Argentina's YPF applies for investment incentives for US$8.729 billion shale oil and gas project

en.Wedoany.com Reported - On October 30, Argentina's state-owned oil company YPF formally applied to join the Large Investment Incentive Regime (RIGI) for the Bajo del Toro oil and gas development project in the Vaca Muerta shale formation, involving an estimated lifecycle investment of US$8.729 billion. The project covers the Bajo del Toro and Bajo del Toro Norte blocks, with YPF holding a 65% stake and serving as operator, while the Argentine subsidiary of Vista Energy holds the remaining 35% interest.

The development plan calls for drilling 440 oil and gas wells over the project's lifecycle to produce shale oil and associated natural gas. According to the plan submitted by YPF, the project is expected to reach a plateau production level of approximately 80,000 barrels of crude oil and 3 million cubic meters of natural gas per day between 2033 and 2040. The development scope also includes supporting infrastructure for crude oil and natural gas processing, gathering, and transportation.

YPF expects the project to generate cumulative export revenue of approximately US$25 billion between 2027 and 2055, and to create approximately 2,900 direct jobs during the construction and production phases. The application submitted by the company is the first of three large investment incentive projects planned under its northern Vaca Muerta oil and gas development plan, with the remaining development plans involving different partners and oil and gas blocks.