The awakening of a colossal oil and gas reservoir is shooting the production of crude oil in Argentina. This explosion of activity and production is helping, in turn, to boost the economic activity of the country and the income that comes from abroad (exports), facilitating the accumulation of foreign exchange reserves. If the impact of the site is being noticeable in a country in the size of Argentina, imagine what the impact on the results of the companies operating the deposit will be. One of them is an old acquaintance of the economic and financial circles of Spain, it is also the one that is benefiting to a greater degree. Such is the rain of millions that is generating the Muerta Vaca site for YPFwhich has put the accounts of reverse results, the numbers have taken a radical turn in a year. YPF is the majority operator of the large formation of hydrocarbons and its awakening is also seen in the stock market.
One of the most controversial issues in the recent history of this firm is that YPF has a curious relationship with Spain: in April 2012, the Government of Argentina, under the presidency of Cristina Fernández de Kirchner, expropriated 51% of YPF, the largest oil company in the country, which until then was mostly controlled by the Spanish Repsol. The measure generated a diplomatic crisis between Spain and Argentina, since Repsol had 57.4% of YPF and described the expropriation as “illegitimate and discriminatory”. In response, the Spanish company demanded compensation of 10,500 million dollars and undertook legal shares. After two years of negotiations and international pressure, in February 2014, Argentina and Repsol reached an agreement by which the Argentine government paid the Spanish oil company 5,000 million dollars in sovereign bonds as compensation for nationalization. This conflict marked a turning point in economic relations between the two countries and reflected the growing state intervention in the Argentine energy sector.
The other curiosity is that YPF is achieving historical results thanks to Vaca Muertaafter several mediocre years (not to say almost ruinous). The Argentine YPF oil company, under state control, earned in 2024 the whopping of 2,393 million dollars (2,201 million euros) compared to losses in 2023 of 1,277 million dollars, by the hand of a growing activity in the formation of unconventional hydrocarbons of the Muerta cow deposit, which, which It has about 16,000 million oil barrels Recoverable. According to the consolidated financial statements released this Friday by the company, with data expressed in US currency, in 2024 the main hydrocarbon producer of Argentina registered an operational benefit of 1,480 million dollars, from an operational loss of 1,248 million in 2023.
All this thanks to the formation of Vaca Muerta, which would be producing around 538,000 barrels per day of crude oil, which represents an increase of more than 25% compared to the previous year. Vaca Muerta is reliving the entire oil industry of Argentina. The last report Posted by the International Energy Agency (IE) It highlighted the increase in oil production in Argentina, thanks to the greatest activity of the Nequén basin that is formed almost in all its entirety by the Muerta Vaca site.
The Argentine crude expands
“The Argentine crude increased by 20,000 barrels per day in February, reaching 760,000 average barrels, after having decreased 10,000 barrels in January, to 750,000 barrels. The production of the fourth quarter of 2024 increased 80,000 barrels per year yearthanks to the producers continued to develop blocks in the oil area of the Neuquina basin. In fact, according to official data, the Argentine crude reached new historical maximums every month of 2024, representing only the Lto (Tight Oil or Shale Oil) about 60% of the country’s crude oil production. A growth of 80,000 barrels is expected this year, which would raise the total production of crude to 780,000 barrels per day. “
It should be noted that Vaca Muerta is the second largest world reserve of unconventional gas and the fourth of this type. The huge formation, which began to be explored by YPF in 2013, Since then, investments for 50,000 million have received of dollars for its development. A decade after the start of exploitation in Vaca Muerta, production is record, which has allowed Argentina not only to substantially reduce its need for gas import in the southern winter, but also to count with increasing exportable balances of hydrocarbons, in part thanks to the YPF activity.
In this way, the company obtained last year a gross exploitation result (EBITDA) Positive adjusted of 4,654 million, with a 15% rise with respect to the previous year, “promoted mainly by the recovery of the local price of fuels, the growing income from oil exports and the expansion of the shale oil (unconventional oil),” YPF said in a statement.
Meanwhile, the annual income of the oil company amounted to 19,293 million, an interannual increase of 11%. On the other hand, YPF said that his net debt amounted to the late 2024 to 7,434 million, with an year -on -year increase of 9%, and that their investments fell 5% year -on -year last year, totaling 5,041 million.
The firm’s production grows
Its total production of hydrocarbons reached 536,100 barrels per day last year, with a strong growth in unconventional crude production in Vaca Muerta (southwest of Argentina), where YPF has put the focus of its activities in the strategic plan launched at the beginning of 2024. The production of YPF crude oil in Muerta cow grew by 26%, to 122,400 daily equivalent barrel Opera YPF), and its oil exports increased by 174% compared to 2023.
YPF is the largest oil producer in Vaca Muerta and has managed last year to increase its crude oil reserves in that oil formation. As part of its strategy to focus on unconventional hydrocarbons, the oil company emerged last year from several concessions in conventional mature areas.
Four new formations for YPF
At the same time, the YPF oil company, controlled by the Argentine State, has added four new oil and gas concessions in the colossal formation of unconventional hydrocarbons of Vaca Muerta, in southwest Argentina, and projects to invest 12.9 billion dollars for its mass development. In addition, the large pipeline that is under construction.
The four new concessions were granted to YPF by the province of Neuquén, whose territory is in the epicenter of Vaca Muerta. In this way, YPF, which is already the largest operator in Vaca Muerta, adds to its portfolio the blocks La Angostura Sur I and II, Narambuena and Aguada de la Arena.
“These blocks will allow us to increase the production especially of oil with focus on export. The beginning of the works of the Vaca Muerta Sur pipeline is the key to accelerate these developments that will allow us to generate a significant foreign exchange contribution to the country in the coming years,” said YPF president, Horacio Marín. As reported by the Neuquén government in a statement, These four concessions cover an area of 675 square kilometers. YPF plans to invest 12,915 million dollars for mass development, with the drilling of 700 horizontal wells. However, they also operate oil companies such as Shell, Exxonmobil, Chevron, Total, Wintershall, Vista, Pan American Energy (PAE), Pluspetrol and Pampa Energía, among others.
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