Chevron Plans to Triple Vaca Muerta Production with US$ 13.8 Billion Investment

Chevron is preparing an investment of approximately US$ 13.8 billion to expand its production at Vaca Muerta and nearly triple it in less than a decade. The project will focus on El Trapial, an area located near Rincón de los Sauces, in northern Neuquén.

The spending would be the largest 100% privately-funded foreign investment falling under the Large Investment Incentive Regime (RIGI). The company is still awaiting Government approval to enter the program and, as a Long-Term Strategic Export Project, must allocate at least US$ 2 billion to the block before the end of 2028.

El Trapial has an area of 450 square kilometers and registers production exceeding 40,000 barrels of oil equivalent per day. In recent days, crude output accounted for roughly 35,000 barrels daily, close to 4% of Argentine production. Chevron has operated there since the 1990s and converted the conventional field toward shale development.

The expansion will require significant logistics. The project contemplates the daily transport of approximately 70 trucks carrying sand, each loaded with 30 tons, and uses around 12,000 cubic meters of water per day for hydraulic stimulation operations. The area employs roughly 350 people between direct and indirect employees.

Chevron also participates alongside YPF in Loma Campana, the country's leading producing block, and maintains operations in Narambuena, operated by the state oil company. The company was among the first international firms to bet on Vaca Muerta, following an agreement signed with YPF in 2013.

The company believes that the RIGI, the ability to export at international prices, and greater regulatory certainty can support growth in the basin. However, Vaca Muerta costs still stand above those of Permian in the United States, due to factors linked to scale, infrastructure, logistics, and the macroeconomic environment.