YPF expands with four new areas in Vaca Muerta

The Argentine state-controlled oil company YPF has acquired four new oil and gas concessions in the massive Vaca Muerta shale formation and plans to invest $12.9 billion for large-scale development.

The province of Neuquén, which lies at the heart of Vaca Muerta, awarded YPF the four new concessions. With this addition, YPF—already the largest operator in Vaca Muerta—now controls the La Angostura Sur I and II, Narambuena, and Aguada de la Arena blocks.

“These blocks will allow us to increase oil production, particularly with a focus on exports. The start of construction on the Vaca Muerta Sur pipeline is key to accelerating these developments, which will generate a significant inflow of foreign currency for the country in the coming years,” said YPF President Horacio Marín.

According to a statement from the Neuquén government, the four concessions cover a total area of 675 square kilometers. YPF plans to invest $12.9 billion for large-scale development, including the drilling of 700 horizontal wells.

For the pilot phase, YPF will invest $340.3 million and drill 27 horizontal wells.

With these newly awarded blocks, Neuquén now hosts a total of 51 unconventional exploitation projects covering 10,657.5 square kilometers, representing 36% of Vaca Muerta’s total area within the province.

These 51 concessions are expected to require $214.6 billion in continuous development investments and involve the drilling of 14,877 wells, according to provincial authorities.

Vaca Muerta ranks as the world's second-largest shale gas reserve and the fourth-largest shale oil reserve.

Since exploration began in 2013, Vaca Muerta has attracted $50 billion in investments. A decade after development began, production has reached record levels, allowing Argentina to significantly reduce winter gas imports and increase hydrocarbon exports.

Other major companies operating in Vaca Muerta include Shell (LON:RDSb), ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), Total, Wintershall, Vista, Pan American Energy (PAE), Pluspetrol, and Pampa Energía (BCBA:PAMPm), among others.