YPF Accounts for Nearly Half of Vaca Muerta's Unconventional Oil

Unconventional oil production in Vaca Muerta maintains a concentrated structure, despite the expansion in the number of concessions that account for most of the shale crude. YPF leads development with 48.9% of national volume, equivalent to 317.4 thousand barrels per day.

The oil company's share reaches 53% of the 2,010 fracturing stages recorded during the last month. When combined with Vista, Pluspetrol, Shell and Pan American Energy, the five leading operators represent 80.6% of the basin's unconventional oil.

Development growth also reveals an asset inventory with low activity. In a fleet of 1,964 wells with more than one year of production, there are 632 shut-in or producing less than 5 cubic meters daily. Excluding those permanently abandoned, 628 technical candidates remain for potential interventions.

Of that group, 252 are horizontal wells with refracturing potential and 376 correspond to vertical wells. Of the latter, 317 are located in Loma Campana. Although the group contributes only 0.81% of current unconventional crude, it has accumulated historical production of 117.6 million barrels.

Recovery of these wells could require less capital than new drilling, since they have surface facilities, pipelines and existing locations. A greenfield unconventional well requires between 8.5 and 13 million dollars, while reintervention would allow leveraging part of already-built infrastructure.

The challenge is determined by production decline. The existing base falls 39.2% annually and, to offset the expected loss of 254.5 thousand barrels per day over the next twelve months, 399 new wells would be needed. If year-on-year growth of 26.3% were also to be repeated, the requirement would rise to 611 connections and an estimated capex of 6.1 billion dollars, along with 6.9 million tons of sand.

In parallel, the revitalization of mature wells appears as an alternative to reduce pressure on fracturing equipment and logistics. The strategy also extends to conventional production, where secondary and tertiary recovery and better capital allocation could extend the productivity of assets in basins such as the Golfo San Jorge.