The agreement reached between YPF and the Ente Nazionale Idrocarburi (ENI, the Italian energy company) is, practically, colossal for the Argentine economy.
The president and CEO of the Argentine oil company, Horacio Marín, revealed the magnitude of the investment for the “closed” project, ready to start: it could mean an income of US$ 300 billion in exports for Argentina between the years 2031 and 2050.
Double the production and triple the activity
The total investment plan is US$ 85 billion, a figure that gives an idea of the project’s scale. Of that amount, US$ 25 billion will be allocated to infrastructure, and the strategy aims to apply to the RIGI to obtain the necessary financing.
Then, the investment in wells is divided into two colossal tranches: US$ 20 billion until 2031, and another US$ 40 billion from that year until 2050.
The production goal is literally transformative as it seeks to double the average gas production of Vaca Muerta from this year, which would allow them to export 75 million cubic meters per day.
Marín illustrated that before his management, 153 wells were drilled, then it rose to 210, and now the plan is to drill 800 wells in just four years, which implies, simply, doubling YPF’s current activity. That’s just one part: in oil development, the activity will triple.
The spillover in taxes and jobs
The project’s impact goes far beyond export revenues. Marín stated that about 50,000 jobs will be generated between direct, indirect, and induced in the next four years. And fiscally, the project promises to pay US$ 120 billion in taxes.
The head of YPF anticipated a sustained growth in exports, assuming international prices remain stable: it would go from US$ 10 billion in 2025 to US$ 20 billion in 2027. By 2028, it would reach US$ 30 billion, scaling to US$ 35 billion in 2029, and exceeding US$ 40 billion after 2030.
Marín was categorical: the entire energy industry is destined to be the “extraordinary primer” of the economy. In fact, for next year, they project that the sector will contribute foreign exchange figures similar to those of the agricultural sector.
