- Argentina projects oil output to reach 830,000 bpd in 2025, nearing its 1998 record, driven by Vaca Muerta investments.
- YPF plans to invest $3.3 billion in Vaca Muerta, targeting 200,000 bpd production, with support from Chevron and Shell.
- New pipeline and policy reforms boost exports, pushing the energy trade surplus forecast to $7.5 billion in 2025.
Argentina aims to hit its highest oil production in nearly three decades, driven by massive investments and infrastructure expansion in the Vaca Muerta shale region.
The Argentine Chamber of Hydrocarbon Exploration and Production (CEPH) projects oil output to rise to 830,000 barrels per day (bpd) in 2025. This figure marks a 16% increase from 2024 and approaches the country’s 1998 record of 847,000 bpd.
Vaca Muerta, located in Patagonia, leads the push. Investors continue to pour funds into this prolific shale formation, which anchors the country’s energy plans.
YPF Sociedad Anónima (YPF), the national oil company, plans to invest $3.3 billion in Vaca Muerta projects this year. That amount makes up nearly two-thirds of its $5 billion investment budget for 2025.
YPF targets a production increase to 200,000 bpd in the region by year-end. Chevron Argentina and Shell Argentina also continue to expand operations in the area.
To support this growth, Argentina accelerated work on key transport projects. The government launched the Vaca Muerta Sur (VMOS) pipeline in February.
The 437-kilometre pipeline will link Vaca Muerta to a new maritime terminal at Punta Colorada. It will begin operations with a capacity of 180,000 bpd and scale up to 550,000 bpd by 2027.
This pipeline will help producers overcome logistical constraints and increase exports. Officials and analysts view it as essential to Argentina’s global energy ambitions.
President Javier Milei’s administration has also pushed policy reforms to attract energy investors. For example, the government removed domestic oil price caps, aligning local prices with global markets.
That decision has increased price certainty and encouraged capital inflow. By the end of 2025, the government also plans to remove foreign exchange controls.
This reform will give investors more flexibility and allow companies to repatriate profits with fewer restrictions.
These combined actions continue to boost confidence in the oil sector.
As production and export infrastructure improve, Argentina expects its energy trade surplus to hit $7.5 billion in 2025. This surge follows a $1.32 billion surplus recorded in the year’s first quarter.
The current estimate reflects a 35% jump compared to 2024. Higher oil output and stronger exports drive this projected gain.
Industry leaders say Argentina now holds a stronger position in global oil markets. Investment in Vaca Muerta, infrastructure expansion, and bold policy shifts have reshaped the nation’s energy outlook.
Vaca Muerta remains the key engine behind this momentum. With rising production and better access to international markets, Argentina moves closer to reclaiming its status as a significant oil producer.