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Pampa Energía: US$1.6 Billion Investment in Vaca Muerta (2025-2026)
Pampa Energía, one of Argentina’s leading energy companies, has announced an investment of approximately US$1.6 billion between 2025 and 2026 to expand its production in Vaca Muerta, one of the world’s most significant unconventional hydrocarbon formations.
Investment Details and Objectives
The company, chaired by Marcelo Mindlin, is focusing a large part of this investment on the Rincón de Aranda block, located in the heart of Vaca Muerta’s shale oil window.
The goal is to increase current oil production in that block tenfold, reaching 45,000 barrels per day, with most of that output aimed at export markets.
For 2025, Pampa Energía plans to invest US$1.1 billion, almost doubling the previous year’s figure, and expects to maintain a high level of investment in 2026 to complete the expansion plan.
The company has already drilled 12 wells and expects to add another six in the short term, anticipating that the first PAD (group of wells) will begin production in early April 2025.
Infrastructure and Export
To transport the new production, Pampa Energía has already secured a connection to the Vaca Muerta Sur Pipeline, the country’s main oil infrastructure project, led by YPF.
In addition, key facilities are under construction, such as a temporary fluid treatment plant (TPF) and a permanent central processing facility (CPF), both essential for the initial and large-scale processing of the extracted crude.
Impact and Context
Pampa Energía is currently Argentina’s third-largest producer of unconventional gas and is seeking to diversify into oil, as gas currently accounts for 90% of its hydrocarbon output.
The company’s growth in Vaca Muerta comes amid record production levels and a solid financial position, with EBITDA up 19% year-on-year and a significant reduction in net debt.
Pampa Energía’s investment adds to a trend of increased spending in Vaca Muerta by other major companies, in a context where transportation infrastructure and macroeconomic stability remain challenges for fully developing the formation’s potential.
Pampa Energía is making a major bet on Vaca Muerta with a US$1.6 billion investment between 2025 and 2026, focused on multiplying oil production in the Rincón de Aranda block. The company is building infrastructure geared towards exports and pursuing a strategy to diversify its hydrocarbon portfolio.
Pampa Energía, one of Argentina’s leading energy companies, has announced an investment of approximately US$1.6 billion between 2025 and 2026 to expand its production in Vaca Muerta, one of the world’s most significant unconventional hydrocarbon formations.
Investment Details and Objectives
The company, chaired by Marcelo Mindlin, is focusing a large part of this investment on the Rincón de Aranda block, located in the heart of Vaca Muerta’s shale oil window.
The goal is to increase current oil production in that block tenfold, reaching 45,000 barrels per day, with most of that output aimed at export markets.
For 2025, Pampa Energía plans to invest US$1.1 billion, almost doubling the previous year’s figure, and expects to maintain a high level of investment in 2026 to complete the expansion plan.
The company has already drilled 12 wells and expects to add another six in the short term, anticipating that the first PAD (group of wells) will begin production in early April 2025.
Infrastructure and Export
To transport the new production, Pampa Energía has already secured a connection to the Vaca Muerta Sur Pipeline, the country’s main oil infrastructure project, led by YPF.
In addition, key facilities are under construction, such as a temporary fluid treatment plant (TPF) and a permanent central processing facility (CPF), both essential for the initial and large-scale processing of the extracted crude.
Impact and Context
Pampa Energía is currently Argentina’s third-largest producer of unconventional gas and is seeking to diversify into oil, as gas currently accounts for 90% of its hydrocarbon output.
The company’s growth in Vaca Muerta comes amid record production levels and a solid financial position, with EBITDA up 19% year-on-year and a significant reduction in net debt.
Pampa Energía’s investment adds to a trend of increased spending in Vaca Muerta by other major companies, in a context where transportation infrastructure and macroeconomic stability remain challenges for fully developing the formation’s potential.
Pampa Energía is making a major bet on Vaca Muerta with a US$1.6 billion investment between 2025 and 2026, focused on multiplying oil production in the Rincón de Aranda block. The company is building infrastructure geared towards exports and pursuing a strategy to diversify its hydrocarbon portfolio.
