YPF announced a new milestone in Vaca Muerta: its own shale oil production reached 200,000 barrels per day. This volume, according to the company, 'consolidates its leadership in the country's unconventional development and marks an 82% growth in less than two years.' YPF's CEO, Horacio Marín, announced the long-awaited goal through social media, recalling that when he took the helm of YPF, unconventional production was around 110,000 barrels per day. 'Today we celebrate an achievement that seemed ambitious, but we turned it into reality,' he expressed. The executive clarified that this is gross own production, not including volumes operated by the company for its partners. The result, Marín highlighted, is part of an operational transformation process that the state-owned oil company has been pushing since 2023 to optimize costs, accelerate drilling times, and increase efficiency. Marín attributed the advance to the deployment of new technologies and a profound reconfiguration of the operation. During the quarter, the company completed the longest well in Vaca Muerta's history, with a total length of 8,200 meters. Additionally, in early October, it drilled a well of nearly 6,000 meters in just 11 days, achieving a new efficiency record that the company seeks to extend to the rest of its drilling fleet. The announced production record consolidates YPF's position as a central player in the expansion of Vaca Muerta, which already hosts world-class projects in unconventional oil and gas. With a combination of greater efficiency, sustained investments, and the progress of the Argentina LNG project, the state-owned oil company is preparing for a new stage where exports will play an increasingly relevant role. For Marín, the objective seems very clear: to transform the record production into a growth platform for the entire country's energy chain and a sustained source of foreign currency for the Argentine economy. Despite a USD 650 million drop in income due to lower international prices, the company maintained the same operational result level thanks to increased efficiency, the exit of mature fields, and cost optimization. The company reported annual improvements of USD 1.300 billion in costs and EBITDA, largely driven by shale growth and the reduction of low-productivity conventional operations. Regarding Downstream, YPF reported that fuel sales grew 3% compared to the previous quarter, while its refineries reached the highest processing level in 15 years. Investments for the period totaled USD 1.017 billion, with 70% earmarked for unconventional development. Another indicator of YPF's technological leap is the progress in well engineering. There, YPF announced the adherence of ADNOC, the world's fourth-largest oil company, to the project it integrates with the Italian Eni. According to the company's figures, the development contemplates a capacity of 12 million tons per annum (mtpa) of LNG, which would allow for USD 200 billion in exports over 20 years, equivalent to about USD 10 billion per year. Marín explained that ADNOC and Eni will be offtakers for most of the LNG produced, leaving only a quarter of the volume available for other markets. The president especially highlighted the contribution of Matías Farina, executive vice president of the area, whom he recognized for his leadership in the operational transition. Days ago, Marín had also referred to the progress of the Argentina LNG project, the most ambitious plan in the country's energy history, which foresees the installation of floating liquefaction vessels on the coast of Río Negro to export shale gas from Vaca Muerta. 'I am very happy because Argentina LNG is already a reality,' he assured in a radio interview, where he reviewed the agreements reached during a mission in the United Arab Emirates. The 12 mtpa module alone requires USD 35 billion in four years,' Marín detailed. He considered that the new macroeconomic and regulatory context contributes to strengthening the conditions to advance in definitive financing. Furthermore, he maintained that the boost of gas as an energy transition vector generates a strategic opportunity for the country. Marín also analyzed the results of the third quarter, which he described as 'very positive.' He mentioned, among other things, the Real Time Intelligence Center, a real-time monitoring platform that integrates operational data with artificial intelligence and predictive analysis systems. He also emphasized the implementation of the Toyota Well project, a continuous improvement method hired from the renowned Japanese automaker, which seeks to reduce downtime, maximize capital efficiency, and improve well planning. 'This milestone is the result of the work of the Upstream team, oriented to results, operational excellence, and collaboration,' he affirmed.
