YPF files $8.73 bln Bajo del Toro RIGI plan

YPF has submitted a request to adhere to Argentina’s Régimen de Incentivo para Grandes Inversiones (RIGI) for its Bajo del Toro project in the Vaca Muerta shale formation. The development is expected to require an estimated investment of about $8.73 billion over its lifespan and is focused on shale oil production with associated gas. The application marks a key step in advancing one of the company’s main upstream growth initiatives in the country’s northern Vaca Muerta area.

The Bajo del Toro project covers the Bajo del Toro and Bajo del Toro Norte areas in northern Vaca Muerta. YPF operates the project with a 65% stake, while Vista Energy’s Argentine unit holds the remaining 35%. The initiative is designed as a long‑term development, aligning with the incentives and stability framework offered by the RIGI scheme for large-scale investments.

The project aims to reach a production plateau of around 80,000 barrels of oil per day and 3 million cubic meters of gas per day. This plateau is projected for the period between 2033 and 2040, reflecting a multi‑year ramp‑up and sustained development phase.

Over the life of the project, the plan foresees the drilling of 440 wells in the Bajo del Toro and Bajo del Toro Norte areas.

Bajo del Toro is expected to become a significant export platform for Argentina’s hydrocarbons.

These export and revenue expectations reflect the scale of the planned output and the role of Vaca Muerta as a key source of future oil and gas flows. By combining long‑term production with dedicated evacuation and treatment infrastructure, the project is designed to channel a substantial share of its volumes to international markets over several decades.

The RIGI filing for Bajo del Toro is part of a broader development strategy in Vaca Muerta’s hub north area. YPF has outlined three new upstream projects in this hub that together will involve additional investments of about $44 billion over periods ranging from 16 to 26 years, depending on each project. The Bajo del Toro initiative is the first of these projects to be formally presented under the RIGI framework.

Within this larger plan, Bajo del Toro accounts for $8.73 billion in investment and 440 wells. The combined hub north developments are intended to significantly expand shale oil output and associated gas production, consolidating Vaca Muerta’s role in Argentina’s energy sector and export balance.