At a glance: Vaca Muerta projects to watch

Given the interest in increasing hydrocarbons exports, dollars are flowing into Argentina’s Vaca Muerta formation and associated midstream infrastructure. 

Companies, particularly players well accustomed to the often-complex local political and economic landscape, are stepping up oil output while also preparing for eventual exports of LNG, to monetize the country’s gas resources and overcome current piped gas demand constraints.

Neuquén province, which hosts the biggest chunk of the formation, expects associated investment of around US$9.0bn this year.

Capital controls remain an investment headwind, which the government has said it will lift by early January 2026, a major challenge given weak reserve adequacy. 

ALSO READ: Vaca Muerta: The oil landscape for 2025
ALSO READ: Argentine oil pipeline expansion projects

ExxonMobil has exited Vaca Muerta, while Equinor and TotalEnergies could also divest assets, according to recent media reports. Equinor has already reduced its offshore footprint.

Against this backdrop, YPF, Vista Energy, Pampa Energía, Pan American Energy (PAE), Chevron, Pluspetrol and Shell, particularly given their involvement in the Vaca Muerta Sur oil pipeline-terminal project consortium, could be on the lookout for M&As.

Vaca Muerta oil production could hit the 1Mb/d mark by the end of the decade, according to some analysts, up from around 420,000b/d last quarter.

Vaca Muerta Sur – in the early construction and financing phase – and a feeder duct project, Duplicar Norte, are designed to support output growth. The last big project, Duplicar, is being brought online. 

Here BNamericas provides a quick snapshot of what some of the biggest Vaca Muerta players are working on.

Notably, gas heavyweights Pampa Energía and Tecpetrol are expanding their oil footprints.

YPF

YPF is tightening its focus on shale oil. Associated capex for this year could be in the region of US$3.0bn. A 2025-29 strategic plan is due to be presented next month.

A YPF growth area is Bajo del Toro, where it partners with Equinor.

YPF was also recently awarded four concessions in Vaca Muerta: Narambuena, Aguada de la Arena, La Angostura Sur I and La Angostura Sur II.

The company’s key Vaca Muerta assets are La Amarga Chica, Bandurría Sur, Loma Campana and Aguada del Chañar.

In parallel, YPF partners with Pluspetrol at gas project La Calera, where heavy outlay is planned. YPF acquired a stake in gas block Sierra Chata from ExxonMobil, where it will partner with Pampa Energía.

YPF says the objective of increased gas production is exporting, not gaining a bigger share of the local market.

The company has an LNG export project on the drawing board, targeting the coast of Río Negro province. More information is expected in April. 

Vista Energy

Vista said overall outlay this year could hit US$1.5bn, with shale oil the chief destination. 

Target areas are Bajada del Palo Oeste, Bajada del Palo Este and Aguada Federal.

Pluspetrol 

As well as partnering with YPF at its crown jewel La Calera oil and gas block, Pluspetrol has acquired acreage from ExxonMobil.

A shale area to watch is northern acreage Bajo del Choique.

From 2026, Pluspetrol plans to deploy US$800mn annually to develop Bajo del Choique and La Calera, local media outlet Más Energía reported. 

Outlay for this year is estimated at US$650mn, it added.

Tecpetrol

Gas-focused Tecpetrol is looking to ramp up oil output.

The target area is Los Toldos II Este, where permitting documentation for a US$2bn expansion project has been submitted. 

Tecpetrol’s top-producing asset is the Fortín de Piedra gas block.

Pan American Energy – Pampa Energía

PAE is involved in an LNG-export project with Golar LNG.

PAE’s biggest Vaca Muerta asset is gas block Aguada Pichana Oeste, expected to supply gas for liquefaction.

PAE produces most hydrocarbons further south, in Anticlinal Grande-Cerro Dragón.

The Argentina-focused firm’s consolidated average annual capex for 2024-27 is US$1.6bn, ratings agency Fitch said in a December report.

Meanwhile, Pampa Energía recently said it would obtain a 20% stake in the LNG project. Pampa agreed to supply 22.2% of the required gas from its Neuquén basin assets, the biggest among them Sierra Chata and El Mangrullo. 

In parallel, Pampa is investing heavily in shale oil block Rincón de Aranda.

Shell

Shell Argentina last year said production should climb 40% in 2025 to 70,000b/d and that average annual outlay of up to US$600 million could grow if capital controls are eased. 

The company's onshore operated assets are Cruz de Lorena, Sierras Blancas, Coirón Amargo Oeste and Bajada de Añelo. It also has interest in other blocks.

ALSO READ: At a glance - Shell’s Argentina oil assets