YPF Targets Growth at La Angostura Sur as Vaca Muerta Drives Argentina’s Energy Export Push

Argentina’s YPF expects major growth from its La Angostura Sur block as it ramps up shale oil output from Vaca Muerta and advances plans to become a leading LNG exporter.

(Reuters) — Argentine state-controlled energy company YPF expects its La Angostura Sur block to reach production of more than 80,000 barrels per day (bpd) in upcoming years, Strategy Vice President Maximiliano Westen said on Nov. 10.

Despite reporting a net loss of $198 million in the third quarter on Friday, YPF is largely on track to achieve its 2025 outlook as shale oil production surged, executives said in a call with analysts.

"Production level is fully aligned with our annual target of shale oil production of roughly 165,000 bpd," CEO Horacio Marin said, adding that the company also expects to exceed its target for December 2025 of 190,000 barrels per day.

Argentina relies on the company's Vaca Muerta operations in its push to become a net energy exporter as the huge formation accounts for 64% of the country's oil production.

"Argentina's LNG project will unlock Vaca Muerta's full potential enabling exporting its unconventional shale gas production to the world," Westen said.

Only 8% of the Vaca Muerta formation is under development and YPF has been seeking financing this year for its liquefied natural gas project, including an agreement with the Abu Dhabi National Oil Company's XRG investment arm earlier this month.

But the company doesn't plan to carry out mergers or acquisitions next year to develop Vaca Muerta or its other assets, Westen added.