YPF plans $25B Vaca Muerta oil export project

YPF filed an application under Argentina's Large Investment Incentive Regime (RIGI) for its LLL Oil project, proposing a $25 billion investment over 15 years in Vaca Muerta. The plan focuses on drilling and completing 1,152 wells across contiguous blocks in the Neuquén basin to export all of its crude production.

By 2032, YPF expects the project to reach a plateau production level of 240,000 barrels of oil per day. The company projects about $6 billion in annual oil exports by that year. Horacio Marín, president of YPF, estimated that the initiative will generate over $100 billion in cumulative export revenue throughout its operational life. The project also projects generating approximately 6,000 direct jobs during peak activity, alongside roughly 10 million cubic meters per day of natural gas for Argentina's domestic market.

Crude evacuation will rely on the Vaca Muerta Oil Sur (VMOS) pipeline corridor connecting the Neuquén basin to the Atlantic coast. VMOS has an approved base capacity of 377,400 barrels per day under RIGI, with future expansion targets of 550,000 and up to 700,000 barrels per day. The pipeline consortium includes YPF, Pan American Energy, Vista, Pampa Energía, Pluspetrol, Chevron, Tecpetrol, and Shell.

Under the RIGI framework created by Law 27,742, eligible projects receive 30 years of fiscal stability, accelerated asset depreciation, and specific currency access rules for export revenue. It also offers a 25% corporate income tax rate and value-added tax credit certificates. The realization of the project remains subject to administrative approval, investment execution, international oil prices, and infrastructure capacity.