YPF Registers $25 Billion Vaca Muerta Oil Export Project

YPF submitted a $25 billion Vaca Muerta oil export development under Argentina’s RIGI incentive program as the country pushes to expand shale production and exports.

(Reuters) — Argentina's state-run energy firm YPF said on May 15 the company has requested a large investment tax scheme known as RIGI apply to a $25 billion oil project aimed at accelerating development of the Vaca Muerta shale formation.

The project, known as LLL, represents Argentina's most significant oil export program and is the largest to be submitted under the Incentive Regime for Large Investments (RIGI), according to CEO Horacio Marin.

•         LLL Oil targets production of 240,000 barrels of crude per day from 2032 with drilling 1,152 wells, with all output directed for export.

•         LLL Oil is projected to generate approximately $6 billion in annual export revenues by 2032 and create around 6,000 direct jobs during development, YPF said.

•         Participating blocks will share surface facilities, drilling rigs, fracturing equipment and sand and water logistics, YPF said.

•         The Vaca Muerta shale play is a cornerstone of President Javier Milei's economic strategy, which seeks to boost Argentina's financial stability through increased energy exports.