Capital Com MENA Securities Trading LLC is regulated by the Capital Market Authority.
Open platformOpen platform

YPF seeks Argentina incentives for $8.73 billion Vaca Muerta shale project

By Reuters News

Oct 30 (Reuters) - Argentina's state-controlled oil producer YPF YPFDm.BA said on Friday it had applied for government investment incentives for the Bajo del Toro shale project in Vaca Muerta, a development expected to require $8.73 billion over its lifetime.

The incentives program, launched by President Javier Milei's government, is designed to attract large-scale investment by offering benefits such as tax, customs and foreign-exchange relief for qualifying projects.

  • The project covers the Bajo del Toro and Bajo del Toro Norte blocks in northern Vaca Muerta, one of the world's largest shale formations

  • YPF holds a 65% stake and operates the project, while Vista Energy's VISTAA.MX Argentine unit owns the remaining 35%

  • The company said the development is aimed at unconventional oil production with associated gas output, and is expected to reach a plateau of about 80,000 barrels of oil per day and 3 million cubic meters of gas per day between 2033 and 2040

  • YPF estimated the project would generate roughly $25 billion in exports between 2027 and 2055 and create around 2,900 direct jobs during the construction and production stages

  • The filing comes days after YPF said it expected to seek incentives soon for five Vaca Muerta projects representing about $44 billion in combined investment, as it pushes ahead with plans to turn Argentina's vast shale formation into a major export hub

  • Those projects are central to Milei's strategy of boosting energy exports and bringing in hard currency for an economy long constrained by shortages of dollars

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.