Horacio Marín linked the financial recovery of the oil company with the progress of Vaca Muerta and the LLL Oil megaproject, which anticipates investments of USD 25 billion and exports of over USD 100 billion.
The Argentina has initiated a paradigm shift in its economy that is already showing significant results in the country's most strategic sector. The Incentive Regime for Large Investments (RIGI), the cornerstone of Javier Milei's administration, has unlocked a horizon of prosperity that was unthinkable under the previous model. In this new scenario of legal security and predictability, the president of YPF, Horacio Marín, has outlined an aggressive roadmap to turn the company into the nation's export engine.
The heart of this transformation is the megaproject LLL Oil, an initiative of unprecedented scale aimed at the massive development of Vaca Muerta. According to the plans formally presented to enter the RIGI, this investment will require USD 25 billion over a period of 15 years.
LLL OIL Project
The technical deployment is phenomenal: it includes the drilling of 1,152 wells with the goal of achieving a sustained production of 240,000 barrels of oil per day by 2032, exclusively for the international market. The figures managed by the current leadership of the oil company are eloquent regarding the potential that economic freedom has unleashed:
Domestic production, which currently stands at over 250,000 barrels, will scale up to a ceiling of between 600,000 and 700,000 barrels.
It is projected to generate USD 7 billion annually in foreign currency for the country.
The ultimate goal is to achieve accumulated exports amounting to a staggering figure: “generate exports of USD 100 billion”, as stated by Horacio Marín.
In terms of employment, this project alone will generate around 6,000 direct jobs during its construction and operation.
Complementing the oil strategy, the LNG project (Liquefied Natural Gas) stands as the second major pillar of the administration. In a strategic alliance with the Italian ENI and the Arab giant XRG, an additional investment of USD 20 billion in infrastructure and USD 10 billion in well development is anticipated.
This project not only aims to export USD 20 billion annually by 2045, but also guarantees domestic consumption with a production of 10 million cubic meters of gas per day.
Dead Cow
The efficiency of this "business friendly" model is not just a promise for the future, but a reality that the financial market is already rewarding. In a historic day, YPF shares on Wall Street recorded an increase of up to 9%, driven by renewed interest from global gurus like Stanley Druckenmiller.
This international backing is a direct consequence of a management that prioritizes value over party politics. Horacio Marín was emphatic in explaining the role of the new legislation: “Without RIGI, none of these things could have been done. Because it provides legal and currency security”.
The definitive milestone of this administration will be reached in 2028, the year when the national government, holder of 51% of the shares, will begin to receive dividends. This means that the company will finally distribute genuine profits among all its shareholders.
The President's order has been clear and direct, marking the end of the company as a political spoils: “What President Milei asked me is to generate value for the shareholders, who are all of us”, revealed Marín. With a BCRA that has already accumulated purchases of over USD 8.2 billion so far this year, the success of YPF consolidates as the guarantee of an Argentina that is becoming a power again.
