The Government of Neuquén granted YPF four new unconventional concessions in the Vaca Muerta formation, according to the majority state-owned oil company.
These concessions include the La Angostura Sur I and II, Narambuena, and Aguada de la Arena blocks, which will help strengthen the company's leadership within the "4x4" plan that was launched with the management that began at the end of 2023.
"These blocks will allow us to increase production, especially of oil with a focus on export. The start of the Vaca Muerta Sur pipeline works is the key for us to accelerate these developments that will enable us to generate a significant foreign exchange contribution for the country in the coming years," said Horacio Marín, president of YPF.
YPF busca fortalecer su liderazgo.
Details of the blocks:
La Angostura Sur I and II: These blocks are derived from the Loma la Lata concession. The first covers 249 square kilometers, and the second, 103.4. Both are located within the Vaca Muerta oil window.
Narambuena: Derived from Chihuido de la Sierra Negra, it has an area of 212.8 square kilometers.
Aguada de la Arena: Located within the Vaca Muerta gas window, it covers 111 square kilometers.
This award comes in a context of strong growth for YPF in the Vaca Muerta region. In 2024, the company consolidated its position as the main producer of unconventional oil in Argentina. Additionally, during the last year, it recorded a net profit of USD 2.393 billion, recovering from the loss of USD 1.277 billion the previous year.
YPF's growth
The oil company's good performance is due to the increase in exports and the continuous growth of production. In 2024, the company allocated USD 5.041 billion in investments, of which more than 63% were destined for projects in Vaca Muerta. As a result, shale oil production reached an average of 122,000 barrels per day, with peaks of up to 138,000 barrels per day in the last quarter of the year.
To join this growth and ensure the capacity for transportation and export of the oil produced in the region, YPF, along with its partners, is advancing with the construction of the Vaca Muerta Sur (VMOS) pipeline. This work, which began in January 2025, will be the largest built in Argentina in the last 20 years.
Trabajador de YPF.
The pipeline will have an initial capacity of 550,000 barrels per day and will allow for increased oil exports from the Neuquén Basin to international markets. To finance the project, YPF and its partners are negotiating a syndicated loan of USD 1.700 billion, which will cover 70% of the total cost of the work.
The capacity of this pipeline will also be key to YPF's goal of consolidating itself as the largest shale producer in the region, with exports estimated to exceed USD 20 billion annually by 2027. This expansion also aims to improve the competitiveness of Argentine crude in the global market, especially in Asia, through the connection with VLCC (Very Large Crude Carriers), which will optimize logistics costs.
With these new concessions and the advancement of strategic projects, YPF reinforces its leadership in Vaca Muerta and its role as a generator of foreign exchange for the country through the export of hydrocarbons. The combination of investments in production and infrastructure will allow Vaca Muerta to be consolidated as one of the main drivers of Argentina's energy and economic growth.
A report by the consulting firm PwC, aimed at international investors, indicated that Argentina could achieve an energy surplus of USD 30 billion by 2030 thanks to the development of Vaca Muerta. This milestone would place the sector at the level of the foreign exchange caused by the Argentine agricultural sector.
