YPF unveils $25 billion investment project in Vaca Muerta

State-controlled oil company YPF announced plans to invest $25 billion to “accelerate the export development” of Argentina’s Vaca Muerta unconventional shale formation.

YPF submitted an application to join the Large Investment Incentive Regime (RIGI), launched in 2024, for a project named LLL Oil, which предусматривает the drilling of 1,152 wells and is expected to reach stable peak production of “240,000 barrels of oil per day from 2032 onward,” the company said in a statement.

The oil producer also said the project “will generate exports of around $6 billion annually by 2032 and create approximately 6,000 direct jobs during its development.”

All crude produced under the project will be exported, while associated natural gas will be supplied to the domestic market.

In the first quarter of this year, the company posted a net profit of $409 million, compared with a net loss of $10 million in the same period of 2025.

Projects admitted under the RIGI framework gain access to several tax benefits, exemption from export duties, relief from the requirement to repatriate export revenues, 30-year regulatory stability, and access to international arbitration in the event of disputes.

So far, Argentina has approved 16 projects under RIGI, with planned investments totaling around $30 billion, while another 20 projects remain under evaluation.