The Argentinian oil and gas company YPF expects to raise its shale oil production in Argentina by 30% to 40% in 2025, especially in the Vaca Muerta formation, estimated to be the fourth largest shale reserve in the world (and the world's second largest shale gas reserve). The company already raised significantly its unconventional oil production in the third quarter of 2024 to 126 kb/d (+11% from the second quarter and +36% from the same period in 2023). YPF's natural gas production also grew by 4% compared to the second quarter of 2023 and by over 7% compared to the third quarter of 2023. YPF will now focus its investments on its main shale assets.
In addition, Argentina's Pampa Energia plans to invest up to US$1.5bn to develop its unconventional oil reserves in Vaca Muerta. The group will invest US$700m in its Rincon de Aranda block in the Vaca Muerta region in 2025, ramping up to US$1.5bn y 2027, in order to increase ten-fold its oil production and reach 50 kb/d. Pampa Energia is also raising its gas production, mainly in the El Mangrullo and Sierra Chata fields.
Argentina is the fourth largest oil producer in South America after Brazil, Venezuela, and Colombia. Crude oil production, which had been falling regularly from a peak level of 44 Mt in 1997 to 28 Mt in 2017, has increased significantly since then, reaching 37 Mt in 2023. The Argentinian Government intends to promote oil exploration and production to ensure the stability or growth of reserves, which could be achieved through the development of the Vaca Muerta formation in the Neuquen Basin.