East and refiners' race to secure conflict-free supply.

Key Takeaways

• Argentina's oil production reached 865,000 BBL/d in February, a 15.3% annual increase.
• Natural gas volumes totalled 139 million m3/d in February.
• Neuquen's oil production was 603,800 BBL/d, a 30.3% annual increase.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).