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

YPF SA

30/10/2026 22:25

Adds details on project
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

 (Reporting by Kylie Madry; Editing by Rosalba O'Brien and Daina Beth Solomon)
 ((Kylie.Madry@thomsonreuters.com;))