Argentina’s Vaca Muerta shale play achieved a new milestone in oil production, reaching 400,000 barrels per day (bpd) in the third quarter of 2024, according to the latest analysis by Rystad Energy.

This represents a significant 35 per cent year-on-year increase, putting the region on track to potentially hit one million bpd by 2030.

The surge in production is attributed to improved productivity and expanded takeaway capacity, with state-owned Yacimientos Petrolíferos Fiscales (YPF) leading the charge.

YPF, accounting for nearly 55 per cent of Vaca Muerta’s oil production last quarter, saw its revenue rise 7 per cent quarter-on-quarter and 18 per cent year-on-year, exceeding US$5.3 billion.

Independent producers are also playing a crucial role in the region’s growth.

Vista Energy’s Bajada del Palo Oeste field contributed over 20 per cent of the oil output growth, followed by YPF-operated Bandurria Sur and Loma Campana-Loma La Lata fields.

To sustain this growth, Argentina is investing heavily in energy infrastructure.

The US$2.5 billion Vaca Muerta Sur pipeline, developed under the Large Investment Incentive Regime (RIGI), aims to expand takeaway capacity and facilitate smoother oil transportation from Vaca Muerta to global markets.

Additionally, the expansion of the Nestor Kirchner pipeline is designed to improve gas movement efficiency, supporting greater self-sufficiency and potential future LNG exports.

Vaca Muerta’s success extends beyond oil, with natural gas output increasing 23 per cent year-on-year in the third quarter.

Independent producers like Pluspetrol, alongside Tecpetrol and YPF, accounted for more than 45 per cent of total gas output.

The operator landscape in Vaca Muerta is evolving, with recent merger and acquisition activity reshaping the playing field.

Notably, Pluspetrol completed a landmark deal to acquire ExxonMobil’s assets in the region, quadrupling its holdings to approximately 160,000 acres.

Radhika Bansal, Vice President of Upstream Research at Rystad Energy, highlights the importance of Vaca Muerta to Argentina’s energy independence and economic resilience.

With continued investment and operational efficiency, the region is poised to play a central role in Argentina’s long-term energy strategy, potentially reaching the 1 million bpd mark by 2030.

As Argentina looks to end its reliance on gas imports and monetise its reserves in export markets, Vaca Muerta’s sustained growth and development will be crucial in shaping the country’s energy future.