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YPF Sociedad Anónima YPF recently announced its 2025 investment plans that will mark a significant move in Argentina’s energy sector with a $3.3 billion investment in Vaca Muerta. The investment, which constitutes two-thirds of the company’s total $5 billion capital expenditure, will be entirely directed toward completing and connecting its existing wells that are drilled but uncompleted rather than drilling new gas wells. This strategic investment plan highlights its commitment to maximizing returns in Argentina’s most profitable upstream segment.
YPF’s Vision for Infrastructure Growth
YPF’s investment plans align with its ongoing infrastructure projects, which aim to expand crude evacuation capacity in the Neuquén basin. The company plans to add 23,000 barrels per day (b/d) of crude transportation capacity from April 2025, coinciding with the completion of the Oldelval pipeline expansion. It is also supporting the next phase expansion of Duplicar X, a 300 km pipeline extension plan that will enhance connectivity to Trafigura’s refinery and Oiltanking’s export terminal.
An Insight Into YPF’s Oldelval Pipeline Expansion
YPF and other partners like Chevron are planning a major pipeline in Argentina to support rising oil output from Vaca Muerta. Through the Oldelval SA joint venture, they aim to expand shipping capacity from Puesto Hernandez, a key drilling area at a distance of over 100 km from Vaca Muerta’s core. The pipeline will facilitate production at Chevron’s El Trapial, Pluspetrol’s Bajo del Choique-La Invernada, YPF’s Bajo del Toro and Narambuena, and Tecpetrol’s Los Toldos. It will connect to Allen and link with trunk lines to Atlantic Coast export terminals. The project is an extension of an existing 1970s pipeline and will nearly double capacity to 300,000 b/d.
YPF’s Production and Export Plans
Currently, YPF produces 280,000 b/d, with 160,000 b/d (60%) coming from the Neuquén basin. The company aims to ramp up Vaca Muerta’s production to 200,000 b/d by the end of the year. A significant portion of this production is geared for export, with 41,000 b/d already being shipped to Chile. Additionally, 100,000 b/d are transported via Oldelval to the La Plata refinery, with the remainder going to the Luján de Cuyo plant.
Refining and Future Expansion
Beyond upstream investments, YPF is committed to investing $1 billion to upgrade its refineries and lower the sulfur content in gasoline and diesel. Meanwhile, the Vaca Muerta Oil Sur pipeline project, in which it holds a 27% stake, is set to boost export capacity by an additional 48,600 b/d by late 2026. When fully operational, the pipeline’s first phase will transport up to 180,000 b/d.