YPF SA has let a 5-year contract to Archer Ltd. for drilling services in the Vaca Muerta area of Argentina.
Under the terms of the agreement, Archer will provide and operate seven drilling rigs, equipped with integrated Managed Pressure Drilling (MPD) systems. Two of these rigs will be leased internationally, bringing additional drilling capacity to Argentina.
In addition to the firm 5-year term, the contract includes a 2-year extension option. The contract has a total estimated value of $600 million.
The Vaca Muerta formation is the main source rock and one of the largest areal stratigraphic units in Neuquén basin, onshore Argentina. The formation trends to calcareous sandstones on the western and middle sections of the basin and towards limestones to the east in a shelf. Depositional depths are less than 300 m and extend about 90,000 sq km, of which 30,000 sq km are prospective for unconventional exploitation.
On Aug. 6, 2025, YPF acquired interest in two unconventional oil and gas blocks in Vaca Muerta.
