YPF reached record shale-oil production of 170,000 b/d in this year’s third quarter, a 43% increase from the same period last year, and is on track to meet its yearend production target ahead of schedule after passing the 190,000 b/d mark in October.
Through transformation of the company’s portfolio toward Vaca Muerta, shale now accounts for 71% of YPF’s total crude production, up from 49% a year earlier, offsetting the decline of mature conventional fields.
Investment, ongoing projects
Capital spending for the quarter totaled US$1.017 billion, with 70% allocated to unconventional projects.
In the quarter, YPF invested $751 million in the upstream space, 84% of which was allocated to shale drilling and workovers in Vaca Muerta. In the same period, the operator allocated about $218 million to infrastructure.
During this year’s third quarter, YPF expanded its operating frontier toward the southwestern edge of Neuquen basin.
Output at the La Angostura Sur block increased 37% quarter-on-quarter, potentially opening a new development window on the southern margin of Vaca Muerta.
“YPF has been drilling quite a lot in those two La Angostura Sur blocks, which are in the hard south of Vaca Muerta, near the formation’s limit. They’re testing the southern frontier of the play—and from what we can see, with considerable success” said Ernesto Díaz, senior vice-president, Latin America, Rystad Energy, on X.
Díaz noted that below those YPF blocks lie Aguada del Cajón, Puesto Parada, and Aguada Baguales, areas with little or no current drilling activity. He said YPF’s positive results in the far south could trigger exploratory or pilot campaigns in those blocks.
Díaz compared the trend with what occurred on the basin’s eastern flank, where three high-performing wells at Confluencia Norte reignited Río Negro’s licensing activity, boosting valuations of nearby areas Cinco Saltos Norte and Cinco Saltos Sur.
A similar dynamic could unfold in the north, he continued, as YPF advances drilling at Loma La Lata Norte, Narambuena, and Bajo del Toro, the core of its upcoming Hub Norte.
