YPF, the Argentine oil company, is focusing on Vaca Muerta and a production boost by 2025.
The CEO of Argentina's state-owned oil company YPF, Horacio Martin, said that the firm expects shale production to rise by 30 to 40 percent next year.
Marin said that YPF, during a conference call to discuss its financial results, will concentrate its capital investments in its main shale resources, specifically the massive Vaca Muerta Formation.
Vaca Muerta has the second largest shale-oil reserve in the world and is also home to one of the largest shale-gas reserves. YPF has been leading the activity in this area with hopes of making it a major exporter of energy.
Marin stated that we expect to increase unconventional oil production by 30 to 40%. Our incremental production will fall in this range. This is why we can reach our average of 160,000 barrels per day in the first quarter.
YPF announced that the unconventional oil production increased by 36%, to 126,000 barrels a day, in the third quarter compared to 2023 and up 11% compared to the second quarter.
The increase in unconventional oil production offset the decline in conventional oil production and allowed YPF to achieve a daily average of 256,000 barrels.
YPF’s natural gas production grew 7.3% compared to last year's quarter. This was mainly because the first phase of a pipeline linking Vaca Muerta to Buenos Aires has been completed.
The company posted a profit in the third-quarter of $1.485 Billion, which was boosted by an increase in oil and gas prices and production. According to LSEG, this was significantly higher than the analysts' estimate of $312 millions.
YPF is still seeking agreements with major oil firms for the construction of a liquefied gas plant in Rio Negro, which will allow exports to Europe and Asia.
Marin stated that the company's cash flow will be neutral in 2025, and positive in 2026. (Reporting and editing by Eliana Razewski, Alexander Villegas and Bill Berkrot.
(source: Reuters)