YPF speeds up in Vaca Muerta: Horacio Marín outlines plan to add 50% more company-owned rigs in 2026, reach 250,000 barrels per day and cut costs

In an exclusive interview with Shale24.com, YPF President and CEO Horacio Marín revealed two developments that set the pace for the next phase of Argentina’s shale industry: the company will increase its fleet of company-owned drilling rigs from 12 to 18 in 2026, a 50% jump, and aims to raise its own crude production to 250,000 barrels per day (bpd) in the same year.

But it is not just about volume. Marín detailed a strategy to cut operating costs through more aggressive negotiations with suppliers and a radical change in how YPF structures its rig operations, abandoning the “partnered” model that until now placed the company on equal footing with other operators at the bargaining table. 

“We are going to have 18 company-owned rigs operating in 2026,” Marín said, emphasizing that adding six rigs is not arbitrary but the outcome of an internal restructuring designed to boost efficiency and autonomy.

YPF currently operates 12 rigs entirely with its own assets and personnel, already a strong base in Vaca Muerta. The increase represents a massive operational expansion in just one year, with rigs already being acquired and contracts under negotiation. 

“This allows us to drill faster, cheaper and with full control,” the CEO said.

One leap after another: the 250,000-barrel target

The second announcement is just as ambitious: the target for YPF’s own crude output is set at 250,000 bpd in 2026, about 50,000 barrels per day above the recent record of 200,000 bpd reported in November.

“That is the number we are aiming for, and we are going to reach it with the unlocking of infrastructure such as the Vaca Muerta Sur oil pipeline,” Marín said. Achieving this would not only solidify YPF as Argentina’s largest oil producer, it would place the company among the leading unconventional operators in Latin America, boosting exports and national reserves.

Behind these announcements lies a strategy. Marín said YPF is working to lower operating expenses through direct negotiations with key suppliers, from equipment manufacturers to fracturing service providers. 

“We are changing the approach: instead of moving in pairs —a structure that put us on equal terms with other oil companies and diluted our bargaining power— we are regrouping differently, centralizing purchasing and demanding volume discounts.” 

The move, according to Marín, responds to the need to remain competitive in a market where shale wells decline quickly (60–70% in the first year), requiring constant drilling to maintain or grow production.

Abandoning the “partnered” model —which involved alliances or balanced allocations with competitors— allows YPF to negotiate as a dominant player, cutting costs an estimated 20–30% in key areas such as drilling and completion.

Technically, a rig is the core of shale operations: a set of equipment that drills vertical wells down to about 3,500 meters, then deviates horizontally and extends laterals of 3,000–4,000 meters inside the productive formation.

The last 60 days brought major developments for YPF

Over the past two months, YPF has stepped up its activity in Vaca Muerta, focusing on expanding its drilling rig fleet, achieving record shale oil production and advancing operational efficiency. Despite a general slowdown in drilling in the basin due to lower international oil prices (around $65 per barrel of Brent), YPF has kept an aggressive pace, strengthening its leadership with 48.5% of the fracturing stages projected for 2026 (13,600 out of 28,000 total). Below is a summary of key developments, based on updated sources:

1. Extended agreement with Archer: seven rigs secured for five years

• This week YPF announced it signed a $600 million contract with Norway-based Archer to operate seven drilling rigs in Vaca Muerta, focused on shale oil. The deal includes the five rigs already active and the addition of two more through international leasing, with phased implementation: maintenance of the existing rigs in 2026 and mobilization of the new ones between 2026 and 2027.
• Objectives: Reduce nonproductive time (NPT), standardize technical configurations, drill laterals beyond 3,000 meters and accelerate completion of DUCs (drilled but uncompleted wells). It incorporates technologies such as managed pressure drilling (MPD) and automation.
• Implications: Strengthens YPF’s position in the Neuquén Basin, with a possible extension to 2032. Archer highlighted Vaca Muerta as having “the strongest growth profile in the hemisphere.” This is the agreement referenced in the link you mentioned, which details logistics and projections.

2. Historic production record: 200,000 barrels per day of shale oil

• In November 2025 (announced on the 14th), YPF reached 200,000 bpd of shale oil in Vaca Muerta, an 82% increase from the 110,000 bpd recorded in December 2023, when Marín took office. The milestone was achieved through improvements in analytics/AI, drilling and completions.
• The Amarga Chica field (operated by YPF and Vista Energy) became the country’s top producer, reaching 88,400 bpd in October and surpassing YPF’s historic Loma Campana block. It accounts for one in every ten barrels produced in Argentina.

3. Advances in exploration and drilling

• Mendoza: On Nov. 28, YPF confirmed a new well in the Mendoza portion of Vaca Muerta, exceeding initial commitments and signaling interest based on earlier results.
• Record well length: In October, YPF completed the Soil-476 well in Loma Campana (PAD LC-335) with a lateral extension of 8,340 meters —a record for the formation— operated by AESA in 154 continuous hours.
• Alliance with Toyota: On Nov. 25, the companies renewed their four-year agreement (in place for seven years), achieving a 25% reduction in drilling times through equipment innovation.

4. Basin slowdown and YPF’s responses

• In October, activity in Vaca Muerta slowed: wells drilled dropped from 67 in June to 55 in July, and fracturing stages fell 9% month over month, driven by lower prices and costs 35–40% higher than in the Permian Basin in the United States. YPF and international partners (Chevron, TotalEnergies) may cut 5–6 active rigs, but Marín views this as a “normal correction” and continues to prioritize efficiency.
• Investments: YPF leads with $12 billion projected for 2026 in Vaca Muerta (alongside Pampa Energía, Vista and others). In Santa Cruz, at Palermo Aike —Vaca Muerta’s “younger sibling”— the company began drilling three wells with a $200 million investment in December.
• Strategic exits: In November, YPF transferred seven conventional blocks in Tierra del Fuego to Terra Ignis Energía (effective January 2026) to refocus on unconventional resources.