YPF Seeks Argentina RIGI Incentives for Bajo del Toro Oil & Gas Production Project

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

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Summary
YPF submitted a RIGI application for its US$8.7 billion Bajo del Toro project, with a target production capacity of around 80,000 barrels per day of oil and 3 million cubic meters per day (m3/d) of gas.

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Project Includes Bajo del Toro and Bajo del Toro Norte

YPF announced on October 30 it had applied to include its Bajo del Toro oil and gas project in Argentina’s Vaca Muerta shale formation under the country’s Incentive Regime for Large Investments (RIGI). Industrial Info Resources data includes 14 related Bajo del Toro project reports. The development is expected to reach investments of US$8.7 billion throughout its development.

The project includes the Bajo del Toro and Bajo del Toro Norte areas, and it is owned by a consortium composed of YPF (65%) and Vista Energy (35%), with YPF serving as operator.

The shale project targets a production capacity of 80,000 barrels of oil per day (bpd) and 3 million cubic meters of gas per day (m3/d) between 2033 and 2040, with 440 wells planned over its lifespan.

YPF said it expects the project to generate approximately 2,900 direct jobs during the construction and production phases and about US$25 billion in exports between 2027 and 2055.

Upstream RIGI Projects

The RIGI, established under the government of Javier Milei to attract investments for project development in Argentina, guarantees tax cuts, foreign exchange incentives, and long-term regulatory stability. Onshore oil and gas projects must meet a minimum investment requirement of US$600 million to be eligible.

So far, nine oil and gas projects have been approved under RIGI, including upstream developments such as Pluspetrol’s Bajo del Choique – La Invernada, Pampa Energia’s Rincon de Aranda, and Tecpetrol’s Los Toldos II Este.

Besides Bajo del Toro, YPF also submitted its LLL Oil project for RIGI consideration, and it is still pending approval. LLL contemplates investments of US$25 billion over 15 years and more than 1,150 wells to produce 240,000 bpd by 2032.

Shale Oil Production

YPF is one of Argentina’s largest oil-producing companies, recording shale oil production from Vaca Muerta of 224,000 bpd between July and September. The company’s output has risen from 170,000 bpd during the third quarter of last year, driven by its campaign to develop its Vaca Muerta assets.

The development of the shale reservoir has allowed Argentina to consistently increase its hydrocarbon production in recent years. Between January and September, Argentina produced around 900,000 bpd, with roughly 78.3% of the volumes coming from the Neuquen basin, where Vaca Muerta is located. In September, Argentina produced around 970,000 bpd, according to figures shared by the energy secretary.

According to projections by YPF Chief Executive Officer Horacio Marin, Argentina could reach the 1 million-bpd production mark earlier than expected.

Key Takeaways

• YPF submits RIGI application for its US$8.7 billion Bajo del Toro project
• The project is expected to have a production capacity of 80,000 bpd of oil and 3 million m3/d of gas.
• YPF’s shale oil production averaged 224,000 bpd in the third quarter.

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