(World Oil) — YPF has submitted a new application under Argentina’s Large Investment Incentive Regime (RIGI) for its LLL Oil development, a proposed $25-billion project aimed at accelerating large-scale oil exports from Vaca Muerta.
The company said the project represents the largest oil export initiative currently proposed in Argentina and the biggest investment submitted under the RIGI framework to date.
The development plan, which will be operated entirely by YPF, includes the drilling of 1,152 wells over the next 15 years and is expected to reach a production plateau of approximately 240,000 bopd beginning in 2032.
According to YPF, all crude oil produced from the project will be directed to export markets and transported through the VMOS export system, while associated natural gas volumes will be supplied to Argentina’s domestic market.
The company estimates the project could generate roughly $6 billion in annual exports by 2032 and support approximately 6,000 direct jobs during the development phase.
YPF said the project is designed as an integrated development across geographically contiguous acreage positions in Vaca Muerta, allowing the company to share surface infrastructure, drilling rigs, hydraulic fracturing spreads and logistics systems tied to water and sand supply.
The company added that the integrated approach is intended to improve operational efficiency, reduce development costs and accelerate the monetization of Vaca Muerta’s unconventional resource base.
Argentina’s RIGI program was established to encourage large-scale investments through tax, customs and foreign exchange incentives. YPF said the framework is expected to play a key role in enabling projects of this scale and supporting continued export growth from Vaca Muerta.
