YPF to invest $3.3 billion in Vaca Muerta in 2025, focusing exclusively on oil
State-owned YPF SA plans to invest $3.3 billion in Vaca Muerta during 2025, concentrating all drilling activity on oil wells as part of its strategy to prioritize Argentina’s most profitable upstream segment.
The investment coincides with ongoing infrastructure projects aimed at expanding crude evacuation capacity from the Neuquén basin.
The Vaca Muerta allocation accounts for two-thirds of YPF’s total $5-billion capital expenditure planned for the year. The company will not drill new gas wells, instead focusing on completing and connecting its existing inventory of drilled but uncompleted wells.
Logistically, YPF is set to add 23,000 b/d of crude transportation capacity beginning in April, once the ongoing expansion of the Oldelval pipeline system is commissioned. The system is currently in its final line-fill phase. Additionally, the company is backing the next phase of expansion—Duplicar X—a 300-km extension between Allen and Puerto Rosales that includes new pumping station upgrades and will serve Trafigura’s refinery and Oiltanking’s export terminal.
YPF currently produces 280,000 b/d, with 160,000 b/d (60%) sourced from the Neuquén basin. YPF targets 200,000 b/d from Vaca Muerta by yearend.
Of its current production, 41,000 b/d are exported to Chile, positioning YPF as Argentina’s leading crude exporter. Another 100,000 b/d are shipped via Oldelval to the La Plata refinery, with the remainder sent to the Luján de Cuyo plant. YPF plans to invest $1 billion in both refineries to reduce sulfur content in gasoline and diesel.
Ongoing development of the Vaca Muerta Oil Sur pipeline will enable YPF to add 48,600 b/d of export capacity by late 2026. The company holds a 27% stake in the pipeline, which is expected to transport up to 180,000 b/d in its initial phase.
Operational plans call for YPF to transition to 100% unconventional production by 2026. Industry-wide, Vaca Muerta production is projected to reach 1.5 million b/d by 2030, with up to 1 million b/d earmarked for exports.
Camilo Ciruzzi | South America Correspondent
Ciruzzi is a journalist based in the Argentine province of Río Negro. He has over 30 years of experience in radio and print media. Ciruzzi studied Communication Sciences at the University of Buenos Aires and specialized in energy, political economy, and finance.
