Neuquén basin production grows, accounts for over 70% of Argentina’s oil and gas output

Argentina’s Neuquén basin accounted for 71% of national oil production and 73% of natural gas output in this year’s first half, according to data from the National Secretariat of Energy.

In May—the latest month with full basin-level data—production in Neuquén reached 538,000 b/d of oil and 107 million cu m/day of natural gas. According to the 2025 Statistical Report from Oil Production Consulting, unconventional oil output grew 27% year-on-year, while unconventional gas production increased 16% compared with the same month last year.

Private energy consultancy Aleph Energy reported that Neuquén basin’s shale oil output hit 499,000 b/d in June, representing 93% of Neuquén Province’s total crude production. On a national scale, shale oil accounts for 60% of total output, while tight and shale gas combined make up 65% of Argentina’s gas production.

Top-performing shale blocks in oil include Loma Campana (YPF-Chevron), La Amarga Chica (YPF-Vista), Bandurria Sur (YPF-Shell), and Bajada del Palo Oeste (Vista). In May, YPF produced 241,000 b/d of shale oil, accounting for 53% of the total, while Vista followed with 66,000 b/d. 

On the gas side, Fortín de Piedra (Tecpetrol) led with 19.1 million cu m/day, followed by YPF at 18.4 million cu m/day, and La Calera (Pluspetrol), which ramped up output after a recent processing plant expansion.

In May, 62 new wells were connected in the basin, and 1,968 frac stages were completed in June—66% by YPF. That month also saw 42 active drilling rigs, with 83% targeting shale formations. YPF operated 12 rigs across its key blocks.

Infrastructure upgrades helped boost takeaway capacity. The Perito Moreno gas pipeline and compression plants at Tratayén and Saliqueló added a combined 10 million cu m/day between August 2023 and October 2024.

From January to May, Argentina exported an average of 240,000 b/d of crude, up from 200,000 b/d a year ago. In June, natural gas exports hit 8.28 million cu m/day, with Chile taking 96% of the total. The energy trade surplus for first-half 2025 reached US$2.499 billion.

While Neuquén Province holds most of the basin’s infrastructure and output, production gains were also recorded in conventional blocks in Río Negro, La Pampa, and Mendoza.

Outside Neuquén, Argentina’s other producing basins maintained stable but modest volumes.

According to Oil Production Consulting, the San Jorge Gulf basin averaged 134,000 b/d in June—about 18% of national output. Most production is from mature conventional fields in Chubut and northern Santa Cruz, operated by YPF, CAPSA, Tecpetrol, and PAE.

The Austral basin, spanning southern Santa Cruz and Tierra del Fuego, posted 18,500 b/d of oil and 18 million cu m/day of gas, representing 12% of total gas production. Leading operators include TotalEnergies, Harbour and CGC, with assets like Vega Pléyade, Ara, and El Cerrito, both onshore and offshore.

According to a report from Moody’s, the average lifting cost in Vaca Muerta is US$4.20-5.00/bbl, while conventional basins report costs of US$28-35/bbl, channeling upstream investment toward shale plays.