Argentina's Vaca Muerta: Shale Boom Surges to New Heights

Argentina's Vaca Muerta shale formation set a new production record of 400,000 barrels per day in the third quarter. The surge is attributed to improved productivity and evacuation capacity. Argentina aims for 1 million barrels per day production by 2030, driven by YPF and other leading players.

Argentina's Vaca Muerta shale formation has reached a milestone, setting a production record of 400,000 barrels per day (bpd) in the third quarter, according to a report by consultancy Rystad released on Friday.

This represents a 35% increase year-on-year, fueled by enhanced productivity and evacuation capacity, and positions the shale formation to meet its ambitious goal of 1 million bpd by the year 2030. YPF, Argentina's state-oil firm, was a significant contributor, leading the region's output with 55% of total production in the quarter.

Vista Energy's Bajada del Palo Oeste field also played a key role, exceeding 20% of oil output growth. The number of horizontal wells in production rose, averaging 40 per month, with a peak of 46 in September. Plans are underway to address evacuation bottlenecks, with YPF seeking $2 billion in financing for a new oil pipeline to enhance export capacity. Meanwhile, gas production also increased by 24% year-on-year, driven by independent operators like Pluspetrol, with aspirations to turn Argentina into a gas exporting leader.

(With inputs from agencies.)