Oil and Gas in Argentina

The Milestones That Marked a New Energy Cycle in 2025

Vaca Muerta, infrastructure, exports and major investments defined a pivotal 2025 for Argentina’s hydrocarbon sector.

Argentina’s oil and gas industry went through one of the most dynamic periods in its recent history in 2025, driven by the sustained growth of Vaca Muerta, the expansion of transportation infrastructure, rising exports and renewed investor interest. The sector once again assumed a central role in the country’s economic strategy.

Vaca Muerta, the Engine of Growth

The main milestone of the year was the consolidation of Vaca Muerta as the driving force behind hydrocarbon development. Unconventional oil production reached new historic highs, accounting for more than half of national output, while shale gas strengthened energy self-sufficiency and reduced the need for imports.

Operators such as YPF, Pan American Energy, Vista, Tecpetrol, Pluspetrol and Chevron led activity, setting drilling records, improving productivity and achieving sustained reductions in operating costs.

Infrastructure: The Key to Expanding Exports

Infrastructure expansion was another decisive pillar. During 2025, strategic projects moved forward, including Vaca Muerta Oil Sur (VMOS), which will increase crude transport capacity to the Atlantic coast, and the optimization of the Presidente Néstor Kirchner Gas Pipeline, with a direct impact on reducing gas imports and saving foreign currency.

These works began to address one of the sector’s main historical bottlenecks: evacuating production.

Rising Exports and an Energy Surplus

Higher production translated into record oil exports, with destinations such as Chile, Brazil and the United States. In natural gas, Argentina regained its role as a regional supplier, increasing shipments to Chile.

This scenario made it possible to move toward a positive energy balance, a long-standing goal of the Argentine economy.

Investment and Rules of the Game

The Large-Scale Investment Incentive Regime (RIGI) positioned itself as a key tool for attracting capital to the energy sector. Projects linked to oil, gas and infrastructure began to assess their entry into the regime, drawn by long-term fiscal and regulatory stability.

The national government sent signals of predictability, implementing measures aimed at improving competitiveness and facilitating large-scale investments.

LNG: A Strategic Bet

One of the most relevant announcements was progress on the Argentina LNG project, led by YPF together with international partners, which seeks to turn the country into a global exporter of liquefied natural gas. During the year, preliminary agreements were signed and technical definitions advanced for floating LNG (FLNG) facilities.

The project is key to transforming Vaca Muerta’s potential into high value-added exports.

Employment, Technology and Transition

Sector growth drove skilled employment, greater adoption of technology and the strengthening of the local supplier chain. At the same time, natural gas consolidated its role as a transition fuel in the emissions reduction agenda.

Outlook for 2026

With Vaca Muerta reaching full productive maturity, expanding infrastructure and export projects under development, oil and gas closed 2025 as one of the strongest sectors of the Argentine economy. The challenge for 2026 will be to sustain the pace of investment, expand markets and consolidate Argentina as a relevant global energy player.