YPF increases shale oil production 36% in third-quarter 2024

State-owned YPF increased shale oil production 36% in this year’s third quarter with production averaging 126,000 b/d. The output is an 11% increase compared with second-quarter 2024. Shale now accounts for 49% of YPF's total oil output, the company said in its third-quarter report last week.

Medanito crude oil exports saw an 111% increase compared with the same period last year, and a 37% jump from the previous quarter. Exports averaged 39,000 b/d, representing 15% of the company’s total oil production.

During the period, YPF invested $1.353 billion, allocating more than 70% to its upstream segment, mainly for shale drilling and workover activities. 

YPF reported an EBITDA of $1.366 billion. Driven by higher seasonal gas sales, increased shale hydrocarbon production, and improved local fuel prices, although partially offset by higher real-term costs and reduced conventional output, which was notably impacted by adverse weather conditions in Patagonia in July.

As part of its quarterly report, YPF disclosed progress at the Andes project, with nine sales agreements signed covering 25 areas, including seven new blocks in Tierra del Fuego. Additionally, provincial approval was secured for one of the clusters in Chubut.

Construction of the first segment of the Vaca Muerta Sur oil pipeline has reached 50% completion (Vaca Muerta – Allen, 130 km), with a total investment of about $200 million. The second segment will feature a dedicated export pipeline (Allen – Punta Colorada, 440 km), storage tanks, and monobuoys—to be used to load very large crude carriers—requiring 
an investment of around $2.5 billion, the company said. The estimated construction start is January 2025.